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FTSE Stocks have suffered in recent weeks as fear spread from the banking sector. But now investor concerns seem to have largely passed and a recovery, albeit with some bumps, could well be on the cards.
So here are two stocks that have tumbled in recent weeks but could rise in the coming months.
standard charter
standard charter (LSE:STAN) is among the stocks hardest hit by the bank liquidation in recent weeks. The UK-based bank, which gets around 90% of its profits from Asia, Africa and the Middle East, is down 15% in a month.
It fell victim to concerns about unrealized bond losses and broader fears about the health of the financial system as interest rates rise. However, these concerns have largely been allayed, despite central banks’ continued appetite to tackle inflation.
I’m not saying that investors should consider the impact of unrealized bond losses, but it needs to be put in context. Large, well-regulated banks like Standard Chartered have more diverse bond holdings than ill-fated Silicon Valley Bank.
There are several reasons why I recently added Standard Chartered to my portfolio. First of all, I think a potential acquisition provides a bit of a cushion against further downward pressure on the stock price.
Second, the bank offers good value, currently trading at a price-earnings ratio of just 7.9. private banking company Hisnberg has made Standard Chartered its first choice in the industry, seeing faster earnings per share growth of 30% per year, ahead of HSBC at 20%.
Finally, there is the school of thought that larger banks like Standard Chartered could benefit as capital seeks safety.
Vistry Group
I think it is time to reconsider the real estate market, despite the rate hikes. Yesterday, vistry Cluster (LSE:VTY) rose on better-than-expected full-year earnings. The group said market conditions were improving.
Vistry said it was seeing an improving sales trend in the first 11 weeks of the current fiscal year. The annual average private sales per site per week is currently 0.54, but the rate per week has increased to 0.62 in the last four weeks. Customer confidence has improved significantly since Liz Truss’ disastrous budget, she added.
We know financial conditions aren’t ideal for home builders, and that’s not helping with Bank of England rates now at 4.25%. But the idea that we are at, or close to, the terminal rate reassures me. Things should improve soon.
Vistry is also buoyed by its part of the affordable housing business, or ‘partnerships’. It is a key segment for Vistry and is generally more resilient. In theory, this business area should continue to grow steadily for the foreseeable future, as the government will fall short of its own affordable housing targets.
With the share price falling by 8% in a month and 30% in a year, the dividend yield currently stands at a very attractive 7.4%.
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