Morningstar published its list, and 14 of the 16 companies are British. I ran the 13 I’ve already analyzed through my tool:
🟢 EXCELLENT (4)
• $NWG (-8.6%) NatWest - 5.06%, P/E ratio 8.68x, quality 75/100
• $RKT (+2.48%) Reckitt - 4.16%, P/E ratio 11.6x
• $HSBA (-2.53%) HSBC - 3.70%, P/E ratio 10.36x
• $LLOY (-5.82%) Lloyds - 3.58%, P/E ratio 15.6x
🟣 WATCH (3)
• Relx, AstraZeneca, and Unilever ($REL (+2.64%) , $AZN (+6.73%) , $ULVR (+1.44%) ). Quality businesses, but valuations no longer offer room to run
🟠 CAUTION (4)
• BP (4.87%), Shell (3.39%), Rio Tinto (4.52%), and Barclays ($BP. (-0.32%)
$SHEL (+0.1%) , $RIO (-1.68%) , $BARC (-3.81%) ). High returns that mask cyclicality. The 78% marginal tax rate on oil in the UK doesn’t help
🔴 LOW THRESHOLD (2)
• Rolls-Royce $RR. (-3.55%) : It’s on Morningstar’s list, but pays 0.39%. Quality 35, Opportunity 5
• Glencore $GLEN (-3.27%) : Quality 10/100. A high yield can also mask a declining business