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The share prices of easyJet plc (LON:EZJ) (EZJ.L), Sirius Minerals PLC (LON:SXX) (SXX.L), Royal Mail PLC (LON:RMG) (RMG.L) and Vodafone Group plc (LON:VOD) (VOD.L) have experienced a challenging period so far in 2019.
easyJet’s share price, for instance, is down by 6% since the start of the year. Investors appear to be cautious about the outlook for the airline in what is a difficult wider industry, with weak consumer confidence weighing on the performance of a number of operators.
With the easyJet share price now having a PEG ratio of around 0.6, I think the stock could offer a large margin of safety. While further share prices falls could be ahead in the short run, I’m upbeat about its long-term recovery potential due to its balance sheet and strategy.
The Sirius Minerals share price has fallen by 28% since the start of the year. Investor sentiment seems to have come under pressure due in part to its financing activities, with the company raising money for its project from investors and through a debt issue. The wider mining sector has also been impacted in my view by fears surrounding the future prospects for the world economy.
Although it wouldn’t surprise me if there is continued share price volatility ahead for Sirius Minerals, I think it has a sound strategy which could lead to improving performance in the long run.
The Royal Mail share price is also down heavily in 2019, with it falling by 25% since the start of the year. Continued challenges in its letters division could hold back its performance in my view, with investor sentiment likely to remain weak in the near term in my opinion.
However, with Royal Mail investing in its international growth prospects, I think it could produce improving returns over future years. As well as this, its UK parcels division could act as a catalyst on its growth rate as online shopping becomes more popular.
Vodafone’s shares have moved 14% lower since the start of the year. Investor sentiment seems to be weak due in part to its changed dividend policy, as well as its financial outlook following significant investment in 5G and in acquisitions.
I think Vodafone’s plans to improve its business through partnerships and simplification could lead to stronger financial performance, but it may take time for its share price to deliver growth.
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