Thursday, January 8, 2009

5 UK-listed Stocks ranked by Stability and Return for 2009

There is no shortage of "stock picks for 2009" for US enthusiasts, but a little more digging is required for UK market followers. The following five stocks were ranked by Market Cap and Yield so should provide some stability going forward while netting an attractive return while holding:

First up is HSBC Holdings (HSBA). The stock sports a listed yield of 9.6% but given the past financial turmoil this may yet be optimistic. The stock has weathered the financial meltdown better than most and if it can break from what is considered a bullish consolidation (the "wedge") then it could have a good 2009. Contrarians will like the increased negativity from the broker recommendations over the past two months given it didn't cause a collapse in the share price; mean broker target is 745.85p with a median of 765.61p

Second on the list is the UK stalwart, BP. (BP.) At just over £5 a share with a 29p per share dividend it offers value buyers something to mull over. Brokers slant heavily towards the 'Buy' side but there are a couple more skeptics than there were two months ago. The chart sports a bearish pattern, but even if it was to break through the rising support line connecting the lows it may not last long there with support located nearby at 463p; mean broker target is 604.20p with a median of 600.00p

Third is Royal Dutch Shell (RDSA). After what looked to be a relatively ordely spate of selling from the summer the stock has managed to find some footing. The 5.68% yield helps in this low interest rate environment (although it only lists a 0.95% yield for UK listed shares) and with crude oil deeply discounted it looks like value buyers are taking advantage. The last upgrade/downgrade on record was by ING back in May 2008 (an upgrade to "buy"). I have made a YourCall for a push back to summer highs - if you disagree with this then we would love to have your call.

Next on the list is Vodafone (VOD). Like Shell it went through the latter part of 2008 with a measured decline and recovery, helped by the attractive 5.41% yield for buyers. Brokers remained distinctly neutral on the stock; perhaps waiting for a more volatile period before throwing their hat into the ring; mean broker target is 151.41p with a median of 160.00p

Finally there is GlaxoSmithKline (GSK). Unlike its counterparts it had a relatively uneventful 2008, trading in a broad range and currently challenging the upper reaches of this range. The yield of 4.41% is still attractive at these levels and with Brokers sitting on their hands with this one too it might turn out to be the quiet performer of 2009; mean broker target is 1268p with a median of 1277.50p - given it has surpassed these targets the Broker high target is 1380p.

Make a Call; set an Alert; Chart their future; follow these stocks today on Zignals.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts, and stock charts website

Broker data sourced from Yahoo! and provided to them by FactSet JCF.