FXPO, IPO, RSE: Value stocks that you may consider in July

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Highlights

  • Value stocks refer to shares of a company that are trading at a price lower than their intrinsic value, making them an attractive investment for investors looking for long-term benefits.
  • When compared to growth stocks, the value stocks carry far more risks because of its skeptical attitude of the market.

Value stocks refer to company shares that are trading at a price lower than their intrinsic value, making them an attractive investment for investors looking for long-term benefits. These investors attempt to capitalise on inefficiencies in the market as the prices of value stocks do not match the company's fundamentals and have a bargain price as these companies are seen as unfavourable in the marketplace.

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In contrast to value stocks, growth stocks are stocks of companies that investors think will generate better-than-average returns. When compared to growth stocks, the value stocks carry far more risks because of their skeptical attitude toward the market.

With the growing fear of economic slowdown, value stocks are considered better investment options than growth stocks and are more likely to have a higher long-term return because of the underlying risk. Common characteristics of value stocks include low Price-to-Earning ratio (P/E) and Enterprise Value to EBITDA ratio (EV/EBITDA).

Here are our top picks that investors may consider in July.

Ferrexpo Plc (LON: FXPO)

The world's third-largest exporter of iron ore pellets, Swiss-based Ferrexpo Plc's market cap stands at £774.63 million as of 4 July 2022. The FTSE 250-listed company's shares were trading at GBX 130.40, down by 0.91%, at 9:25 AM (GMT+1), as of 4 July 2022. Its share value has depreciated by -69.88% in the last year, while its EV/EBITDA ratio was 0.62x, and its P/E ratio was 1.08x as of 4 July 2022.   

IP Group Plc (LON: IPO)

The UK-based leading intellectual property commercialisation company's Mcap stands at £722.03 million as of 4 July 2022. Its shares were trading at GBX 69.50, down by 0.43%, at 9:25 AM (GMT+1), as of 4 July 2022. Its share value has depreciated by -41.60% in the last year, while its EV/EBITDA ratio was 1.02x, and its P/E ratio was 1.68x as of 4 July 2022.     

Riverstone Energy Ltd (LON: RSE)

The UK-based closed-ended company, Riverstone Energy, invests in energy companies and assets worldwide. The FTSE All-Share listed company's shares were trading at GBX 644.00, down by 2.28%, at 9:25 AM (GMT+1), as of 4 July 2022, with a market cap of £348.94 million as of 4 July 2022. Its share value has appreciated 94.56% in the last year, while its EV/EBITDA ratio was 1.21x, and its P/E ratio was 1.43x as of 4 July 2022.     

Georgia Capital Plc (LON: CGEO)

UK-based electric services firm Georgia Capital shares were trading at GBX 595.00, down by 0.34%, at 9:25 AM (GMT+1), as of 4 July 2022. The FTSE All-Share listed company boasted a market cap of £270.98 million, as of 4 July 2022. Its EV/EBITDA ratio was 1.33x, and its P/E ratio was 1.34x as of 4 July 2022.   

Petra Diamonds Ltd (LON: PDL)

Petra Diamonds is a leading independent diamond mining group with a market cap of £177.69 million as of 4 July 2022. The FTSE All-Share listed company's shares were trading at GBX 92.00, up by 0.55%, at 9:25 AM (GMT+1), as of 4 July 2022. Its share value has appreciated by 27.95% in the last year, while its EV/EBITDA ratio was 2.01x, and its P/E ratio was 0.66x as of 4 July 2022.   

Note: The above content constitutes a very preliminary observation or view based on market 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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