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Image source: Getty Images<\/p>\n
UK stocks have been soaring lately. I\u2019ve got cash sitting in my trading account but with the\u00a0FTSE 100\u00a0near record highs, some of the shares on my watchlist are starting to look pricey. Here are three I\u2019d add to my portfolio if valuations dipped a little.<\/p>\n
London Stock Exchange Group<\/p>\n
London Stock Exchange Group\u00a0(LSE: LSEG<\/a>) has skyrocketed over the last decade but it\u2019s found the going slower lately, rising just 2.5% in the last 12 months.<\/p>\n With a price-to-earnings (P\/E) ratio of 27.5, the financial data company is beginning to look expensive, and I may not be the only investor thinking that. The shares dipped 4% on 31 July despite a decent set of half-year results, which showed adjusted earnings per share jumping 20.1% to 208.9p, and reported earnings per share (EPS) rose almost 90%.<\/p>\n Management rewarded shareholders with a 14.6% hike in the interim dividend to 47p, and there\u2019s a further \u00a31bn\u00a0share buyback<\/a>\u00a0planned for the second half, after \u00a3500m in the first. What more do investors want?<\/p>\n Management also highlighted solid subscription revenues, AI interest, and a Microsoft tie-up. But still investors remain wary. I guess AI could be a threat as well as an opportunity.<\/p>\n The business does faces intense competition from other global exchanges and financial data providers, while rapid changes in trading technology and data analytics could erode its market position or margins. Its high valution is another risk, but a handily-timed market pullback could mitigate that.<\/p>\n Barclays is bouncing<\/p>\n Barclays (LSE: BARC<\/a>) has enjoyed a sensational run: up 68% in a year and 140% over two. Latest results, released on 29 July, showed a \u00a31bn rise in first-half profits. Share buybacks and dividends<\/a> have surged, with total capital returns for the period at \u00a31.4bn. That\u2019s up 21% year on year.<\/p>\n The dividend yield is modest at 2.3%, as the board prefers buybacks. This should push future payouts higher through reduced a share count. I tend to prefer dividends, but you can\u2019t have everything.<\/p>\n Risks include a banking tax raid in the autumn Budget and squeezed margins from falling interest rates. Barclays trades at a P\/E just over 10, which isn\u2019t exactly demanding. But a cooling market could take out some of the heat from its sizzling share price.<\/p>\n Babcock International: strength in defence strength<\/p>\n