1 exceptional stock to consider buying in this latest market sell-off

When the market is down, it can be a good idea to buy stocks that represent quality businesses.

For example, Experience (LSE: EXPN) scores well against quality indicators. And it has a multi-year track record of generally increasing revenue, earnings, and cash flow.

A favorite Nick Train

At FTSE 100 trading company as a global information service provider. And it’s one of the favorites of successful fund manager Nick Train.

For example, the stock is one of the top 10 Holdings Finsbury Growth and Income Trust, which manages. And he also has a large personal stake in the trust.

Railways aims to buy and hold stocks for the long term. And one of the main requirements is that the business has the potential to increase its income stream every year.

Meanwhile, Experian’s normalized earnings are running at a compound annual growth rate (CAGR) of just under 9%. And shareholder dividends have compounded only at 6%.

Strong balance sheet and operating cash flow records show a CAGR of over 6%.

There is much to like about the business, trading history, and financial records. And City analysts are predicting high single-digit percentage growth for earnings and dividends in the year to March 2024.

And those estimates were supported by a strong outlook statement delivered in January with its third-quarter trading update.

Chief executive Brian Cassin said the business performed well in the three months to December 31, 2022. And the results were in line with directors’ expectations.

Continuous growth in business

Cassin pointed to new products, new business wins, and consumer expansion as reasons for his success.

The pressure on the global economy looks set to continue for some time. But Cassin thinks business will remain resilient. And that’s because of the firm’s growth strategy and increasing countercyclical revenue streams.

We’ll find out more about the new trade with the full-year results report due on May 16.

Meanwhile, stocks appear to have been dragged down in the latest bout of general stock market weakness. With the share price at 2,641p, it is around 12% lower than last month. And to put that in perspective, that’s just over 10% down over the past year.

But there is no clear evidence of immediate problems in the underlying business. So the current price weakness could be an opportunity to buy better stocks.

However, now the price seems to be quite complete. And that situation could increase some of the risks for shareholders. After all, a quality business with strong finances and a decent trading record can experience operational problems from time to time. And if the business becomes ex-growth in the future, the price can be lower.

Currently, multiples expect earnings to be just below the high of 22 for the trading year through March 2024. However, investors may want to dig deeper with research now with the goal of holding the stock long-term in a diversified portfolio. portfolio.