Five to buy
BAE Systems
A more dangerous world has pushed shares in this defence giant up by 169% over the past five years. Profits are forecast to rise by an annual 9% over the next two years, giving management scope to grow through takeovers or return more cash to shareholders. On a price/earnings (p/e) ratio of 20.2 and yielding a modest 2.4%, BAE is far from the value stock it once was. Yet “a sound financial position”, diversified
