Best of all, the valuation suggests that a lot of bad news is already factored into the share price. Vistry trades on only seven times forecast earnings, with a predicted yield of 7.5pc for 2022.
That yield is underpinned by a balance sheet that carries net cash and a pension surplus.
The shares are also back trading at below book value, or net asset value, per share. Granted, some caution is required here as £548m of the stated book value of £2.3bn is goodwill relating to the Galliford Try transaction. But even adjusting for that, the stock trades on just 1.2 times historic book value, towards the lower end of the range that analysts use as a rule of thumb for assessing builders’ valuations – at or below book value looks potentially cheap and two times or more potentially expensive.
Vistry still looks good value, especially for income-seekers. Hold.
Questor says: hold
Ticker: VTY
Share price at close: 938.80p
Update: Hunting
Last week’s full-year results from Hunting, the oil equipment and services specialist, were no thing of beauty, as revenues fell and the firm made a loss. However, chief executive Jim Johnson is already talking of an increase in orders in the wake of higher oil and gas prices and the race may soon be on to find fresh supplies of hydrocarbons, despite the long-term drive towards net zero.
Analysts are pencilling in a return to the black in 2022 and 2023 but nothing like a move back to previous peaks when pre-tax earnings exceeded $100m (£76m), so there is potential for big gains if the energy crisis persists.
A balance sheet that has net cash offers protection too and Hunting’s £373m market value means the stock trades below tangible book value of £500m.
This stock could yet prove to be a slick pick. Hold.
Questor says: hold
Ticker: HTG
Share price at close: 263p
Russ Mould is investment director at AJ Bell, the stockbroker
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