Image source: Getty Images
Tariff uncertainty has led to significant market volatility. As a result, a lot of major indexes are in negative territory year to date. Not all stocks have taken a hit though. While the FTSE 100 index is down in 2025, this Footsie stock is up about 14%.
The stock in focus is property search company Rightmove (LSE: RMV). It’s one of the FTSE 100’s smaller companies, with a market-cap of just £5.7bn.
A few weeks ago, I said that this was one of the safest UK dividend stocks to consider buying in the current environment. That call is now looking pretty good – while a lot of Footsie stocks have experienced weakness since then, this stock has hit new 52-week highs.
Immune to tariffs
It’s not hard to see why this stock is outperforming the market right now. For starters, Rightmove is a British digital company that operates in the UK. So Donald Trump’s tariffs shouldn’t really have any direct impact on the business.
Secondly, it’s relatively immune to the property cycle due to the fact that it’s a search company and not a construction business. So if there was a downturn in the UK property market, it would most likely hold up reasonably well (while housebuilders like Taylor Wimpey and Persimmon could take a big hit).
Third, it has a rock-solid balance sheet with minimal debt. So if interest rates remain high, it’s unlikely to be vulnerable (unlike a lot of other FTSE companies). Finally, it pays dividends. The yield‘s not high (around 1.5% at present) but there’s plenty of scope for dividend growth in the years ahead as earnings per share comfortably cover dividends per share.
Worth buying today?
Are Rightmove shares worth considering for a portfolio today? I think so. In my view, the valuation still looks quite reasonable, despite the fact that the shares are near 52-week highs. Currently, the stock’s price-to-earnings (P/E) ratio is around 25, which isn’t high for a profitable online company (Rightmove is one of the most profitable companies in the entire FTSE 100) with a strong brand and a huge market share.
It’s worth noting that last year Australian property search company REA Group tried to buy Rightmove when the UK company’s shares were trading at slightly lower levels. So it clearly saw some value in the company.
Of course, there are risks to consider with this stock. I think the biggest one is competition from other players in the industry. Recently, US company CoStar Group has been making moves to try and capture market share in the UK (it bought OnTheMarket). CoStar’s a much bigger company and has a lot of financial firepower so this risk can’t be ignored.
Overall though, I see plenty of appeal in Rightmove shares at current levels and feel they’re worth considering. I hold the shares and I have no plans to sell them any time soon.
