Business & Investment

Are these stocks a pandemic bargain under radar?

Google Sheets is Google’s free spreadsheet program and is part of the Google Workspace Office Collaboration Suite.Think of it like Microsoft Excel, which is part of MicrosoftOffice suite.

As you can imagine, the two are pretty similar. But for years, Google Sheets has built in powerful financial features. This is a feature that Microsoft has late built into Microsoft Excel.

And a few years ago, for every stock on the FTSE 100, I created a handy Google Sheets to calculate the percentage of stock price movements between two dates.

It’s not a complicated spreadsheet. In essence, there are only four columns: ticker, company name, price on first date, price on second date, and rate of change between the two.

Secretly

Run it regularly to see if you can find potential bargains.

This is a good way to quickly scan the market to see what’s happening to stocks that I don’t monitor on a daily basis or aren’t widely reported in the media.

I continue to make sense to extend it to the FTSE250, but so far it hasn’t worked. And in any case, 350 strains are a huge number to scan.

I wasn’t interested last night, so I ran the spreadsheet again. Two dates in question: 2020 market highs on January 17, 2020. The lowest point of October in the market on October 30, 2020.

In other words, the lowest point I was interested in wasn’t the unpleasant crash of the March market when the FTSE 100 fell to 4,993, but fell to 5,577 at the end of the summer. Write these words.

The usual suspect

What did i find?

First, as you can imagine, some companies have been hit by a pandemic for a very obvious reason.

British Airways Owner, International Consolidated Airlines GroupFor example, it is reduced by 64%.Cruise line operator carnival, 77% decrease.Shopping center owner Hamerson, 87% decrease. NewRiver Retail, Another store owner, who also owns quite a few pubs and leisure outlets, but down 67%.Pub owner Marston’s, 60% down.

etc. There are some surprises there. They were cheap in October, and in most cases such companies are still cheap.

Sure, their stock prices have risen a bit, but the “vaccine bounce” hasn’t really happened. Marstons is currently offering less pints than in October, and it’s hard to imagine a significant increase in demand at British Airways and Carnival.

Go ahead: you don’t see much here, in other words.

Bargain Ahoy?

Much more interesting The second A group of companies that were bombed. A decent, quality company was lowered by what it might call a pandemic “secondary impact.”

From a price-earnings ratio perspective, companies that may have been quite expensive before the pandemic, but weren’t expensive by October.

And, decisively, this may still be in the bargain area, despite the rise in the wider market.

Aerospace parts manufacturer MeggittFor example, despite the defense and utility businesses, it is still quite depressed.Stock price of medical manufacturer Smith & Nephew Similarly still depressed: hospitals are concentrated on Covid-19, so fewer joint replacements are being performed.Stock price recovery of power generation rental company Aggreko More prominent, but still in a bargain area.

A bright day invites

etc. Rolls Royce, Oil giant BP And Royal Dutch shell, And almost all fund management and banking sectors: No doubt a decent business was temporarily down.

Of course you need to be careful. All of these businesses will recover at varying rates as pandemic restrictions are relaxed and the economy improves. In addition, some are subject to sector shifts in parallel. For example, the timescale is uncertain, but oil and gas consumption is lower in a more environmentally friendly world.

But for now, they are all worth a look. Emotions are changing as the vaccine is approved and administered. Footsie has risen 1,200 points in two and a half months, so the market clearly believes we have turned the corner. Today’s bargains may not yet be bargains tomorrow.

Finally, please open your Google Sheets and play with it. The help menu is full of useful information.

Five stocks to try to build wealth in 50 years

Markets around the world are upset by the coronavirus pandemic …

And with so many great companies trading at prices that look like “discount bin” prices, it may now be time for knowledgeable investors to get some potential bargains. Hmm.

But whether you’re a novice investor or a veteran professional, deciding which stocks to add to your shopping list can be a daunting prospect in such an unprecedented era. There is.

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The Motley Fool UK recommends shares in Marston’s and Meggitt. Malcolm owns shares in New River Retail, Marston’s, Rolls-Royce, BP, and Royal Dutch Shell.



Are these stocks a pandemic bargain under radar?

https://www.fool.co.uk/investing/2021/01/23/are-these-stocks-under-the-radar-pandemic-bargains/ Are these stocks a pandemic bargain under radar?

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