Buying US shares is easier than ever for UK investors. Share trading platform Fineco says that top US healthcare and pharma stocks were among the most popular with UK investors last week.
Topping the list was biotech company Fulgent Genetics. NASDAQ-listed Fulgent is heavily involved in Covid-19 testing and recently reported a 3,400% increase in quarterly revenue.
Another big trend highlighted by Fineco’s data was the trade in reopening stocks. This included big names in the US and UK travel sectors, such as Carnival and Rolls-Royce.
Here’s my take on the biggest movers reported by Fineco this week.
US shares lead the way
UK traders on Fineco’s platform seem to be spending a lot of their time focusing on fast-moving US stocks. The top five movers last week were all US-listed firms in the pharma and tech sectors.
In first place was Fulgent Genetics. This company specialises in genetic testing that provides clinically actionable information. But it’s Fulgent’s success in Covid-19 testing that has boosted its share price by 760% over the last year.
Fulgent says that revenue rose by 1,200% to $422m in 2020. The firm expects this figure to rise by 90% to $800m in 2021, including $70m from its next generation sequencing genetic testing service.
Fulgent shares are priced on a modest multiple of 8.5 times 2021 forecast earnings, but brokers expect earnings to fall by 70% in 2022 as the Covid-19 pandemic recedes.
Other top US stocks that were heavily traded by Fineco’s UK investor clients last week included vaccine firm Moderna, Regeneron Pharmaceuticals, and China-based tech stocks SOS Ltd and Lizhi Inc.
Two notable names that were out of favour were Airbnb and Germany car stock Volkswagen. Both were sold heavily on the Fineco platform last week.
UK investors buy reopening stocks
What about UK shares? Fineco’s traders showed plenty of interest in their home market too. Reopening stocks led the way. These are companies that are expected to benefit from a return to normal as the UK exits lockdown.
The world’s largest cruise ship operator, Carnival, was one of Fineco’s top UK movers. Other stocks that caught buyers’ interest included The Gym Group and budget airline Wizz Air.
Travel and leisure weren’t the only themes. Gold miners Centamin and Polymetal International both saw strong buying on Fineco. Both of these big producers have reported solid financial results recently.
Centamin’s net profit rose by 78% to $156m last year, while Polymetal’s earnings rose by 125% to $1,086m. The outlook is positive for both businesses, according to their respective CEOs.
Elsewhere, the prospects for housebuilders seemed to divide opinion among Fineco’s UK investors. Investors bought and sold equal volumes of shares in housebuilder Crest Nicholson last week.
Outsourcer Serco Group received a similar split decision, but investors turned cautious on grocer Wm Morrisons Supermarkets. Investors trading the Bradford-based supermarket’s shares sold two shares for every one they bought. I think this weakness could reflect concerns that shoppers will start spending more widely as the economy reopens.