The Aviva share price: I’m not tempted to buy now after the recent rise

first_imgSimply click below to discover how you can take advantage of this. Enter Your Email Address 5 Stocks For Trying To Build Wealth After 50 Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Andy Ross owns shares in Legal & General. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now!center_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The Aviva (LSE: AV) share price has done well over the last 12 months. It has risen by 50%. That’s a little more than Legal & General, which is a broadly comparable FTSE 100 company. Aviva’s shares have done particularly well so far this year. However, over five years Aviva’s share price is down 10%, meaning investors have had to rely on its dividends to generate a return.Becoming slimmerI’m a little surprised that Aviva has only slightly outperformed Legal & General over the last year, given that praise and attention given to the former’s slimming down. It has made eight disposals in eight months, with the latest being a sale of its business in Poland. Most of the disposals have been in Europe and Asia.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…That divestment brings total cash proceeds from chief executive Amanda Blanc’s strategy to £7.5bn. To put that into context, that’s just less than the entire market value of the group when the shares traded at their steepest discount to book value last year. That’s one indicator that investors could expect to see some investment in future growth alongside either special dividends or possibly share buybacks.The company has already indicated that the cash is likely to be returned to shareholders and also used to reduce debt. It has announced previously it wants to cut debt by £1.7bn in the first half of the year.  What could it all mean for the Aviva share price?Given that shareholders wanted Aviva to become leaner and there has been a merry-go-round of managers leading the firm, perhaps this turnaround can be a springboard for a brighter future. Such a future could lead to bigger returns for shareholders.But I have some concerns, including whether a slimmed down business can improve the Aviva share price over time as it means revenues will be lower. Also, Aviva has an inconsistent record when it comes to dividends, unlike Legal & General. And as an insurer plus pension and savings company, it is very tied to the economy and stock market. If either worsens, Aviva’s shares are likely to fall.Much of the future success of the Aviva share price depends on its focus on the UK, Irish and Canadian markets leading to a more efficient, higher-margin business.Looking back on the plus side, the shares do appear to be cheap, which I find reassuring. It would provide me with a margin of safety if I were to invest in Aviva shares. The shares trade on a P/E of just seven.Time will tell if the new slimmed down business delivers better results. It feels in many ways like the hard work is just beginning. I hope the turnaround works for shareholders, but I won’t be adding the shares to my portfolio. I’m far from convinced at the moment that Aviva makes for a better investment than Legal & General, which I already hold. See all posts by Andy Ross Andy Ross | Tuesday, 30th March, 2021 | More on: AV I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. The Aviva share price: I’m not tempted to buy now after the recent riselast_img

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