- The recent decline in the UK stock markets can be an excellent opportunity for investors to diversify their portfolios and invest in quality blue-chip companies.
- The overall business fundamentals of companies are still intact. However, the stock price has corrected because of short-term negative sentiments.
The recent decline in the UK stock markets amid intensified Russia-Ukraine conflict may not be good for the markets, but it has given an opportunity for investors to diversify their portfolio and invest in quality blue-chip companies like HSBC Holdings, Barratt Development, Scottish Mortgage Investment for the long-term.
The overall business fundamentals of the above-mentioned companies are still intact. However, the stock price has corrected because of short-term negative sentiments prevailing across the global stock markets.
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Let us look at FTSE100 listed stocks and their investment prospects:
Barratt Development Plc (LON: BDEV)
The housebuilding company design and construct residential and commercial properties in the UK. It manages its operations through various well-known brands like Barratt Homes. The company’s business continues to witness solid growth driven by rising demand for new homes. Also, the recovery in the construction activity after the pandemic will help the company to be on track to deliver 18,000 to 18,250 homes in FY22, which is above the previous guidance.
Barratt is poised to deliver revenue and profitability growth supported by solid underlying fundamentals and buoyant housing demand from consumers.
Barratt Development Plc’s last close was at GBX 598.20 on 21 February 2022, with a market cap of £6,165 million. The current dividend yield of the stock stands at 6.6%
HSBC Holdings Plc (LON: HSBA)
The banking and financial service company has operations in several countries. It is one of the largest financial institutions in the world. For the nine months ended 30 September 2021, the lender reported revenue of USD 37,563 million.
Investors expect further improvement in revenue and the net interest income supported by the rising interest rates scenario worldwide. Also, the global economy continues to show gradual recovery after the pandemic.
HSBC Holdings Plc’s last close was at GBX 546.80 on 21 February 2022, with a market cap of £110,857 million. The current dividend yield of the stock stands at 6.9%
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Legal & General Group Plc (LON: LGEN)
The company provides insurance products and related services in the United Kingdom. It provides services to retail as well as institutional clients. The company reported robust business performance in the first half of 2021, with a 14% rise in operating profits to £1,079 million.
Legal & General has a long-term growth-orientated business approach and is likely to deliver higher profitability with attractive growth opportunities offered in the segments like retirement solutions, asset management, and climate change.
Legal & General Group Plc’s last close was at GBX 271.70 on 21 February 2022, with a market cap of £16,221 million. The current dividend yield of the stock stands at 7.0%.
Scottish Mortgage Investment Trust Plc (LON: SMT)
The investment fund co-managed by Baillie Gifford & Co seeks to invest in companies across diversified sectors. The investment portfolio managed by the company has given a total return of 339.9% in the last five years, while its total return since inception is 1,084.7% (June 2010).
The fund’s long-term performance has been exceptional as the fund invest in diverse sectors.
Scottish Mortgage Investment Trust Plc’s last close was at GBX 969 on 21 February 2022, with a market cap of £13,993 million. The current dividend yield of the stock stands at 0.4%.
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.