Share tips 2024: this week’s stock tips

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Five to buy
One to sell
The rest...

last updated 13 December 2024

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.

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.

Five to buy

1. Amazon (NASDAQ: AMZN)
The Telegraph
Amazon dominates in e-commerce and cloud computing, which is expected to get a further boost from the rapid adoption of AI. Group revenue has soared from $2.8bn in 2000 to an expected $638bn in 2024. The shares are valued at 34 times next year’s earnings, but expected profit growth may cut this to more than 20 times in three years. Despite regulatory risks, Amazon’s strong cash flows and growth prospects make it attractive. $208

2. Dunelm (LSE: DNLM)
The Times
Dunelm’s first-quarter sales rose 3.5%, and revenue reached £403m, defying the gloom surrounding consumers’ confidence. The homeware retailer is targeting a 10% market share in the medium term by expanding its product range and opening new shops. At the same time, the Home Focus acquisition provides an entry point into Ireland’s £1bn homeware market. Since February, the shares have returned 9.9%, trading at an “undemanding” 14.6 times forward earnings. Despite short-term uncertainty over consumption, the stock could yield a “decent” 4% over the next 12 months. 1,149p

3. Kenvue (NYSE: KVUE)
Shares
Kenvue, spun out of Johnson & Johnson, has “healthy global growth potential”. Shares in the consumer-health company behind brands such as Listerine and Neutrogena are up 11% over the year. A recent fall in quarterly earnings reflected heavy investment in its brands to secure long-term growth and gains in market share. Kenvue trades on a prospective price/earnings (p/e) ratio of 19.9 for 2025, in line with rival Haleon but at a discount to Procter & Gamble and L’Oréal, implying scope for a rerating. $23

4. SSP Group (LSE: SSPG)
Investors' Chronicle
SSP runs food outlets such as Upper Crust at airports and railway stations. Full-year like-for-like sales grew 8.8%, spurred by rising passenger numbers at major hubs in most regions. This prompted the firm to set out a “profit recovery plan”. With lower capital expenditure this year, analysts expect a 45% increase in earnings per share. A valuation of 15 times forecast earnings does not appear “too taxing”. 188p

5. Spirax (LSE: SPX)
This is Money
Spirax is a leader in steam products and technology, and also provides electric heating systems and boilers, which are expected to bolster revenue over the next decade. Profits soared during Covid as its fluid technology helped make vaccines, but fell last year thanks to high interest rates and customers reducing orders. Spirax is now recovering, with sales set to rise next year. The group also boasts 56 years of dividend growth. 7,275p

One to sell

Pennon (LSE: PNN)
Investors’ Chronicle
A parasite in Devon’s drinking water supply cut £16m from South West Water owner Pennon’s bottom line, resulting in a first-half pre-tax loss of £39m. Lower demand from customers contributed to flat underlying revenue. Water companies are bolstering spending to reduce waste outflows. SWW’s customers are facing a £64 average increase in bills until 2030 and Pennon has already increased capital spending to £332m, while debt is expected to rise. The company intends to present updated plans in February, but the sector continues to grapple with deep structural challenges. “Sell”. 610p

The rest...

1. Treatt (LSE: TET)
Investors’ Chronicle
Treatt supplies ingredients to the flavour, fragrance, and consumer goods industries. Full year revenue increased 3.8% thanks to strong sales in the citrus segment, which makes up 56% of total revenue. Improved cost control aided record adjusted earnings of £24.9m. Treatt plans to open an innovation centre in Shanghai and expand into new markets. The stock trades at a 50% discount to its closest competitors. On a forward p/e of 15, the stock could rerate on a positive outlook for the natural extracts market. Buy (475p).

2. Kingfisher (LSE: KGF)
Shares
B&Q owner Kingfisher’s “strong” share-price run ended after third-quarter sales underperformed expectations and revenue fell 6.4% in France, its second-largest market. The DIY retailer trimmed 2025’s profit guidance and warned that rising national-insurance costs will dent 2026 earnings. Free cash flow guidance for 2025 was unchanged, the £300m share buyback is on track and trading has picked up. Hold (254p).

3. HSBC (LSE: HSBA)
The Times
HSBC’s stock is forecast to yield 7% over the next year, outperforming the FTSE 100. Analysts expect total shareholder returns of $72bn up to 2026, split between dividends and buybacks, equating to a 16% average total shareholder return yield. Having “long walked the geopolitical tightrope between China and the West”, the London-headquartered bank is restructuring to focus more on its Chinese business, cut costs, and reduce divisions. There is also speculation of a break-up. HSBC has “attractive income but earnings momentum may slow” as interest rates fall. Hold (751p).

This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.

Kalpana is an award-winning journalist with extensive experience in financial journalism. She is also the author of Invest Now: The Simple Guide to Boosting Your Finances (Heligo) and children's money book Get to Know Money (DK Books).

Her work includes writing for a number of media outlets, from national papers, magazines to books.

She has written for national papers and well-known women’s lifestyle and luxury titles. She was finance editor for Cosmopolitan, Good Housekeeping, Red and Prima.

She started her career at the Financial Times group, covering pensions and investments.

As a money expert, Kalpana is a regular guest on TV and radio – appearances include BBC One’s Morning Live, ITV’s Eat Well, Save Well, Sky News and more. She was also the resident money expert for the BBC Money 101 podcast .

Kalpana writes a monthly money column for Ideal Home and a weekly one for Woman magazine, alongside a monthly 'Ask Kalpana' column for Woman magazine.

Kalpana also often speaks at events. She is passionate about helping people be better with their money; her particular passion is to educate more people about getting started with investing the right way and promoting financial education.