Sunday tips round-up: National Grid, Healthcare Locums, Alternative Networks
The National Grid share price has proved remarkably resilient in the current market and has outperformed its utility peers. The business is low-risk and defensive but should continue to grow earnings well, driven by the £16bn capital expenditure programme and £2.8bn share buyback programme.
On a price earnings basis, the shares trade at a 10 per cent discount, while the yield is higher. With significant upside to the share price, as well as the chunky dividend and £2bn share buyback, the Sunday Telegraph rates the stock a solid buy.
Healthcare Locums estimates there are around 4m vacant healthcare jobs around the world, with a shortage of 300,000 nursing staff in North America alone. Recession or not, the company is well placed to expand rapidly in the years to come. The shares trade on a multiple of just 6.4 times current year earnings, and with profits forecast to rise by at least 25 per cent in each of the next three years, the shares look excellent value. Buy, says the Sunday Telegraph.
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As its target customers seek to tighten their belts this year, Alternative Networks is well placed to win new business. On an undemanding price earnings ratio of 9.9 times next year's forecasts, the shares look good value. Buy, says the Sunday Telegraph.
Research Now's stock has fallen from a peak of 330p in December 2006. The Sunday Telegraph argues this is overdone. Buy.
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