Stocks throughout the globe have been seeing a major downfall, as the current situation with Ukraine and the increasing prices of crude oil are taking their toll on various stock options.
Throughout the US, various stocks continue to sink to new lows as investors lose interest in the options that it has to offer. With inflation on the rise, investors aren’t looking for very risky investments and want a safer bet.
Therefore, plenty of investors started moving away from stocks and cryptocurrencies and made their way to much safer investment options. However, this is a unique opportunity for plenty of investors who are looking to take on the initial risk.
With so many major stocks even seeing a drop in their prices, the market is ripe for investors to come in at a low price and eventually make a major profit as the market eventually returns to its major highs.
So with that in mind, it is worth looking at two big stocks in the UK that have seen a major drop recently. After a detailed analysis, you can tell which one might be the right one for you.
The first company that is worth looking at right now is Halma, which has lost a total of 36%. But despite being down nearly 40%, this is still a very strong investment that can quickly turn a profit when the market starts to rally.
The company has been consistently profitable, even if the profits are not as big as some of the others that you can find right now. The company has a very strong balance sheet, as it was able to generate over 279 million pounds in operating income. But since it only has 194 million in tangible investments to maintain, it was able to turn over 71% of that cash into cash.
Astone Martin Lagonda
Despite being the more popular of the two, the luxury car brand saw its stock price drop by 82%. However, unlike Halma, Aston Martin does not make a very convincing argument for being worth investors’ money.
It does not have a very strong balance sheet and has not been very profitable even before its fall from grace. The company is currently getting by through both equity and debt. And when that well runs dry, the company does not paint a very convincing picture.
Granted, there is a chance that stock prices could rally in a bull rush, but that is a very big “IF.”
Making a Smart Choice
Thanks to the type of market, most stocks are in right now. It would be a wise decision to hold on before making any big investments. The market is very volatile and could even drop down to new lows.