Edmund Shing explains why now is perfect time to invest in UK construction company Galliford Try (UK code: GFRD).
1) Big UK company
Galliford Try is a British company with a £1.2bn market capitalisation and a member of the FTSE 250 index.
2) House builder
Galliford Try is a house builder and as such benefits from the current housing market where there is a strong demand for new homes to be built in the UK.
3) Housing market
Thanks to the buoyant housing market Galliford Try expects to grow sales by 10% this year.
4) Stock market woes
Galliford Try has not escaped the current stock market troubles, which means it currently presents very good value. Shares in the company are currently down 20% from the highs of September 2015.
5) Good value
The dividend yield of 5.4% (as of 24 January) provides an excellent income opportunity for income-orientated investors.
Edmund Shing is Global Head of Equity Derivative Strategy at BNP Paribas in London. He holds a PhD in Artificial Intelligence.