The stock market in the United Kingdom has encountered difficulties recently, with the FTSE 100 index seeing a drop attributed to disappointing trade data from China, which has affected global economic perceptions. In light of these challenging conditions, it is essential for investors to pinpoint stocks that might be undervalued, as these could present valuable investment prospects during a time of increased market volatility.
|
Name |
Current Price |
Fair Value (Est) |
Discount (Est) |
|
Eurocell (LSE:ECEL) |
£1.55 |
£3.04 |
49% |
|
On the Beach Group (LSE:OTB) |
£2.32 |
£4.59 |
49.5% |
|
Informa (LSE:INF) |
£7.858 |
£15.47 |
49.2% |
|
JD Sports Fashion (LSE:JD.) |
£0.7982 |
£1.53 |
48% |
|
Victrex (LSE:VCT) |
£9.65 |
£18.30 |
47.3% |
|
AstraZeneca (LSE:AZN) |
£118.08 |
£217.85 |
45.8% |
|
Likewise Group (AIM:LIKE) |
£0.185 |
£0.37 |
49.9% |
|
Vanquis Banking Group (LSE:VANQ) |
£0.585 |
£1.13 |
48.4% |
|
TI Fluid Systems (LSE:TIFS) |
£1.968 |
£3.75 |
47.5% |
|
Kromek Group (AIM:KMK) |
£0.0565 |
£0.11 |
49.8% |
Here, we highlight a few stocks that stand out from our exclusive screener.
Overview: Bellway p.l.c., with its subsidiaries, is active in the UK homebuilding industry, boasting a market cap of around £2.77 billion.
Operations: The bulk of the company’s revenue comes from its UK House Building division, which brought in £2.38 billion.
Estimated Discount To Fair Value: 18.6%
Trading at £23.38, Bellway is below its estimated fair value of £28.73, indicating a potential undervalue based on cash flows. Earnings are projected to grow at 21.3% annually, while revenue growth is expected to be a moderate 9.7%. Despite a forecasted low return on equity and a decrease in profit margins from the previous year, analysts expect a 33.6% increase in stock price.
Overview: Phoenix Group Holdings plc operates in the long-term savings and retirement sectors across Europe, carrying a market cap of approximately £5.77 billion.
Operations: Its revenue includes segments such as With-profits (£429 million), Europe and Other (£659 million), Pensions & Savings (£1.16 billion), and Retirement Solutions (£3.92 billion).
Estimated Discount To Fair Value: 27.8%
Trading at £5.78, Phoenix Group Holdings is considerably below its estimated fair value of £8, suggesting potential undervaluation. Even with a reported net loss of £1.09 billion for 2024, the company is projected to achieve profitability within three years, albeit with revenue forecasts declining by 25.9% annually.
Overview: Deliveroo plc operates an online food delivery service across numerous countries, including the UK, Ireland, and France, with a market cap of around £1.82 billion.
Operations: The company’s revenue is largely generated from its on-demand food delivery service, yielding £2.07 billion.
Estimated Discount To Fair Value: 42.5%
Currently trading at £1.24, Deliveroo’s price is significantly lower than its estimated fair value of £2.16, reflecting potential undervaluation. With a reported net income of £2.9 million in 2024, indicating a turnaround from previous losses, earnings are set to grow by 66.79% annually, bolstered by a recent expansion in share buyback plans up to £250 million.
This article by Simply Wall St is intended for general information. It provides insights based solely on historical data and analyst predictions without serving as financial advice, nor does it endorse any stock as a buy or sell. It may not account for your specific financial objectives or situation. Our focus is on providing long-term analysis driven by fundamental data, though it might not include the latest price-sensitive information or qualitative factors. Simply Wall St holds no interest in any stocks mentioned.
Companies referenced in this article include LSE:BWY, LSE:PHNX, and LSE:ROO.
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