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Invesco's Top Five Stocks Showing Focus in the London Market

Monica Wolfe

Monica Wolfe

131 followers

During the first quarter the Invesco European Growth Fund bought one new stock bringing the fund’s total number of stocks to 76. Invesco European’s portfolio is valued at $1.404 billion as of the first quarter.

The following five companies represent the largest positions Invesco European Growth Fund maintains.

Aryzta (XSWX:ARYN)

Invesco European Growth Fund’s largest holding goes to the Switzerland-based Aryzta AG. The fund holds 542,511 shares of the company’s stock which represents 0.59% of the company’s shares outstanding and 3% of Invesco’s total portfolio.

Over the first quarter the fund upped their stake 2.18% by purchasing 11,571 shares of the company’s stock. They purchased these shares in the first quarter price range of CHF68.40 to CHF77.90 with an estimated average quarterly price of CHF72.14 per share. From this average purchase price the price per share is now trading up about 8%.

Invesco European’s historical holding history:

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Aryzta is a global food business with a leadership position in specialty bakery. The company is based in Zurich, Switzerland with operations worldwide.

Aryzta’s historical revenue and net income:

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The analysis on Aryzta reports that the revenue has slowed over the past year, that the dividend yield is nearing a 5-year low and the price is near a 5-year high. The company has also issued €14.755 million of debt over the past year.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Aryzta has a market cap of CHF6.93 billion. Its shares are currently trading at around CHF77.90 with a P/E ratio of 50.40, a P/S ratio of 1.25 and a P/B ratio of 1.80. The company had an annual average earnings growth of 15% over the past five years.

British Sky Broadcasting Group PLC (LSE:BSY)

The company’s second largest holding goes to British Sky Broadcasting where they hold on to 2,410,029 shares of the company’s stock. This position makes up for 2.5% of the fund’s total portfolio as well as 0.15% of the company’s shares outstanding.

Over the past quarter Invesco added 44.98% to their holdings by purchasing 747,740 shares of the company’s stock. They bought these shares at around the estimated average quarterly price of $8.95 per share. Since then the price per share is up about 2.7%.

Invesco’s historical holding history:

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British Sky Broadcasting Group PLC is the pay television provider in the UK and Ireland and home communications services in the UK. Sky retails pay TV services to residential customers in SD, HD and 3D via satellite, on demand with anytime and on the move with Sky Go.

British Sky’s historical revenue and net income:

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The analysis on British Sky Broadcasting reports that the company has shown predictable revenue and earnings growth, its operating margin is growing and its price is near a 10-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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British Sky Broadcasting has a market cap of £14.55 billion. Its shares are currently trading at around £9.19 with a P/E ratio of 16.20and a P/S ratio of 1.99. The dividend of BSY stocks is at 3.35%. British Sky Broadcasting had the annual average earnings growth of 11.70% over the past ten years.

GuruFocus rated the company the business predictability rank of 4-star.

Reed Elsevier PLC (LSE:REL)

The company’s third largest holding goes to Reed Elsevier where they hold on to 2,432,637 shares of the company’s stock. This position makes up for 0.21% of the company’s shares outstanding as well as 2.5% of Invesco’s total portfolio holdings.

Over the first quarter the portfolio managers at Invesco added 39.67% to the company’s stock, purchasing 690,948 shares of the company’s stock. They purchased these shares near the estimated average quarterly price of £9.11 per share. Since then the price per share is trading up about 1.6%.

Reed Elsevier PLC through its subsidiaries provides professional information solutions in the Science, Medical, Risk, Legal and Business sectors.

Reed Elsevier’s historical revenue and net income:

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The Peter Lynch Chart suggests that the company is currently overvalued:

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Reed Elsevier PLC has a market cap of £10.72 billion. Its shares are currently trading at around £9.26 with a P/E ratio of 19.00. The dividend yield for the company is at 2.57%with an annual average earnings growth of 29.20% over the past five years.

Compass Group (LSE:CPG)

The guru’s third largest holding goes to Compass Group where they maintain 2,114,605 shares of the company’s stock. This position makes up for 2.3% of the fund’s portfolio weighting as well as 0.12% of the company’s shares outstanding.

During the first quarter Invesco upped their holdings 11.29% by purchasing 135,781 shares of the company’s stock. They purchased these shares at an estimated average price of £9.32 per share. Since then the price per share has dropped approximately -1.8%.

Invesco’s historical holding history:

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Compass Group PLC is engaged in providing contract food and support services to clients in around 50 countries. The company’s businesses are focused in North America, Europe and Japan.

Compass Group’s historical revenue and net income:

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The analysis suggests that the company has predictable revenue and earnings growth, its price is near a 10-year high and its P/E, P/B and P/S ratios are all also trading at 10-year highs. The analysis also notes that the company has issued £1.7 billion in debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Compass has a market cap of $16.39 billion. Its shares are currently trading at around $9.15 with a P/E ratio of 39.10, a P/S ratio of 0.96 and a P/B ratio of 6.26. The dividend yield of Compass stocks is 2.61%. Compass had an annual average earnings growth of 10.60% over the past ten years.

GuruFocus rated Compass the business predictability rank of 3-star.

British American Tobacco PLC (LSE:BATS)

Invesco’s fifth largest position is in British American Tobacco where the fund currently holds on to 635,406 shares, representing 0.03% of the company’s shares outstanding and 2.2% of the fund’s total assets managed.

During the past quarter, Invesco increased their position in British American Tobacco 27.19% by adding a total 135,841 shares to their stake. They purchased these shares at an estimated average quarterly price of £31.37 per share. The price has increased about 5.4% since then.

Invesco European’s historical holding history:

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British American Tobacco PLC is a holding company that owns, directly or indirectly investments in the numerous companies constituting the British American Tobacco Group of companies. Its brand portfolio includes Dunhill, Kent, Lucky Strike and Pall Mall.

British American Tobacco’s historical revenue and net income:

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The analysis on British American Tobacco reports that:

  • The operating margin is expanding
  • The dividend yield is nearing a 5-year high.
  • The company has issued £85million of debt over the past year.
  • Their revenue has slowed down over the past year.

The company recently announced that CTBAT International Limited has officially commenced operations. CTBAT is a joint investment of subsidiaries of China National Tobacco Corporation and British American Tobacco. This joint investment will own and manage worldwide international cigarette trademark State Express 555.

The Peter Lynch Chart suggests that the company is currently overvalued:

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British American Tobacco has a market of £62.67 billion. Its shares are currently trading at around £33.07 with a P/E ratio of 16.90, a P/S ratio of 4.16 and a P/B ratio of 7.91. The dividend yield of BATS stocks is at 4.28%. The company had an annual average earnings growth of 10.80% over the past ten years.

GuruFocus rated British American Tobacco the business predictability rank of 2.5-star.

Check out Invesco European Growth Fund’s fourth quarter portfolio here.

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