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Next month’s set to be crucial for a number of UK shares. And that can bring opportunities for investors who are watching out for them.
Artificial intelligence (AI) is likely to be the theme that continues to dominate the headlines, but beneath the surface, there are some really interesting stories worth paying attention to.
Rolls-Royce: Q3 trading update
Rolls-Royce (LSE:RR) has been the FTSE 100 success story of the last few years, and the firm’s set to report its Q3 trading update on 13 November.
There are clear reasons for investors to be positive. The latest data suggests that aircraft utilisation rates are still strong and higher defence spending should give the firm a boost.
The risk is that shocks can come out of nowhere. Whether it’s an Icelandic ash cloud or a global pandemic, investors should note things can turn around suddenly and dramatically.
This can’t be ruled out. But in terms of the November update, I’m have high expectations for Rolls-Royce and I think long-term investors should consider putting it on their Buy lists.
WH Smith: accounting update
In the FTSE 250, WH Smith‘s (LSE:SMWH) also set to report earnings on 12 November. But that’s (probably) not going to be the main story with the stock in the next month.
The company’s expected to update investors on the results of the independent investigation into its accounting irregularities that were reported earlier this year. And this could be huge.
So far, the mistakes appear to be confined to one part of the business. If that proves to be the case, then the stock falling 36% in a day could well turn out to have been an overreaction.
It’s impossible to tell though, what the outcome’s likely to be. So my plan as a shareholder is to sit tight, cross everything, and wait to see what happens with the WH Smith update.
The Budget
The UK Autumn Budget is the biggest scheduled news event for the UK stock market in November. And Lloyds Banking Group (LSE:LLOY) might be one to keep an eye on in the run-up.
There’s speculation about a windfall tax on banks, which have benefitted from higher interest rates over the last few years. But I’m not convinced this is on the cards.
While the Chancellor does need to find a way to raise cash, last year’s moves have proved unpopular with businesses. So I expect the focus to be elsewhere in the economy.
If I’m right, Lloyds and its shareholders might be major beneficiaries over time. I’m looking at other opportunities right now, but this is a key theme to watch as the month progresses.
Exciting times
Developments in AI is important, but it isn’t the only theme worth looking at right now. There’s a whole stock market of companies that investors should keep an eye on for specific opportunities.
Rolls-Royce, WH Smith, and Lloyds Banking Group could all be volatile in November, for various reasons. And investors should look to make sure they’re prepared for whatever comes.
