• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

UK consumer stocks eye recovery as valuations remain depressed

by November 29, 2024
written by November 29, 2024

Investing.com — Even after two years when FTSE All-Share Retailers index suffered a sharp de-rating amid inflation fears, valuations in the UK consumer sector remain subdued, even as signs of a potential rebound emerge.

Berenberg highlighted that FTSE All-Share Retail index earnings per share are up 23% over the past two years, while the 12-month forward P/E has risen from a low of c9x in September 2022 to 11.5x currently.

Despite this recovery, valuations across many UK consumer stocks remain significantly discounted.

Pre-COVID-19 averages show current valuations are, on average, 13% lower, and the discount deepens to 20% excluding standout performers like Marks & Spencer (OTC:MAKSY). Some companies, including B&M, Card Factory, Currys, JD (NASDAQ:JD) Sports, and Origin Enterprises, trade at more than a 30% discount.

Analysts expect a brighter outlook for UK consumer spending by 2025, underpinned by real income growth and easing household savings ratios. While consumers remain cautious, the November uptick in GfK’s UK Consumer Confidence Index offers encouraging signs for an acceleration in retail sales growth.

Among top stock picks for 2025, UBS highlighted B&M, Card Factory, Currys, Dunelm, JD Sports, and Warpaint for their robust market positions and structural growth drivers.

Key themes shaping the sector include supply-chain resilience, cost pressures, artificial intelligence adoption, mergers and acquisitions, and evolving routes to market. Analysts expect these dynamics to continue driving sector consolidation, favouring firms with scale and financial strength.

With inflationary pressures easing, the cost-of-living squeeze has technically ended, but consumers remain conservative in their spending habits. As confidence grows, analysts expect pent-up cash reserves to boost retail activity, providing a clearer path to recovery.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
BOJ’s Ueda says wage trends key to possible rate hikes, Nikkei reports
next post
Russia stocks higher at close of trade; MOEX Russia Index up 1.00%

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Central banks extend easing cycle in November as uncertain 2025 looms
    • Shares of GSK down as weak vaccine sales cast shadow on earnings beat

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy