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Top 3 Budget-Friendly Stocks to Invest in for Exposure to the UK Economy

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While the United States and China dominate the global economic stage, the United Kingdom consistently ranks among the top competitive economies. As an investor on US stock exchanges, you have the opportunity to invest in foreign stocks and tap into different economies. In this article, we explore three top-rated UK-based stocks that offer favorable risk-to-reward profiles.

Balfour Beatty (BAFYY)

Balfour Beatty is an infrastructure company headquartered in London. Its operations encompass construction services, support services, and infrastructure investments. This top-performing company is currently in the top 21% of the Zacks Building Products-Heavy Construction Industry, demonstrating its strong potential for growth. With earnings estimates on the rise for fiscal years 2023 and 2024, Balfour Beatty’s stock is attractively priced at just 8.9X forward earnings. Additionally, the company offers a solid semi-annual dividend yield of 3.96%, making it a compelling investment option.

Burberry Group (BURBY)

Burberry Group is a renowned luxury apparel designer based in London, globally recognized for its fashion expertise. The company is poised for steady growth, with earnings expected to rise in the coming years. Sales are also projected to increase, providing a strong foundation for expansion. With a semi-annual dividend yield of 3.91% and a respectable year-to-date return of 8%, Burberry’s stock offers attractive potential for investors looking to tap into the UK economy.

Tesco (TSCDY)

Tesco, the largest retailer in the UK and one of the world’s leading international retailers, presents a valuable opportunity for exposure to the UK economy. Similar to the other two stocks mentioned, Tesco is primed for top and bottom-line growth. Trading at a slight discount to its industry average, Tesco’s stock is favorably priced at 11.5X forward earnings. With expected earnings growth in fiscal years 2024 and 2025, as well as a significant semi-annual dividend yield of 5.58%, Tesco is an appealing investment choice.

These three UK-based stocks offer affordable investment options that provide exposure to Europe’s historically strong economies. With favorable Zacks Rank #2 (Buy) ratings, attractive valuations, and strong growth potential, Balfour Beatty, Burberry Group, and Tesco are worth considering for your investment portfolio.

If you’re interested in learning more about investing in the UK economy and exploring other investment ideas, you can download the free reports available from Zacks Investment Research:

To read this article on Zacks.com, click here.

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