Does BT have greater turnaround potential than Imperial Brands, Rolls-Royce and Royal Mail?

The prospects for the BT Group (LON:BT.A) share price could be relatively uncertain in my view. The telecoms company’s shares have slipped to less 170p in recent weeks, with them having been on a downward trend over recent months.

Investors seem to be concerned about the future prospects for the business under a relatively new CEO. This is not a major surprise to my mind, since the company has been struggling to post profit growth in recent years despite significant investment in areas such as mobile and sports rights.

Therefore, I’d rather wait for confirmation from the company that its financial prospects are improving before taking a more bullish stance on its outlook. It wouldn’t surprise me if, in the short run, the BT share price comes under further pressure.

Recovery stocks

Another stock that has experienced a challenging recent past is Imperial Brands PLC (LON:IMB). Investor sentiment seems to have weakened due to volume falls across the global tobacco market. While this may cause challenges for Imperial Brands, its growth potential in e-cigarettes means that I’m optimistic about its potential to deliver a successful share price recovery.

I’m also upbeat about the outlook for Rolls-Royce Holding PLC (LON:RR). I think the company’s plans to reduce headcount and improve its efficiency could strengthen its financial prospects. Meanwhile, the investment it is making in civil aerospace could increase the size of its potential customer base in an era where demand for new planes is expected to remain high.

Royal Mail PLC (LON:RMG), meanwhile, faces a difficult future to my mind. A continued slowdown in its UK letters division may mean that its financial performance remains weak in the near term. But with Royal Mail’s international growth potential being high to my mind, I think that it could post improving share price performance in the long run.

Investment appeal

While I would rather wait for more news from BT regarding its strategy and financial outlook before becoming more optimistic about its future, I think that Rolls-Royce and Imperial Brands could deliver improving share price performances. Both companies appear to have sound strategies to my mind which could feed through into higher valuations over the long run.