3 Value Stocks for Your SIPP

THE VALUE INVESTOR: Looking for stocks that are trading at less than their fair value for your SIPP portfolio? We highlight three companies analysts consider undervalued

Emma Wall 13 April, 2015 | 4:25PM
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This article is part of Morningstar's Guide to Retirement Saving. All this week we are arming you with the tools you need to secure the best possible retirement income.

Pension portfolios lend themselves to a value bias – the long-term nature of retirement investment means you have time on your side and can wait out a reversion to a stock’s fair value estimate. These three companies are currently rated four or five stars by Morningstar equity analysts, meaning they are trading at less than their fair value estimate. We reveal the equity analysts thoughts below.

BHP Billiton (BLT)

BHP Billiton owns a very substantial proportion of the planet's long-life, low-cost, export-oriented, expandable mining assets. Many of these are effectively irreplaceable, with low sovereign risk and proximity to key Asian markets. The assets can grow to meet the world's long-term increase in demand for natural resources. With the exception of iron ore, BHP lacks pricing power in its products; its narrow moat rating is founded on low-cost supply.

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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BHP Group PLC2,058.50 GBP0.00Rating
Kingfisher PLC334.10 GBP0.00Rating
Lloyds Banking Group PLC46.28 GBP0.00Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar