Features

Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.

MoneyWeek's comprehensive guide to the best of this week's share tips from the rest of the UK's financial pages.

THREE TO BUY

Aviva

The Mail on Sunday

Dividend payouts at this insurer are increasing atone of the fastest rates in the FTSE 100, backed up by strong sales and profits growth. The stock now yields over 5%. A number of modest acquisitions and a ten-year deal to provide insurance products to HSBC's customers promise a strong pipeline of new business. The shares have slipped since January now's the time to buy in.486.5p

Cranswick

Shares

Heightening market volatility and an equity sell-off are timely reminders of the need for high-quality, cash-generative growth stocks in your portfolio. This meat products supplier has "fattened up" its revenues impressively over the past decade, with the latest trading update showing a strong performance over Christmas. The firm is still snapping up market share and boasts an unbroken track record of dividend growth stretching back to 1990.2,932p

Johnson Matthey

The Sunday Times

This FTSE 100 maker of catalysts for car exhausts has not stood idly by as the VW emissions scandal and regulators' plans to phase out internal combustion engines make its core market "wilt". It has invested in lithium-ion battery technology. Investors fret that it is being left behind by rivals. Yet the combustion engine will still be with us for decades and winning just 10% of the new battery market would create a subdivision worth £600m. Buy for "a foot in both camps".3,110p

THREE TO SELL

Connect

The Daily Telegraph

The Telegraph had hoped that this specialist distributor would turn things around with a planned sale of its books division and a cost-cutting programme. Unfortunately, the books sale has fallen through and a turnaround at the parcels business is sluggish. Income seekers may want to hold on for the 13.4% prospective dividend yield. But with operating profit set to drop for the third straight year, dividend cover is getting tighter.63p

Interserve

Investors Chronicle

The collapse of Carillion has made investors sceptical about outsourcers. Some might see this as an opportunity to snap up Interserve, given it is trading at just three times forecast earnings, but it is a "dubious bargain". It could still deliver nasty surprises, and is one of the UK's most shorted companies. Others are querying the reliability of the group's headline profit numbers.81p

Renishaw

The Sunday Telegraph

This little-known engineering firm works in metrology, the science of measurement, with applications for everything from wind turbines to microscopes, and for brain surgery and dentistry. Its innovations have "won a worldwide audience". The shares fell in January on news that long-serving CEO David McMurtry is stepping down, yet they still trade at a premium to peers. Avoid until the handover of boardroom power is complete.4,656p

AND THE REST

The Daily Telegraph

Data-firmRelxhas come a long way, but there is more growth to come(1,511.5p). Superb full-year results atBPand a 6%-plus dividend yield make it a buy(481.1p). Market turmoil has created opportunities to buy upRWS,Rentokil,Imperial BrandsandSainsbury's(386p; 284.25p; 2,732.5p; 237.5p).

Investors Chronicle

Urban & Civichas become adept at "driving a horse and cart through the planning process" before selling the land(310p). Shares have dipped at communications groupMaintel, but it remains cash-generative(650p). Last year's failed Kraft Heinz takeover bid has forced soul-searching atUnilever, which may focus minds on shareholder value(3,977p).

Shares

The rise of internet-connected cars and 5G technology create opportunities for electronics specialistLaird(118.75p). Furniture sellers have issued profit warnings, butScSis a resilient player(212.25p).

The Times

Lloyds Banking Group,Land SecuritiesandFresnillooffer "portfolio ballast in difficult markets"(67p; 937.5p; 1,285p). The humble cardboard box is a surprise winner in the internet age and packaging manufacturerSmurfit Kappais raising its dividend(2,444p).The slow demise of the amateur landlord is good news for professional property outfitGrainger(277.25p). Shares in Lloyd's of London specialist insurerBeazleyhave jumped after very encouraging results(560.5p).

A German view

Germany's PNE, which has been a pioneer in onshore and offshore wind farms for 25 years, is going global. It has hitherto focused on France and Germany. But last month it won a wind-farm auction in Turkey, thus bolstering its presence in emerging markets, where the renewable-energy sector is growing more rapidly than in industrialised countries, says WirtschaftsWoche. It recently sold off some of its old windfarms to invest in new ones and to finance its diversification into other renewable-energy businesses, including photovoltaic systems and biogas. This promising green energy play yields 2.4%.

IPO watch

After raising only £30m of the desired £50m, property search portal OnTheMarket had a poor stockmarket debut last week. Its shares were issued on Aim at 165p, but ended their first trading day down 9%. Figures from research group Edison also show the firm is forecast to rack up heavy losses over the next two years before achieving profitability in the financial year to January 2021, says Shares. OnTheMarket was set up in 2015 to challenge the market duopoly of Rightmove and Zoopla as an alternative route to market, offering estate agents access to potential house buyers at a lower cost.

Most Popular

US stocks look expensive – here’s what to own instead
Investment strategy

US stocks look expensive – here’s what to own instead

Right now, US stocks are among the most expensive in the world. So if you want a decent return on your investments, you should look into diversifying …
17 May 2021
How will Joe Biden’s capital gains tax rise affect crypto prices?
Bitcoin & crypto

How will Joe Biden’s capital gains tax rise affect crypto prices?

The US president wants to increase capital gains tax – and that’s going to hit a lot of American cryptocurrency speculators. Saloni Sardana looks at h…
14 May 2021
Inheritance tax planning: the rules around gifting
Inheritance tax

Inheritance tax planning: the rules around gifting

There are plenty of legal ways to minimise an inheritance tax bill. Perhaps the simplest is to give away assets to reduce the size of your estate. Dav…
11 May 2021