IAG Group, Glencore & ITV: Should you buy these FTSE 100 stocks now?

Highlights

  • The blue-chip index FTSE100 is up by 1.03% on Monday morning, covering some lost ground after a major fall witnessed on Friday.
  • The new Coronavirus variant, Omicron, has created a shock wave resulting in fear and anxiety amongst investors.

The blue-chip index FTSE100 was up by 1.03% on Monday morning, covering some lost ground after a sharp fall on Friday when the stock market worldwide reacted adversely to the rising cases of the new variant of the Covid-19 virus. The new variant, Omicron, has created a shock wave resulting in fear and anxiety amongst investors. As a result, many blue-chip stocks like IAG Group, Glencore, ITV Plc witnessed a sell-off from investors.

The stock market correction was across the board, including the FTSE100 index, which is generally considered a more dependable index as it constituents top 100 companies by market cap.

Stock in Focus

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Let us look at 3 FTSE 100 listed stocks that that despite the concern, are impacted:

International Consolidated Airlines Group (LON: IAG)

The company operates passenger and cargo services in the UK, Europe, and the US. It manages multiple airlines brands like British Airways, Iberia and many others that are part of the group.

The airlines reported improvement in the passenger traffic to 43.4% of 2019 capacity in the nine months to 30 September 2021. Also, the company expects capacity to improve further to 60% in the last quarter of 2021. However, the new variant of Covid-19, which is highly transmissible, might hamper the recovery of the airlines. The UK government has already put ten countries on the red list, and many European countries are planning to do the same. Fresh travel restrictions ahead of the Christmas festivals will hamper the passenger traffic and impact the company’s revenue and profitability.

IAG Group currently trades at GBX 137.78, up by 4.86% on 29 November 2021 at 10:20 am GMT+1, with a market cap of £6,518.7 million.

Glencore Plc (LON: GLEN)

The company is into the exploration and production of industrial and precious metals through its portfolio of over 150 mining sites located worldwide. It is one of the largest diversified metal and mining companies that produce over 90 commodities.

The company has been reporting fantastic growth in terms of revenue and profitability due to the consistent rise in the commodities prices in the international market following the economic recovery after the Covid-19 pandemic. The company reported a 32% growth in revenue at USD 93,805 million in the first half of 2021. Moreover, the business growth is anticipated to continue amid high demand for metals and a steady rise in metal prices in the international market.

Glencore Plc currently trades at GBX 357.80, up by 1.65% on 29 November 2021 at 10:20 am GMT+1, with a market cap of £46,556 million.

ITV Plc (LON: ITV)

The company operates in the media industry offering its content across various platforms. It manages free to air channels and digital platform and broadcast its content on these channels.

The company reported excellent growth in the first nine months of 2021, posting a 22% growth in average monthly active users to 9.6 million. As a result, its total revenue grew by 28% to £2787 million during the period. One of the key business segments, the advertising revenue, reported a 30% growth at £1,355 million. However, the advertising business and economic recovery are closely linked. During the lockdown period, most companies had cut down their marketing and advertising budget to save costs resulting in lower revenues for the broadcaster like ITV Plc.

ITV Plc currently trades at GBX 110.25, up by 1.52% on 29 November 2021 at 10:20 am GMT+1, with a market cap of £4,371.5 million.

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