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Is it too late to buy GlaxoSmithKline plc, Glencore plc and Royal Bank of Scotland Group plc?

Today I’m looking at the share price prospects of three FTSE 100 (INDEXFTSE: UKX) shooters.

Expect healthy returns

Medical ace GlaxoSmithKline (LSE: GSK) has taken off in the weeks following the EU referendum, the universal and evergreen nature of drugs demand making the firm a brilliant safe haven. Brentford’s drugs dynamo has seen its share price surge 20% since the vote. Still, I believe GlaxoSmithKline is a brilliant pick even at current prices.

Sure, a forward P/E rating of 17.7 times may nudge above the historical FTSE 100 average of 15 times.

But I reckon this still reflects great value given GlaxoSmithKline’s rejuvenated sales outlook — new product sales raced to £1.05bn during April-June, up from £821m in the prior quarter and £446m a year earlier. And the company has around 40 treatments in clinical trials to keep the top line moving higher.

And income seekers should be impressed by dividend yields — GlaxoSmithKline’s proposed 80p per share dividend through to the end of 2017 yields a peer-pasting 4.7%.

Commodities concern

Investors terrified by a severe downturn in the domestic economy have also flocked into commodities plays like Glencore (LSE: GLEN) in recent weeks.

The Swiss digger’s share value has gained 22% in value since the referendum. But I’m afraid to say I don’t share the market’s appetite for the Footsie’s energy and metals mammoths.

Latest Chinese customs data showed a decline in commodities imports during June, with demand for iron ore, copper and oil all dropping from the prior month. With global trade sagging and domestic consumption still failing to ignite despite continued intervention by the People’s Bank of China, I reckon inbound shipments should keep on flailing.

And Glencore’s huge P/E ratio of 37.5 times leaves plenty of room for a heavy retracement should critical demand indicators continue disappointing.

Banking problems

Financial colossus Royal Bank of Scotland (LSE: RBS) hasn’t fared as well since Britain’s decision to jettison itself from the EU. This is no surprise given its dependence on a healthy British retail banking sector, the fortunes of which are likely to suffer as recession looms.

Sure, the stock may have lost 25% from pre-referendum levels. But a huge bounce from July’s multi-year lows is unjustified, in my opinion — RBS is already struggling to generate healthy income levels following years of aggressive asset sales across the globe. And the firm’s half-year results scheduled for this Friday should illustrate its worrying revenues outlook once again.

RBS has already received a hefty dose of bad news this week. The Financial Conduct Authority announced it was extending its proposed cut-off date for new PPI-related claims by a year, to 2019. And European stress tests showed the bank’s CET1 capital ratio clock in at a meagre 8.1% under ‘adverse’ economic conditions.

I reckon a prospective P/E multiple of 17 times is far too high given the colossal hurdles RBS has to overcome to return to sustained earnings growth. I consequently expect the share to resume its downward momentum in the near future.

Be bold and buy!

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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.