Which Are the Good Stocks to Have in Your Portfolio Right Now?

Summary

• There is a general belief that the UK stocks are really cheap and a pretty compelling buy right now
• It is always good to invest in the long-term if investors are looking for wealth creation.
• One of the best ways to invest is by preparing a portfolio with stocks belonging to different sectors to diversify the risk

UK’s Stock Market Scenario

Since the coronavirus pandemic emerged in Europe in early spring, the stocks of the UK have taken a hammering, with the FTSE 100 losing 22.11 per cent on YTD (Year-To-Date) basis. UK’s market sentiment has already been down because of the ongoing uncertainty over Brexit. Negotiations between the UK and EU to establish a trade-deal once the transition period ends in December, which has not yielded any conclusion so far.

Despite Brexit complicating the investment landscape in Britain, market experts believe that the UK stocks are really cheap and a pretty compelling buy right now. Emma Wall, the head of investment analysis at Hargreaves Lansdown, has quoted that the UK are now at valuations last seen in 2008-2009 during the Global Financial Crisis.

Feature to Look for in the UK Stocks

In order to evaluate the stocks and to make the task less stressful, a simple set of criteria should be developed and followed. Right information should be selected for assessing a specific stock and evaluating it correctly. Below are the five basic evaluative criteria which should be kept in mind while carrying out the process of selecting which stocks to invest in.

Stocks to Watch Out in the Present Condition

In order to secure your financial future, one should be investing in stocks, and one of the best ways to invest is preparing a portfolio with stocks belonging to different sectors so as to diversify the risk. It’s also very important to focus on long-term investing, with much of 2020 being so volatile. Generally, people think of investing in the stock market, trying to make a short-term score. However, it is always good to invest in the long-term if investors are looking for wealth creation.

After UK stocks facing the sharp decline in late March because of the pandemic, most of the stocks have rallied correctively to recover a significant percentage of their losses by adopting measures such as cost-cutting, deferring or reducing dividend payments, etc.

Below are some of the stocks belonging to different sectors which can be worth looking at in the long run. Investment is subject to the investors risk-taking ability, and it is always suggested to do a thorough analysis or seek professional help before investing, below mentioned are companies selected on few parameters, which could be different for different investors.

Healthcare Stocks

1. Novacyt S.A. (LON:NCYT)

Novacyt S.A., a company focusing on clinical diagnostics released its half-yearly result for the six months ended 30 June 2020. The company’s revenue for the first half of 2020 increased over 900 per cent to €72.4 million (H1 2019: €7.2 million). As of 30 June 2020, the company was having a strong cash position £19.7 million.

NCYT stocks last traded at GBX 880.00 on 9 October 2020. The stock was having a market capitalisation of £442.68 million, recording a 52-week low/high price range of GBX 6.50/880.00. 

2. AstraZeneca PLC (LON:AZN)

British Prime Minister, Boris Johnson has been keeping high hopes on COVID-19 vaccine being developed by AstraZeneca, (AZD1222) and is expecting a speedy rollout of the virus vaccine.

To Know More, Do Read: Covid-19: UK PM Boris Johnson Optimistic About Vaccine to Hit the Market Soon

AZN stocks last traded at GBX 8,424.00 on 9 October 2020. The stock was having a market capitalisation of £109,852.32 million, recording a 52-week low/high price range of GBX 6,221.00/9,320.00. 

Financial Sector

1. Phoenix Group Holdings PLC (LON:PHNX)

Phoenix Group released its half-yearly result for the six months ended 30 June 2020. The company’s gross operating profit for the first half of 2020 increased to £361 million (H1 2019: £325 million). As of 30 June 2020, the company was having a strong cash position of £433 million.

PHNX stocks last traded at GBX 705.00 on 9 October 2020. The stock was having a market capitalisation of £6,993.97 million, recording a 52-week low/high price range of GBX 467.45/803.00. 

2. Scottish Mortgage Investment Trust PLC (LON:SMT)

The actively managed low-cost investment trust recorded a Cum Par NAV of 1023.30 pence on 8 October 2020.

SMT stocks last traded at GBX 1,024.00 on 9 October 2020 before closing. The stock was having a market capitalisation of £14,736.46 million, recording a 52-week low/high price range of GBX 468.40/1,024.00. 

Utility Sector

1. National Grid PLC (LON: NG.)

National Grid released its annual result for the year ending 31 March 2020. The company’s underlying operating profit increased 1 per cent to £3.5 billion in comparison with the previous year. The company has been continuously making progress to achieve its net-zero carbon emissions in 2050.

935. stocks last traded at GBX 935.00 on 9 October 2020 before closing. The stock was having a market capitalisation of £33,147.30 million, recording a 52-week low/high price range of GBX 799.70/1,067.40.
936. United Utilities Group PLC (LON: UU.)

The company released its trading statement for H1 2020 ending 30 September 2020. The company’s revenue is expected to fall slightly in comparison with the previous half-year because of the allowed regulatory revenue changes and lower consumption from businesses as a result of COVID-19.

887. stocks last traded at GBX 887.00 on 9 October 2020 before closing. The stock was having a market capitalisation of £6,101.54 million, recording a 52-week low/high price range of GBX 763.60/1,061.00.

Technology Sector

1. Sage Group PLC (LON:SGE)

The company released its trading update for the nine months ending 30 June 2020. The company’s recurring revenue for the period increased by 9.0 per cent to £1,247 million in because of the software subscription growth of 22.6 per cent to £885 million (Q3 19 YTD: £722 million).

SGE stocks last traded at GBX 720.80 on 9 October 2020 before closing. The stock was having a market capitalisation of £7,867.02 million, recording a 52-week low/high price range of GBX 534.80/794.60. 

2. Aveva Group PLC (LON:AVV)

The company released its Q1 trading update for the period commencing on 1 April 2020 and ending 30 June 2020. It was successful in delivering strong growth in recurring revenue with subscription revenue moving up by 30 per cent.

AVV stocks last traded at GBX 4,736.00 on 9 October 2020 before closing. The stock was having a market capitalisation of £7,641.93 million, recording a 52-week low/high price range of GBX 2,846.00/5,315.00. 

Conclusion

One should always invest keeping in mind the financial goals and portfolio, and the UK market conditions. It might be the optimal time to buy after the pandemic-related selloff that started in March, and investors looking for capital appreciation should look for companies that seem likely to remain firm having growth prospects.