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The Zacks Analyst Blog Highlights: Aptiv, Spirax-Sarco Engineering, NMC Health, Safestore Holdings and TT Electronics

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For Immediate Release

Chicago, IL – June 7, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Aptiv PLC (APTV - Free Report) , Spirax-Sarco Engineering plc (SPXSF - Free Report) , NMC Health Plc , Safestore Holdings plc (SFSHF - Free Report) and TT Electronics plc (TTGPF - Free Report) .

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Here are highlights from Wednesday’s Analyst Blog:

World Cup Fever to Bring Windfall Gains for These Stocks

The 2018 FIFA World Cup will be held in Russia from Jun 14 to Jul 15. With less than two weeks left for this month-long mega football event, the British economy is expected to gain from this event. Although revenue generation in the U.K. will not come directly from the FIFA World Cup, British entertainment companies, retailers, and restaurant chains are expected to gain from the event.

Along with optimism from the World Cup, recent economic data for the United Kingdom is quite encouraging. Both U.K. manufacturing and services Purchasing Managers’ Indexes (PMIs) registered a noticeable increase in May. Following these developments, investing in British companies that are expected to gain from the World Cup and strong manufacturing and services sectors looks like a prudent investment option.

FIFA World Cup to Bring Billions for U.K.

Per data from British think-tank, World Advertising Research Center (WARC), the World Cup will bring £1.33 billion or around $1.78 billion for the U.K. economy. Moreover, the figure may total to even £2.72 billion or about $3.64 billion if England reaches the final stage of the event. According to U.K.-based digital marketplace VoucherCodes, a large number of British retailers and brands will be gaining from the World Cup.

Per VoucherCodes, the British hospitality sector is expected to make £193 million or $258 million. Additionally, revenues from barbecues and garden parties are estimated to be around £37 million or more than $49 million. Further, expenditure on sportswear items including team jerseys will be around £264 million or about $353 million.

Moreover, football fans who will watch the matches at home are projected to spend £240 million or $321 million on food and £297 million or $397 million on alcohol. In fact, TV audiences will separately spend £277 million or $370 million to get a better experience of the World Cup. The numbers for all these sectors are expected to increase even further if England becomes one of the two finalists of the mega event.

Additionally, marketing director of VoucherCodes, Jimmy New, said that the FIFA World Cup will turn out to be a big event for both the football fans and British retailers. He added that a massive £1.33 billion is expected to be generated “over the next couple of months to celebrate the occasion.”

Britain’s Manufacturing & Services PMI Shine in May

According to IHS Markit / CIPS, manufacturing Purchasing Managers' Index (PMI) increased from the April’s reading of 53.9 to 54.4 in May. British manufacturing activity recovered in May after touching a 17-year low in April. Finished goods inventories registered its best increase since the commencement of the survey 26 years back, which along with a strong decline in backlogs boosted manufacturing PMI in May.

Additionally, IHS Markit/CIPS services PMI rose from 52.8 in April to 54 in May. The country’s non-manufacturing activity not only expanded last month but also reached its highest settlement in the last three months. Increase in new work orders in the services sector and fading concerns over bad weather boosted the index.

5 British Stocks to Buy Now

The 2018 World Cup may not help in direct revenue generation for British stocks but these companies are expected to gain significantly from the sporting event. This along with strong manufacturing and services activity in the country is definitely good news for investors and makes British stocks wise investment choices.

In this context, we have selected five British stocks that are expected to gain following these developments. These stocks also flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv PLC is a manufacturer of vehicle components and provider of safety technology solutions to the global automotive and commercial vehicle markets.

This Gillingham-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 15.56%. The Zacks Consensus Estimate for the current year has improved 0.8% over the last 30 days. Aptiv has gained 34.6% in the past year.

Spirax-Sarco Engineering plc is a provider of engineered solutions for the design, maintenance, and provision of industrial and commercial steam systems.

This Cheltenham-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 11.45%. The Zacks Consensus Estimate for the current year has improved 0.9% over the last 30 days. Spirax-Sarco Engineering has gained 15.2% in the past year.

NMC Health Plc is a provider of healthcare services in the United Arab Emirates and globally.

This London-based company has a Zacks Rank #1. The expected earnings growth rate for the current year is 54.55%. The Zacks Consensus Estimate for the current year has improved 5.5% over the last 30 days. NMC Health has gained 67.2% in the past year.

Safestore Holdings plc is U.K.'s largest self-storage group with 146 stores, comprising 120 wholly owned stores in Britain.

This Borehamwood-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 26.67%. The Zacks Consensus Estimate for the current year has improved 5.6% over the last 60 days. Safestore Holdings has gained 53.2% in the past year.

TT Electronics plc is a provider of engineered electronics for performance critical applications globally.

This Woking-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 50%. The Zacks Consensus Estimate for the current year has improved 5.9% over the last 60 days. TT Electronics has gained 25% in the past year.

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