Performance tables for UK shares

http://www.moneyweek.com/news-and-charts/uk-share-performance-table


Learn more about the best stocks for you with our UK shares performance table. Select the index (eg FTSE 100) or sector you’re interested below. You can sort results by clicking on the column heading, and view a share price chart by clicking the company name. If you don't know your EPS from your PEG, our video tutorials below make them easy to understand.

Name	Price	30 Day Chg	EPS	P/E	PEG	Div Yield	Market Cap (m)
3i Group	202.30p	-8.50%	19.6	10.2	0.7	1.80%	£1,938.69
Admiral Group	1,300.00p	-16.02%	72.3	18.2	0.8	3.85%	£3,558.17
Aggreko	1,835.00p	-2.76%	n/a	n/a	n/a	n/a	£4,901.19
Amec	950.00p	-0.26%	64.0	14.8	0.4	2.80%	£3,142.50
Anglo American	2,517.00p	1.86%	413.0	9.6	0.1	1.65%	£33,034.07
Antofagasta	1,295.00p	2.61%	100.6	20.3	0.4	0.78%	£12,727.41
ARM Holdings	599.50p	16.52%	9.3	65.3	0.9	0.48%	£8,227.24
Associated British Foods	1,086.00p	4.62%	72.2	15.0	0.6	2.20%	£8,573.83
AstraZeneca	2,813.00p	-1.30%	671.0	6.6	1.1	5.75%	£37,548.56
Autonomy Corporation	2,529.00p	62.32%	121.0	33.0	1.4	0.00%	£6,177.44
Aviva	311.70p	-10.89%	55.1	5.6	0.3	8.32%	£8,772.31
BAE Systems	280.60p	6.13%	40.8	6.8	3.9	6.27%	£9,346.04
Barclays	165.95p	-4.60%	30.4	5.2	0.2	3.48%	£19,262.80
BG Group	1,285.50p	-1.68%	118.7	16.8	1.0	1.71%	£42,780.12
BHP Billiton	2,013.00p	-0.45%	393.5	8.0	0.1	3.22%	£41,945.75
BP	413.15p	0.04%	n/a	n/a	0.0	1.08%	£77,856.21
British American Tobacco	2,788.00p	1.81%	176.7	15.6	1.0	4.14%	£54,440.45
British Land Co	515.50p	-4.98%	28.6	17.8	50.7	5.11%	£4,524.39
British Sky Broadcasting Group	698.50p	4.80%	41.6	16.8	0.6	3.33%	£12,261.13
BT Group	173.70p	-1.42%	21.0	8.2	0.4	4.28%	£13,440.56
Burberry Group	1,470.00p	9.13%	49.9	29.2	0.7	1.37%	£6,387.13
Cairn Energy	295.20p	-5.90%	n/a	n/a	0.0	0.00%	£4,154.18
Capita Group	736.00p	2.36%	45.0	16.1	1.0	2.77%	£4,428.09
Capital Shopping Centres Group	328.20p	-2.12%	15.4	21.1	10.6	4.62%	£2,792.72
Carnival	2,109.00p	11.59%	251.0	13.1	1.2	1.22%	£3,809.38
Centrica	299.00p	-0.53%	25.2	11.9	0.7	4.78%	£15,483.69
Compass Group	558.50p	4.30%	35.7	15.5	0.8	3.17%	£10,481.64
Diageo	1,238.00p	4.65%	83.6	14.6	0.9	3.30%	£30,649.40
Essar Energy	269.40p	-8.24%	17.1	24.3	0.0	0.00%	£3,422.83
Eurasian Natural Resources Corp.	668.00p	1.98%	170.0	6.1	0.1	2.92%	£8,512.03
Experian	715.00p	0.70%	70.0	16.3	1.6	2.46%	£7,236.02
Fresnillo	1,874.00p	-4.68%	n/a	n/a	n/a	n/a	£13,676.24
G4S	266.50p	5.17%	21.6	12.2	1.8	3.00%	£3,717.11
GKN	196.20p	-3.11%	20.7	9.4	0.0	2.57%	£3,023.95
GlaxoSmithKline	1,300.00p	1.64%	53.9	24.0	n/a	5.03%	£65,542.73
Glencore International	448.40p	13.52%	n/a	n/a	n/a	n/a	£30,269.56
Hammerson	398.00p	-4.81%	19.9	19.6	19.3	4.09%	£2,780.61
Hargreaves Lansdown	470.00p	6.02%	20.3	23.1	0.5	2.75%	£2,224.08
HSBC Holdings	527.40p	-2.69%	73.0	11.3	0.1	4.37%	£92,998.28
ICAP	473.70p	10.68%	39.9	11.9	0.9	4.20%	£3,108.76
IMI	823.00p	-1.14%	66.3	12.6	0.3	3.12%	£2,679.17
Imperial Tobacco Group	2,008.00p	-2.38%	178.8	11.2	1.1	4.21%	£20,289.32
Inmarsat	522.00p	16.21%	39.0	20.2	7.7	4.66%	£2,257.10
InterContinental Hotels Group	1,074.00p	2.09%	98.6	17.1	n/a	4.50%	£3,097.46
International Consolidated Airlines Group SA	157.40p	-16.19%	18.1	8.7	0.0	0.00%	£2,907.36
International Power	335.20p	12.03%	29.1	11.5	n/a	3.27%	£16,977.83
Intertek Group	2,054.00p	4.80%	91.0	22.0	2.3	1.40%	£3,202.96
Investec	412.70p	2.56%	43.2	9.6	n/a	4.10%	£2,246.72
ITV	59.30p	0.59%	6.4	8.9	0.0	0.00%	£2,222.64
Johnson Matthey	1,664.00p	-5.45%	119.0	13.8	0.4	2.79%	£3,535.71
Kazakhmys	1,066.00p	2.11%	259.0	6.5	0.0	1.31%	£5,705.66
Kingfisher	258.60p	9.81%	20.5	12.2	0.5	2.82%	£5,936.46
Land Securities Group	678.00p	-14.34%	36.3	18.5	2.8	4.18%	£5,227.14
Legal & General Group	98.60p	-3.80%	14.1	6.9	n/a	4.90%	£5,692.42
Lloyds Banking Group	37.00p	12.65%	n/a	n/a	0.0	0.00%	£24,679.73
Lonmin	1,212.00p	0.75%	70.2	27.4	0.0	0.78%	£2,464.31
Man Group	237.80p	19.38%	28.0	13.6	1.6	5.80%	£4,527.71
Marks & Spencer Group	337.80p	-0.56%	34.8	9.5	1.7	5.14%	£5,244.26
Morrison (Wm) Supermarkets	293.50p	0.89%	23.0	12.7	1.0	3.27%	£7,548.71
National Grid	629.00p	4.14%	51.7	12.0	0.3	5.87%	£22,051.06
Next	2,614.00p	16.59%	221.9	11.7	0.7	3.01%	£4,461.45
Old Mutual	116.00p	0.78%	16.0	7.2	0.2	3.47%	£6,380.32
Pearson	1,132.00p	5.60%	77.5	14.3	0.8	3.49%	£9,041.88
Petrofac Ltd.	1,391.00p	18.89%	127.8	17.2	0.8	1.99%	£4,806.92
Prudential	603.00p	-2.90%	62.0	9.7	0.3	3.98%	£15,261.37
Randgold Resources Ltd.	6,800.00p	5.59%	114.0	93.3	2.9	0.19%	£6,157.32
Reckitt Benckiser Group	3,273.00p	-1.53%	229.4	14.3	0.9	3.51%	£23,857.25
Reed Elsevier	494.00p	2.09%	43.4	11.3	n/a	4.16%	£5,969.24
Resolution Ltd.	246.30p	-9.32%	81.1	3.0	n/a	7.31%	£3,493.02
Rexam	338.50p	-5.58%	31.4	10.6	0.3	3.61%	£2,914.15
Rio Tinto	3,673.00p	-1.77%	713.3	8.0	0.1	1.89%	£52,899.57
Rolls-Royce Group	616.50p	1.07%	38.7	15.9	n/a	2.60%	£11,532.91
Royal Bank of Scotland Group	24.57p	-0.73%	0.6	39.5	0.0	0.00%	£14,048.48
Royal Dutch Shell 'A'	2,093.50p	5.04%	304.0	10.9	0.1	5.06%	£75,999.16
Royal Dutch Shell 'B'	2,119.00p	6.38%	304.0	11.1	0.1	4.99%	£56,985.59
RSA Insurance Group	114.80p	-2.63%	9.8	11.6	n/a	7.74%	£4,014.73
SABMiller	2,250.50p	5.21%	191.5	18.5	1.0	2.29%	£35,537.55
Sage Group	259.40p	5.62%	19.2	13.5	0.9	3.01%	£3,428.00
Sainsbury (J)	285.80p	-6.08%	26.5	10.7	1.0	5.35%	£5,300.66
Schroders	1,324.00p	-11.08%	111.8	11.9	0.1	2.77%	£3,019.66
Schroders (Non-Voting)	1,076.00p	-11.07%	111.8	9.7	0.1	3.42%	£602.30
Scottish & Southern Energy	1,308.00p	2.99%	112.3	11.6	6.1	5.76%	£12,189.81
Serco Group	512.50p	-3.30%	34.7	14.4	0.8	1.47%	£2,472.29
Severn Trent	1,490.00p	1.78%	105.6	14.1	n/a	4.37%	£3,537.23
Shire Plc	1,980.00p	-0.15%	146.0	21.4	0.9	0.42%	£11,136.82
Smith & Nephew	593.50p	3.85%	73.6	12.8	1.1	1.67%	£5,338.73
Smiths Group	977.50p	0.83%	84.6	11.5	0.7	3.51%	£3,805.01
Standard Chartered	1,379.50p	-1.78%	179.8	12.1	n/a	3.21%	£32,813.29
Standard Life	197.70p	-1.89%	18.4	10.6	0.1	6.64%	£4,560.92
Tate & Lyle	609.50p	2.70%	46.5	13.0	0.7	3.91%	£2,832.33
Tesco	374.15p	-2.63%	35.9	10.3	0.8	3.90%	£29,735.02
Tullow Oil	1,394.00p	30.28%	6.1	362.9	4.0	0.43%	£12,654.95
Unilever	1,973.00p	-4.78%	151.0	14.8	0.6	4.17%	£25,744.57
United Utilities Group	600.50p	0.92%	35.1	17.1	n/a	5.00%	£4,090.66
Vedanta Resources	1,419.00p	1.21%	262.8	8.5	0.3	2.35%	£3,755.03
Vodafone Group	163.50p	-2.48%	16.8	9.8	2.5	5.45%	£82,918.95
Weir Group	1,860.00p	-3.88%	100.4	18.5	0.3	1.45%	£3,934.92
Whitbread	1,641.00p	9.40%	111.8	14.7	0.6	2.71%	£2,907.15
Wolseley	1,544.00p	-1.22%	74.1	20.9	n/a	0.00%	£4,416.15
Wood Group (John)	566.00p	-1.82%	n/a	n/a	n/a	n/a	£2,103.59
WPP	633.50p	1.36%	59.3	10.6	0.3	2.84%	£7,894.85
Xstrata	1,049.50p	-3.00%	177.0	9.3	0.1	1.52%	£30,436.23

Are shares in Tesco still worth buying?

By Associate Editor David Stevenson Jul 26, 2011

What’s new?

On 14 June 2011, Tesco (TSCO) issued a first-quarter management statement.

Group sales (including VAT and petrol) for the three months to 28 May 2011 were 7.8% up on the year before, with international revenues 9.1% higher. The UK saw 7% growth, though ex-petrol and on a like-for-like basis, the increase was just 1%. “Tesco has made a good start to the new financial year”, says the statement. “The overall performance of our businesses in Asia and Europe has again been pleasing, while our UK business continues to grow faster than the industry as a whole”.

What is Tesco about?

With over 2,700 stores and 290,000 employees in Britain, Tesco is the country's top retailer, taking £1 in every £8 spent in UK shops. In food sales, it has a UK market share of more than 30%, while a move into retail banking, ramped up as the financial crisis was destroying faith in mainstream banks, has won Tesco Bank more than six million customers. It's also big outside Britain – it's the world's fourth-largest grocer, with around a third of its total revenues generated abroad. Asia accounts for 17% and Europe 15%.

What's the history?

Jack (later Sir Jack) Cohen started it all in 1919, selling groceries from a stall in London's East End. His first day's profit was £1 on sales of £4. The first own-brand product sold was Tesco Tea, named from the initials of TE Stockwell, a partner in the tea supplier, and the 'CO' from Jack's surname. The first store to be opened – based on the 'pile it high, sell it cheap' format – was in Edgware in 1929. Tesco floated on the Stock Exchange in 1947. Annual sales hit £1bn in 1979 and doubled three years later. In 1995, Tesco began expanding globally. Annual profits hit £2bn in 2005 and the US Fresh & Easy chain was launched in 2007.

Who runs Tesco?

Recently appointed head honcho is Tesco-veteran Philip Clarke – he’s “slightly more prickly”, says Simon English in the London Evening Standard, than Sir Terry Leahy, who’s gone after 14 years at the helm. Chairman is David Reid and head number cruncher is Laurie McIlwee.

How's the outlook?

With “consumer sentiment in many of our key markets remaining subdued, uncertainties remain”, says Clarke. In Britain, “high fuel costs continue to mean that customers have to direct some of their spending to petrol at the expense of their normal shopping. This remains a drag on both industry and our own like-for-like growth”. But there are still “early and encouraging signs of better performance emerging in both the UK and the US”.

What the analysts are saying

Of the 43 analysts surveyed by Bloomberg, 72% say ‘buy’, 16% see Tesco as a hold and 12% are sellers. The average price target is 18% above the current price. Keenest is Matthew Truman of JP Morgan, whose target is 45% above today. “Earnings growth should accelerate”, says Philip Dorgan at Panmure Gordon. Most pessimistic of recent forecasters is David McCarthy at Evolution – he’s a seller, but sees the shares dropping just 6%. Our view: having undershot the market by more than 20% in the last two years, Tesco looks good value, and the near-4% yield appeals.

Tesco’s numbers…

Tesco share price:

Source: Bloomberg

(Click on the chart for a larger version)

Stockmarket code: TSCO Share price: 396p
Market cap: £31.7bn
Net assets (stated end-Feb 2011): £16.5bn
P/E (consensus forecast, current year): 10.9
Yield (consensus forecast, current year): 3.9%
Geographic ownership: UK 38%, US 37%
Biggest shareholder: Blackrock 5.2%

…and directors' dealings

Tesco directors have been busy bees over recent years. The 12 months prior to our last review of the stock at end-April 2011 saw some chunky sales, though these were more than offset by buying under the firm’s share plan and stock option scheme. Since then the two-way trading has continued. In May, Andrew Higginson unloaded 94,250 shares while David Potts sold a net 150,000 shares two weeks ago. But at the same time Tim Mason acquired 250,019 while Laurie McIlwee picked up 67,889, both via the firm’s share plan.

http://www.moneyweek.com/investment-advice/are-shares-in-tesco-still-worth-buying

You must develop your own investment style

By Bengt Saelensminde Jan 31, 2011

Over the last couple of months we've been discussing investment mistakes. And one of the biggest mistakes that investors regularly make is to put their faith in old investment maxims.

You know the type - "Buy low, sell High"..."Sell in May, Go Away.."....people love these maxims because they are simple and punchy. They allow us to delude ourselves that we actually have a handle on what is going on in the market.

But these maxims are the antithesis of good investing. The important thing is to develop your own, unique investment style.

Today I'm going to strip apart one of the oldest maxims. And I'm going to use that maxim to explain a little of how I developed my own style of investing.

Never catch a falling knife

I'm sure you've heard this line a thousand times...

The idea is simple. If you attempt to catch a falling stock, you have to be prepared to get your hands bloody. It warns against buying stocks on the way down in the hope of recovery.

Here's the idea in high definition 2-D...

The problem is that this is a gross over-simplification. And as metaphors go, it's a pretty silly one when you think about it...

Stocks don't fall to the floor (zero), if they did, they'd be bust and there'd be no upswing. The truth is you never know when the stock has fallen to its low - as long as there's life in the stock, it can still fall some more.

Here's the FTSE 100 over the last three years. It illustrates the problem perfectly:

I've plotted two curves that potentially fit in with the ‘falling knife' strategy. But only one of them would have proved profitable:

If you followed the principle in April/May 2008 (curve a), you'd have ended up with bloody hands - the market rebounded, but then fell off again for another year.

If you'd followed curve b (April/May 2009), you'd have started buying stocks as the rally got going. And you'd be sitting on some tasty profits today. So...

How do you know when you've hit rock bottom?

The answer to this question is a matter of style. Some people love taking quick, risky bets. They see a dramatic fall in the FTSE over a few days and they pile into the stock at curve a - looking to make a quick return on the recovery.

Others prefer to take big, contrarian bets after a big downtrend. They say to themselves: "everyone is selling out of the FTSE right now, people are despairing - this a perfect time for me to buy". If they are really smart, they'll buy in somewhere towards the bottom of curve b.

Now it's easy to draw lines over an old stock chart and make all sorts of wise-crack conclusions. Hindsight comes with 20:20 vision and is in glorious Technicolor. In reality, nobody knows where to draw the line.

But here's how I approached the problem. Let's home in on the FTSE chart to illustrate.

The box in the chart highlights the period when the FTSE traded under ten times earnings. And thats where I called the bottom. Why?

The FTSE 100 hits the bottom

I take great comfort in price earnings (p/e) ratios. Historically, when the FTSE 100 trades at less than 10 times earnings, it's cheap. That's why I zoomed in on that part of the chart in my example. In 2008/09 the concern was that the economy was heading for meltdown and company earnings would implode. So many investors ignored this simple valuation rule and stayed out of the market.

Last week, I recommended Russia - a market trading on only 8 times earnings. And after having a good think about the reasons why Russia is so cheap, I became convinced that Russia is seriously undervalued.

In fact I think you would have been better off ignoring the price movements altogether. My experience has been that if you are trying to find the trough and waiting for the upswing, you'll rarely get your timing right.

So I prefer to focus on value. To maintain a patient and well-considered outlook at all times. And to continually question the reasons for making my decisions.

Here's the point: you need to work out your own investment style. The more personal your style, the better a chance you have of making the right decisions at the right time.

How do you work that out?

Trust your own approach - and learn from it

We all have a unique approach to picking stocks, or markets. You need to learn what yours is. I suggested last week that you start to make a monthly diary of your thoughts on the market and the reasoning behind your trades. This is all part of getting to ‘know yourself'.

Ask yourself, are you the kind of investor who jumps in on curve a? Or the contrarian who chases the bottom of b?

And you can use whatever techniques you want. It doesn't matter, so long as you are consistent.

Just don't expect the old maxims like the falling knife, or buy low, sell high to provide much practical use. The market is a complex and anarchic system. And you can never hope to get a handle on it by sticking to the old clichés.

In The Right Side, I'll continue to offer you my thoughts on what works for me and I hope it helps you devise your personal approach. But even though I've been trading my own account for over 25 years, the truth is that I'm still ‘learning on the job'.

It's the funny thing about your investing style - it keeps evolving - the key is to make sure we keep moving up the evolutionary ladder.

.

Your capital is at risk when you invest in shares - you can lose some or all of your money, so never risk more than you can afford to lose. Always seek personal advice if you are unsure about the suitability of any investment. Past performance and forecasts are not reliable indicators of future results. Commissions, fees and other charges can reduce returns from investments. Profits from share dealing are a form of income and subject to taxation. Tax treatment depends on individual circumstances and may be subject to change in the future. Please note that there will be no follow up to recommendations in The Right Side. Managing Editor: Theo Casey. The Right Side is issued by MoneyWeek Ltd. MoneyWeek Ltd is authorised and regulated by the Financial Services Authority. FSA No 509798. http://www.fsa.gov.uk/register/home.do

INVESTOR MISTAKE: TRYING TO "CATCH A FALLING KNIFE"

May 04, 2006

INVESTOR MISTAKE #9: TRYING TO "CATCH A FALLING KNIFE"

#9 Trying to "catch a falling knife"

There are probably almost as many investment strategies as there are investors. Some see a stock flying up, day after day, and think, "I've got to get me some of this." Others don't pay any attention to the price movements, rather have a great experience with the products or employees and think, "now this is a company that is well run. It's gotta do well." And many others fall into another camp that says, "Man, this stock used to be at eighty bucks a share, and now it's all the way down to $40. What a steal!"

This last group is attempting what we call, "trying to catch a falling knife." I didn't make up the allegory, but its meaning should be obvious. If you are not very, very careful, you are likely to get cut.



There are a few things to keep in mind if you are going to attempt to invest in a stock that has declined significantly in price.




1. Why has it gone down so much? Is there scandal afoot? Are the fundamentals deteriorating? Is the industry in a tailspin? Has a competitor proved excessively formidable? If any of these is the case, be very careful. You should probably think twice, thrice, and maybe even a fourth time before investing.

If none of these is the case, then determine if we are in a severe bear market dragging the good down with the bad. If that is so, act with caution, you don't know how long or how severe said bear market may be.

Last, maybe none of the above applies. Odds are what is then happening is that the stock has gotten overpriced and is coming down on valuation concerns or profit taking. If this is the case, you may have good fundamentals, good industry, good market, but a declining stock. Nonetheless, by buying now you are banking on the odds that it will go back to being overvalued once again. Still, be careful.

2. What makes you believe it has hit bottom? In other words, do your research. If you have reason to believe you have identified the likely bottom, whether via fundamentals, technicals, a combination of the two, or some other means, at least do your homework. Don't jump in because some stockbroker or pal at the office said, "man, this is a great company. It's like a sale!"

3. What are your goals in going in to the stock? This may sound like a silly question. "To make money," you are probably saying. But there's more to it than that. Are you buying strictly for capital appreciation, or are you looking forward to a nice dividend too? Do you think this is a good long term hold, and you have just been waiting for "your price"? Or are you playing it for a short term gain? Do you have an exit strategy? If it goes up, will you sell at the first sight of a 15% gain? or are you holding on for a double or better? If it continues down how far are you planning to hold? 10% loss? 50% loss? Ride it to Zero? Hey, it happens. Look at my list of Top Ten Defunct Companies. Nobody thought any of these would ever go out of business. Well, except maybe ZZZZ Best.

Bottom line is, this can be a risky way to invest. Do your homework.

Also, note the following disclosure: This is general advice. You should consult with your own financial advisor before making any major financial decisions, including investments or changes to your portfolio. You, alone, are responsible for any losses or damages that may and will likely result from your financial decisions.

http://itsjustmoney.blogs.com/its_just_money/2006/05/investor_mistak_1.html

Stock bargains: 5 tips to protect against falling knives

Written by Reuters
Saturday, 10 September 2011 21:45


For bargain-hunters, identifying stocks in this struggling market might seem like an easy layup. Some prominent companies are languishing in the 99-cent bin, trading at seemingly laughable price-earnings ratios.

Consider Hewlett-Packard, on offer for a current P/E of 5.7. Then there’s BP at 5.9, Capital One at 5.8, Gannett (GCI) at 4.95 and Hartford Financial at five.

In normal times, it would be a no-brainer to load up your shopping cart. But these are hardly normal times, and there can be very good reasons why companies might be trading at such low valuations. As any Bear Stearns or AIG shareholder can tell you, it’s a tricky proposition to – as the investing saying goes – “catch a falling knife”.

That’s what has investors like Michael Gleason paralyzed. Gleason, an American TV producer who lives in London, would like to put more money to work – but the panicked gyrations of the markets don’t give him any confidence. “I’ve gone on hold lately, because volatility has gotten a bit worrying,” says Gleason, 57. “Maybe it’s better to stay out then to get out.”

And there’s the dilemma of every deep-value investor: How to decide when to take that risk, and make potentially the best pick of your investing lifetime instead of the worst. Sometimes it’s a very fine line. Could embattled Societe Generale bounce back smartly, for instance, or could it go down in flames like Lehman Brothers?

“Three years ago investors started catching falling knives, and got badly bloodied,” recalls Hank Smith, chief investment officer of equities at Radnor, Pennsylvania-based Haverford Investments, which has $6.5 billion under management. “Even though they were doing all the things they were supposed to be doing, like buying on dips. But there are a few ways to avoid the falling knife, both on a macro and a stock-by-stock basis.”

The trick is to separate those stocks that are merely beaten up, from those that may be down for the count. A few key criteria to keep in mind:

Look for yield support
NEW YORK: A stock will be less likely to crash and burn if it has some appeal to dividend-hungry investors. That’s why Jim Barrow, who manages Vanguard funds like Windsor II and Selected Value, has snapped up names like AT&T, Johnson & Johnson, and Texas utility CenterPoint Energy. “If you have a strong company with a five or six percent yield, how much lower can it really go?” asks Barrow. “That’s one of the key things we look at.”

Stay away from Europe for now
Real gamblers might be attracted to the rock-bottom valuations of European firms, but it’s just too much of a risk, says Barrow. With the prospect of sovereign defaults cropping up from multiple locations like Greece, Portugal and Ireland, we haven’t witnessed the Eurozone endgame yet. In the meantime, there’s no sense putting yourself in harm’s way. “I wouldn’t go out on a limb,” says Barrow. “We still don’t know how low Europe can go.”

Steer clear of banks
Financials may have made some strides in cleaning up their balance sheets since the meltdown of 2008. But they’re not there yet, says Smith. Many are still loaded down with assets that are difficult to value and trade, which could lead to the same mark-to-market problems with banks and insurance companies we saw before. That means cautious investors should give them a pass.

Opt for growth
A tech giant like a Hewlett-Packard might seem like a steal, lurching near its 52-week lows. But as it looks to shed many of its business lines, and focus on the software-and-services niche that still only generates a small slice of its revenue, Hank Smith is glad he sold his firm’s position months ago. Instead, look for companies with encouraging growth strategies, along with healthy cash flow, exposure to emerging economies, and low levels of debt.

Defense wins championships
If it’s downside risk you’re most worried about, then simply stick to traditional defensive sectors like utilities, telecom, consumer staples and pharmaceuticals. Stocks like Diageo or Philip Morris, which Barrow owns, aren’t going anywhere anytime soon. “Demand for those things doesn’t change,” he says. “Even if things get real bad.”

Chris Taylor is an award-winning freelance writer in New York City. A former senior writer with SmartMoney, the Wall Street Journal's personal-finance magazine, he has been published in the Financial Times, Bloomberg BusinessWeek, CNBC.com, Fortune, Money, and more. He has won journalism awards from the National Press Club, the Deadline Club, and the National Association of Real Estate Editors. The opinions expressed are his own.