The Stock Picker’s Guide to Centrica PLC (CNA)

5. Valuation
On a projected P/E of 13.4 and yield of 4.6% Centrica PLC (LON:CNA) is at the cheaper end of the utility sector, though more expensive than SSE PLC (LON:SSE) which is its nearest peer. The shares hit an all-time high last month, but a 6% drop since then has created another entry point.

Conclusion
I believe Centrica PLC (LON:CNA)’s utility-like nature and vital importance to the U.K.’s energy needs make it an attractive defensive share.

One major shareholder who has recently added to his Centrica PLC (LON:CNA) position is Invesco Perpetual’s star stock picker Neil Woodford. According to Hargreaves Lansdown, Woodford’s high-yield fund is “the best performing of any fund investing in the U.K. since it launched”.

The article The Stock Picker’s Guide to Centrica originally appeared on Fool.com.

Fool contributor Tony Reading owns shares in Centrica, SSE, and BAE Systems but no other shares mentioned in this article. The Motley Fool has no position in any of the stocks mentioned.

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