There may be some doubts about the strength of the UK economy at the moment, but Barclays continues to see investment opportunities in the country and has listed the small and mid-cap stocks it is betting on right now. The benchmark FTSE 100 index returned 5.7% in 2024, well below its U.S. peers, while the S&P 500 ended the year up 23.3%. Here are three UK stocks Barclays has added to its holdings this year: WHSmith Barclays said it is betting on book, stationery and gift retailer WHSmith due to a “steady recovery” in post-pandemic sales. This “reinforces our belief that structural headwinds will be minimal,” analysts at the investment bank wrote in a Jan. 6 research note. They added: “Given evidence of recovery, a strong pipeline of new site growth and improvements in average transaction values, we believe the recovery will ultimately be strong.” Shares in WHSmith, which is listed on the London Stock Exchange, have fallen by around 1% in the past 12 months 13.8%. Its shares also trade in the United States as American Depositary Receipts (ADRs) under the symbol WHTPF. Barclays has a price target of 15.90 pounds ($19.50) on the stock, giving it about 40% upside potential. Bellway Another stock on Barclays’ list is residential property developer Bellway. Analysts said: “While the group has a history of what we believe to be strong execution, we believe there is room for volume growth to outperform peers again in the next cycle and valuation screens are relatively low relative to the sector in our view. Attractive. Bellway’s shares are listed on the London Stock Exchange and have fallen nearly 17.5% in the past 12 months. Its shares also trade in the United States under the symbol BLWYY. The stock has a target price of 33.70 pounds, giving it about 52% upside potential. Engineering firm Weir Group is also on Barclays’ radar, explaining its bullish stance: “In terms of the business model ( Weir is ranked as one of the higher quality players in the mining equipment sector in terms of a high aftermarket revenue mix), leading market position in the combined segment and returns. They also expect the company to grow due to factors such as margin expansion. Another strong growth in fiscal 2024. Weir’s shares are listed on the London Stock Exchange and are up about 20% in the past 12 months. Its shares also trade in the United States as American Depositary Receipts (ADRs) under the ticker WEGRY. . Barclays has a price target of 23.40 pounds, implying upside potential of just over 6.3% — CNBC’s Michael Bloom contributed to this report.
