FTSE 100 shares to watch: Lloyds, Barclays, IAG, NatWest, GSK, AstraZeneca

The FTSE 100 Index was little changed this week as investors assessed the escalating UK-Iran crisis, the ongoing US earnings season, and a series of key UK economic releases. Market participants digested the latest jobs, inflation, and retail sales data for July, all of which could influence the Bank of England's next policy decision. 

This article highlights some of the top FTSE 100 stocks to watch next week, including Lloyds Bank, Barclays, NatWest, Unilever, Standard Chartered, GSK, London Stock Exchange Group (LSEG), IAG, British American Tobacco, and AstraZeneca.

Barclays, Lloyds Bank, NatWest, and Standard Chartered

Top UK banks have done well this year, with emerging-markets-focused ones like Standard Chartered and HSBC being the best gainers after rising by 15% and 28%, respectively. Lloyds, Barclays, and NatWest have jumped by 13%, 8.3%, and 2%, respectively, this year.

These gains will be put to the test next week as they publish their financial results. Barclays will go first on Tuesday, followed by Standard Chartered on Wednesday. Lloyds and NatWest will release the numbers on Thursday and Friday, respectively.

Expectations are that these banks did well in the last quarter, helped by the elevated interest rates and muted delinquencies. Most of their peers like Goldman Sachs, Unicredit, BNP Paribas, and Morgan Stanley, released strong numbers recently.

Barclays' numbers will be the most watched because of its business model. In addition to operating a retail bank, it is one of the top players in the trading and investment banking industry. As a result, it is benefiting from the ongoing trends in M&A, IPOs, and debt. 

These banks will also react to the upcoming Bank of England interest rate decision on Thursday.

British American Tobacco

British American Tobacco, one of the largest players in the industry, has slipped by nearly 10% from its highest level this year. This retreat accelerated after the company announced that it would lay off 9,000 employees in its pivot towards artificial intelligence tools. 

5,500 of these jobs will be direct ones, while 3,500 will be in third-party firms like Accenture. It expects that these layoffs will save it $798 million by 2028.

The most recent trading statement showed that its combustibles business was doing well, led by the United States, Brazil, and Turkey. Velo’s volume rose by 5.7 points, while Vuse continued to gain market share. The upcoming results will provide more information about its performance and what to expect in the second half of the year as the volume of traditional cigarettes drop.

AstraZeneca and GSK

UK pharmaceutical stocks like AstraZeneca and GlaxoSmithKline have underperformed the market this year. AZN dropped by 7.5% this year, and is up by 21% in the last 12 months. GSK has risen by 4.24% this year and 40% in the last 12 months.

These companies will release their numbers next week. AstraZeneca will publish on Monday, while GSK will release its report a day after that. For Astra, these numbers come a few days after the company received a EU approval for its breast cancer drug. 

The drug, Etcamah, has already received approvals in the United Arab Emirates (UAE), Japan, and Saudi Arabia, with the company waiting for a US review to conclude. 

Still, the company has suffered a major setback as Wainua, a rare disease drug, failed its trial in the third phase of trial. As a result, the company has little room for error as it aims to get to $30 billion in annual sales.

IAG

IAG, the parent company of British Airways and Aer Lingus, will be in the spotlight next week as the US-Iran war escalates and as it publishes its numbers. Its stock has plunged by 14% from its highest point this year as the war has pushed jet fuel prices higher. The upcoming numbers on Friday will provide more information on its business and the cost of fuel.

More FTSE 100 companies will publish their numbers next week. This includes popular names like Unilever, Haleon, London Stock Exchange, and Anglo American.