Balfour Beatty to Vistry Group: FTSE stocks you may put on your watchlist

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Balfour Beatty to Vistry Group: FTSE stocks you may put on your watchlist

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 Balfour Beatty to Vistry Group: FTSE stocks you may put on your watchlist
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Highlights

  • A recent report has stated the UK’s construction activity has rallied and is on an upward trajectory since the start of the year due to the easing of supply chain issues.
  • In January, construction growth hit a six-month high after a sustained increase in the last twelve months.

The supply chain crisis has affected most sectors in the UK. The housing sector is no exception. But there is some hope it seems. Leading economics consultancy Glenigan said that the UK’s construction activity has rallied and is on an upward trajectory since the start of 2022 due to the easing of supply chain issues and the warehousing boom.

In a recent report, Glenigan has mentioned that the value of on-site construction has declined by 15% in the three months to January 2022 as compared to the previous three months (August-October 2021) and is down by 31% compared to the previous year.

This has been further exacerbated by the soaring cost of electricity and gas, rising material prices such as roof tiles, coatings and paints, bricks, steel, and cement, and deteriorating economic prospects, urging some developers and clients to review project expenses or viability, and delaying constructions on-site. Despite all these, the February index has recorded a strong development pipeline, pointing at possible recovery for the rest of the year.

In December 2021, the construction output surged by 2% to reach 0.3% above its pre-pandemic level as the recovery was led by repair and maintenance activities, according to the report released on Friday. However, new infrastructure activities are much below their pre-pandemic levels, which is the only sub-sector that has seen a surge since the first lockdown. The housing construction and private commercial activities are still seeing a slide.

 Pantheon Macroeconomics has predicted that by the end of 2022, the construction output will be around 5% higher than in 2021, and 1.5% above the pre-pandemic level. According to the IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI), the construction growth hit a six-month high in January 2022 after a sustained increase in the last twelve months.

Let us look at five infrastructure building companies that may get affected.

  1. Balfour Beatty Plc (LON: BBY)

Balfour Beatty Plc is a FTSE 250 constituent and a leading international infrastructure company, engaged in offering upgrade, maintenance and management services in power transmission, utility infrastructure and road and rail.

Balfour Beatty Plc has given a return of -9.18% to its shareholders in the last one year and its year-to-date return stands at -6.43% as of 14 February 2022. Its shares were trading at GBX 246.20, down by 1.20%, at 8:10 AM (BST), with a market capitalization of £1,593.40 million on 14 February 2022.

Also Read: UK housing market hits new high in Jan: 5 stocks to watch out for

  1. Galliford Try Holdings Plc (LON: GFRD)

Galliford Try Holdings Plc is a construction company that serves various industries such as highways, education, defence, rail, environment, health, custodial and judicial, aviation, investments, commercial, urban living, and financial management.

Galliford Try Holdings Plc has given a return of 46.0% to its shareholders in the last one year and its year-to-date return stands at 2.1% as of 14 February 2022. Its shares were trading at GBX 175.30, down by 4.52%, at 8:10 AM (BST), with a market capitalization of £203.89 million on 14 February 2022.

  1. Vistry Group Plc (LON: VTY)

Vistry Group Plc is a leading developer of sustainable new homes and communities across all sectors of the UK housing market. The company is a constituent of the FTSE 250 Index.

Vistry Group Plc has given a return of 25.9% to its shareholders in the last one year and its year-to-date return stands at -11.0% as of 14 February 2022. Its shares were trading at GBX 1,035, down by 1.80%, at 8:10 AM (BST), with a market capitalization of £2,342.03 million on 14 February 2022.

  1. Barratt Developments Plc (LON: BDEV)

Barratt Developments Plc is one of the leading residential property development companies and is engaged in acquiring land and securing planning consent.

The FTSE 100 constituent has given a return of -9.82% to its shareholders in the last one year and its year-to-date return stands at -18.02% as of 14 February 2022. Its shares were trading at GBX 613, down by 2.01%, at 8:10 AM (BST), with a market capitalization of £6,397.08 million on 14 February 2022.

Also Read: Top 5 FTSE dividend-paying technology stock picks for 2022

  1. Tyman Plc (LON: TYMN)

Tyman Plc is a leading engineered windows and doors provider company with 26 manufacturing sites in nine countries. The FTSE 250 constituent has given a return of 5.18% to its shareholders in the last one year and its year-to-date return stands at -11.01% as of 14 February 2022. Its shares were trading at GBX 355.50, down by 1.66%, at 8:10 AM (BST), with a market capitalization of £709.56 million on 14 February 2022.

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