5 UK Stocks Above 50-day MA

British stocks had a generally positive reaction to the Autumn Budget after tax hikes and other measures proved less severe than feared. However, the premier UK index has been trading sideways since the start of the month, evidently looking for a catalyst. Markets are increasingly hopeful the BOE will cut this month, and with possible further easing supporting stocks, market bulls might be eyeing some notable names.

UK Stocks Trading Over 50-day Moving Average

• British Land (BLND)
• Computacenter (CCC)
• RS Group (RS1)
• Serco (SRP)
• Kainos (KNOS)

British Land To Join FTSE 100

The property management and development firm saw its share price pop above the 50-day MA following the Autumn Budget announcement, which included significant infrastructure investments. It was the cap on long-term gains, which hasn't gone unnoticed. On Wednesday, it was confirmed that , replacing WPP, allowing a wider pool of investors to access its shares. The company has posted gains of 17% so far this year. In its most recent trading update, the company said it saw 4.0% like-for-like (LFL) rental growth and is projecting underlying EPS of at least 28.5p for the current fiscal year and at least 6% growth in FY27.

Computacenter Riding the AI Wave

The IT service provider saw its share price break above the 50-day MA in early September in the wake of its interim results, though it came close to the trendline again in mid-October. Investors were apparently pleased with Computacenter's outlook and strong backlog, thanks to the buildout of AI infrastructure that has driven the firm's sales up by 50% over the last year. in its Q3 trading update, though it warned of geopolitical uncertainty. The share price stumbled after the earnings report, along with the broader tech market, but has since been trending higher to levels not seen since early 2022.

RS Group: Analyst Favourite

The industrial electronics components company saw its share price break above the 50-day moving average on the day the Autumn Budget was announced, but that appears to be a coincidence. The share has been on an unbroken green streak since its dividend declaration but has garnered positive commentary from several analysts over the last month. Both and Deutsche Bank raised their profit targets for the company in November, with the latter pointing out that sales have returned to growth. It seems the consensus is that RS has found its bottom and might be able to stage a turnaround once it gets its costs under control.

Serco Supported by More Government Spending

The general government and business service company also saw its share price cross the 50-day MA with the Autumn Budget announcement. As a major contractor of government services, it likely stood to benefit from increased spending in the UK. However, it has been maintaining an overall general uptrend supported by increased defence spending in Europe. renewal to manage the Dovegate prison. Serco announced a £50 million share buyback alongside its interim results in August, following an increase in free cash flow to £91 million from £75 million a year earlier.

Kainos Rising After Buyback

The digital technology company saw its share price rise above the 50-day MA back on November 12 and then announced it would renew its £30 million share buyback programme. As an AI developer, the company has been riding the recent tech wave, so it's not surprising that Most recently, Canaccord Genuity raised its target price to £11.50 per share, citing a recovery in business performance. Workday Products have helped the company reverse its sales decline with a 19% increase in annual recurring revenue. The broker suggested that forward bookings, along with 9% organic growth in the first half of the year, could indicate the company is making a turnaround and might maintain upward momentum going forward. 

FTSE in Consolidation

The UK’s premier index formed a local low near 9700, pending directional momentum towards 9800 or 9600. The former is the latter October record peak, while the latter is the early November trough, both of significant importance. However, only a break outside these two levels or trendlines would provide additional clarity, opening the door to new records or multimonth lows under 9420. Often, such price action leads to pennants or triangles if the internal levels hold, which suggests a continued range expected to be followed by an eventual breakout.