- An interesting variety of shares are favoured by analysts
- Results suggest stock-pickers are taking a bottom-up approach
Our UK large-cap screen is topped by pharmaceutical giant Astrazeneca (AZN), with drinks and brands business Diageo (DGE), a stalwart of many portfolios that favour quality style shares also ranking highly. Oil & gas behemoth Shell (SHEL) has had plenty of positive momentum as investors reappraise the role of energy majors in light of the supply issues and new appreciation a more nuanced approach will be needed towards transition to low carbon fuels. Then there is also a very high position in the large cap screen for technology and communications play Airtel Africa (AAF). This eclectic mix of companies only serves to highlight that in uncertain times and with interest rates headed upwards, it is really becoming a stock pickers’ market.
Mid- sized UK shares that still rank well include Drax Group (DRX), which has also scored well against our growth at a reasonable price (GARP) screen. Sticking with the energy theme, Harbour Energy (HBR), scores highly. Another interesting firm that has had the distraction of mooted takeover offers last year is Sanne Group (SNN), a provider of outsourced alternative asset and corporate business services.
Large American companies included in the S&P 500 index that score highly include insurance firms W.R. Berkley (WRB:US) and Arthur J. Gallagher & Co (AJG:US), with the cost of living and inflation crisis feeding into a narrative that favours discount retailers Dollar Tree (DLTR:US) and CostCo (COST:US).
Download PDF
