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FTSE100 Stock prices have risen in recent months. This was driven by improved macroeconomic forecasts and positive comments by Rishi on his Snak premiership. Not to spoil the point, but Sunak’s quiet pragmatism has worked wonders for my confidence in UK stocks.
The two FTSE 100 stocks I’m watching today are significantly below the levels they were a year, two or three years ago.
Hargreaves Lansdowne (LSE: HL) is the UK’s leading investment platform provider. We also provide financial services to our customers.
In the years leading up to the pandemic, stocks were on a fairly steady upward trend. But the Covid-19 lockdown has fueled investor activity, sending the Bristol-based company’s share price soaring above 2,200 pence.
But as the economy reopened and people returned to work, pandemic-era growth proved unsustainable. The stock, like other growth and tech stocks, was very expensive. The company is currently trading at less than 850p. price earnings ratio Around 15:00.
But to me, stocks are grossly undervalued right now. Even in the midst of the cost of living crisis, the company is delivering positive results. Net new contracts fell by 30% to him at £1.6bn, now in the middle of a recession. Rising interest rates increased revenue by 20% and added 31,000 active customers in half a year.
In the short term, we expect interest rate tailwinds to strengthen. But in the long term, Hargreaves will continue to attract clients as more and more Britons want to manage their portfolios.
rolls royce (LSE:RR) has surged in recent months, but is still well off its pre-pandemic highs.
The company, which derives more than a third of its revenue from long engine flight times, was hit hard during the pandemic. We sold our business unit and drove efficiencies to pay off debt and reduce overhead.
But Rolls surprised investors last month with better-than-expected results. His statutory operating profit for 2022 was £837m, well above his £513m in the previous year. Earnings increased from £11.2 billion to £13.5 billion. Rolls said he expects an underlying profit of £800m to £1bn for the current financial year.
Yes, Rolls still has a long way to go in recovery. However, it is now back in the black, and if commercial aviation continues to recover, debt should start to come down to manageable levels. “In 2023, we expect large engine flight hours to be 80-90% of 2019 levels and total visits to be 1,200-1,300.‘, the company said in a report.
The business has also seen strong growth in its two other major business segments. Orders for the power systems segment rose 29% to his £4.3bn. The defense is on track, Business says.
The metrics are starting to climb as well, with the company’s price-to-sales ratio now below 1, making future earnings potential attractive at its current share price.
I continue to buy Rolls-Royce stock because I think Rolls-Royce is doing better than the stock price suggests. The stock has fallen 50% in his five years.
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