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.

Two to buy

CVS

(Investors Chronicle) Britain’s largest veterinary-services company operates more than 500 practices. Levels of pet ownership have risen steadily over the last ten years and “rocketed” under lockdown. The number of insured pets has risen too, which will “help to protect CVS’s income in an economic downturn”. The reopening of its small-animal sites has boosted sales. The forward price/earnings ratio of 23 does not fully reflect the company’s potential. 1,205p

DFS Furniture 

(The Times) People forced by the pandemic to stay at home are “using their spare cash to make their homes and gardens... a bit smarter or... a bit more bearable”. That has bolstered the home-improvement sector. Sofa retailer DFS is a “post-lockdown winner”, with orders worth £70m in the six weeks since it reopened its stores. It is expected to make adjusted profits of £80m next year on sales of £1bn. 170p

Two to sell

Just Eat Takeaway

(The Times) “The world’s largest food delivery company outside China” did well out of Covid-19. Sales jumped by 44% in the first half, but pre-tax losses widened. They may widen further now that the firm is building its own distribution network to keep pace with Deliveroo and other rivals – an expensive undertaking, especially in the US. Just Eat should survive the industry’s “shakeout”, but the shares are overvalued given the “unappetising” outlook. Avoid. 8,706p

Micro Focus

(Investors Chronicle) Once Britain’s biggest technology group, this collector of software assets came unstuck in 2017 when it bought Hewlett Packard Enterprise’s software business. The move cost Micro Focus $8.8bn, doubling the debt load to three times its market capitalisation and triggering a goodwill impairment charge of $960m over three years. Competition is “fierce” and a recovery looks unlikely. Sell. 296p

...and the rest

Investors Chronicle

AB Dynamics, “a ‘one-stop testing shop’ for the global automotive industry”, is priced at a premium. But a strong predicted recovery and regulatory tailwinds make it worth buying (1,735p). Investment platform provider Nucleus Financial is a “decently priced growth stock” (130p).

The Daily Telegraph

Online gaming operator Gamesys has delivered on expectations and “there could be further gains to come”. Hold (£11.20). Matthew Dobbs, the manager of the Schroder AsiaPacific Fund, will be missed when he retires. “We will hold, but monitor progress” (491p).

Shares

Despite navigating the pandemic “impressively”, UP Global Sourcing, the consumer-brands firm behind Salter weighing scales, remains a bargain (94p). Hold on to shares in LED lighting company Luceco, even though they have “gone bananas” (187p).

Recommended

The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021
Five online retail stocks to diversify your portfolio with
Share tips

Five online retail stocks to diversify your portfolio with

Professional investor Tancredi Cordero, founder and CEO of Kuros Associates, selects five of his favourite online retail stocks to buy now.
18 Jan 2021
Share tips of the week
Share tips

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.
15 Jan 2021
How to invest in Africa as it takes its place in the post-pandemic sun
Emerging markets

How to invest in Africa as it takes its place in the post-pandemic sun

The African Continental Free Trade Agreement has come into force. Favourable demographics, improving governance and a growing technology sector also b…
14 Jan 2021

Most Popular

Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021