Undervalued Retail Stocks

Canny investors who can spot the winners have the chance to snap up shares in the better performing retailers at a lower price

Rodney Hobson 10 January, 2014 | 3:59PM

We didn’t exactly shop ‘til we dropped at Christmas but trading figures for the festive season showed there were undoubted winners in the retail sector and the gap between winners and the losers was wider than usual.

There seems to be an erroneous perception that if one retailer produces poor figures then the whole sector must have suffered and shares tend to be marked down across the board. Canny investors who can spot the winners thus have the chance to snap up shares in the better performers at a lower price.

Supermarkets

Unfortunately the winners this time were low priced chains Lidl and Aldi, plus the Co-op and John Lewis, none of whom are quoted on the London Stock Exchange.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Domino's Pizza Group PLC315.20 GBX-1.01
Greggs PLC1,675.00 GBX2.51
Marks & Spencer Group PLC98.16 GBX-3.91
Morrison (Wm) Supermarkets PLC185.35 GBX-1.75
Next PLC4,798.00 GBX-4.61
Sainsbury (J) PLC197.25 GBX-1.57
Ted Baker PLC80.00 GBX1.07
Tesco PLC221.50 GBX-0.14

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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