Saturday, 19. August 2017  
07.06.2016 06:44
Author: Nic Wright

STOCK SCREEN: UK Stocks With Valuation Upside And Relative Strength

 

On June 23, 2016, Britons will decide if Great Britain should remain in or leave the EU. In case of a Brexit, the road is likely to be rocky and it is impossible to foresee all the resulting political and economic effects. However, any arising uncertainty will presumably have a direct negative impact on business confidence, investment spending, household consumption and foreign direct investments to the UK. Therefore, the resulting direct effects of such an event might weigh significantly on the British economy and the pound sterling.

 

While current polls indicate that the result of the referendum is going to be a close call, probability indicators point to about 30 percent likelihood of a Brexit. The uncertainty weighing on financial markets for quite some time now, as European equities have seen outflows of $36 billion this year, might in case that Great Britain remains in the EU lead to a relief rally for stocks.

 

In looking for ideas this week, we screen for UK stocks with solid upside according to our fundamental fair value estimates and relative strength.

 

Here are the filter criteria:

1. Market capitalization above 1bn.

2. Upside to Intrinsic Stock Value according to our AVM’s Greenblatt inspired and Mean Multiple upside estimate.

3. Relative Strength over 12 months

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modelling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

INDUSTRY

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

PRICE / EARNINGS

DIVIDEND YIELD [%]

 ASHMORE GROUP PLC

 United Kingdom

 Div. Financial Services

298.20

2109

37.2

-10.7

7.2

19.3

5.6

 BOVIS HOMES GROUP PLC

 United Kingdom

 Home Builder

990.00

1329

33.6

2.7

11.8

7.7

4.5

 CREST NICHOLSON HOLDINGS

 United Kingdom

 Home Builder

580.50

1474

10.7

12.7

63.8

8.3

4.8

 SAINSBURY (J) PLC

 United Kingdom

 Food

248.70

4789

37.4

37.5

34.0

10.7

4.3