The FTSE 100 fell 1.31% on Friday due to concerns over a potential US meltdown. As a result, two stocks on the writer's 'buy' list, Ashtead Group and Intermediate Capital Group, experienced larger declines. Ashtead Group's share price fell 5.42% and Intermediate Capital Group's share price dropped 7.13%. Despite these declines, both stocks have shown significant growth in the past. Ashtead Group has delivered a total return of 45,532% over the past 20 years, while Intermediate Capital Group has delivered a total return of 915.1% over the last decade. The writer believes that recent stock market volatility presents an opportunity to buy these stocks at reduced prices [474c06a9].
PageGroup plc, a recruitment consultancy company, has experienced a double-digit share price rise of over 10% in the past couple of months [967d7d44]. Despite this increase, the stock is currently trading at a lower price compared to the industry average, suggesting it may be a bargain. Although the company is expected to deliver relatively unexciting earnings growth, it is currently trading below the industry PE ratio, making it a potentially good time to increase holdings. The future profit outlook of the company is not fully reflected in the current share price, indicating that it may still be a good investment opportunity. However, it is important for investors to consider other factors, such as the strength of the company's balance sheet, before making any investment decisions [967d7d44].
On the other hand, Rightmove, the UK's largest online property portal, is identified as a potential growth stock [c561f279]. The company's shares have been fluctuating due to inflationary pressures and higher interest rates. However, the author of the article believes that if interest rates eventually come down, it could have a positive impact on the property market and Rightmove. Investors should consider the potential for returns and growth in the longer term [c561f279].
Ashtead, a construction equipment firm with a dominant market position in North America, is also identified as a potential growth stock [c561f279]. While the US economy has stalled in recent months, a recent infrastructure bill passed by the government could provide lucrative contracts for Ashtead in the future. The author of the article sees potential for returns and growth in the longer term [c561f279].
Black Friday deals are not always as they seem, and the same goes for the stock market. While many large companies and funds are trading at discounts, it's important to do thorough research before investing. One way to evaluate stocks is by comparing the share price to its historical average or to other similar companies. Another tool is the price earnings ratio (p/e ratio), which measures the company's share price relative to its net profit per share. Some stocks that appear cheap based on these measures include Barclays, Just Group, Energean, Drax, and two banks based in Georgia. Investment trusts, which are funds comprised of shares in multiple companies, can also be a good option. It's important to note that low valuations don't guarantee a good deal, as there may be underlying issues with the company or trust. Other factors to consider include analyst opinions, the company's exposure to certain markets, and the overall economic outlook. Some trusts that specialize in smaller UK companies may also be worth considering. Overall, thorough research is key to finding true bargains in the stock market.
Ashmore, an emerging markets investment group, is offering one of the highest dividend yields in the FTSE 350 but has seen its stock price decline by 70% over the last five years. The company primarily specializes in sovereign and corporate debt and has seen its profits increase due to higher interest rates. However, most of the profit came from one-time gains, and underlying earnings are actually down by more than a third. Despite the decline in stock price, Ashmore has maintained its dividend per share at 4.8p, resulting in a double-digit yield. The company's bond portfolio is expected to recover as bonds approach maturity, but its operations are heavily dependent on macroeconomic forces. While the dividends may be attractive, the author is not interested in investing in Ashmore due to the lack of control over macroeconomic factors. However, other income investors may find it worth considering [14150c49].