On CNBC, wealth manager Josh Brown regularly shares his ‘best stocks in the market’ with viewers. These are US stocks with strong/improving fundamentals that are moving higher, near 52-week/all-time highs, and have a good chance of delivering further gains.
Earlier this week, I screened the UK market for stocks with these same attributes. Here are three names that popped up and look really interesting to me right now (albeit the term ‘best’ is always subjective).
A recovery story
First up, we have Smith & Nephew (LSE: SN.), a leader in joint replacement technology. I have a substantial position in this FTSE 100 stock, and I really like the set-up right now.
After years of underwhelming results, Smith & Nephew’s performance is starting to improve thanks to a transformation plan implemented by CEO Deepak Nath. Earlier this month, the company produced strong H1 results and announced a $500m share buyback.
As for the ‘technicals’ (the share price action), they look great. Currently, the shares are in an uptrend – near 52-weeks highs – but still miles below their all-time highs meaning there’s potential for further gains.
Of course, there are risks here. Operational challenges in China – where the Volume-Based Procurement programme has created challenges – is one.
With the stock trading on a relatively low forward-looking price-to-earnings (P/E) ratio of 15 however, I like the look of it and believe it’s worth considering.
A strong uptrend
Next, we have Prudential (LSE: PRU), the FTSE 100 insurance company that’s focused on serving customers in Asia and Africa.
This is another stock I’m invested in. And like Smith & Nephew, I see a lot of potential here.
Prudential shares have been a big disappointment in recent years due to economic weakness in China. However, Q1 results showed that performance is starting to pick up, with new business profit growth of 12%.
Turning to the technicals, they look excellent. At present, the share price is in a really strong uptrend.
It’s worth noting that Prudential hasn’t posted its H1 results yet. They come next week and there’s a chance they could create some share price volatility.
I’d look at share price weakness as a buying opportunity however. This company has a lot of long-term potential due to the markets it serves and I think it’s worth looking at while it’s still well below its highs.
Multiple growth drivers
Finally, we have global banking giant Barclays (LSE: BARC). Now, this isn’t a stock I own, but I do think it looks quite interesting right now.
I like Barclays because the bank has significant exposure to both investment banking and trading. This could pay off in the months and years ahead.
With interest rates coming down, activity in the capital markets is starting to pick up. Meanwhile, with Donald Trump in the White House, equity markets are likely to be volatile, creating plenty of opportunities for Barclays’ traders.
Turning to the share price trend, it looks attractive. Currently, the shares have strong upward momentum. The valuation looks attractive too. At present, the P/E ratio here’s only nine.
I’ll point out that economic weakness is a risk with bank stocks like Barclays. This is a possibility in the months ahead.
I think the stock deserves further research however. With multiple growth drivers and a low valuation, there’s a lot to like.
