April 26, 2024

3 British Stocks to Consider Buying in January: InterContinental Hotels Group, Harbour Energy, & Ibstock

As the new year begins, it’s natural for investors to be looking for opportunities to grow their portfolios and maximize their returns. If you’re considering investing in British stocks, you’ll want to choose companies that are strong, reliable, and well-positioned for future growth. To help you get started, we’ve compiled a list of the best British shares to buy in January.

InterContinental Hotels Group

InterContinental Hotels Group is a company that operates on a franchise basis, meaning that it does not own the physical hotel buildings but takes a fee from the owner of the hotel as part of its network.

This business model allows the company to have low growth and maintenance costs, as the group leaves the running costs of the hotels to the operators, and the franchisee pays the company to add new hotels to its network.

This strategy results in steady financial performance, with the company generating over £770m in operating income using only £410m in fixed assets and approximately 75% of that income becoming free cash.

Warren Buffett believes that the best businesses can grow without capital, and InterContinental Hotels Group fits this description.

Harbour Energy

Harbour Energy, a prominent player in the oil and gas sector, has been experiencing a surge in production, reaching 207,000 barrels of oil equivalent per day in the nine months leading up to September.

The company’s operating costs have remained low at just $14 per barrel, leading to record profits of around $1.4bn for the year on $5.4bn in sales. Management at Harbour Energy also expects to have completely paid off the company’s net debt of $1.1bn by 2023.

Despite these impressive figures, the company’s shares have dropped 40% since April due to the volatile nature of the industry and the potential decommissioning of some older oil and gas fields. However, despite the recent decline in Harbour Energy’s share price, the company’s shares are currently at a low valuation, with a forecast earnings multiple of 2.7 and a yield of 6%.

Ibstock

The share prices of brick manufacturers listed in Britain have decreased due to concerns about the housing market. Ibstock, an FTSE 250 company, has seen its value decrease by 25% since the beginning of 2022. However, experts believe this decline presents an opportunity for dip-buying, as the company has reported strong performance and continued demand.

Despite the risk of a slowdown in the housing market, Ibstock and other companies in the industry have maintained strong sales due to a stable repair, maintenance, and improvement market. Ibstock’s shares have a price-to-earnings ratio of 9.8 for 2023, a good value by any standards.

reliable, and well-positioned for future growth. To help you get started, we’ve compiled a list of the best British shares to buy in January.

InterContinental Hotels Group

InterContinental Hotels Group is a company that operates on a franchise basis, meaning that it does not own the physical hotel buildings but takes a fee from the owner of the hotel as part of its network.

This business model allows the company to have low growth and maintenance costs, as the group leaves the running costs of the hotels to the operators, and the franchisee pays the company to add new hotels to its network.

This strategy results in steady financial performance, with the company generating over £770m in operating income using only £410m in fixed assets and approximately 75% of that income becoming free cash.

Warren Buffett believes that the best businesses can grow without capital, and InterContinental Hotels Group fits this description.

Harbour Energy

Harbour Energy, a prominent player in the oil and gas sector, has been experiencing a surge in production, reaching 207,000 barrels of oil equivalent per day in the nine months leading up to September.

The company’s operating costs have remained low at just $14 per barrel, leading to record profits of around $1.4bn for the year on $5.4bn in sales. Management at Harbour Energy also expects to have completely paid off the company’s net debt of $1.1bn by 2023.

Despite these impressive figures, the company’s shares have dropped 40% since April due to the volatile nature of the industry and the potential decommissioning of some older oil and gas fields. However, despite the recent decline in Harbour Energy’s share price, the company’s shares are currently at a low valuation, with a forecast earnings multiple of 2.7 and a yield of 6%.

Ibstock

The share prices of brick manufacturers listed in Britain have decreased due to concerns about the housing market. Ibstock, an FTSE 250 company, has seen its value decrease by 25% since the beginning of 2022. However, experts believe this decline presents an opportunity for dip-buying, as the company has reported strong performance and continued demand.

Despite the risk of a slowdown in the housing market, Ibstock and other companies in the industry have maintained strong sales due to a stable repair, maintenance, and improvement market. Ibstock’s shares have a price-to-earnings ratio of 9.8 for 2023, a good value by any standards.

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