We asked our freelance writers to share the top British stocks they’d buy in the month of November. Here’s what they chose:
Rupert Hargreaves: Relx
One of the biggest London-listed tech stocks is the global provider of information and analytics for professional and business customers Relx (LSE: REL).
This company offers its customers a highly specialised service, which competitors have not been able to replicate. That’s why earnings per share have more than doubled over the past five years.
As the group builds on these advantages, I think this growth can continue. Investors can also look forward to a 2.6% dividend yield, which is well covered by earnings per share.
If one was looking to add a blue-chip growth and income stock to their portfolio, Relx ticks all the boxes.
Rupert Hargreaves does not own shares in Relx.
Tom Rodgers: BP
BP (LSE: BP) is facing the largest strategy U-turn in its 110-year history. A multi-year switch from Big Oil to Big Energy includes a 40% cut to oil and gas production, and losing these fossil fuel earnings will be costly. The BP share price has taken a massive hit in 2020, falling 59% to a 26-year low. But I think this is overdone. And because of its green energy investments — including in electric vehicle charging network Chargemaster and Lightsource, the world’s third largest solar power developer — I see BP as the best long-term, buy low, sell high opportunity out there.
Tom Rodgers does not own shares in BP.
Royston Wild: B&M European Value Retail
There’s good reason why City analysts reckon B&M European Value Retail’s earnings will rocket 75% in this fiscal year (to March 2021). Retailers that offer a broad range of essential products at low prices really come into their own during tough economic periods like this.
It’s why the FTSE 100 new boy reported in late September that like-for-like sales had rocketed 23% between March 29 and June 27. Back then it benefitted from higher average spend per visit. I’m expecting another rosy update when B&M releases half-year trading details on Thursday, November 12.
B&M’s share price has rocketed 55% since the turn of 2020. And I fully expect it to add to these gains in the coming days. Trading on a forward price-to-earnings growth (PEG) ratio of 0.2, I think this top British stock is too good and too cheap for me to miss in November.
Royston Wild owns shares in B&M European Value Retail.
Harshil Patel: Ashtead
With the US election held on 3rd November, some sectors could be in particular focus over the coming months and years. Both parties have indicated their desire to increase infrastructure spending.
Ashtead (LSE: AHT) is well placed to benefit, through its US-focused Sunbelt Rentals brand. Ashtead is a FTSE 100 listed equipment rentals company, supplying a range of construction equipment used in the building of roads, buildings, and other infrastructure projects.
With a high-margin business model and double-digit return on capital, I’d say this quality industrial player is well placed to benefit from rising US infrastructure growth.
Harshil Patel does not own shares in Ashtead.
Edward Sheldon: Hargreaves Lansdown
My top British share for November is Hargreaves Lansdown (LSE: HL).
Hargreaves posted a very solid set of full-year results back in August, considering the financial environment. For the year ended 30 June, revenue was up 15% while profit before tax was 24% higher. The company increased its regular dividend by 11% and also declared a special dividend. This dividend activity signals that management is confident about the future, in my view.
Since these results, however, Hargreaves’ share price has pulled back quite significantly. I see this share price weakness as a buying opportunity. I think that buying this high-quality FTSE 100 stock now, while it’s out of favour, could be a good move in the long run.
Edward Sheldon owns shares in Hargreaves Lansdown.
Kevin Godbold: Unilever
I reckon Unilever (LSE: ULVR) is perhaps the strongest fast-moving consumer goods company listed on the London stock market. Brands such as Hellman’s, Domestos, Vaseline, Persil and many others have powered a record of growth in cash flow and dividends over many years. Meanwhile, in the recent third-quarter update, Unilever reported underlying sales growth of 4.4% and a positive outlook.
I’d want to buy and hold the stock for the long term because I believe the business will continue to grow. The company is trading well through the pandemic, so I’d be keen to buy this top British stock during November.
Kevin Godbold does not own shares in Unilever.
Jonathan Smith: Aston Martin Lagonda Global Holdings
The Aston Martin Lagonda Global Holdings (LSE: AML) share price has endured a torrid year so far. Down over two-thirds, the temporary closing of the manufacturing site along with rising debt levels has concerned investors. However, I think the stock looks undervalued. When you compare the market capitalization of circa £900m to the enterprise value of £1.66bn, there is a larger disparity than normal.
Add into the mix the new DBX model, which is the first SUV Aston Martin has produced. Given the success seen in this market segment via Porsche, the DBX could provide the catalyst for making a profit in 2021.
Jonathan Smith has no position in Aston Martin Lagonda Global Holdings.
Andy Ross: Barclays
Shares in UK banks have not been the place to be invested for some time. Yet I feel that could change starting this month. Shares in Barclays (LSE: BARC) started to climb at the end of October after the bank announced a positive set of third quarter results.
Those results showed better-than-expected profits following a strong performance from its consumer businesses and as bad loan provisions fell sharply.
Overall with Barclays shares now so cheap, any good news, for example on the virus or on Brexit, could keep the recovery in the share price going.
Andy Ross does not own shares in Barclays.
Roland Head: Tate & Lyle
I reckon FTSE 250 firm Tate & Lyle (LSE: TATE) could be an overlooked bargain at current levels.
The group, which makes sweeteners and ingredients used by food and drink producers, is expected to report its half-year results on 5 November. Although sales have suffered because of lower demand from restaurants and bars, I think this year’s 15% share price drop is more than enough to reflect this temporary weakness.
With TATE shares now trading on just 12 times forecast earnings and offering a 4.6% dividend yield, this is a top British stock I’d buy in November and tuck away for another 10 years.
Roland Head does not own shares in Tate & Lyle.
Paul Summers: Moneysupermarket.com
The possibility of more lockdowns and a surprise US election result could make November another volatile month for markets. Not that this should worry those investing in quality businesses for the long term. One example is price comparison site Moneysupermarket.com (LSE: MONY).
Sure, recent trading hasn’t been great thanks to the coronavirus pandemic. Revenue fell 16% in Q3 due to ongoing travel restrictions and lower product availability from banks. With households looking to save money where they can in the months ahead, however, I suspect contrarians will be rewarded eventually.
In the meantime, Moneysupermarket has £5m in net cash and is still paying out dividends. A forecast P/E of 16 looks great value.
Paul Summers owns shares in Moneysupermarket.com.
G A Chester: BAE Systems
The shares of defence giant BAE Systems (LSE: BA) have remained in the doldrums since falling in the pandemic market crash in the spring. I believe now could be a great time to buy this quality business for the long term.
A trusted partner of UK and allied governments, it has a £46bn order book. And despite challenging conditions this year, management expects earnings to be only a mid-single-digit percentage lower than last year.
The stock is trading at a modest 10.5 times the guided earnings, while a prospective dividend yield of over 5% adds to the value credentials.
G A Chester has no position in BAE Systems.
Manika Premsingh: BHP
In its latest update, the FTSE 100 industrial metals’ miner, BHP (LSE:BHP), reported increased production of iron ore and copper equivalents. This is good news at a time when metal demand is on the rise as the Chinese economy gets back on its feet.
Other FTSE 100 miners, like Rio Tinto and Anglo American, have released similar positive updates recently, that further confirms the trend. The fact that BHP’s share price in the past month has been subdued is a good reason to consider buying the share now. With better global economic prospects for 2021, I don’t think this trend will last long, making it my top British stock for November.
Manika Premsingh holds no position in BHP.
The post Top British stocks for November 2020 appeared first on The Motley Fool UK.
The Motley Fool UK has recommended B&M European Value, Barclays, Hargreaves Lansdown, Moneysupermarket.com, RELX, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Motley Fool UK 2020