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Ever see a bunch of UK stocks you think might just need a trigger to send them on their way up? Here are three I’m hoping could get a boost in July.
Investing sentiment
When interest rates are high and stock markets are dull, investment management companies can underperform. Look at the Jupiter Fund Management (LSE: JUP) chart above, and that 60% five-year decline.
But with first-half results due on 25 July, we see a 15% year-to-date rise in 2025.
I don’t expect a dramatic turnaround. But I thought April’s update showed signs the last few clouds might be clearing.
Assets under management (AUM) fell £1bn in the fourth quarter. But half of that was through market movements. And it meant net client outflows of only a modest £0.5bn. AUM still stood at £44.3bn.
Jupiter’s a relatively small player. And it could still suffer volatility if investors stick to bigger and safer firms as economic uncertainty continues. But as the horizon brightens, I think it could be a good time to consider getting in.
Real estate health
Anything related to property has been through the mill, and that includes Primary Health Properties (LSE: PHP). It’s a real estate investment trust (REIT), and I see two ways of looking at it.
One is as a holding company with falling asset values. In the year to December 2024, net asset value per share fell 3.3%. It followed a 4% decline the year before. The things shareholders own are worth less now.
Or we could look at how those assets are being used. They’re primary health facilities in the UK and Ireland, with long-term NHS contracts playing a big part.
Net rental income rose 2.9% last year, with adjusted earnings per share (EPS) also gaining 2.9%. In 2023, we saw a 5.5% increase in net rental income, with adjusted EPS up 3%.
I think investors who see a thriving business here should consider buying. Those who can’t see past the bricks, however, could keep the share price down a while longer.
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Talking of bricks…
Taylor Wimpey (LSE: TW.) has first-half results lined up for 30 July. We’ve seen a rocky past decade here. But isn’t this surely among the industries with the best supported long-term demand in the UK? Housing shortage? Yep, we have a big one.
High interest rates have put a damper on the home construction business. Last year saw Taylor Wimpey’s total number of completions (including joint ventures) dip from 10,848 to 10,593. Back in 2022, the count was up at 14,154.
In an April update, the company reiterated completions guidance in the range of 10,400 to 10,800 this year. That excludes joint ventures, so we might be past the bottom.
With a forecast P/E of 14 and interest rates still high though, I could see more pain for shareholders before things improve.
Meanwhile, some estimates suggest the UK needs more than 4m new homes. That could keep Taylor Wimpey going for another 377 years.
