Six strong UK stocks to buy

A professional investor tells MoneyWeek where he'd put his money now. This week: Mileen Rash, Manager, Henderson Uk Capital Growth Fund, Henderson Global Investors finds buying opportunities in the current market weakness.

The current weakness in the markets has been caused by fears that inflation and interest rates are on the rise, and that this will hit global growth prospects. However, the indiscriminate sell-off in the equity markets has created buying opportunities if you're willing to take a medium to long-term view. I'm looking for cash-generative stocks that have a good fundamental business model and are attractively valued whether mid or large-cap. Many investors have been avoiding stocks with exposure to the UK consumer. That's a mistake. I'm not predicting a strong rebound in UK consumer spending, but I do believe that certain stocks have been too harshly treated by the market.

One of these is Halfords Group (HFD), the automotive parts and accessories retailer. It is exposed to the growing satellite-navigation systems market, the specialist nature of which leaves it fairly well insulated from competition from rival retailers such as Tesco. Halfords is showing strong like-for-like sales growth, which is rare among UK retailers. The group is generating above-average earnings growth and cash flow, which will allow it to return some cash to shareholders. Its current valuation and dividend yield make it look extremely attractive.

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