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.
Share tips 2024: top picks of the week
Five to buy
1. Johnson Matthey (LON: JMAT)
The Telegraph
Johnson Matthey’s shares have slid 60% since 2018. The sustainable technologies company is now ripe for recovery thanks to its valuation and growth prospects. Matthey is well placed to benefit from the global energy transition, with lower borrowing costs making net-zero projects more viable. Cost savings and a buyback programme are set to boost finances, and a “modest” forward price/earnings (p/e) ratio implies scope for growth. Although regulatory hurdles loom, Matthey’s 5.1% dividend yield, low debt, and earnings projections offer long-term appeal. 1,508p
2. Hornby (LON: HRN)
The Times
Model train-maker Hornby’s shareholders include Phoenix Asset Management, Artemis Asset Management, and Mike Ashley’s Frasers Group. The shares have halved in recent months, and “compulsive deal-maker” Ashley is providing consultancy services. Despite an increase in full-year sales to £56.2m, costs rose, resulting in an £8.7m pre-tax loss. CEO Olly Raeburn says Hornby is undergoing a turnaround, but a new strategy is not yet clear. With major investors onside, a deal is possible. Hornby is a “gamble, but the odds look favourable”. 23p
3. Hollywood Bowl (LON: BOWL)
This is Money
Hollywood Bowl has 85 sites and is worth £570m. The ten-pin bowling group plans to expand to 130 centres in the UK and Canada. The company offers affordable entertainment for families with an average expenditure of about £11 for customers, less than the hourly national living wage. Hollywood expects full-year revenue to exceed £230m, and analysts predict a 3% profit increase to £49.3m. 330p
4. JD Wetherspoon (LON: JDW)
Shares
Pub group JD Wetherspoon’s shares are undervalued despite improved guidance last month. With record sales and strong trading, analysts predict higher earnings, making “the shares are an absolute steal”. Although there are concerns about changing drinking habits, debt levels and the impact of the Budget on higher national insurance bills for employers, Spoons has a resilient business model, popular venues, and growth potential. 602p
5. BP Marsh & Partners (LON: BPM)
Investors’ Chronicle
BP Marsh & Partners’ interim net asset value rose 10.3% to £253m, with a total shareholder return of 12.1%. Marsh, which invests in early-stage financial services businesses, booked a £5.7m gain on its largest holding, a 27.5% stake in US insurance distributor XPT. The recent sale of a stake for £21.65m will allow it to return £7m to shareholders as dividends. Marsh’s portfolio remains undervalued. 703p
One to sell
Close Brothers (LON: CBG)
The Telegraph
The recent court ruling on discretionary commission arrangements is tough for motor finance providers, as lenders could be liable for dealers’ non-disclosure. Close Brothers and others may appeal, but there is uncertainty about how that will go or “how to quantify the scope for customer redress” if the appeals fail. There is also uncertainty about how the ruling will affect the report by the Financial Conduct Authority, the City regulator, due in May. Investors should consider “price-to-brain damage” when assessing a stock. “The pain is just too great… Sell.” (226p)
The rest...
1. Standard Chartered (LON: STAN)
The Telegraph
Standard Chartered’s third-quarter results were better than expected, with net interest margins holding up well, good cost control and low impairments. Market volatility boosted the emerging-market bank’s global operations, and its focus on private banking and wealth management paid off. China’s efforts to boost its economy bolstered the shares, reflecting improving sentiment towards the bank and emerging markets. The stock’s valuation is attractive, while the prospect of a 33-cent dividend and share-buyback programme also bodes well. Hold (920p).
2. Premier Foods (LON: PFD)
The Times
Investors are watching Premier Foods to see if it can acquire other companies quickly enough to prevent a potential takeover. Premier, known for Sharwood’s, Batchelors, and Mr Kipling brands, is focused on Britain but is expanding in America. The group’s first-quarter sales rose 5.3%, led by the branded grocery category. Premier’s £1.6bn valuation is within reach of that of Nissin Foods (which has a 24.2% stake in Premier), General Mills, or Kraft Heinz. The stock appears undervalued. Premier is a “solid performer in branded food, surrounded by potential predators.” Buy (190p).
3. Equals (LON: EQLS)
Investors’ Chronicle
Equals has received a higher cash offer from a consortium led by private equity firm JC Flowers and TowerBrook Capital. The initial 135p share offer valued the fintech group at £276m. This was sweetened with a £4m special dividend. Equals recently paid a 1p interim dividend from its £28.3m net cash pile. With shares offering a 14.5% upside to the indicative 137p take-out price, “there is an opportunity to make a quick-fire gain”. Buy (125p).
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