BAE, Bloomsbury, Greggs, Tesco highlight best of Briitsh, wealth platform suggests

If the UK stock market is going to continue to recover, what’s the best way to take advantage?

Some number crunching by wealth platform AJ Bell has thrown up 51 companies ex-trusts that have outperformed the FTSE All-Share over 1, 5 and ten years.

From that Bell has nominated five of what it calls star performers that have consistently delivered in recent years.

“Household names like food-on-the-go retailer Greggs and lesser-known ones like distribution firm Diploma have made investors a pretty penny over the years.

“They are examples of Britain’s depth and breadth of quality businesses.

“Investors don’t have to choose between the US and UK markets as having a blend of both would help to spread risks.

“Adding a blend of UK shares to a broader portfolio means an investor would get exposure to a market that still offers considerable value, particularly relative to the US, and one which is a hotspot for takeovers.

Those making the grade are BAE Systems PLC (LSE:BA.) with greater emphasis on defence spending and cybersecurity following Russia’s invasion of Ukraine.

Bloomsbury Publishing PLC (LSE:BMY) has benefited from publishing titles that readers simply can’t put down.

“From the Harry Potter franchise to Sarah J Maas’ big hits, Bloomsbury is a dab hand at spotting talent.

“It is good at making money from new and old titles, reworking books via new editions and capturing new generations of readers.

Greggs PLC (LSE:GRG) is a well-oiled machine that’s created a recipe for success and is earning more from existing stores by having them open for longer, while at the same time it continues to open new sites.

Behind the scenes, it is reinvesting cash flow into manufacturing, distribution and logistics to support its growth.”

“Mr Kipling maker Premier Foods (LSE:PFD) at one time this was a zombie business thanks to an onerous debt pile.

Debt had been sorted and brands including Oxo, Bisto, Mr Kipling, Homepride and Paxo are true classics and that gives Premier Foods a big advantage over its rivals.”

Tesco PLC (LSE:TSCO) has held onto the top spot in the UK grocery sector thanks to hard work and determination. Clever use of data analysis via the information collected from Clubcard transactions means it has valuable insight into shoppers’ tastes.