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. Rotork (LON: ROR)
The Times
Despite slow growth over the past decade, engineering firm Rotork has maintained attractive margins and a healthy balance sheet, with a 34% return on capital employed and a 120% cash conversion rate. With a focus on electric actuators, used to open and close valves in order to capture methane, it is aiming for mid-to-high single-digit sales growth. It trades at a premium to its peer IMI, which is fair given its “leading position in a niche, growing market”. 350p
2. Edinburgh Worldwide (LON: EWI)
The Telegraph
Elon Musk’s SpaceX reaching a $210bn valuation has given hope to its investor Edinburgh Worldwide’s (EW) shares. The £587m Baillie Gifford-managed investment trust has a hefty 11.8% exposure to SpaceX; at £80m it is EW’s biggest position. EW’s shares have partly recovered from previous lows. SpaceX buying back its recovering shares has reassured investors, reflecting the success of the rapidly growing space sector. EW is a buy. 159p
3. LondonMetric (LON: LMP)
This is Money
LondonMetric has delivered consistent dividend growth for nine years. With the property company focused on fast-growing sectors of the economy and its finances in rude health, the share price has room to rise. LondonMetric owns 580 British properties, including warehouses and distribution centres for tenants such as Primark, Amazon, and Royal Mail. Rental income is expected to reach nearly £400m this year, following the takeover of rival LXi. With long-term leases and blue-chip tenants, LondonMetric offers generous quarterly dividends. 199p
4. The Gym Group (LON: GYM)
Shares
The Gym Group’s shares are trading 55% below pre-pandemic levels – despite like-for-like sales rising by 9% in the first half of 2024, leading to an increase in profit guidance for the full year. Plans to open 50 new sites in the next three years also augur well. The no-contract gym operator’s low valuation constitutes an attractive investment opportunity. The company has 237 sites, with management focused on the most profitable sites in urban areas. Membership numbers and revenue per member are on the rise. It’s highly cash-generative, and earnings are expected to grow. 135p
5. Endeavour Mining (LON: EDV)
Investors’ Chronicle
Endeavour Mining’s shares have lagged the sector, but that should now change. With a new CEO, it has re-entered the FTSE 100 and opened a new mine and processing plant. The group has low costs compared with its peers, and is set to increase cash flow and profitability. It has multiple mines with over ten years of gold reserves and plans a major operation in Côte d’Ivoire. “Buy now before the payout goes up” and the market cottons on. 1,742p
One to sell
1. Ocado (LON: OCDO)
Investors’ Chronicle
Ocado’s shares rose after it boosted its annual earnings guidance and trimmed half-year losses. Revenue growth was fuelled by the joint venture with Marks & Spencer and the technology solutions business. Cash profits increased and losses narrowed. Despite ongoing cash burn, Ocado expects profit margins to climb. However, concerns persist over the rollout of customer-fulfilment centres, with some paused while others are advancing. Analysts at Bernstein have cut the target price to 260p from 1,000p, saying more capital will be needed and urging the board to consider selling the firm. 384p
The rest...
Beazley (LON: BEZ) and Lancashire (LON: LRE)
The Telegraph
Insurers Beazley and Lancashire have strong long-term holdings despite challenges such as higher claims and repair costs. Both companies are expected to generate profits and high returns in spite of a turbulent insurance market. Beazley is expected to return 13% of its value to shareholders this year, while Lancashire has a 12% dividend yield. Rival Hiscox, although more expensive and attracting attention from would-be suitors, highlights how cheap non-life insurers such as Beazley and Lancashire are. Hold (Beazley, 667p; Lancashire, 616p).
Cordiant Digital Infrastructure (LON: CORD)
This is Money
Cordiant Digital Infrastructure owns mobile-phone towers, cables, and data centres in Eastern Europe, Belgium, Ireland, and the US. Cordiant listed in 2021 at 100p a share. The current price of 76p is due to market woes and comparisons with struggling peer Digital 9 Infrastructure. But these concerns are “overblown”. Cordiant is well-managed, financially conservative, and can generate income. Its top tenants include technology giants and banks. With growth expected, “shares deserve to rebound, and investors can take heart from the 5% dividend yield”. Hold (76p).
Creightons (LON: CRL)
Investors’ Chronicle
Beauty products manufacturer Creightons saw operating profit double to £1m in the second half of the year to 31 March. Cost-cutting and efficiency improvements led to a flat adjusted operating profit of £1.54m for the year and lower debt. Creightons’s focus now is on increasing sales, expanding distribution in the UK and overseas, and introducing new products to drive profits. The £15m company has also restored the 0.45p-a-share payout, underpinning a 2% dividend yield. Buy (26p)
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