The London Stock Exchange has a lot of small cap stocks that investors are flocking to as prices are low. Two stocks have suffered losses today that have pushed them into bargain territory amid short-term losses.
Two stocks that fit into this category are:
1. Mears Group (LSE: MER)
Mears Group provides social and housing care. The business has performed well over the past year, but reports that the company’s EPS fell 7% caused the its stock to fall as a result. The stock has rebounded slightly since its early morning slump, rebounding to just a 0.5% loss on the day.
David Miles, chief executive, stated that the company’s full year forecasts remain on track.
The company also increased its dividend by 6%. The company’s dividend yield is around 3%, and it expects full year growth in the double digits. The stock is a long-term option that has a lot of potential for growth, with a price to earnings ratio of 12.
2. Castings (LSE: CGS)
Castings deals with cast iron, and they make castings. The company has seen its share prices rise over recent weeks, but the company started Tuesday with a 3.52% loss after a 7% drop in early morning trade.
The company announced a softening in demand since June, and investors reacted by selling off the stock.
Castings has 40% of its sales derived from the European Union, and Brexit is a factor in the company’s sales softening. Castings is a long-term company with a history that dates back to 1907.
The company has a diverse sales portfolio and trades at a P/E ratio of 13. A 3% dividend is offered, too.
Castings’ long-term growth is promising, and the company boasted 17% EPS growth for the quarter ended March 31. Revenue on the quarter was £132.45 million, up from £131.27 during the same period a year prior.
