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Several FTSE 100 and FTSE 250 shares are due to release fresh trading updates in the coming weeks. I’ve been scouring the financial calendar to see which of these companies could potentially soar in value in October.
Three in particular have caught my attention:
Here’s why I think these FTSE stocks might take off and are worth further research.
The right medicine
Pharma giant GSK has beaten market expectations with recent trading numbers. On 28 July it announced revenues of £8.4bn in the first half, beating an estimated £8.4bn and validating its decision to double down on growth areas like speciality medicines and oncology.
Sales in these areas leapt 14% and 17% between January and June. With streamlining also bolstering margins, the FTSE 100 company surpassed earnings forecasts too for the first half. I’m expecting more good news when GSK releases Q3 trading data on 28 October.
GSK plans to accelerate its drugs pipeline, and is targeting 20+ late-stage tests in 2026 alone. This could lay the foundation for strong future sales. Be mindful that any testing setbacks could disrupt the firm’s revenues targets, however.
Breath of fresh air
Volution Group manufactures energy-efficient ventilation systems that it sells across the UK, Europe and Australia. It faces near-term pressures as inflationary pressures impact its end markets. Sales to the British housebuilding sector are in particular danger today.
Yet the FTSE 250 company has proved resilient so far. In fact, in its last update (23 July) the company announced “another strong year of progress” in the 12 months to July. It upgraded full-year forecasts, predicting earnings that’ll be 4% ahead of forecasts when numbers are released on 8 October.
There’s a good chance Volution will impress the market again, in my view. Tightening building regulations around energy usage and air quality provides an ongoing sales catalyst. And the company’s disciplined grip on costs should help it defend its record margins and therefore profitability.
Bank on it
HSBC’s scheduled to release its own Q3 results on 27 October. I think it could once again impress investors as its Asian markets rebound, turbocharging growth for its wealth management operations.
The bank’s half-year update (4 August) showed pre-tax profits at $19.5bn, beating forecasts by roughly $600m. Its wealth unit is thriving as the number of high-net-worth individuals soars. HSBC is also benefitting from favourable interest rates, and it raised its net interest income (NII) estimates for the full year.
I think another NII-related upgrade could be around the corner, as central banks across Asia are likely to hike interest rates to cool inflationary pressures. Chinese inflation hit 0.8% in August, up from 0.5% the prior month.
On the downside, HSBC’s core markets are particularly vulnerable to economic fallout from the Iran conflict. Still, on balance I’m expecting another strong update from the FTSE 100 share next month
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Royston Wild owns shares in HSBC.
This story originally appeared on Motley Fool
