Top value stocks you shouldn't miss this month

August 21, 2022 10:00 AM BST | By Abhishek Sharma
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  • The UK economy is going through tough times, and there are fears of a recession looming.
  • During economic gloom, investors generally look for value stocks that could provide good returns.

The UK has been reeling under economic turmoil with several experts suggesting that the situation is unlikely to improve. Inflation has been breaking decades-old records, touching new highs month on month. Households have been gripped by soaring food and energy bills, but the wages have failed to grow in line with the prices. In fact, when adjusted for inflation, wages of UK workers have been falling, forcing them to cut down on expenses or borrow money to make both ends meet.

Several studies have shown that the situation will likely worsen in the coming months, putting more pressure on millions of Brits. UK’s central bank has been taking measures to bring the inflation levels under control by raising the interest rates. The most recent increase of 50 bps took the interest rates to 1.75%, and it is also being predicted that the next interest rate hike will take the interest rates to 2.25%.

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Along with a tighter monetary policy, the central bank also restressed on the gloomy economic scenario that the country is likely to witness later this year. According to the bank, the UK economy may slip into recession in the last quarter of this year, and the situation will remain the same till the early months of next year.

The recession warning has prompted investors to be cautious about their investment decisions. In such a situation, investors keep an eye on value stocks. These stocks are largely undervalued by the market and tend to perform better than growth stocks during economic uncertainties.

Amid the tough situations, Kalkine Media® dives into few value stocks which the investors can look at.

Ferrexpo Plc (LON: FXPO)

Ferrexpo is among the largest exporter of iron ore pellets across the globe. Its market cap stands at £882.35 million as of 19 August 2022, and it is a constituent of the FTSE 250 index. Shares of Ferrexpo were trading 3.54% lower at GBX 144.60 at 10:25 am GMT+1 on Friday. In the past one year, the stock price has depreciated by over 61%, while the earnings per share are 1.08. At present, the stock has a P/E ratio of 3.61.

IP Group Plc (LON: IPO)

IP Group is a leading intellectual property commercialisation firm in the UK. With a market cap of £800.13 million, shares of the company were trading 1.36% lower at GBX 76.30 at 10:43 am GMT+1 on 19 August 2022. Its 52-week return currently stands at -42.29%, while the earnings per share are 0.42. The stock holds a P/E ratio of 57.34 at present.

3i Group plc (LON: III)

Private equity and venture capital firm 3i Group enjoyed a market cap of £12,268.10 million with its stock was trading at GBX 1,247.50, as of 10:57 am GMT+1 on Friday. The share has plunged about 6% in the past 12 months, and its earnings per share currently stand at 4.15. The stock has a P/E ratio of 3.04.

Riverstone Energy Ltd (LON: RSE)

The British firm, Riverstone Energy Ltd invests in energy businesses and assets across the globe. With a market cap of £346.88 million, the RSE stock traded at GBX 664.00, up 0.61% as of 11:01 am GMT+1 on Friday. RSE offered investors returns of over 64% in the past 12 months. The EPS stands in the negative territory at -4.42.

Segro plc (LON: SGRO)

Segro is a property investment and development firm that invests in properties in the UK and Europe. Its shares were down 2.04% at GBX 1,034.50 as of 11:18 am GMT+1 on 19 August. The FTSE 100 constituent holds a market cap of £12,768.04 million, and it has provided shareholders with a negative return of -18.70% over the last 12 months. The company's EPS stands at 3.39, and the P/E ratio is 3.12.

Big Yellow Group plc (LON: BYG)

UK’s self-storage firm Big Yellow Group plc, on Friday, held a market cap of £2,576.83 million. Its 12-month return currently stands at -9.07%, while the year-to-date return is -18.34%. Shares of the company were trading at GBX 1,392.00, down 0.43%, as of 11:27 am GMT+1 on Friday. The company's EPS currently stands at 3.85, while the P/E ratio is 3.66.

Georgia Capital Plc (LON: CGEO)

UK-based private equity and venture capital firm Georgia Capital’s shares of the FTSE All-Share constituent have provided a return of 4.69% to investors over the past one year, while the year-to-date return is in the negative territory at -6.03%. As of 19 August, the company's market cap stands at £301.21 million, and its EPS is 8.23.

Petra Diamonds Ltd (LON: PDL)

Independent diamond mining entity Petra Diamonds Ltd boasted of a market cap of £198.09 million. This FTSE All-Share listed company's shares have appreciated by over 16% in the past 12 months. On a year-to-date basis, it has provided investors with a return of 36.86%, and its EPS is currently at 0.05. The stock's P/E ratio presently stands at 0.72.

Note: 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. 


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