The price of cryptocurrency Bitcoin has rocketed towards 2019 highs this week as it continues its resurgence following a calamitous 2018 in which it lost more than 70% of its value.
Investors are weighing up whether the surge can continue after it reached over $12,300 on Wednesday, meaning it has climbed $3,000 over the last week alone.
While some analysts have suggested that this recovery represents a more sustainable rise in the coin’s real value, I’d still stay well clear in favour of a more dependable investment.
As I have argued before, the lack of regulation and volatility that comes as part of it means it’s unlikely to ever be a safe investment, regardless of your appetite for risk.
Stocks and shares from the UK’s FTSE 100 index make up some of the most well-established and reputable companies in the world, and I’d back the majority of them to outperform Bitcoin in the long run.
Under a new management team led by chief executive Mark Read, WPP has quietly gone about its business and looks set to seal a deal for the sale of its market research group Kantar to Bain Capital.
The agreement is expected to value the business at around $4bn, which is to be used to fund further restructuring of the diversified group.
WPP reiterated its full-year guidance in its quarterly earnings report in June, and said it expected to bring organic growth in line with its peers by the end of 2021.
After a rough ride in 2018 which saw the departure of former chief executive Martin Sorrell and increasing headwinds as advertising spend continues to shift to online, the shares have recovered more than 11% year-to date and I still see value at 960p.
Considering WPP’s dividend yield is currently at 6.27% and its P/E ratio is well under seven, that appears to offer plenty of value in the long run.
Love is in the air
Shares in broadcaster ITV have also ran into difficulty of late, seeing their value decline 38% in the last 12 months, but I have reason to believe that that trend may have bottomed out.
Viewing figures have been showing signs of recovery, not least in part due to the success of the popular Love Island series and earnings appear to be levelling out as well.
With a current dividend yield of 7.35% there is plenty to be said for ITV as a dividend stock, and add to that a P/E ratio of seven I see the stock as a bargain buy at the moment.
One cannot ignore past underperformance however, and some caution must be exercised around a company which saw revenue falling by 4% last year.
Continued growth in its ITV Studios division remains an area of strength for the company, and a 22% rise in revenue from on-demand video is a market where I believe it can and will invest further.
All in all, I see more potential upside for ITV as it negotiates these cyclical difficulties, as long as it can continue to uphold current dividend levels.
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Conor Coyle has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.