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Highlights
- Ashtead Group is one of the best performing FTSE100 stocks in 2021.
- The stock is expected to perform well in 2022 as well despite the economic turmoil and market ups and downs.
The global industrial equipment rental firm, Ashtead Group, has been one of the best performers in 2021. Experts feel that the stock can give healthy returns this year as well. However, the stock market is highly volatile, and in the current economic scenario, it is hard to predict what’s in store for Ashtead in 2022. Let’s carry out an in-depth analysis of Ashtead Group stock to figure out why it’s a good buy.
Ashtead Group performance
Headquartered in London, Ashtead group operates internationally in the UK the US, and Canada. The company has a huge customer base and provides them with construction and industrial equipment for a range of applications. It is listed on the London Stock Exchange since 1990 and is a constituent of the FTSE100 index.
In the last quarter of 2021, the rental revenue of the company went up by 15% even during these challenging times. With more than 800,000 rental assets, Ashtead aims to offer a reliable alternative option other than ownership to over 815,000 of its customers.
RELATED READ: How much would £1k invested in Ashtead (AHT) shares 5 years ago be worth now?
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The FTSE100 stock has shown a remarkable performance in 2021, with its value going up by over 70%. The stock deserves to be a part of the investors’ portfolios as it may potentially keep up with its current performance in the future as well. The Build Back Better bill proposed by the US President Joe Biden may give a significant boost to the Ashtead stock in 2022 as 80% of its business is drawn from the US.
Even if the bill isn’t passed, the company is expected to perform well as the economy recovers due to its considerable exposure to the construction industry, which is cyclical in nature and stands to benefit from economic expansion.
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Interestingly, Ashtead is also a great dividend share to go for. Even though its dividend yield stood at just 0.8% by the end of 2021, there has been a tremendous growth in its dividends over the last decade. This makes Ashtead stock the best buy for long-term investing. However, a notable point for investors to keep in mind is that Ashtead stock is pricey as compared to the FTSE100 index. The high performing company has a high P/E ratio, and thus it may not seem like an attractive buy for investors due to being overvalued.
The market cap of Ashtead Group Plc (LON: AHT) stood at £26,492.23 million and it has given a return of 74.00% to its shareholders in the last one year as of 4 January 2021. Ashtead Group Plc’s shares closed at GBX 6,090.00 as of 4 January 2022.
© 2022 Kalkine Media®
Bottomline
Ashtead Group has been able to perform well even in this economic turmoil, and it is expected to continue doing so in the future as well. With a strong financial position, the company has a potential to keep a hold of its position among the best performing FTSE100 stocks this year as well.
