6 UK Stocks Make March Best Ideas List

Morningstar equity analysts have compiled a list of the best value stocks across the globe. Six UK listed stocks make the cut

Alex Morozov, CFA 1 March, 2018 | 10:04AM

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Reckitt Benckiser (RB.)

We are adding RB, formerly known as Reckitt Benckiser, to the Best Ideas list because we think its wide moat and above-average pricing power are underappreciated. RB's fourth-quarter results show that the company is not immune from the ongoing structural changes in consumer staples retail; however, with a portfolio that is increasingly skewed to businesses with pricing power, we think RB has a better chance than most in its peer group of reigniting organic growth.

The near term may remain ugly due to the return of commodity inflation, the recovering British pound, and pricing pressures in the weaker parts of the portfolio, but if the firm can return to a long-term organic revenue growth rate of closer to 5% while sustaining its margins, we believe there will be significant upside to the stock.

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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
BT Group PLC111.10 GBX1.00
G4S PLC130.50 GBX9.25
Imperial Brands PLC1,407.00 GBX0.50
Reckitt Benckiser Group PLC7,680.00 GBX0.87
WPP PLC593.40 GBX1.33

About Author

Alex Morozov, CFA  Alex Morozov is the director of the health-care team at Morningstar.

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