There are only three LSE Main Market stocks that pass my Value Growth Momentum screen this morning; Bellway (LON:BWY), Barratt Developments (LON:BDEV) and Persimmon (LON:PSN). All up over 1,3,6 and 12 months, low PE, decent yield and a Stockopedia PEG Slater of less than 0.75.
I do not hold any of them in the JIC Portfolio preferring to focus my exposure on Berkeley Group (LON:BKG).
Is this a last gasp rally from the sector or is there more to go for? In my opinion the shares are still worth buying given cheap valuations and a pretty stable operating background; Carney should be pleased with himself as he took the froth out of the housing market purely by talking about interest rises and by making the lenders tighten their criteria. Given European woes and low inflation in the UK, expectations for the first interest rate rise have been pushed out until the second half of next year. I wouldn't mind betting it will be well into 2016.
Incidentally of the four AIM stocks that appear in my screen one of them is a house builder, Telford Homes (LON:TEF) and of the other three stocks I hold one; Renew Holdings (LON:RNWH) which still looks reasonable value to me.
Off to do some research on the other two!
Good spot - Persimmon and Bellway breaking out to new 52 week-highs, Barratt ticking up nicely.
UK market is undersupplied, low interest rates, huge pressure on councils to deliver green belt land for developments, and I know councils are finally moving on this.
Don't fight the tape... ?
I know that Gary Channon (who I rate as one of the UKs top stock pickers) as of January had a £6 fair value price target on Barratt Developments (LON:BDEV) - i.e. 50% upside. His fund has been a massive high conviction stock pick outperformer - more here - and he only owns 16 stocks.
PS - I should add that all three have StockRanks > 97/100 ... clearly one should defer to the stats :-)
