AO World, Melrose, Oxford Biomedica: 3 FTSE stocks to buy

Highlights

• The new cars registration in the UK dropped nearly 25% year-on-year in October 2021, as per the latest data released by the automotive industry body.

• AO World Plc, Melrose Industries Plc, Oxford Biomedica Plc are some of the stocks in focus today.

The UK government’s commitment to achieve net zero carbon emissions by 2050 will require higher incentives that will push consumers to switch towards electric vehicles. Also, substantial investment needs to be made for charging infrastructure.

The electric cars demand has grown significantly in the country, which now accounts for 16% of total cars registered in the UK. The SMMT estimates a total of 287,000 new electric vehicles could be registered in 2021. Meanwhile, the new cars registration in the UK dropped nearly 25% year-on-year in October 2021, as per the latest data released by the automotive industry body The Society of Motor Manufacturers and Traders (SMMT). The industry body also said the shortage of semiconductor chips continues to hit the sector.

However, total new cars registration could be 1.66 million in the UK by the year-end, a rise of 1.9% compared to last year as per estimate. In addition,

Let us look at FTSE listed stocks that are in focus today:

AO World Plc (LON: AO.)

The company operates in the consumer discretionary sector, offering online electronic products in the UK and European markets. It also provides the finance on these products and delivers its products through an in-house logistics network. It reported a 5% growth in revenue, which was lower than previous periods in the six months ended 30 September 2021. The company said its growth was impacted due to the competitive online market, shortage of delivery drivers, and disruption in the global supply chain.

AO World Plc’s last close was at GBX 135 on 3 November 2021, with a market cap of £647.36 million.

Oxford Biomedica Plc (LON: OXB)

The company operates in the biotechnology segment engaged in developing fully integrated gene and cell therapy to treat serious diseases. It is one of the leading companies to manufacture Covid-19 vaccines commercially and includes big pharmaceutical companies like AstraZeneca, Novartis, Sanofi as its clients. The company has reported significant improvement in performance in the last few quarters. Its revenue rose by 139% at £81.3 million in the first six months of 2021, primarily due to growth in the commercial and bioprocessing segment.

Oxford Biomedica Plc’s last close was at GBX 1,550 on 3 November 2021, with a market cap of £1,334.38 million.

Melrose Industries Plc (LON: MRO)

The company operates as a diversified industrial group offering its services to the aerospace, automotive and other industrial businesses. FTSE100 listed company continues to witness robust growth led by the aerospace business, which reported 16% higher revenue in the three months ended 30 September 2021, mainly due to restructuring. However, the company’s automotive division witnessed slow growth because of supply constraints caused by the shortage of semiconductors in the industry.

Melrose Industries Plc’s last close was at GBX 158.60 on 3 November 2021, with a market cap of £6,934.67 million.