These FTSE-listed giants are grabbing the headlines! Should you buy?

Royston Wild looks at three British stocks making news on Monday.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Nanotechnology specialist Nanoco (LSE: NANO) was recently dealing 6% higher from Friday’s close after unveiling a deal with pharmaceuticals and science colossus Merck.

The accord will see Merck market Nanoco’s cadmium-free quantum dot technology, it was announced, with a view to the US giant eventually building its own production facility to meet rising demand for display units using this hardware. Nanoco will receive a licence fee and royalties on Merck’s sales.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Nanoco’s share price has exploded since the Brexit referendum, the manufacturer’s relationship with an array of multinational clients proving the perfect tonic for concerned investors. The stock has risen 85% since the vote, with Monday’s push taking it to levels not seen since last July.

While Nanoco is expected to remain lossmaking until the close of next year, I believe the Mancunian star’s expertise in a fast-growing tech segment should underpin explosive earnings growth in the coming years.

Developing markets drag

Engineer Keller Group (LSE: KLR) hasn’t fared so well in Monday trade, however, the stock last changing hands 11% lower following a disappointing half-year update

Keller announced that revenues hit a record £849.7m between January and June, up 12% year-on-year. But operating profit slipped 6% during the period, to £35.6m, thanks to big losses in its Asia Pacific region.

While in North America and Europe Keller has outperformed, it has said that it expects full-year results to be at the lower end of previous guidance thanks to challenging market conditions across markets such as Australia, Singapore and Malaysia.

Today’s share price move leaves Keller dealing on a forward P/E rating of 9.4 times, a situation that could see plenty of bargain hunters piling in. But investors should be aware of further share price weakness should emerging market coolness intensify, and patchy economic data in Europe and the US indicates upcoming weakness for its two biggest divisions.

Hitting turbulence

Fellow engineer Senior (LSE: SNR) suffered no such woes on Monday, the stock last dealing 10% higher from last week’s close.

Senior’s half-year report released today showed revenues 4% higher, to £450.5m. This couldn’t stop adjusted pre-tax profit slumping 19% during January-June, however, to £42.3m.

Senior advised that “business conditions deteriorated in the Flexonics division and resulted in a weak first half as end markets remained challenging with no clear signs of recovery yet visible.”

Difficulties in the oil and gas segment are likely to keep the pressure on at Flexonics, Senior advised, although the firm’s bullish take on the aerospace market remains intact. Indeed, the FTSE 250 play commented that “the outlook for the large commercial aerospace sector is both strong and visible.”

Today’s share price surge leaves Senior on a P/E rating of 14 times for 2016. So while I expect rising aircraft production to deliver splendid long-term gains, the poor condition of Senior’s other end markets leave plenty of question marks over when earnings will bounce higher again. I reckon cautious investors should sit on the fence for the time being.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Senior woman wearing glasses using laptop at home
Investing Articles

SSE shares are up 15% since the market correction! Should I buy?

Jabran Khan looks at why SSE shares have been on an upward trajectory in recent weeks and decides if he…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

After crashing 29%, Spectris shares look cheap to me

After peaking at 4,167p last September, Spectris shares have slumped by over 29%. But I see deep value in the…

Read more »

British Pennies on a Pound Note
Investing Articles

Here is why I added this dirt-cheap FTSE 100 penny stock to my holdings!

Jabran Khan explains why he added this dirt-cheap FTSE 100 stock to his holdings and is excited by its recovery…

Read more »

Woman looking at a jar of pennies
Investing Articles

3 FTSE 100 penny stocks! Which is the cheapest buy?

Our writer examines three penny stocks that feature in the FTSE 100 index to ascertain whether they have a place…

Read more »

Arrowings ascending on a chalkboard
Investing Articles

Is the Vodafone share price an opportunity at current levels?

Jabran Khan looks at the current Vodafone share price and decides if he would add the shares to his holdings…

Read more »

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

4 gems I’d include in my Stocks & Shares ISA

Jon Smith explains some of the top stocks he's thinking about including in his Stocks and Shares ISA a we…

Read more »

Compass pointing towards 'best price'
Investing Articles

At 85p, are Rolls-Royce shares a no-brainer buy? 

The Rolls-Royce share price look very cheap right now. And I think this might be my last chance to buy…

Read more »

positive mental health woman
Investing Articles

My £3-a-day blue-chip passive income plan

Our writer sets out his passive income plan of investing a few pounds each day in top stocks.

Read more »