3 Overvalued UK Stocks

THE VALUE INVESTOR: Looking to take profits from your investments? These three UK companies are overvalued according to analysts - could it be time to crystallise gains?

Emma Wall 7 December, 2015 | 9:58AM
Facebook Twitter LinkedIn

Buy low, sell high is easier said than done. But with a little help from Morningstar equity analysts you can identify the stocks that are trading at more or less than their fair value estimates. If a stock has a one-star rating this means that its current share price is considerably more than analysts value the company at, if the stock has a five-star rating it means analysts think the market has yet to realise that company’s true value.

These three UK stocks are rated one or two star by Morningstar analyst, and could be ripe for profit picking if shareholders are looking to release gains from their portfolio.

Associated British Foods (ABF)

Associated British Foods is a diversified international food, ingredients, and retail group with 124,000 employees and operations in 48 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded groceries, manufactures sugar, supplies farmers with crop input and animal feed, and runs the 300-store strong Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialities. Some 42% of sales are in the UK, and Primark generates 62% of operating profit.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Associated British Foods PLC1,793.00 GBX-0.03Rating
RELX PLC2,254.00 GBX0.49Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar