It’s not often that you hear about a company’s share price being upgraded and a boost being granted, but that’s exactly what has happened with British armaments company BAE Systems. With news of the upgrade from Goldman Sachs, the company’s shares rose to a 14-year high, bringing a nice surprise to investors and shareholders of the FTSE 100. Unfortunately, not all companies were able to experience a boost as fashion retailer Burberry took a hit, leaving it down nearly 6%.
1. BAe Systems Boosted by Upgrade
The UK-based defense, aerospace, and security company BAe Systems recently got a major boost when analysts from several of the world’s largest investment firms issued upgrades on the company’s stock. These upgrades provided confidence in the company and showed optimism in the its near-term and long-term future.
In their reports, the analysts all noted BAe Systems’ significant investments in leading-edge products, technology, and services, which highlighted the company’s diversified business model. They also highlighted BAe System’s excellent balance sheet, which positions the company to sustain and withstand further market volatility. Lastly, the analysts noted the company’s strong position in the defense market, which will be a driver of ongoing earnings.
- Analysts released upgrades on BAe Systems’ stock
- Diversified business model across leading-edge products, technology, and services
- Excellent balance sheet well-positioned to sustain market volatility
- Strong position in defense market a driver of ongoing earnings
2. Burberry Shares Fall Despite Positive Outlook
Burberry, the iconic and well-loved British luxury fashion retailer, has seen a dramatic drop in its share prices over the past few months despite its outwardly positive outlook. Here’s what you need to know:
- The London Stock Exchange saw a 7% drop in the brand’s share prices last month.
- Recent reports have attributed the fall to waning customer demand in Asia.
- Burberry CEO Marco Gobbetti remains optimistic, pointing to strong results in the retail category and the success of its new product lines.
However, analysts have indicated that the increasing competition from street-style clothing trends in China and Japan could have an impact on the success of the luxury brand. Gobbetti has alleged that upcoming investments into the Burberry “Re Burberry” campaign will help to cement the retailer’s place in the fashion landscape and secure their future in the changing marketplace.
3. Key Insights from FTSE 100 Movers
There is plenty to note in the FTSE 100 movers. A look at this index of the top-performing companies in the UK can provide some useful insights. Here are three highlights from the FTSE 100 movers.
- Positive Momentum: Several FTSE 100 companies have seen positive momentum this year, indicating a strong foundation for Uk businesses. Companies like Royal Dutch Shell and HSBC Holdings have enjoyed strong share price hikes.
- Energy Price Rise: FTSE Energy companies have seen their share prices rise in line with the increasing energy prices in the UK. This indicates that these companies are well-positioned to benefit from energy price rises.
- Blue Chip Success: FTSE 100 blue chips, such as British American Tobacco and Whitbread, have seen long-term success. This is due to their ability to capture previously untapped markets and maintain a presence in difficult times.
Overall, the FTSE 100 is performing well, and with the right strategies, companies in this index can achieve sustainable, long-term success.
4. What Lies Ahead for Investors?
Investors looking ahead into 2021 have plenty of reason to be wary. While the global economy was able to make a spectacular recovery following COVID-19, many experts are expecting a correction to take hold once again. The market will require diligence and close attention in order to reap any returns.
Ultimately, the best way to prepare for the coming year is to become better informed. Those with portfolios should take the time to read up on their investments, as well as research up-and-coming companies and sectors. Don’t be afraid to diversify, either – there are plenty of lucrative opportunities, from overseas businesses to emerging technology. With the pandemic prompting shifts in consumer behavior, a well-rounded portfolio could pay off when it comes to 2021.
- Stay informed: Do your research and watch the markets carefully.
- Diversify: Explore different options, from overseas to emerging technologies.
- Focus on quality: Stick to reliable investments when possible.
The ever-shifting FTSE 100 gives investors plenty to think about, and no two days are the same. Today the markets saw BAE Systems enjoy some relief from an upgrade, while Burberry took a terrifying tumble. The story of thisfootsie rollercoaster is ongoing, and it’ll be fascinating to see where it takes us next.
