Are recoveries ahead for Lloyds Banking Group PLC, Royal Mail PLC, National Grid plc and Banco Santander SA?

The performances of shares in Lloyds Banking Group PLC (LON:LLOY) (LLOY.L), Royal Mail PLC (LON:RMG) (RMG.L), National Grid plc (LON:NG) (NG.L) and Banco Santander SA (LON:BNC) (BNC.L) has been disappointing in recent months.

The Lloyds share price, for instance, has fallen by over 8% in the last year. It wouldn’t surprise me if this situation persists in the short run, since the UK faces a period of economic and political change.

However, with Lloyds having reduced expenses, strengthened its balance sheet and it investing in digital growth, I feel that it is in a strong position to deliver a recovery over the long run. Its 6%+ dividend yield suggests to me that it may be undervalued at the moment.

Royal Mail is currently at the start of a period of further change in my view, with new management seeking to improve efficiency and growth.

In the UK, I think the company’s performance may continue to be mixed as declines in letters is offset to some extent by growing demand for parcel delivery. But with Royal Mail’s international operations offering growth potential to my mind, I feel that it could offer recovery potential over the long run. However, it may take time for it to be realised in the form of a higher share price.

Santander’s strategy appears to be sound in my view. The company is seeking to invest more heavily in digital opportunities, while also encouraging an increasingly loyal customer base.

Still, it remains an unpopular stock among investors. It has declined by 10% in the last year. As a result, Santander’s P/E ratio of 7 could suggest that it has recovery potential in my view.

National Grid’s financial prospects could be impacted by political risks. The potential for a Labour government that seeks to nationalise various industries may mean that investors look elsewhere for a reliable income over the near term.

As a result, I think there may be better income investing opportunities for me elsewhere in the FTSE 100. Still, with a track record of dividend growth that matches inflation, I think National Grid could still offer some income appeal.