Should You Focus on These Prime Real Estate Stocks?
Despite the government’s easing of coronavirus restrictions and the gradual reopening of the economy, several sectors have seen limited growth. The main reason behind this is the high rate of inflation, which has put great pressure on businesses as well as consumers. Rising input costs mean that companies will eventually have to pass these costs on to consumers to maintain profitability.
Among the sectors affected by this situation is the construction sector. As the cost of energy, fuel and raw materials have increased, household budgets have also been affected. Additionally, the cost of borrowing has also increased with four consecutive rate hikes by the Bank of England (BoE), forcing people to postpone their home building plans.
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According to the S&P Global/CIPS Construction Purchasing Managers’ Index (PMI), a monthly survey that assigns a score to each sector based on its performance, the construction sector in the UK stood at 58, 2 in April, down slightly from 59.1. he scored in March and February. Notably, a score above 50 marks an expansion, while anything below 50 marks a contraction. In terms of subsectors, the most resilient were commercial works and civil engineering, while residential construction saw the weakest momentum during the month of April.
Let’s take a look at some prime housing stocks and their performance.
Persimmon is a UK-based FTSE 100-listed homebuilder. It reported underlying pre-tax profit of £973m for the financial year 2021, up from £863.1m in the year previous.
The company has a market capitalization of £6,689.37 million and its shares closed at GBX 2,039.00, down 2.67% on May 6, 2022. stock fell 36.28%.
Taylor Wimpey Plc (LON: TW.)
Taylor Whimpey is one of the UK’s largest property companies and operates primarily in the UK and Spain. The company has named Jennie Daly as its new CEO who will replace Pete Redfern.
The FTSE 100-listed company has a market capitalization of £4,538.83 million. Its shares closed at 123.45 GBX, down 2.45% on May 6, 2022. Over the past year, its share price has fallen more than 31%.
Berkeley Group Holdings Plc (LON:BKG)
The Cobham-headquartered developer builds residential and mixed-use properties and is listed on the FTSE 100 Index. National Grid utilities in St William Homes LLP.
On May 6, 2022, the company’s shares closed at 4,007.00 GBX, down 2.70%, with a market capitalization of £4,585.62 million. The stock’s one-year returns stand at -14.34%
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental assessment or technical analysis. Any interest in stocks or sectors should be carefully assessed taking into account the associated risks.