Even though I’m optimistic about the prospects for the UK economy, I feel that international stocks such as Unilever plc (LON:ULVR) (ULVR.L), Boohoo.Com PLC (LON:BOO) (BOO.L), British American Tobacco plc (LON:BATS) (BATS.L) and Just Eat PLC (LON:JE) (JE.L) could have investment upside over the medium term.
Just Eat is gradually shifting its business so that it has more international exposure. This could help to reduce its overall risk ahead of Brexit, and may mean that it offers a stronger and more stable outlook.
With Just Eat investing heavily in its technology, it could remain popular among customers. And with a solid track record of buying the right companies at the right prices, I remain optimistic about its future investment potential.
Boohoo’s share price performance could improve in future – even though it has already risen by 25% in the last three months. Its recent update showed that it continues to make progress with its strategy, with it on track to generate £3 billion in sales over the long run.
With Boohoo having a solid strategy in my eyes, the company seems to be in a good position to generate further EPS growth. This could make it worthy of a higher valuation.
British American Tobacco’s growth potential centres on its exposure to reduced risk products in my opinion. The company has invested heavily in this area, and it is aiming to generate £1 billion in sales from next generation products this year.
With British American Tobacco also having a solid position in its cigarette markets, it seems to offer an upbeat outlook. Although the tobacco industry remains relatively risky, I remain upbeat about the evolution of reduced risk products.
Unilever’s business model continues to improve. The company has been able to improve its efficiency in recent years, with it focusing on its core operations through changes to its asset base.
The company’s growth rate is set to remain high according to my research. With around 60% of revenue coming from emerging markets, Unilever could enjoy a tailwind over the medium term. As a result, I remain upbeat about its investment potential.