Investment Ideas: 10 Undervalued UK Stocks

THE VALUE INVESTOR: Looking for ideas for your portfolio? There are currently 10 UK trading at a discount to fair value according to Morningstar equity analysts

Emma Wall 10 August, 2016 | 12:10PM

Vote for Brexit, Project Fear threatened, and the stock market will tumble. And it was true – for a week. Since the end of June, the FTSE 100 index of blue-chip UK stocks have gone from strength to strength, hitting a 14-month high yesterday and sitting comfortably up 10% since the start of the year.

Granted, mid-cap and smaller companies have not fared as well, but they are also not held as widely by private investors; for those of you which have exposure to UK equity funds or individual stock holdings, the FTSE 100 tends to be the main event.

But with a rallying market, comes difficult investment decisions. Looking to get in now? Take the time to find a good quality stock at an attractive price. Value investing is the art of buying companies for less than their intrinsic value. It is Warren Buffet’s favoured method of stock selection – and when done successfully can guarantee double digit returns over decades. Using the stock screener in Morningstar Select, we have identified 10 UK stocks which are currently trading at less than the fair value assigned to them by Morningstar equity analysts.

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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
Aviva PLC266.25 GBX8.23
Barclays PLC94.71 GBX9.42
Burberry Group PLC1,398.50 GBX5.15
Carnival PLC868.00 GBX21.23
Finsbury Growth & Income Ord753.00 GBX1.89
Lloyds Banking Group PLC31.08 GBX3.81
Sainsbury (J) PLC204.83 GBX-0.61
Standard Chartered PLC430.70 GBX2.28
Tesco PLC223.09 GBX0.67
The Royal Bank of Scotland Group PLC113.20 GBX5.74

About Author

Emma Wall  is former Senior International Editor for Morningstar

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