In the first three months of the year, investors who use Morningstar.co.uk to generate investment ideas and monitor their portfolios have watched the FTSE 100 index rise almost 10% in that quarter alone.
As they review their holdings and explore potential new ones, these investors have largely sought out reliable UK companies that deliver steady growth and a consistent dividend. Vodafone and GlaxoSmithKline are two such examples.
But it’s not only the slow and steady stocks that our investors have been researching on Morningstar.co.uk. Since the start of the year Thomas Cook Group has also been among the most searched for companies on our website. The travel operator saw shares slump in 2011 as unrest in the Middle East and North Africa hurt its Egypt and Tunisia operations, and has struggled to recover since amid the global travel sector downturn and its own personal high debt levels. However, in the first quarter of 2013 the shares have rallied 120%, bolstered in recent weeks by the firm’s new strategy announcement. For investors who had the courage to buy in at the trough a year ago, their holding will be up in excess of 400% now. For those who already held Thomas Cook before its difficulties became apparent, shares worth £1 apiece today will offer little comfort compared to the £2.70 price tag three years ago.
Of these ten most searched for companies on Morningstar.co.uk, eight are considered to be fairly value by Morningstar equity analysts—hardly surprising since we see the market as broadly fairly valued—but one company, BG Group, is considered to be marginally undervalued by the market versus our analyst’s fair value estimate.
10 Most Searched For Stocks in Q1
Thomas Cook Group (TCG)
Not rated
Lloyds Banking Group (LLOY)
3 Stars
Star Ratings for Stocks indicate whether the stock is over- or under-valued compared to our analyst's fair value estimate. Morningstar Equity Research is available to Premium subscribers. Not a Premium member? Get instant access when you take a free 14-day trial.