Back in December 2017, I notice that UK FTSE was undergoing a correction cycle on most non-cyclical despite the FTSE being stable. As of May 2018, I am confident to say that the UK equity markets have finally bottomed out and progressed to recovery mode since the middle of April 2018. Most shares have gained momentum and gone into bull recovery. So are there still any undervalued stocks to buy in the UK FTSE?
The turnaround recovery was up to several reasons.
- Bank of England determined to increase interest rates from the healthy economy.
- Brexit breakthrough negotiation which sets a specific date for departure.
- Trade wars between China and US concerns paving way for investors to look at undervalued stocks to buy in the UK.
- Consumerism market looking healthier and consumers are starting to spend money again. High street retailers may be dropping but consumers are spending more money online to get better deals.
Yes, the boat has sailed....
In my point of view, the boat has sailed. The bottom barrel has passed and the trends is on the recovery upwards. Good value shares such as National Grid (<750), HSBC (<650), GSK (<1250), BAE (<550), RIO (<3500), FEVR (<2600), Unilever (<3700) have all sailed and returning to their normal PE level again. Note: the figure in brackets were the lowest share prices between December to February 2018.
There is still plenty of room for UK economy to grow and recover from the Brexit challenge. The market actually have not priced in the future value of life outside of EU yet. No one has a crystal ball to forecast what happens to UK and EU in the next 5 years. UK and EU are still classed as matured economic countries drawing more on social and political evolution. Unlike US and China whom are purely focusing their energy on economic growth.
These two great companies are still under-valued.
From my Favourite short-list, there are 2 undervalued stocks to buy.
Who should buy these two shares?
RB @ 5700GBX and LGEN @ 270GBX are two excellent companies which are undervalued stocks to buy. The UK economy have started recovering and whilst these two companies share prices value have not been reflected yet. I personally have invested in these two great companies for long term growth.
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