Four Brexit buys for long-term gains

Article Excerpt

Brexit—Britain’s vote to leave the European Union—has hurt the stock prices of these four companies. Investors fear that a weaker British pound in the wake of the vote will limit the contribution of their U.K. businesses. These stocks will likely remain volatile until Britain negotiates new trade terms with the EU. However, their long-term prospects remain sound. GREAT-WEST LIFECO INC. $33 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance sector; Shares outstanding: 992.9 million; Market cap: $32.8 billion; Priceto- sales ratio: 1.0; Dividend Yield: 4.2%; TSINetwork Rating: Above Average; www.greatwestlifeco.com) sells insurance, mutual funds and wealth management services. The company gets 20% of its earnings from its U.K. operations. However, these are well-established, profitable businesses. Great-West should earn $2.79 a share in 2016, and the stock trades at just 11.8 times that estimate. The $1.38 dividend yields 4.2%. Great-West Lifeco is a buy. FINNING INTERNATIONAL INC. $22 (Toronto symbol FTT; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding:…