What lies in store for the Centrica share price?
Economic uncertainty remains a major concern in many industry sectors. For investors in well known companies like Centrica (LON:CNA), the question is: where will prices go from here?
Centrica is part of an elite club of UK shares which all have market capitalisations in excess of £1 billion. The stock is currently valued at £4,920m.
This special group of large-caps has a powerful presence in the investment funds and pension portfolios of millions of savers. So their performance is closely watched.
Over the past 12 months, the Centrica share price has seen an absolute move of 59.0%.
Bearing in mind that economic turmoil has affected some sectors worse than others, it’s also worth thinking about that performance in the context of the overall market.
On a relative basis, shares in Centrica have moved by 53.4% over the past year and by 20.4% over the past six months.
But what now?
Do analysts rate it as a buy, sell or hold?
Regardless of recent performance, the main question for investors is what the future holds. In uncertain economic conditions, it's often difficult to get an accurate view. The good news is that analysts generally understand the market's biggest businesses better than most, so they are well-placed to make predictions. That shows up in their Buy, Hold and Sell recommendations.
Among the analysts covering Centrica, there are currently:
- 3 Buy recommendations
- 5 Hold recommendations
- 1 Sell recommendations
With this kind of information, it's possible to start forming a view about the outlook for any share. A combination of recent price performance and analyst recommendations gives you a flavour of whether the market is expecting a bright future - or whether there are causes for concern.
What does this mean for potential investors?
Centrica is one of the most closely watched shares in the market. But while price trends and broker recommendations can give you an idea about the sentiment around a stock, they can't tell you everything.
To get a better understanding of the overall investment case, it's worth doing some investigation yourself. Indeed, we've identified some areas of concern with Centrica that you can find out about here.
Stockopedia helps individual investors make confident, profitable choices in the stock market. Our StockRank and factor investing toolbox unlocks institutional-quality insights into thousands of global stocks. Voted “Best Investment Research Tools” and “Best Research Service” at the 2021 UK Investor Magazine awards.