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

Stock of the week: Genus

Written by:
Helal Miah, investment research analyst at The Share Centre, picks world-leading animal genetics company, Genus, as stock of the week.

Global demand for pork, beef and milk is predicted to continue to rise, especially in developing countries, with their rising incomes, population growth and move to urbanisation. Therefore, a company that provides help for farmers to improve efficiency and the quality of its stock looks well positioned for the longer-term. Consumers want affordable, safe to eat and better quality produce and farmers are reacting to that with a growing use of genetics in breeding and improving their stock.

Genus applies science to animal breeding. Its non-genetically modified organism technology is applicable across all livestock species, but is only commercialised by Genus in the cattle and pig farming sectors. It is a provider of genetics and reproduction services, marketing in more than 75 countries. The group believes it has a competitive edge from having ownership and control of its breeding animals, along with the biotechnology used for further improvements, allied to its growing global supply and distribution network and increase spend on research and development.

In recent updates, the company has reassured investors that trading is in line with expectations and that markets remain ‘generally favourable’. Indeed, acquisitions, such as pig genetics specialist Hermitage, should help enhance the group’s global reach and boost royalty growth and the strategic review combined with the increasing focus on researching and sexing technology is expected to increasingly benefit the group.

This is a company that is establishing a niche for itself across the globe. The share price has moved higher since the results hit an all-time high in November, as analysts get excited about its gene editing program. As a result, we would recommend Genus as a medium to higher risk, long-term growth ‘buy’ for investors.

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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:
Pothole-related breakdowns on the rise: how to claim

The RAC attended 11% more pothole-related breakdowns in the last quarter of 2017 than it dealt with in the same...