With many actions in Great Britain, FTSE 100 It is only a centimeter from securing novel all time. On Wednesday (May 21) he marked very close to 8,800 points – less than 1% from the highest level 8 908 secured on March 3.

Charging people are Place of St. JamesIN Rolls-Royce AND International consolidated airlines – each of 90% to 131% last year.

An investment in the amount of 10,000 pounds in these three shares a year ago would raise today to 20,484 pounds! Needless to say, few wallets provide more than 100% raise during the year.

The madness of previous performances

As the proverb says, earlier results do not indicate future results. Looking back only serves us with lost possibilities. I am more interested in where the market is going. One of the ways to evaluate growth inventory by more gas in the tank is the price raise to profit (PEG).

When I filter for stocks with a PEG coefficient below 0.5, there is a completely novel set of options. Are Natwest GroupIN Standard charter AND Babcock International (LSE: Bab). Even at prices from 51% to 68% last year, their powerful raise in earnings was maintained by the PEG Ultra-Niski indicator. This suggests that their share prices can be done.

It is not particularly surprising that two banks have there because they have low price rates for profit (p/e). But the inclusion of Babcock interested me – not only because I sold my shares in a defense company last year.

Should I now consider my decision again? I had to find out.

A beginner defense contractor

Babcock International is a British company dealing with air, defensive and nuclear services. Specializing in management of intricate assets and infrastructure, he mainly serves public sector clients, especially the British Ministry of Defense and Network. It operates globally in four sectors, including defense, nuclear, sea and land, with subsidiaries in Europe, Africa, Americas and Australia.

But defense is a risky industry, and Babcock’s profits are on the whims of government contracts, strict regulations and unpredictable geopolitics. Budget cuts or diplomatic changes can affect performance, which leads to unstable price movements. For now, its balance remains stable – but its debt load worth 1 billion GBP may quickly start weighing the books.

Financial position

Compared to a rival BAE systems“55.47 billion GBP-£ CAP, Babcock is relatively diminutive, with only 4.5 billion GBP. This may lend a hand its growth prospects, because you need less purchase to transfer the price. But I’m worried about the price-price ratio (P/B), which is extremely high at 8.59. companies of smaller liabilities.

To get a real thing, what is happening, I must consider his return to capital (REE). Replaced supplies usually have low mare levels, but at 44%, this is not the case with Babcock.

In general, it seems that it is in a much good shape, publishing a profit of 165.7 million GBP in 2024 – more than twice in the previous year. Unfortunately, I missed the best profits, but I still think it is a supply that is worth considering in 2025.