If you’ve been keeping a close eye on share tips 2024, then don’t miss this weekly round up of the top stocks to consider for your portfolio each week.
The MoneyWeek share tips 2024 guide pulls together some of the best UK stocks from some of the top share tipsters around.
As well as the UK financial pages, we look at publications across the pond for investors who want to diversify their holdings internationally.
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From investing in UK equities, European stocks, to finding the best performing stocks in the S&P 500 – here are our top share tips of the week.
This list is updated weekly on a Friday.
Share tips 2024: top picks of the week
Five to buy
1. Burberry (LON: BRBY)
The Telegraph
Even though the shares are at 15-year lows, investors should give Burberry’s new CEO Joshua Schulman “time to try and steady the firm’s slumping fortunes”. Dividend cancellations, the ejection from the FTSE 100, and lacklustre demand in China have tarnished Burberry’s luxury image. Schulman’s experience at Jimmy Choo and Coach bodes well for a turnaround; he may cater to the rapidly growing Indian and Middle Eastern markets and focus on high-margin products such as perfumes. It’s “possible that the darkest hour is just before the dawn”. 587p
2. International Airlines Group (LON: IAG)
The Times
Shares in International Airlines Group (IAG) are now 33% below their pre-Covid levels, but they have rebounded 30% in the past six months thanks to surging demand for travel. Despite higher costs and investments to improve service, the British Airways owner is on track to meet medium-term targets. Shares trade at 4.8 times forward earnings, on the lower end of London-listed airline operators and at a discount to peer Lufthansa. Shareholders’ payouts have been restored, and the strong balance sheet suggests there may be a share buyback. 199p
3. Diageo (LON: DGE)
Shares
Guinness-maker Diageo’s stock declined 20% over the past year owing to a lacklustre performance in Latin America and caution among consumers in North America. But this sell-off has left the shares “looking cheap”. Diageo is focused on cost savings and sees growth potential when the consumer environment improves. Diageo’s brands, pricing power, distribution network and dividend growth have attracted investors such as star fund manager Nick Train. 2,466p
4. Genuit (LON: GEN)
This is Money
Genuit is Britain’s largest supplier of plastic pipes and widgets for heating, plumbing and drainage work. It also specialises in underfloor heating and air-source heat pumps to make buildings more energy-efficient and should benefit from new regulations to slash carbon emissions from new homes. The stock has ticked up recently, but there should be more to come as interest rates fall, housebuilding picks up and households spend more. 474p
5. Gamma Communications (LON: GAMA)
Investors’ Chronicle
Gamma Communications’ cloud-based private exchange allows businesses to make calls over the internet cheaply rather than using phone lines. The stock surged during Covid, and though growth didn’t materialise as quickly as expected, it has progressed steadily since. Revenue and profit rose 10% in the six months to June. With only half the UK market penetrated and further acquisitions tabled, there is room for growth. 1,694p
One to sell
Centamin (LON: CEY)
The Telegraph
Centamin’s board has recommended AngloGold Ashanti’s $2.5 billion bid to buy the gold miner. This means the offer price is not going up unless a counter-bidder gatecrashes, so it may now be time for investors “to take the money and run” to lock in a near-50% total return. The takeover would leave Cetamin’s investors with a 16% stake in the buyer, but “not all UK-based investors may fancy owning a stake” in South African-based and US-listed AngloGold. If the deal collapses, “investors can always return to Centamin anyway”. “Sell.” 156p
The rest...
hVivo (LON: HVO)
Shares
hVivo’s flagship service, FluCamp, which runs clinical trials to test potential treatments for colds and flu, has attracted interest from big pharma and biotech firms. The company is at the forefront of human challenge trials (where people are exposed to pathogens), a niche area within the contract research industry. The debt-free and cash-flow-positive company aims to reach £100m in revenue by 2028 and leverage its volunteer database. Shares are undervalued compared with peers. Buy (28p).
National Grid (LON: NG)
The Telegraph
National Grid’s plans to increase dividends per share in line with the consumer prices index are less appealing than they once were. Still, the company remains attractive with a dividend yield of 4.4%. It recently raised £7 billion for an ambitious investment plan and intends to focus on electricity, so it could benefit from rising demand in the race for net zero. The shares are not cheap, but National Grid has a sound strategy and a solid financial position. Buy (1,023p).
AstraZeneca (LON: AZN)
The Times
AstraZeneca is facing concern over its lung cancer drug, Dato DXd, which showed promise but fell short of statistical significance. It may now need modifications, affecting costs and revenue. The group’s future success hinges on incorporating artificial intelligence (AI) into drug development to improve outcomes. Yet Astra boasts an extensive pipeline and international presence. Half-year revenue and earnings increased, leading to full-year sales and profit upgrade projections. “Long-term positive factors outweigh the inevitable short-term hiccups.” Buy (11,524p).
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