It’s hard to buy stocks when they’re going up. And the ceasefire between the US and Iran has given share prices a big boost.
There are however, big discounts still on offer. So I don’t think investors should be put off by a rising stock market.
Vistry
I was thinking of buying shares in FTSE 250 housebuilder Vistry (LSE:VTY). But the stock surged 15% on Wednesday (8 April) which is annoying.
A rising price though, doesn’t automatically mean a stock’s expensive. And I think this is a good illustration of that point.
The main challenge facing the firm though, is still there. It’s the fact that affordability issues mean its existing inventory isn’t shifting. Like most other builders, the company’s selling these at lower prices. But that isn’t a good thing for margins in the short term.
Fortunately, Vistry’s in a unique position. It operates through partnerships with housing associations, local authorities, and rental agencies. I think these connections are set to be a huge advantage. The UK has just launched a £39bn plan for affordable housing that lasts 10 years.
Vistry’s existing relationships mean a lot of this could come the company’s way. And the current market value is £1.1bn. In my view, that’s still a very attractive equation. So despite the rising share price, I’m still interested in buying.
Judges Scientific
Unlike a lot of UK shares, Judges Scientific (LSE:JDG) didn’t really move on Wednesday. As a result, the stock still looks cheap to me.
The scientific instrument firm’s earnings per share are set to fall in 2026, which isn’t a good sign. But it’s worth looking more closely at why.
One reason is to do with Geotek – its coring subsidiary. Contracts in this business are infrequent and there isn’t one expected in 2026. Management however, expects roughly three every four years going forward. So that means this year’s earnings will be unusually low.
Another reason is the situation in the US. The administration’s attempts to research funding had been weighing on demand for scientific instruments. This however, has been shot down by Congress. In fact, it’s been replaced with increases to the National Institutes for Health’s budget.
Judges Scientific isn’t seeing increased demand yet, but I think it’s coming. And if I’m right, the stock’s a lot cheaper than it looks. I expect 2026 to be a bad year on paper for the business. But I’m expecting a strong rebound thereafter, which is why I think the stock looks cheap.
Time to buy?
The stock market has just had a big boost from easing geopolitical tensions. So investors might think it’s not the time to be buying. My view though, is that this is a mistake. There are still UK stock that look attractive to me, even with prices generally heading higher.
At times like this, there are two things to remember: higher prices don’t automatically mean stocks are overvalued; and not every stock is the same. A rising market doesn’t mean that everything’s more expensive.
Investors who keep these two points in mind are in a good position to look for potential opportunities. And that’s what I’m doing right now.
