On May 19, Prince Harry and Meghan Markle will be walking down the aisle. The U.K. economy is expected to earn millions of pounds from the royal wedding with sectors like retail, restaurant, automobile and tourism becoming the biggest gainers. Additionally, the occurrence of the wedding during the weekend is expected to have a positive impact on consumer confidence and eventually the economy.
Additionally, the U.K. registered its best job additions in the first three months of this year, since the second half of 2015. Also, wage growth increased, while the unemployment rate was at a 42-year low. Following these developments, investing in British companies that are expected to gain from the royal wedding and a strong jobs report looks like a prudent investment option.
Royal Wedding to Bring $1.4 Billion to U.K. Economy
According to brand consultancy firm Brand Finance, Prince Harry’s royal wedding is expected to add £1.05 billion or $1.43 billion, to Britain’s economy. In fact, sectors like tourism and PR value are expected to generate £300 million each, while retail and restaurants, fashion and merchandise will add £250 million, £150 million and £50 million, respectively.
Managing director of brand consultancy firm Brand Finance, Richard Haigh said the 2018 royal wedding will be on par with the 2011 Prince William and Kate Middleton wedding. Moreover, U.K.-based forecasting firm EY ITEM Club said that following the wedding, consumer confidence will undergo a “feel good factor.” EY ITEM Club’s chief economic advisor, Howard Archer said that the Royal Wedding will bring good news for the U.K. economy which posted a weak first quarter and encountered “a slow start to the second quarter.”
Job Additions Best Since 2015, Jobless Rate Lowest Since 1975
According to the Office for National Statistics (ONS) data, in the first quarter of 2018, the total number of employed persons was 32.34 million, increasing by 197,000 from the previous quarter and marking its highest increase since 2015. The total number of employed people increased by 396,000 from the first quarter of 2017.
Also, the unemployment rate remained unchanged at 4.2% -- the lowest since 1975. Moreover, wages including bonuses rose by 0.1% in “real terms” to 2.9%. Average wage growth was also higher than the inflation rate that came down to 2.5% in March.
5 British Stocks to Buy Now
Strong gains from the royal wedding makes British stocks wise investment choices. Additionally, strong job additions, a record low unemployment rate and steady wage growth is definitely good news for investors.
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.
BP p.l.c. (BP - Free Report) is the holding company of one of the world's largest petroleum and petrochemicals groups.
This London-based company has a Zacks Rank #1. The expected earnings growth rate for the current year is 67.32%. The Zacks Consensus Estimate for the current year has improved 12.9% over the last 30 days. BP has gained 29.1% in the past year.
Domino's Pizza Group plc (DPUKY - Free Report) is an owner, operator and franchiser of Domino's Pizza stores in the United Kingdom.
This Milton Keynes-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 14.29%. The Zacks Consensus Estimate for the current year has improved 2.1% over the last 30 days. Domino's Pizza Group has gained 24.6% in the past year.
Aptiv PLC (APTV - Free Report) 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 15.28%. The Zacks Consensus Estimate for the current year has improved 3.9% over the last 30 days. Aptiv has gained 34.5% in the past year.
Tesco PLC (TSCDY - Free Report) is a grocery retailer having operations in the United Kingdom, Ireland and other countries.
This Welwyn Garden City-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 29.35%. The Zacks Consensus Estimate for the current year has improved 11.1% over the last 30 days. Tesco has gained 41% in the past year.
J Sainsbury plc (JSAIY - Free Report) is a major food, general merchandise and clothing retailing company in the U.K.
This London-based company has a Zacks Rank #2. The expected earnings growth rate for the current year is 4.63%. The Zacks Consensus Estimate for the current year has improved 0.9% over the last 60 days. J Sainsbury has gained 12.6% in a year’s time.
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