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

Monica Wolfe

Monica Wolfe

118 followers

During the first quarter the Invesco European Growth Fund bought three new stocks bringing the fund’s total number of stocks to 75. Invesco European’s portfolio is valued at $1.67 billion as of the first quarter.

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

Aryzta AG (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.

The fund did not alter their position over the duration of the second quarter.

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 CHF7.47billion. Its shares are currently trading at around CHF84.50 with a P/E ratio of 56.10, a P/S ratio of 1.36 and a P/B ratio of 2.31. The company had an annual average earnings growth of 15% over the past five years.

British Sky Broadcasting Group (LSE:BSY)

The company’s second largest holding goes to British Sky Broadcasting where they hold on to 2,919,804 shares of the company’s stock. This position makes up for 2.6% of the fund’s total portfolio as well as 0.18% of the company’s shares outstanding.

Over the past quarter Invesco added 21.15% to their holdings by purchasing 509,775 shares of the company’s stock. They bought these shares at around the estimated average quarterly price of $8.81 per share. Since then the price per share is up about 2.6%.

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 undervalued:

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British Sky Broadcasting has a market cap of £14.13 billion. Its shares are currently trading at around £9.04 with a P/E ratio of 16.40 and a P/S ratio of 1.91. The dividend of BSY stocks is at 3.43%. 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.

British American Tobacco (LSE:BATS)

Invesco’s third largest position is in British American Tobacco where the fund currently holds on to 686,043 shares, representing 0.04% of the company’s shares outstanding and 2.4% of the fund’s total assets managed.

During the past quarter, Invesco increased their position in British American Tobacco 7.97% by adding a total 50,637 shares to their stake. They purchased these shares at an estimated average quarterly price of £34.76 per share. The price has increased about 0.1% 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 £65 billion. Its shares are currently trading at around £34.78 with a P/E ratio of 17.00, a P/S ratio of 4.16 and a P/B ratio of 7.91. The dividend yield of BATS stocks is at 4.09%. The company had an annual average earnings growth of 9.10% over the past ten years.

GuruFocus rated British American Tobacco the business predictability rank of 4.5-star.

Total SA (XPAR:FPNV)

The company’s fourth largest holding goes to Total SA where they hold on to 572,193 shares of the company’s stock. This position makes up for 0.03% of the company’s shares outstanding as well as 2.4% of Invesco’s total portfolio holdings.

Over the past quarter the fund increased their position 24.58% by purchasing 112,891 shares of the company’s stock. They bought these shares near the estimated average quarterly price of $51.56 per share. Since their buy the price per share has increased approximately 3%.

Total’s historical revenue and net income:

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The analysis on Total SA reports that the company’s revenue has been in decline over the past year, its dividend yield is near a 5-year low and its price is close to a 5-year high.

Total SA has a market cap of $115.84 billion. Its shares are currently trading at around $51.05 with a P/E ratio of 13.10 and a P/S ratio of 0.73. The company had an annua average earnings growth of 2.10% over the past ten years.

Reed Elsevier (REL)

The company’s fifth largest holding goes to Reed Elsevier where they hold on to 2,626,502 shares of the company’s stock. This position makes up for 0.22% of the company’s shares outstanding as well as 2.3% of Invesco’s total portfolio holdings.

Over the second quarter the portfolio managers at Invesco added 7.97% to the company’s stock, purchasing 193,865 shares of the company’s stock. They purchased these shares near the estimated average quarterly price of £9.14 per share. Since then the price per share is trading up about 2.8%.

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.

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

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