While hunting for the best shares to buy, FTSE 100-listed Croda International (LSE: CRDA) and Spirax Group (LSE: SPX) have rarely figured in my calculatoins.
Looking at their share price performanceS, I’m hardly surprised. Anybody who bought these overlooked stocks in recent years probably wished they’d never heard of them.
I’m a big fan of buying shares after they’ve fallen out of favour. This allows me to buy them at a reduced valuation, possibly with a higher yield, and benefit when the market cycle swings back in their favour. Assuming it does.
Croda struggles
The Croda share price is down 26.92% over one year and 56.85% over five. I thought the stock would be dirt cheap as a result, but it isn’t. It actually trades at 23.32 times earnings, well above today’s FTSE 100 average of around 15 times. Its yield of 2.8% is below index average of 3.8%.
The chemicals manufacturer boasts one thing in its…
