Top 5 FTSE value stocks for November 2021

Highlights

• Value investing is one of the top investment strategies followed by many investors
• Quality value stocks with strong business models and excellent management should be selected for the desired gains.

Value investing is one of the top investment strategies followed by many investors. Stocks trading below the company’s fundamental value is considered value stocks, and investors pick them up as part of their portfolio with an optimism that its value could be equal to the intrinsic value in the coming future, giving them potential high returns for investors. However, quality value stocks with the strong business models and excellent management should be selected for the desired gains.

Let us look at five FTSE listed value stocks and their investment prospects:

Persimmon Plc (LON: PSN)

FTSE100 listed company operates in the housebuilding sector offering new houses of various sizes under the Persimmon Homes brand. The company completed 7,406 new homes in the first half of 2021 and has been receiving excellent demand for new homes from its buyers. In the past 15 months, housing demand rose substantially in the UK due to various positive news for the sector like stamp duty holidays and lower interest rates leading to higher housing prices.

Housebuilding companies have been making high profits because of the rise in demand and higher housing prices. The company reported total revenue of £1.84 billion during the period and also has forwards sales of £2.23 billion.   

Persimmon Plc’ current market cap is £8,682 million, while its current dividend yield stands at 8.6% as of 29 October 2021.

Barclays Plc (LON: BARC)

The company provides various financial services and products across different countries. It has a diversified business model, which helped the company to recover faster from the Covid-19 pandemic. In the third quarter ended 30 September 2021, it reported revenue of £5.5 billion, while its profit before tax was at £2.0 billion.

An interest rate hike in the UK due to inflationary pressure might be a positive trigger for the company as it may see an improvement in net interest income and margins.

Barclays Plc’s current market cap is £33,523 million, while its current dividend yield stands at 3.0% as of 29 October 2021.

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Experian Plc (LON: EXPN)

The company manages the financial data of millions of clients. It provides analytical and decision tools to individuals and businesses. The company has operations in over 100 countries which diversify its business risk. Also, the company operates in a niche financial technology market segment, having less competition from the peer companies, which signals stable and consistent revenue and profit margins. During the first quarter ended 30 June 2021, it reported a 28% growth in total revenue.

Experian Plc’s current market cap is £30,636 million, while its current dividend yield stands at 1.0% as of 29 October 2021.

AstraZeneca Plc (LON: AZN)

The pharmaceutical sector company operates in the development and marketing of medicine to treat different chronic diseases. It has operations in over 100 countries. The company does research and clinical trials of various medicines, and it also played a substantial role in developing vaccines for coronavirus. It reported total revenue of USD 15,540 million for the first half of 2021. The company is confident of achieving long term sustainable growth through its portfolio of various products and has updated its guidance for the full financial year.

AstraZeneca Plc’s current market cap is £140,351 million, while its current dividend yield stands at 2.2% as of 29 October 2021.

Diageo Plc (LON: DGE)

The company operates in the alcoholic beverage segment offering various beverages under different brand names. The company’s business has performed well after the ease in lockdown restrictions worldwide because of pent-up demand and the opening of restaurants and pubs. Its business units reported higher sales volumes and strong growth despite supply chain constraints. Also, the company has invested in marketing and innovative products to deliver long-term sustainable growth and create value for shareholders. 

Diageo Plc’s current market cap is £84,706 million, while its current dividend yield stands at 2.0% as of 29 October 2021.