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.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

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.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

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?

Money Tips of the Week