There is no doubt about it, this is a stock picker’s market. Whereas before investors would pick a series of well known blue chips and expect them to rise steadily, now each share you buy into requires careful analysis. You need to check stock picking websites such as the Motley Fool, research the latest company results, and scan through company reports and discussion boards.
And in this article, after doing the requisite research, I have unearthed 3 companies that I think are worthy of your attention. They are a broadcaster, a building materials company, and a bank. If you want to learn more, then read on….
Sky
Satellite broadcaster Sky (LSE: SKY) has grown to become Britain’s leading television company. It has done so by providing a variety and quality of programming that is second to none.
A belief that sophisticated consumers will be willing to pay more for a higher standard of television has been proved resoundingly to be correct. If you want the leading dramas, if you want Game of Thrones, Premier League football, test match cricket and golf majors, you have no choice but to buy into Sky’s product portfolio.
It has transformed the TV market in this country, and is an example of how to run a pay-tv firm which I think many other companies in other markets will try to copy.
A recent pull back in the share price has meant that it is now rated at a very reasonable 2016 P/E ratio of 15.06, with a dividend yield of 3.69%.
Travis Perkins
Travis Perkins (LSE: TPK) is a buildings materials and products distribution company that owns the Wickes DIY brand. And it is a business that has been growing steadily, with earnings per share expected to progress from 105.70p in 2013 to 148.80p in 2017.
With the building boom in this country going from strength to strength, Travis Perkins is set to gain and further increase its profitability. But the share price is off its highs, and is now attractively priced at a 2016 P/E ratio of 13.92, with a dividend yield of 2.68%.
That’s why I am optimistic about the prospects of this company, which combines profit and revenue growth with an increasing income.
BGEO Group
I have written several times about the investing merits of BGEO Group (LSE: BGEO), the financial services firm based in Georgia. It is the biggest bank in this Eastern European company, and the fact that it is listed on the London Stock Exchange means that investors can easily buy a stake in a leading emerging market business.
Why am I so interested in this company? Well, it is rapidly growing, with the eps expected to progress from 206.21p in 2013 to 375.48p in 2017. And yet it is very cheaply priced, with a 2016 P/E ratio of just 8.01, and a 3.18% dividend yield to boot.
Thus it exhibits a rare combination of value, growth and dividends which makes it, in my view, the ideal buy.
