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

Stock of the week: Wolseley

0
Written by:
04/07/2016
Ian Forrest, investment research analyst at The Share Centre, picks plumbing and heating products supplier Wolseley as stock of the week.

Wolseley reported an 11% rise in Quarter 3 earnings last month and, with a high proportion of its operations in the US, it should benefit from weaker sterling following the UK’s vote for Brexit.

Wolseley is highly geared to the US housing sector, where around 50% of its revenues and three-quarters of its trading profit are generated. The commercial and residential markets in the US have held up well, if this trend can be maintained then a forward price to earnings ratio of around 14 does not look too demanding. Bulls of the stock are hoping that margins will keep improving, helped by cost-cutting and a larger market share.

We remain positive on the stock and suggest medium risk investors geared for growth drip feed into the shares. We would highlight the need to remain focussed on the US economy, as a result of its exposure to the region.

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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week