UK Stocks Now Attractive
The UK’s stocks and bonds are attracting strong investment interest, marking a sign of a thaw in the investment freeze in British markets due to last year’s economic disruptions. The blue-chip FTSE 100 stock index is near record highs, driven by global trends such as China’s economy reopening, while ten-year government bond yields are down 27 basis points in 2023 to 3.4%. This marks a turnaround from the turmoil caused by the previous administration’s mini budget in September, which temporarily pushed UK bond yields above those of Italy and Greece. The FTSE 100 has bounced 18% from its 18-month lows and the domestically-focused FTSE 250 is up 20% since mid-October. The FTSE 100 is dominated by firms with most revenue from abroad and has received a boost from the reopening of China’s economy and a surge in energy prices. Meanwhile, UK government bonds have outperformed their US and German peers and are attracting bond investors due to the Bank of England’s prediction of a fall in headline inflation to 3% by early 2024. Analysts, however, expect the FTSE 100’s rise to stall with a stronger global growth outlook combined with waning energy inflation.
Top 5 UK Stocks with Most Potential
These are the top 5 stocks on the London Stock Exchange (LSE) as of February 13th, 2023, which are forecasted to have the most outsized gains:
Personal Group Holdings (PGH:LSE) is a property and casualty insurance company with a market capitalization of GBX 0.07 billion. The stock is projected to see a 353.93% increase over the next year with a target price of GBX 1,010.00.
ANGLE plc (AGL:LSE) is a diagnostics and research company with a market capitalization of GBX 0.08 billion. The stock price is GBX 29.25. The stock is forecasted to see a 310.26% increase over this year with a target price of GBX 120.00.
Frontier Developments (FDEV:LSE) is an electronic gaming and multimedia company with a market capitalization of GBX 0.18 billion. The stock price is GBX 466.00. The stock is projected to see a 286.27% increase over the next year with a target price of GBX 1,800.00.
888 Holdings (888:LSE) is a gambling company with a market capitalization of GBX 0.32 billion. The stock price is currently at GBX 67.95. The stock is forecasted with a248.54% increase over the next 12 months with a target price of GBX 236.83.
Esken Ltd (ESKN:LSE) is a specialty chemicals company with a market capitalization of GBX 0.07 billion. The stock price is currently trading at GBX 6.50. The stock’s 12 month target forecast is set for a 207.69% increase.