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Top FTSE 100 shares to watch next week: IAG, BT Group, National Grid, Diageo

Invezz
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The FTSE 100 Index has held steady in the past few days, moving from a low of 10,632 on October 28 to the current 10,763 points. It rose after the UK government read its budget and after some top companies like Lloyds Bank, HSBC, NatWest, Standard Chartered, and BP published their earnings. 

IAG 

IAG, the parent company of British Airways, Aer Lingus, and LEVEL, will be in the spotlight next week for two main reasons. The first key catalyst will be its financial results that will come out on Friday. These results will provide more information about its business as jet fuel prices rise.

IATA data shows that the weekly average stands at $196, up by 6.6% from a month earlier. It has jumped by 118.5%. As a result, there is a likelihood that the upcoming results will show that its revenue rose in the third quarter as the company hiked prices. However, chances are that its profit softened, in line with what other airlines like Delta and United Airlines.

The other catalyst for the IAG stock is the upcoming US midterm elections, in which Republicans are expected to lose. Odds are that President Donald Trump will restart his war with Iran, which will boost oil prices. Iran has also warned that it may attack civilian infrastructure like airports in the Middle East, a move that will impact IAG and other airlines.

BT Group

BT Group stock has come in the spotlight in the past few weeks. The stock initially dropped after SpaceX acquired a low-orbital spectrum in the US, a move that will see Starlink compete with companies like AT&T and T-Mobile. Investors believe that SpaceX will do the same thing in the UK, affecting BT Group and other companies. 

BT stock is also rising after the FT reported that Virgin Media O2 will start using its Openreach network to cover areas not covered by its existing network. Such a move would benefit BT Group as it will earn fees. 

BT Group will also react to the upcoming half-year results, which will provide more color on its business. The average estimate is that is revenue dropped by 1% to £4.31 billion, with its UK service revenue falling by 1.2% to £3.8 billion.

Diageo

Diageo, one of the top alcoholic beverage companies in the world, has been bouncing back in the past few months. It rose from a low of 72.52p in April to the current 91.3p. 

The stock jumped as investors reacted to the $1 billion cost-cutting program that will happen between 2027 and 2028. The program happened after the company’s sales for the three months to June fell by 2% to $19.6 billion. Its adjusted profit rose by 2% to $5.7 billion because of cost savings. 

Therefore, the upcoming earnings report will provide more information on its cost-cutting program. They will also provide hints on its growth as alcohol consumption falls globally. 

National Grid

National Grid stock has been in a recovery mood, rising from a low of 1,096p in September to the current 1,252p. This rally will also be put to the test as the company publishes its financial results, which will provide hints on what to expect. 

Analysts expect the company’s UK electricity transmission revenue to move to £1.198 billion. Its UK electricity distribution and US regulated businesses to make £591 million and £776 million, respectively.

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