Are you interested in buying shares? Are you looking for bargains as the Brexit crisis rolls on? Then I’ve picked five companies that could be worthy additions to your portfolio.
BGEO Group
BGEO Group (LSE:BGEO), formally known as Bank of Georgia, is an emerging market financial that’s the leading bank in the Eastern European state of Georgia. I’ve been a fan of this stock as it has been growing its earnings, has started to pay out a dividend, and yet is remarkably cheap for such a growth prospect.
A P/E ratio of 12 and a dividend yield of 2.24% show that the firm is keenly priced, and is one to invest in if you want more emerging market exposure.
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Taylor Wimpey
Housebuilders such as Taylor Wimpey (LSE:TW) have taken an absolute pummelling following the Brexit vote. Yet my view is that Britain’s housing boom will continue. And that means that profitability will rise further at Taylor Wimpey.
Recent price falls just mean that this could be the right time to add a housebuilder to your investments. For a business that has seen its earnings steadily rise, a P/E ratio of 9, with a dividend yield of 7.8%, looks cheap.
Shire
I’m a firm believer that the trend of increasing global spend in healthcare will lead to increasing profits for pharmaceutical firms. And of one of the UK’s fastest growing healthcare businesses is Shire (LSE:SHP), a company that aims to cure a wide range of rare diseases.
Shire has been one of the FTSE 100’s growth stars of the past decade. But a recent pull-back in the share price means that this company is a great way to build your holding in Big Pharma.
The P/E ratio is 20, and the company has also started to pay out a dividend.
Prudential
Financials have had a hard time of it since the Credit Crunch. Yet one notable exception is insurance business Prudential (LSE:PRU). This company has largely avoided bad debts, scandal and litigation. Instead, it has taken advantage of its strong position in fast-growing emerging markets such as China and India.
Rapid growth in earnings per share has pushed the Pru’s market value higher, but recent profit taking means the firm is now very reasonably priced. A P/E ratio of just 11, with a dividend yield of 3.1% will appeal to investors who want a combination of income and growth.
National Grid
In the tech-driven bull market of the 1990s, computing and the internet was king, and dull utilities such as National Grid (LSE:NG) took a hammering.
Yet far-sighted contrarians at the time, notably Neil Woodford, saw the intrinsic value in these businesses. Even as most stock prices were tumbling, National Grid has been on a 20-year bull run.
And in times of crisis, investors turn to firms with the defensive qualities of utilities such as this. Check the fundamentals, and this company still represents good value, with a P/E ratio of 14 and a dividend yield of 3.86%.
