Are These The Best 5 UK Stocks?

Focus: GLOBAL

A search for the best picks of the FTSE-100 brings up some familiar names and a couple of turnaround stories worth listening to, writes Harvey Jones of The Motley Fool UK.

For the last few months, I've been working my way through the FTSE-100, working out which stocks to buy. I have found plenty of great companies, but now I've set myself the challenge of singling out the most tempting targets. Are these the best five stocks on the FTSE-100?

Legal and General Group
I've been torn between three different insurance groups, all of which enjoyed a storming 2012: Legal and General Group (London: LGEN), Prudential, and Standard Life. All three are expanding into Asia, and boast strong balance sheets, healthy sales, and steady profit growth. The only drawback is that they aren't so cheap, as the market has woken up to their charms.

Of the three, I'm choosing Legal & General. It has the lowest valuation, at ten times earnings, compared to 12.2 times for Prudential and 14.6 times for Standard Life. It also offers the highest yield, 4.3%, against 2.8% and 4% respectively for the Pru and Standard Life.

I'm a big fan of all three stocks, but Legal & General may have most scope to outperform in the months ahead.

Diageo
I'll declare an interest here. I have owned drinks giant Diageo (London: DGE) for several years now.