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

Stock of the week: G4S

0
Written by: YourMoney.com
12/02/2018
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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

Read previous post:
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...

Close