You are here: Home - Investing - Experienced Investor - News -

Stock of the week: G4S

Written by:
Graham Spooner, investment research analyst at The Share Centre, picks security services company G4S as stock of the week.

G4S is the world’s leading security solutions group, which specialises in outsourcing business processes in sectors where security and safety risks are considered a strategic threat. What some may not know is that G4S is the largest employer quoted on the London Stock Exchange and has operations in over 110 countries.

We are recommending the group as our stock tip of the week as we think the shares are attractive at present as they have fallen off since their summer highs, potentially providing investors with a better entry point. Moreover, despite concerns over the sector, there have been two analyst upgrades already this year, which implies an underlying confidence in the sector.

In an unsettled world, demand for security work is unlikely to fall significantly and there has been improvement in emerging markets. Management are implementing a transformation program and addressing the financial situation of the company in order to cut costs, debt and improve efficiency.

Interested investors should appreciate that already, as a result of this, there has been an improvement in profit margins, productivity programs and demand for its automated cash handling business.

The ongoing strategic review will keep management busy for some time yet and it hopes the end result will be that faith is restored in the group. We therefore continue to recommend G4S as a ‘buy’ for medium risk investors and hope that there could be more recovery to come over the longer-term.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
young couple
New civil partnership law could put pressure on pension schemes

A potential new law on civil partnerships currently being debated in Parliament could add several billion pounds to the liabilities...