Three undervalued stocks to snap up

There are some bargains to be had even among the large-caps. Professional investor Simon Gergel tips three to buy now.

Each week, a professional investor tells us where he'd put his money. This week: Simon Gergel, Merchants Trust.

While it is hard to predict how the UK economy will react to the Brexit referendum result over the coming months, the stockmarket has recovered from any initial weakness, with overseas earners performing particularly well. The FTSE 100 index has moved back towards the top of its trading range for the last three years. However, there has been extreme divergence within the market. The more defensive earners, such as food and beverage producers and tobacco stocks, offer little value but there are good investment opportunities elsewhere.

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Simon Gergel

Simon has been the Chief Investment Officer of UK Equities at Allianz Global Investors for more than 17 years and he has extensive experience in fund management. Previous to that, Simon was the Director Senior Fund Manager at HSBC for four years and a UK fund manager executivedirector at UBS Global Asset Management for 14 years. He has a degree in mathematics from the University of Cambridge. Simon contributes to MoneyWeek, giving his outlook on the stockmarket in MoneyWeek’s share tips.