Consumer Discretionary & Industrials

Report by Willis Welby

Both these stocks look seriously cheap and both have seen upgrades over recent results. Jet2 comes with very strong finances and a lot of market share growth. Of course, travel can be cyclical and lots of the cash is not really theirs, but Willis Welby’s adjusted implied to Y3 EBITM ratio is just 25, which is really low. BAE’s share price responded well before giving part of the gains up on the announcement of the Ball acquisition. Willis Welby considers BAE to be a first-rate international defence company and the expectations ratio of 57 is at a major discount to its largely US peers.

Industrials

Report by Forensic Alpha

‘Blue Skies Ahead’ - StockViews’ 28-page report explains why JET2’s competitive advantage at a local level remains underappreciated. How contrary to perception TUI (Short recommendation) has not benefitted from Thomas Cook's demise and remains vulnerable to JET2’s superior product. The tour operator is also resilient to competition from OTA’s such as On The Beach due to a higher quality experience and competitive pricing. ROIC should rise above 20% as the proportion of package holiday customers grows from 50%+. 70% upside.