Cigarettes, cancer drugs and ... sausage casings: the companies that experts are betting on to beat Brexit

Relying on who you ask, the reaction from stock markets to the ECU referendum result changed into either a terrible signal of factors to come back or not almost as awful.

In the background of the headlines about a sudden fall, then healing, were profits for some sectors, a dizzying fall for others, and a remarkable assessment of fortunes based totally on companies’ dimensions, the nature of their business, and where they do it. Do Savor.

It may not feel like love because the apocalyptic political information piles up. However, the world will keep turning, and properly positioned groups will continue offering goods and services their clients want and need.

Buying shares now takes nerve. However, facts from essential retail funds and stockbrokers show that many investors have organized to do simply that by constructing a store of cash before the vote.

Wherein does that cash need to move? We asked fund managers and other professionals to name the stocks they suppose can flourish come rain or shine, the ones they’re avoiding, and some good deal opportunities to grab as expenses dip.

Chris Beckett, head of research at Quilter Cheviot, the wealth supervisor, said groups that rely on “discretionary consumer spending” could feel marketplace volatility the maximum.

He said, ” Agencies in entertainment, travel, and retail will probably go through because consumers may additionally determine to put off Shopping for ‘massive price tag’ items, like a holiday. It could be that some good-quality corporations in those regions turn out to be such good value that they represent a possibility. However, we’re likely not there yet.”

Mr. Beckett said tobacco agencies were protected from a lot of the uncertainty. “British American Tobacco (BAT) is opposite the scale. Tobacco is unusual in that it faces an extended-term trend of falling income as smoking ranges fall; however, inside the present-day context, they’re very stable.

Rival Imperial Brands also can boast this; however, we adore BAT as it has higher publicity to emerging markets, in place of Europe.” BAT is inside the FTSE 100; its shares are bought and sold at 19. five instances of its forecast income.

David Coombs manages multi-asset portfolios with Will McIntosh-Whyte for Rathbone. He picked DCC, the FTSE 100 conglomerate that accommodates groups involved in IT, healthcare, environmental offerings, and fossil fuels.

He said: “We adore DCC. The stock is inside the FTSE 100. However, that is much less relevant than it enjoys distant places sales. The weaker pound will provide a tailwind at the side of a lower oil price.” Mr. Coombs added that DCC had a song document of driving down fees and that its cash flow became robust, protecting the dividend.

It presently yields 1.7pc, covered with earnings by a ratio of two. Six times. He said: “Curiously, there’s a huge increase in possibility in Europe, which DCC seems properly placed to take advantage of. The principal threat to the stock is that, for a few, the company looks high-priced.” DCC shares currently exchange at 22 instances forecast earnings.

Mark Martin manages the Neptune Uk Mid Cap fund, which specializes in organizations outside the FTSE 100. He stated: “Even as the FTSE 250 is more locally facing, it’s essential to understand that around 50 of the index’s earnings come from overseas.”

He picked out Devro, a producer of sausage casings, which he said has proper exposure to growing protein demand in rising markets. Five percent of Devro’s income comes from the United Kingdom, which means it gains from a weak pound.

Mr. Martin said Devro stocks have been down by 20pc since March and currently trade on just 13 times forecast earnings, with a nicely supported 3pc dividend yield.

Another potential possibility was Extremely Electronics, which designs and manufactures high-tech electronic components for aerospace, defense, and security packages. Although its shares have fallen 9pc since the referendum, Mr. Martin is superb about its future.

Income is in US greenbacks, and the company could benefit from expected upward spending with the aid of the US Branch of Protection. Extremely Electronics shares pay a 2.8pc dividend yield, and the inventory trades on 12 times forecast profits.

Richard Pease manages the Crux Eu Unique Conditions fund. European markets face uncertainties following Britain’s Brexit vote, but Mr Pease said the continent was home to a few companies that might weather the typhoon.

He picked Novartis, the massive healthcare company, and said: “It’s miles a global enterprise with more than 60pc of income coming from outside Europe and less than 5pc from the UK. It’s far a world leader in its three commercial enterprise strains – prescription drugs, drastically oncology, time-honored prescribed drugs, and eye care, all of which might be non-cyclical and are probably to be especially unaffected with the aid of Brexit uncertainty.”

Mr. Pease said Novartis’s three.5pc dividend supposed traders were “paid to attend” to a turnaround in the rate of its shares, which has suffered following the recent news of terrible performance at its Alcon division.

Gervais Williams, manager of the Miton Uk Multi Cap Income and United Kingdom Smaller groups funds, decided on Mucklow, the owner of a huge part of Birmingham’s factories and industrial houses. “Generally, we have been seeing the beginning of a recovery inside the production region within the United Kingdom. Most think of Jaguar Land Rover, but it is much more extensive-ranging than that,” he said.

Mr. Williams said the stock represented a risk, given the uncertainty around the United Kingdom’s destiny buying and selling phrases with the ECU. Still, that courageous buyer could have a few safety from the weak pound, which will help enhance Mucklow’s sales.

“We were already upbeat [on Mucklow] before Brexit; however, with the devaluation, the possibilities for boom have progressed. And the percentage charge has been weak lately because it has dropped out of the FTSE All-Share index, so many index funds have bought the stock.”

Mr Williams said Mucklow paid a dividend yield of 5 5pc and will boast one of the longest statistics of any quoted company’s dividend boom.