As IC analyst Robin Hardy pointed out last week (‘The outlook under Labour’, IC, 2 August 2024), there has already been plenty of advice dispensed on the stocks investors should own on the back of a new Labour government – and not all of it has been helpful.
Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points
- Rerating likely as earnings growth improves
- More competitively priced than peers
- Offers decent returns through dividends and buybacks
Bear points
- Bigger players' expansion could cut into market share
- Rebound has taken longer than expected
- Current earnings outlook is flat
Take the housebuilders, for instance. Early action, including the reinstatement of mandatory housing targets for councils and publication of a new draft planning bill, have raised expectations that activity in the sector will ramp up.