My 3 biggest stock market predictions for March

Stock market forecasting is usually a mug’s game. But a lot of companies that I think are undervalued will report results in March. These three in particular have caught my eye.

Aviva

The insurer Aviva (LSE: AV.) will post its FY22 results on March 9. The company must announce a share buyback.

The Q3 update says: “Our dividend guidance remains unchanged and, as previously announced, we expect to begin additional capital returns to shareholders with 2022 results..”

A return can, alternatively, take the form of a special dividend. And that’s a fairly common way to deal with uncertain income in the insurance sector.

But the forecast makes the price-to-earnings (P / E) at nine nine for 2023. And that certainly makes Aviva Shares look too cheap for the Board to ignore. I expect quite a lot of buyback.

My prediction? Positive results will fail to lift Aviva’s share price, as there is currently too much inertia holding back financial sector stocks. Prices may fall, and I expect Aviva to remain a bargain buy.

Vistry

We’re due for a full year of results Vistry Group (LSE: VTY), the housebuilder formerly known as Bovis Homes, on 22 March. I predict better than expected.

Vistry’s share price has recovered nicely since the October lows, gaining 55%. So some confidence has returned to the sector since last year’s gloomy sentiment took its toll.

Yes, mortgage rates are rising. Yes, property prices are falling. And yes, the entire housing market is under pressure. But there are two reasons why Vistry could report a better start to 2023 than expected.

One of them is that there is still demand from the year of Covid, when buying a new house was a distant dream. And the country still faces a chronic, chronic housing shortage.

I could be wrong about 2023. But I still rate housebuilders among the best long-term investments in the Footsie.

Synthomer

I predict further stock price weakness for Synthomer (LSE: SYNT) on March 28 when it posted its full-year results.

The stock has fallen more than 50% since last May. This is actually because “reduced demand in the construction end market and Synthomer coatings“as the company said in its December update.

Debt is also rising, although the company recently confirmed a $262m disposal of its laminate, film and coated fabric business.

What do I expect from the results? Hopefully more clarity on corporate banking agreements, with sufficient liquidity. And I think we will get it.

I see Synthomer as a potential long-term recovery buy. But I was afraid of getting sick first.

Verdict

Please don’t take my predictions seriously, as this is really just speculation. I also haven’t properly researched the risks of these three, which potential investors should be aware of.

However, I can’t help but think that I will buy all three of these now, and continue for the long term.