Uk Share To Benefit From Weak Gbp

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Uk Share To Benefit From Weak Gbp

These Two Uk Shares Will Benefit From Falling Gbp

The chances of a weaker GBP have increased due to the UK government's spending cuts and all the tax increases. However, experts believe there are some stocks that could benefit from a weaker GBP.

Especially, the UK companies that have an established business in the US could benefit a lot from a weaker GBP. The two suck stocks are Experian and Compass Group.

Experian

The first stock is Experian (EXPN), which generates 66% of its sales in the US alone! This means a weaker GBP will help the company immensely.

The stock is trading at a free cash flow multiple of almost 25, which is very reasonable for the current market conditions. Looking ahead, the growth prospects of Experian are very strong as it has an oligopoly with TransUnion and Equifax.

The fact that Experian does most of its business in the US allows it to benefit from a stronger Dollar against the GBP.

Compass Group

Another stock that can benefit from a falling GBP is Compass Group (CPG). It is involved in the contract catering space, and experts believe that this market will continue to grow over time.

Also, one major advantage Compass Group has over other companies is the economies of scale. This allows the Compass Group to have a clear advantage over the competition.

The sheer size of the Compass Group allows it to get better prices from the major suppliers. In return, they can also fulfill the customer's needs much more efficiently while offering a good price.

Just like Experian, around 66% of Compass Group's sales also come from the US. So, when the US Dollar gains strength against the Pound, it will also support the Compass Group stock.

Experts believe that the current trading price of Compass Group stock is also very attractive and not overvalued at all. A quick look at the fundamentals and technicals of the Compass Group stock also shows everything is good.

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