Surge in August 2023 IG Shares: Spotlight on EasyJet, JD Wetherspoon, and Barclays

As we enter August 2023, the atmosphere within the UK's financial sector has a hopeful glimmer to it. Recent months have seen the nation grapple with an unforgiving cost of living crisis, primarily triggered by obstinately high core inflation rates. However, a sudden turn of events shows an easing in the inflation surge, dropping to 7.9% in June, from a significant 11% last October.

DeAnne Julius, a former member of the Monetary Policy Committee, suggests in the Financial Times that the Bank of England may further augment its rate. However, according to Julius, the newest figures confidently put inflation on a downward track. The easing prices are a clear sign of a potential soft landing, diminishing the fears of an impending recession. This may yet bring a period of continued rise in mortgage rates.

In this dynamic market environment, many investors are seeking the best cheap shares to buy this summer. In this article, we present three companies whose shares are attracting attention: EasyJet, JD Wetherspoon, and Barclays.

EasyJet's Profitable Flight

Low-cost airline EasyJet is basking in the glow of an impressive third-quarter trading update. Their profit before tax hit a new record of £203 million, while the revenue per seat (RPS) soared by 23% during the same period. Remarkably, fuel costs per seat slipped by 2%, adding another feather in EasyJet's cap.

Furthermore, the company forecasts strong profits for the summer season, despite air traffic control issues. This confidence also extends to the fourth quarter, where they expect to post another record profit before tax.

Johan Lundgren, EasyJet's CEO, announced, “We continue to see good momentum as we move into Q4 where we will be operating over 160,000 flights and expect to deliver another record PBT performance.”

Despite a 40% surge in air traffic control strikes compared to last year and the loss of 20% of European airspace due to the Ukraine conflict, EasyJet shares have climbed 20% this year, standing at 450p. While they haven't reached their five-year peak of 820.7p from July 2021, the growth prospects make them a worthwhile investment.

JD Wetherspoon - A Pint of Recovery？

The energy price crisis that occurred last autumn deeply impacted the pub sector. However, JD Wetherspoon, the low-cost pub chain, is displaying signs of a comeback, revealing a sales rise of over 10%.

JD Wetherspoon seems to be benefiting from individuals seeking affordable eating-out options. Their year-to-date sales have seen an increase of 7.4% compared to the same period last year. Despite inflation and living cost concerns, Wetherspoons shares are up 25% this year at 679p, yet still have room to grow towards their May 2021 high of 1,414p.

Barclays - A Safe Bet？

Finally, we turn our attention to Barclays. Despite suffering last year due to significant legal bills and penalties, Barclays first-quarter trading statement was positive. The banking group recorded a group income increase of 11% from the same period last year, at £7.2 billion. Moreover, Barclays' shares, up 3% this year, are priced attractively with a dividend yield of 4% and a price-earnings ratio of 5.

They remain below their five-year high of 203.89p in October 2021, but optimistic forecasts from Berenberg Bank and broker Jefferies suggest they could reach 270p and 320p, respectively.

As the dynamics of August 2023 unfold, IG shares of these companies present compelling opportunities for investors. Stay updated with the latest news and financial trends by downloading the WikiFX App here: https://www.wikifx.com/en/download.html

Remember that past performance is not a guarantee of future results, and it's always wise to do your research before making any investment decisions.