Today I am looking at four Footsie masters that could help you minimise the impact of ‘Brexit’ on your portfolio.
Global star
Thanks to its broad geographical spread, I reckon household goods maker Unilever (LSE: ULVR) is one of the best stocks out there for investors terrified by a possible British economic implosion.
Unilever sources around six-tenths of all its revenues from developing markets — territories that should deliver splendid gains in the years ahead, as wealth there levels take off.
And helped by a conveyor belt of product innovations on hot labels like Flora margarine and Lynx deodorant, I expect revenues to keep on exploding across all of its global markets.
This view is shared by the City, and earni,ngs are expected to head 5% and 8% higher in 2016 and 2017 respectively. And I reckon consequent P/E ratios of 20.9 times and 19.4 times are fair value for a stock with Unilever’s exceptional growth potential.
Togs titan
Like Unilever, I reckon Supergroup (LSE: SGP) should keep on churning out terrific earnings growth thanks to its ambitious expansion drive on foreign shores.
The Superdry manufacturer is carrying out a massive store ramp-up in Europe. And its plans for further afield are equally exciting — the company started selling its wares in China last year, while the acquisition of distribution rights in North America also throws up plenty of top-line potential.
Accordingly the number crunchers expect Supergroup to record earnings growth of 14% and 13% in the years to April 2017 and 2018, respectively, resulting in very-attractive P/E ratios of 17.9 times and 15.6 times.
Invest in peace
Funeral director Dignity (LSE: DTY) is arguably the ultimate defensive stock for volatile times, the inevitability of death providing it with almost-unrivalled earnings visibility.
The company has already proved a terrific pick for those seeking chunky bottom-line growth year after year. And while a 2% decline is pencilled in for 2016, this is due to last year’s abnormally-high death rate.
Indeed, helped by a steady stream of acquisitions — the company snapped up five crematoria last month alone — Dignity is expected to bounce back with an 8% earnings rise next year.
Sure, these figures may make the business appear expensive on earnings multiples of 21.1 times and 19.4 times respectively. But many investors will be happy to pay such a premium in the current uncertain environment.
In rude health
Healthcare giant Mediclinic International (LSE: MDC) is one of the few London stocks to be ‘in the green’ in post-Brexit trading, and with good reason.
Investors are latching onto Mediclinic’s terrific international presence, such as its operations in the United Arab Emirates and Australia, where is it is the first and third-largest private healthcare provider respectively.
And with healthcare in these regions shooting higher, I expect Mediclinic’s bottom line to similarly take off.
Indeed, earnings growth of 19% and 13% is chalked in for 2016 and 2017. Consequently this year’s P/E ratio of 19.6 times slips to just 17.3 times in the following period.
