The best British stocks to buy in November

The best British stocks to buy in November

Every month, we ask our freelance investor writers to share their best stock buying ideas with investors – here’s what they had to say for November!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Prudential

What it does: Prudential is a life insurance and asset management company that operates solely in Asia and Africa.

By andrew mackie: Following the spin-off of its UK and US businesses, Prudential (LSE: PRU) is now fully focused on some of the world’s fastest growing markets. This makes a lot of sense when you consider their growth drivers. In Asia, for example, despite rising levels of prosperity, insurance penetration remains extremely low. This market is estimated to be worth $1.8 trillion.

What I like most about Prudential is that it is diversified in geography, channel and product. This not only gives you multiple sources of growth, but also adds resiliency to your business performance. Its distribution network encompasses more than 500,000 licensed agents, as well as through partnerships with banks (known as bancassurance).

Prudential’s stock price has been under heavy pressure throughout 2022. It is down 30% YTD. This has been mainly driven by the ongoing closure of the border between Hong Kong and mainland China. This has hurt revenue in its largest market. However, when considering the potential for explosive growth in several of the regions in which it operates, today’s depressed share price offers investors an attractive entry point.

Andrew Mackie owns shares of Prudential.

games workshop

What it does: Games Workshop designs, manufactures, and sells fantasy miniatures for your Warhammer tabletop gaming experience.

By Boyrazian Zaven. games workshop (LSE: VAG) is arguably one of the most recognized board game companies in the world. This is the group behind the immensely popular war hammer franchises, generating the majority of their income through the sale of miniatures to hobbyists through their global network of retail partners.

Over the last 12 months, the stock price has not been the best performer, falling more than 40%. It appears that investors are becoming more pessimistic about the short-term performance of this consumer discretionary business. And the latest trading update showed some reduction in earnings as consumer spending takes a hit from the cost-of-living crisis.

However, this drag on earnings ultimately stems from a short-term problem. And with the group’s long-term strategy still intact, backed by an impressive £71m cash war chest, I can’t help but see the recent share price decline as a buying opportunity for my portfolio.

Zaven Boyrazian does not own any shares in Games Workshop.

Smurfit Kappa Group

What it does: Smurfit Kappa manufactures packaging products for e-retailers, supermarkets, consumers and industrial customers.

By wild royston. A lot of positive business updates from the packaging industry would encourage me to buy Smurfit Kappa Group (LSE: SKG) November actions.

the FTSE100 The company published its own financial statements on Wednesday, November 2. I think this could help you post more healthy gains in stock price throughout the month and beyond.

industry rival Mondi reported a 55% increase in underlying EBITDA in the third quarter, reported in October. He commented that “Higher average selling prices and overall volume growth more than offset significant cost pressures..”

Shortly before this, D. S. Smith announced that he expectedvery strong” revenue growth in the six months to October. In fact, trading was so strong that the company raised its earnings forecast for the half.

Smurfit Kappa’s cheap share price certainly leaves room for further gains if its own finances impress. Packaging power trades at a forward price-earnings (P/E) ratio of just 7x.

Royston Wild owns shares in DS Smith.

AstraZeneca

What it does: AstraZeneca is a biopharmaceutical company that develops medicines used by millions of patients around the world.

By Charlie Carman. AstraZeneca (LSE: AZN) has been one of the top performers in the FTSE 100 for a decade. An early return to pre-Covid cancer diagnosis levels should boost sales of the healthcare heavyweight’s range of oncology products, which includes Tagrisso, lynparzaY Imfinzi.

Indeed, AstraZeneca is well positioned for continued transformation in global demographics. The demand for pharmaceuticals to treat chronic diseases continues to rise and the World Health Organization predicts that one in six people will be over the age of 60 by 2030.

Unfortunately, the company suffered a recent setback in a trial of a nasal spray version of its Covid-19 vaccine. Initial tests revealed that it did not provide adequate protection in humans. However, there is more to the company’s drug portfolio than coronavirus treatments, and I think growth prospects look promising elsewhere.

AstraZeneca’s share price has fallen nearly 15% since hitting a 52-week high in August. I think this presents an attractive buying opportunity to increase my stock position.

Charlie Carman owns shares of AstraZeneca.

Khaki

What he does: Persimmon builds houses. And when prices are right, he builds up his land bank to build even more houses.

By alan oscroft. The long-term case for investing in Khaki (LSE: PSN) is, I think, simple. The UK suffers from a chronic housing shortage. And our listed homebuilders enjoy high barriers to entry.

The short-term argument against buying now is the economy and growing fears of weak house prices. After all, Persimmon’s stock price is down 50% in the last 12 months, and we don’t want any of that, do we?

Well, actually, I remember the previous home builder crash and realized that Persimmon was buying land to build on when it was cheap. And after that, stocks went into a long and strong bull run. So what is happening now? Persimmon has bought land again.

But the bottom line for me is a P/E ratio of only around five, and an expected dividend yield of 19%. Short-term risks are real, but I think Persimmon is oversold.

Alan Oscroft owns shares of Persimmon.

Renishaw

What it does: Renishaw designs and manufactures high-precision measurement equipment and healthcare technology.

By Stephen Wright. I have gone for FTSE250 Values Renishaw (LSE: RSW) as my best UK stocks to buy in November. This is a business that is growing, well protected and has a strong balance sheet.

Renishaw manufactures specialized equipment, which it sells to various end markets, including agriculture, healthcare and power generation. The company has more than 1,800 patents protecting its products.

The balance of the company also seems solid to me. Renishaw has a total debt of £16.25m and £141m in cash, which means I don’t think it’s in much danger from rising interest rates.

Earnings have been growing at an average of 6% per year for the last decade. But the stock is down nearly 30% since the start of the year and is now trading at a P/E ratio of 21.

Stephen Wright does not own Renishaw shares.

Taylor Wimpey

What it does: Taylor Wimpey is one of the UK’s largest homebuilders, selling houses to private clients and local housing associations.

By paul summers. Share prices of UK homebuilders have come under heavy pressure in 2022 on concerns that rapidly rising interest rates and a prolonged recession will dampen demand. Taylor Wimpey (LSE: TW) has been one of the biggest decliners, losing half its value since the beginning of the year.

This may be an opportunity for long-term focused fools like me. The FTSE 100 firm is clearly in much better financial health than it was during the Great Financial Crisis. And while dividends can’t be guaranteed, the 10% yield also seems safer than the payouts offered by Taylor Wimpey’s rivals.

CEO Jennie Daly’s comments on the company’s outlook will be closely scrutinized when she releases a business update in early November. However, with a P/E of just five, I suspect a lot of fear has already been discounted.

Paul Summers has no place at Taylor Wimpey.

legal and general

What it does: Legal & General is a British multinational company that offers insurance, savings and investment products.

By nathan marks. I’m looking for legal and general (LSE: LGEN) for my british top share a to buy for November. As one of the UK’s largest pension funds, it has been dealing with the recent chaos in the bond market.

The Bank of England took emergency intervention in early October. That was to mitigate a material risk to the financial stability of the types of services Legal & General provides. However, the company said this episode had a “limited economic impact” on its business and it still expected an 8% operating profit for the full year.

Market volatility could still worsen, causing further uncertainty in the company’s balance sheet and liquidity. However, the stock seems to have great value overall and I think it has been oversold. Today it trades at a P/E ratio of 6.8 and produces a very attractive dividend of 8.2%.

It’s hard for me to ignore this strong business with historically strong demand for its products and services.

Nathan Marks does not have a position in Legal and General Affairs.

International airline group

What it does: International Airlines Group is an Anglo-Spanish multinational group that is home to renowned airlines such as British Airways, Iberia, Aer Lingus, Level and Vueling.

By John Choong. Despite a possible card downturn, travel demand remains strong. As such I believe International airline group (LSE:IAG) the stock looks lucrative at its current price.

In its most recent business update, the company revealed that travel demand remains strong and is still recovering to 2019 levels. There also appears to be an uptick in business and high-end travel, echoed by its American competitors. CEOs say consumers are still spending despite inflationary pressures, just less on goods but more on services. Therefore, IAG is expected to benefit as the Christmas season approaches.

However, it should be noted that IAG’s high debt/equity ratio (107%) is not ideal in a high interest rate environment, and is something that investors should definitely take into account. The group will have to hope that its free cash flow remains strong through an economic slowdown in the medium term, or it risks hurting its bottom line and sending its share price down again.

John Choong has no role at IAG.

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