I’m looking to add bargain-priced blue-chips to my Stocks and Shares ISA, and three immediately jump out of me. All of them had a tough June, their shares falling between 8% and 15%. This looks like a buying opportunity to me.
Luxury goods brand ( ) was the second-worst performer on the entire in June, crashing 15.11%. Only did worse, down 18.
83%. Burberry has had a rotten year too. Over 12 months, it’s down a thumping 58.
94%. Today’s economic uncertainty, especially in China, slammed profits after tax, which plunged from £492m in 2022 to £271m in 2023. Bargain blue-chips Fashion is by its nature and Burberry has fallen out of style lately, while its marketing efforts have repeatedly misfired.
The luxury market is supposed to be recession-proof because the super-rich can afford to carry on spending, but Burberry hasn’t quite cracked the ultra-high-end of the market. I bought its shares twice in May, hoping to take advantage of its troubles, but jumped in too soon. I’m down a brutal 23.
33%. I hope to trim that loss by averaging down on Burberry shares in July. Trading at 12.
25 times earnings – half their former valuation – and yielding a bumper 6.16%, they look like a buy for me. I think Burberry should bounce back, .
I’m also thinking of topping up my stake in struggling pharmaceuticals group ( ). I bought the stock in March because I thought it looked ripe for a recovery after years of underperformance against soaraway rival . I then averaged down in June w.