International markets surged this week as fears of an impending US recession have been quashed. With the danger ambiance now feeling considerably calmer, I’m revisiting some FTSE 100 shares I’ve been hesitant to purchase.

GSK

I’ve been hemming and hawing about shopping for GSK (LSE: GSK) for therefore lengthy now it’s turn out to be an inside joke with myself. I’ll most likely be within the 50-59 age bracket that its Arexvy vaccine was lately authorised for earlier than I lastly purchase!

It’s one of many few FTSE 100 mega-caps which have managed to elude my profile to this point. However its latest Q2 outcomes positioned it firmly again in my crosshairs.

A 31 July report revealed gross sales up 13%, a 5.2% enchancment on analysts expectations. Subsequently, core working revenue rose 18% with earnings per share (EPS) up 13%. Future return on fairness (ROE) is now forecast to be 39% in three years. 

A promising possibility — however one urgent concern may derail the progress.

GSK’s Zantac drug stays the goal of a number of thousand US lawsuits alleging a hyperlink to most cancers. Regardless of one Illinois jury ruling the drug not accountable in a particular case, remaining trials in different states may drag on for years. Ought to or not it’s discovered accountable, compensation payouts may value the corporate dearly within the brief time period.

Nonetheless, I believe it’ll make a very good long-term funding in my portfolio. So I plan to lastly purchase the inventory subsequent week.

Entain

On the opposite finish of the dimensions is Entain (LSE: ENT), one of many smallest-cap shares on the index. It hasn’t been on my radar so long as GSK however caught my consideration throughout the latest Euros soccer event. Because the guardian firm of Ladbrokes, it’s no shock the elevated betting exercise boosted its income.

It additionally lately posted interim outcomes for the primary half of the 12 months, with stronger-than-expected win margins for the Euros. Revenues rose 6% with underlying money revenue (EBITDA) up 5%. The share price rose 9% on the day of the announcement.

The sports activities betting and playing firm has had a tricky few years. Since September 2021, the shares are down over 70%. A swathe of acquisitions made below ex-CEO Jette Nygaard-Andersen didn’t assist its fortunes and left the agency with £3.7bn in debt. Inflation-weary customers with tight wallets most likely added to the woes.

Now on the mend, may the corporate be on monitor to profit from a bolstered financial system? The looming risk of a recession has actually had me shrink back from extreme spending this 12 months. If we actually are within the clear, a number of small wagers couldn’t harm, proper?

Nevertheless, recession or not, Entain nonetheless faces challenges. Falling income imply it lately turned unprofitable, with destructive earnings per share (EPS). Regardless of this, it was assured sufficient to boost Q2 dividends to 9.3p from 8.9p. If that guess doesn’t repay, it could have to chop them once more — a nasty look. 

Furthermore, the corporate continues to be on the lookout for a brand new everlasting CEO – which provides me pause.

Though this low price level is engaging, I’ll wait till administration is extra stabilised earlier than deciding whether or not to purchase the shares.