In light of U.K. Prime Minister Boris Johnson stepping down, four U.K. stocks that meet Peter Lynch’s screening criteria include Hikma Pharmaceuticals PLC (LSE:HIK), SThree PLC (LSE:STEM), M P Evens Group PLC (LSE:MPE, Financial) and Vp PLC (LSE:VP) according to the All-in-One Screener, a Premium feature of GuruFocus.
FTSE 100 rises as U.K. prime minister steps down
On Thursday, the FTSE 100 increased approximately 1.1% on the back of the prime minister announcing his departure from the office.
Other U.K.-based economic indicators increased on the news, including the U.S. / U.K. foreign exchange rate and the 10-year U.K. government bond yield.
As investors monitor leadership changes, GuruFocus’ All-in-One-Screener listed several U.K. stocks that meet the Peter Lynch Growth Screen: a predictability rank of at least two stars, a price-earnings ratio less than 14 and a 10-year revenue growth rate of at least 6%.
Hikma Pharmaceuticals
Shares of Hikma Pharmaceuticals (LSE:HIK, Financial) traded around 16.83 pounds ($20.20), showing that the stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.60. The stock’s price-earnings ratio of 12.78 is approximately 16% above its 10-year low of 11.01.
The drug manufacturing company has a GF Score of 77 out of 100 based on a profitability rank of 9 out of 10, a growth rank of 8 out of 10, a financial strength rank of 7 out of 10, a GF Value rank of 4 out of 10 and a momentum rank of 1 out of 10.
Gurus with holdings in Hikma Pharmaceuticals include the Vanguard Health Care Fund (Trades, Portfolio) and the iShares MSCI ACWI ex U.S. ETF (Trades, Portfolio).
SThree
Shares of SThree (LSE:STEM, Financial) traded around 3.6 pounds, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.08. The stock’s price-earnings ratio of 11.73 is below the 10-year median of 17.04.
The employment and staffing company has a GF Score of 83 out of 100 based on a rank of 8 out of 10 for profitability and growth, a financial strength rank of 9 out of 10, a momentum rank of 5 out of 10 and a GF Value rank of 3 out of 10.
M P Evans Group
Shares of M P Evans Group (LSE:MPE, Financial) traded around 8.56 pounds, showing the stock is significantly undervalued based on Thursday’s price-to-GF Value ratio of 0.55. The stock’s price-earnings ratio of 7.34 is near a 10-year low.
The oil-palm and rubber plantation company has a GF Score of 84 out of 100, driven by a rank of 9 out of 10 for growth and financial strength and a profitability rank of 8 out of 10 despite momentum and GF Value ranking just between 3 and 4 out of 10.
Vp
Shares of Vp (LSE:VP) traded around 8.50 pounds, showing the stock is fairly valued based on Thursday’s price-to-GF Value ratio of 1.02. The stock’s price-earnings ratio of 13.32 is below the 10-year median of 14.52.
The equipment rental company has a GF Score of 85 out of 100, driven by a rank of 8 out of 10 for profitability, growth and momentum despite financial strength and GF Value ranking just between 4 and 5 out of 10.
