- Investors follow two of the most popular fundamental investing styles of investing: growth investing and value investing.
- Investors should use a combination of both styles as they often complement each other and add diversification to the portfolio holdings when used together.
In the investment world, growth and value investing are two of the most popular fundamental approaches and styles of investing which many investors follow. Growth-oriented companies are expected to expand their businesses. They are anticipated to grow at a faster pace than the industry growth rate. At the same time, the value stocks are larger, well-established businesses with stable revenue flow but are currently trading below their fundamental value.
Investors often get confused between the two approaches and cannot decide which investing style to choose. But as per market experts, investors should use a combination of both styles as they often complement each other and add diversification to the portfolio holdings when used together.
Let us look at 5 FTSE listed growth stocks and 5 value stocks:
Experian Plc (LON: EXPN)
The company operates in the niche segment of information management of individual credit reporting history, which banks and financial institutions use while giving loans. The company has operations in over 45 countries and use technology and data analytics to provide its different services to corporate clients.
At present, 65% of the company’s revenue contribution comes from the North American market, where it provides data analysis and decision-making services and consumer services. The rest of the revenue comes from Latin America, the UK and Asia Pacific market. The company is also a consistent dividend payout policy.
Experian Plc’s current market cap stands at £30,759 million as of 13 September 2021.
Keywords Studios Plc (LON: KWS)
The company provides technical and creative services to the video games industry. In addition, it provides various services related to the game development and localisation of games and works with the leading companies from the segment.
The company reported revenue of €238 million, a rise of 37% during the six months ended 30 June 2021. The revenue increase was driven by the robust demand for the company’s services and the rise in the number of gamers during the pandemic. Apart from the organic growth, the company continues to focus on the strategic acquisition of gaming studios which help the company to expand its product offerings and grow.
Keywords Studios Plc current market cap stands at £2,450 million as of 13 September 2021.
Avast Plc (LON: AVST)
The company does research and develops digital security products like antivirus for computers. The awareness about the company’s products has increased multifold during the pandemic period. Also, as more individuals become aware of cybersecurity and adopt digital technology in the future, Avast Plc is expected to benefit as it offers various products that ensure safe online operations and protection against online fraud and hackers. The company currently undergoing a merger with the US-based Norton LifeLock, which will create one of the largest cybersecurity firms globally.
Avast Plc’s current market cap stands at £6,095 million as of 13 September 2021.
ASOS Plc (LON: ASC)
FTSE AIM-listed company operates the online fashion portal and has operations in over 200 markets. The company lists the fashion products from renowned brands and focuses on developing in-house labels like ASOS Design, ASOS Edition, and many more.
The company’s business continues to receive a positive response from the customers after the pandemic as well. At present, the company’s active customer base stands at 26.1 million, which helped the company maintain a strong cash position and balance sheet. Also, the company’s retail sales revenue has shown a good growth rate.
ASOS Plc current market cap stands at £3,209 million as of 13 September 2021.
Entain Plc (LON: ENT)
The company operates in the sports betting and gaming industry through various brands. It has operating licenses in 27 countries and is not dependent on a single geographical region for its revenue. Also, the company believes in driving organic growth and dominate in terms of market share in most of the regions where it has the operation.
The company reported revenue of £1,767 million and gross profit of £1,136.3 million in the six months ended 30 June 2021. The company reported double-digit online growth for the 22nd consecutive quarter, driven by the strong performance in all key markets.
Entain Plc current market cap stands at £11,281 million as of 13 September 2021.
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Antofagasta Plc (LON: ANTO)
The company focuses on the exploration and production of copper mining. It carries out copper mining activities in the Chile region and other parts of the world.
Due to a consistent rise in the copper prices in the global market, the company reported a 67.9% rise in the revenue at USD 3,591 million. The company’s EBITDA stands at USD 2,357 million, a rise of 132% during the first half of 2021. The company also reported higher copper production during the period and was in-line with the previous expectations, indicating demand for the commodity and expected demand trend to continue in the future.
Antofagasta Plc’s current market cap stands at £14,280 million as of 13 September 2021.
Admiral Group Plc (LON: ADM)
The company provides car insurance and loans through various brands. The company primarily operates in the UK and European countries.
The company operates in the insurance segment and has had consistent revenue growth over the years. The company reported net revenue of £0.79 billion and a growth in the customer base in the first half of 2021. Also, the company has a consistent dividend payout policy.
Admiral Group Plc current market cap stands at £10,386 million as of 13 September 2021.
Redrow Plc (LON: RDW)
FTSE 250 listed company engages in housebuilding and land development in the United Kingdom.
The UK housing sector recovered quickly from the Covid-19 pandemic, as the sector received good support from the UK government in the form of stamp duty holidays, which led to a surge in the housing market. In the financial year ended 27 June 2021, the company delivered 5,620 houses with good growth in the orderbook. Also, the company expects a higher turnover of over £1.94 billion and an operating margin of at least 15.5%.
Redrow Plc current market cap stands at £2,456 million as of 13 September 2021.
Ashmore Group Plc (LON: ASHM)
The company is engaged in the asset management business and offers different investment products for individuals and institutional clients.
The company saw a net inflow of USD 1.2 billion, while its asset under management increased by 13% to USD 94.4 billion during the financial year ended 30 June 2021. In addition, the company reported a performance fees collection of £11.9 million during the period. Also, the company has integrated ESG factors across all asset classes, which could trigger more fund inflow in the coming months as more investors are shifting towards ESG compliant funds.
Ashmore Group Plc current market cap stands at £2,580 million as of 13 September 2021.
Vectura Group Plc (LON: VEC)
The company focuses on developing formulation for the inhaled drug, which enables its clients to bring their medicines to patients.
The company operates along with its partners to develop inhaled therapies for patients. At present, the company has 13 inhaled products and 11 non-inhaled products in the market. Also, the company has a diverse client set and work with all major companies from the pharmaceutical industry.
Vectura Group Plc current market cap stands at £981 million as of 13 September 2021.