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Highlights:
- Christmas is around the corner, and projections for the coming month aren't particularly well.
- During economic uncertainties, some stocks perform better than others so investors can look at them.
Christmas is approaching fast, and there are mixed reactions to it. Since it is the biggest festive season, several businesses anticipate huge demand. However, many are concerned about the cost-of-living crisis. Several retailers expect less demand this Christmas due to the high inflation levels. In fact, multiple surveys have highlighted that a significant chunk of people is planning to cut down on spending during the upcoming festive season.
With the current state of the economy, investors are wary of where to invest. The Bank of England's recession warnings has also increased concerns. To add to the woes, the chaos in the UK's financial markets caused by September's mini-budget is yet to settle down completely, pushing investors towards safer options.
Image source: Image source:© Alexaldo | Megapixl.com
Traditionally, investors switch to options like commodities that are considered less volatile. However, it doesn't necessarily mean that equity investments cannot give good returns. Carefully made investments in the right stocks can also give reasonable returns, as some businesses tend to perform well despite the economic headwinds.
Let's look at three stocks that investors can look at during these uncertain times, especially with Christmas just around the corner.
Centrica Plc (LON: CNA)
Centrica is an energy utility firm. With energy prices soaring, the company has reported massive profits this year. Its outlook for the full year also remains strong as energy bills are set to rise during the winter. It also recently reopened a mothballed gas storage facility to prevent a gas shortage in the coming months. The stock value has jumped by almost one-third in the past one year. The market cap as of 15 November is £4,930.62 million, and the EPS is 0.21.
British American Tobacco plc (LON: BATS)
Tobacco stocks usually garner a lot of interest from investors because the demand for tobacco products doesn't change much in any economic condition. British American Tobacco has a market cap of £72,937.74 million. The EPS stands at 2.97 as of 15 November. The stock value has soared by a quarter in the past 12 months.
BAE Systems plc (LON: BA.)
BAE Systems is an arms, security and aerospace company. With the current geopolitical situation due to the Russia-Ukraine conflict, countries are reinforcing their defence capabilities, which gives companies like BAE systems an advantage. The stock has a market cap of £22,502.31 million as of 15 November. Its EPS stands at 0.55, and the share price has grown more than 30% in the past one year.
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.
