Barclays, Quilter, Go-Ahead: Which are the best value stocks now?

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Highlights 

  • Value stocks are the stocks of companies that are trading at a price below then their intrinsic value.
  • The Bank of England has raised the interest rate for the third time in a row from 0.5% to 0.75% to address rising inflation and a tight job market.

 


There are multiple reasons behind the escalating global inflation in the last one year, including pandemic, supply chain problems, labour shortage, rise in global commodities, food, and energy prices, and adverse climate shocks. Then came the unseen crisis after Russia invaded Ukraine that badly impacted the global economic recovery and sent the global stock exchanges in deep red.

On 17 March, the Bank of England decided to raise the interest rate for the third time in a row from 0.5% to 0.75% to address the rising inflation and a tight job market. The UK inflation hit a fresh 30-year high of 5.5% in the year to January and the ongoing geopolitical tension between Russia and Ukraine has impacted most of the asset classes.

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With increasing market volatility, inflation, and interest rates, investors all over the world are shifting their investment from growth stocks to value stocks as they are believed to perform well during market uncertainty and high volatility situation.

Value stocks are the stocks of companies that are trading at a price below their intrinsic value and have predictable business models that may generate modest gains over time. These stocks are undervalued and have the potential to grow in the near future as the market will eventually take cognizance of the true potential of these stocks.

Let us look at five value stocks, such as Quilter Plc, Barclays Plc, St. James’s Place Plc, Go-Ahead Group Plc, and Ferrexpo Plc, that you may consider adding to your portfolio

Barclays Plc (LON: BARC)

The current market cap of UK-based multinational universal bank, Barclays Plc is £29,354.25 million as of 17 March 2022. The company has delivered a negative return of -5.29% to its shareholders over the last one year as of 17 March, and its year-to-date return stands at -8.17%. As of 17 March, the company’s EV/EBITDA ratios stand at 0.20x. Barclays Plc’s shares closed at GBX 171.72, down by -1.96%, on 17 March 2022.

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Quilter Plc (LON: QLT)

The current market cap of UK-based multinational wealth management company, Quilter Plc is £2,256.51 million as of 17 March 2022. The company has delivered a negative return of -9.20% to its shareholders over the last one year as of 17 March, and its year-to-date return stands at -5.96%. As of 17 March, the company’s EV/EBITDA ratios stand at 0.12x. Quilter Plc’s shares closed at GBX 139.65, up by 1.38%, on 17 March 2022.

Also Read: Shell, Capricorn, Harbour Energy: 3 oil & gas stocks to buy

Go-Ahead Group Plc (LON: GOG)

The current market cap of UK-based passenger transport company, Go-Ahead Group Plc is £267.70 million as of 17 March 2022. The company has delivered a return of -51.26% to its shareholders over the last one year as of 17 March, and its year-to-date return stands at -3.24%. As of 17 March, the company’s EV/EBITDA ratios stand at 0.54x. Go-Ahead Group Plc’s shares closed trading at GBX 724.00, up by 16.77%, on 17 March 2022.

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St. James’s Place Plc (LON: STJ)

The current market cap of UK-based multinational wealth management company, St. James’s Place Plc is £7,683.89 million as of 17 March 2022. The company has delivered a return of 16.59% to its shareholders over the last one year as of 17 March, and its year-to-date return stands at -13.38%. As of 17 March, the company’s EV/EBITDA ratios stand at 0.32x. St. James’s Place Plc’s shares closed at GBX 1,458.00, up by 2.60%, on 17 March 2022.

Also Read: Which is the best FTSE-listed gold stock to invest in?

Ferrexpo Plc (LON: FXPO)

The current market cap of Swiss-based commodity trading and mining company, Ferrexpo Plc is £950 million as of 17 March 2022. The company has delivered a negative return of -54.61% to its shareholders over the last one year as of 17 March, and its year-to-date return stands at -45.39%. As of 17 March, the company’s EV/EBITDA ratios stand at 0.72x. Ferrexpo Plc’s shares closed at GBX 163.50, up by  1.30%, on 17 March 2022.

Also Read: BHP, Aura Energy: Should buy these FTSE stocks now?

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


 

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