Economy

Top FTSE 100 shares to watch next week: Vodafone, Rolls-Royce, Taylor Wimpey

London Stock Exchange

The FTSE 100 Index has reversed sharply over the past few days, falling from a high of 10,945 on Thursday to its current level of 10,583. The retreat coincided with a broader pullback in global markets, with the Dow Jones and the Nasdaq 100 each falling by more than 5%. This article looks at some of the top Footsie stocks to watch next week.

Rolls-Royce Holdings

Rolls-Royce Holdings stock has been in a strong sell-off in the past few months, moving from a high of 1,586p in August to the current 1,241p. This sell-off continued after its top competitors, including companies like GE Aerospace and Safran, published their earnings.

It also continued after Houthis launched major attacks against a major airport in Saudi Arabia, which was notable as the company serves several airlines that use the airport. The stock also dropped as jet fuel prices rose amid the ongoing 

The company will be in the spotlight as it publishes its trading statement, which will provide more insights into its business. Most notably, the company will provide more details on whether its business is on track to hits its annual targets. 

The management has set aside targets like its operating profit rising between £4.7 billion and £4.9 billion. The full-year free cash flow is expected to be between £3.8 billion and £4 billion. As such, the stock will likely rebound if it publishes strong numbers and boosts its guidance. 

READ MORE: Morningstar analyst sees Rolls-Royce stock jumping to 1,520p: will it?

Vodafone

Vodafone, one of the biggest companies in the telecommunications industry, has come under pressure in the past few weeks. It has dropped from a high of 132.20p in September to the current 115p.

The stock has slumped as other global telecom companies, after Elon Musk’s SpaceX acquired spectrum in the United States. The company aims to challenge top telecom giants like AT&T and Verizon.

As a result, analysts believe that SpaceX will do the same in countries where Vodafone operates. Vodafone stock will be in the spotlight will be in the spotlight as it publishes its financial results. 

The most recent numbers showed that its revenue rose by 9.7% in the previous quarter to €10.3 billion, driven by its strong service revenue and its Three UK business. The upcoming results will provide more details about its business and its profit growth.

Taylor Wimpey

Taylor Wimpey, a top UK housebuilder, has dropped sharply in the past few months. It remains 30% below its highest point this year. 

The decline happened as the industry faces several challenges, including the rising interest rates and inflation. The Bank of England(BoE) delivered another rate hike to counter the elevated consumer and producer inflation.

Recently, however, the stock has rebounded as investors reacted to the decision of the government started Your First Home program, which is enabling first-time homebuyers to buy homes. Analysts expect the program to lead to more home sales in the country.

The other top FTSE 100 stocks to watch next week will be Endeavour Mining, United Utilities, Burberry, 3i Group, and Land Securities Group.

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