Are improving prospects ahead for BAE Systems plc, easyJet plc, Vodafone Group plc and Royal Mail PLC?

The outlook for shares in BAE Systems plc (LON:BA) (BA.L), easyJet plc (LON:EZJ) (EZJ.L), Vodafone Group plc (LON:VOD) (VOD.L) and Royal Mail PLC (LON:RMG) (RMG.L) seems to be uncertain at the moment in my opinion.

BAE, for instance, is experiencing a challenging future in my view. The FTSE 100 stock may be unable to fully service demand for its products from Saudi Arabia as a result of the geopolitical risks that the country faces. Since Saudi Arabia is one of the company’s key customers, this could weigh on its financial outlook and investor sentiment.

However, with the BAE share price having a P/E ratio of around 10, and the company set to benefit from an improving outlook for the wider defence sector, I’m optimistic about its long-term investment prospects.

easyJet’s share price performance has been disappointing over recent months. Fears surrounding the outlook for the wider airline sector seem to have weighed on investor sentiment.

While it wouldn’t surprise me if this trend continues in the near term, I think that easyJet has a sound strategy that could allow it to outperform many of its budget airline peers. Passenger numbers have grown in recent quarters, while I think it has a relatively sound balance sheet.

Vodafone’s new strategy could produce improving financial performance in my view. The company is seeking to simplify its business model, while also entering into partnerships in key growth markets.

While investor sentiment may remain weak in the short run due in part to the decision to rebase its dividend, I think Vodafone could enjoy an improving long-term financial outlook. However, it may take time for this to be shown in a higher share price.

Royal Mail’s recent updates have shown that its letters division looks set to act as a drag on its performance over the medium term. This could hold back investor sentiment in my opinion.

With growth potential within its international operations and also in its UK parcels segment, I think Royal Mail could offer long-term recovery potential. However, I wouldn’t be surprised if recent trends continue over future months with regard to investor sentiment.