Is Premier Oil more appealing than FTSE 250 peers Sirius Minerals, easyJet and Royal Mail?

The outlook for the share price of FTSE 250 company Premier Oil PLC (LON:PMO) may be relatively uncertain at the moment.

There are fears surrounding the outlook for the world economy, with an ongoing trade dispute between the US and China having the potential to cause a deterioration in investor sentiment.

This could mean the prospects for the oil price are relatively downbeat in the short run. As a result, it wouldn’t surprise me if the Premier Oil share price is relatively volatile in future months.

That said, with the company having a forward P/E in the mid-single digits and it adopting a sound strategy in terms of production growth and cost management according to my research, I think it could offer a bright long-term future.

FTSE 250 peers

Also facing a relatively uncertain future is FTSE 250 peer easyJet plc (LON:EZJ). Weak consumer confidence and oversupply in the airline market mean that a number of its peers have gone under.

easyJet, though, has been able to increase passenger numbers in recent quarters. It has also strengthened its position through M&A activity, while its relatively strong balance sheet could mean it is able to capitalise on difficulties experienced by sector peers.

Royal Mail PLC (LON:RMG) may also be able to generate improving returns in the long run to my mind. Its international operations are growing at a relatively fast pace, although in the near term its UK letters operations may hold back its overall financial performance.

Sirius Minerals PLC (LON:SXX) still has long-term growth potential in my view due to the prospect of rising demand for fertiliser as the food production sector comes under further pressure from population growth. However, uncertainty continues to surround the stock, and further volatility wouldn’t surprise me in the short run.

Growth potential

From a risk to reward perspective, I think that easyJet could offer long-term investment potential. Although I’m optimistic about the prospects for Royal Mail, Premier Oil and Sirius Minerals over an extended time period, I believe that easyJet may offer relative financial strength that allows it to capitalise on operational uncertainty over the medium term.