Share tips 2024: this week’s stock tips

(Image credit: Getty Images)

Jump to category:

Five to buy
One to sell
The rest...

last updated 20 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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

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. J Sainsbury (LSE: SRBY)
The Telegraph
J Sainsbury’s share price has been volatile since September, but half-year sales and operating profit increased, while market share grew. The supermarket giant is benefiting from improved household finances, real wage growth, and subsiding inflation. The stock’s low valuation and generous 4.8% dividend yield also bode well. Sainsbury’s can deliver share price gains and outperform the FTSE 100 index. 273p

2. Tesco (LSE: TSCO)
The Times
“Tesco has been on a tear this year”, with the shares up 27% thanks to sales growth, profit upgrades and buybacks. The stock has undergone a “remarkable” rerating in the past two years under CEO Ken Murphy, who has focused on value, loyalty schemes, customers’ convenience and efficiency savings. Tesco has upgraded its full-year profit outlook and its premium products are doing well. The shares are “inexpensive” given Tesco’s “leading market position and strong growth”. 365p

3. Renew Holdings (LSE: RNWH)
This is Money
Renew upgrades and maintains Britain’s vital infrastructure. Billions have been earmarked to revamp rail lines, water operations and electricity networks as Britain shifts to wind, solar and nuclear power. Renew is a key supplier to all these industries and is working on some of the country’s biggest projects. Full-year revenue, pre-tax profit and dividends have grown, and further share price gains are expected. Existing shareholders should hang on to their stock, while “long-term investors might also take a close look”. 987p

4. Gamma Communications (LSE: GAMA)
Shares
Gamma Communications is eyeing promotion to the FTSE 250 index in mid-2025 to improve trading liquidity and enhance its reputation and market penetration as the telecoms company expands globally. The move would also provide access to a larger pool of investment capital if Gamma wants to make big acquisitions. Valued at £1.55bn on Aim, Gamma would go straight into the top half of the FTSE 250 if it were listed on the main market. Furthermore, Gamma is a “compelling, sensibly run investment opportunity with scope for positive surprises”. 1,663p

5. Moonpig (LSE: MOON)
Investors’ Chronicle
Moonpig’s half-year revenue increased 3.8% to £158m, while adjusted cash profit grew 1% to £41.8m thanks to growth in new customers and orders from existing ones, prompting the greeting card and gift company to upgrade its targets. As an online business with low capital requirements, Moonpig generated £10m of free cash flow, which allowed the company to cut debt and post its first dividend. Moonpig’s forward price/earnings ratio of 19 is reasonable. 222p

One to sell

Halfords (LSE: HFD)
The Times
Halfords is grappling with weakness in both the cycling and tyre markets, softer household spending and higher national insurance costs. Recent results have been discouraging. Half-year revenue fell 1% to £864.8m and pre-tax profit declined 23.3% to £17.8m. The retailer has warned of an “uncertain” trading outlook. Despite a forward dividend yield of 5%, beating the FTSE All Share index, the shares have dropped by almost a third since November 2023. Investors should avoid the company given the “weak outlook in [its] core market”. 144p

The rest...

1. Cohort (LSE: CHRT)
Investors’ Chronicle
Cohort’s record first-half order book and 25% revenue growth are due to increased military spending. The defence firm expects its Portuguese communications systems business, EID, to return to profit thanks to “long-awaited” orders, while the £74m acquisition of naval defence communications business EM Solutions is a “tasty long-term opportunity”. Cohort trades on 20 times forward earnings, higher than rivals such as BAE Systems, but the premium is justified by its strategic position. Buy (1,076p).

2. Legal & General (LSE: LGEN)
The Telegraph
Legal & General could be a “staple generator of income”. The life-insurance giant recently reaffirmed guidance for 2024 earnings growth and longer-term goals, including generating between £5bn and £6bn in capital until 2027, underpinning its ability to invest in its core business and return surpluses to shareholders. Analysts forecast a 21.32p dividend in 2024, equating to an 8.9% yield. There is also scope for further buybacks, taking the total cash yield above 10%. Hold (236p).

3. PayPoint (LSE: PAY)
The Times
PayPoint offers payment systems for retailers and government departments, particularly for the unbanked. Its bill-paying and cash-machine operations are in decline, but its parcel shipping division is expanding. CEO Nicholas Wiles says household spending is weak, but the business is ready for future revenue growth and boasts strong cash flow. First-half net sales and underlying earnings rose thanks to its e-commerce arm. Analysts expect further profit growth, but the recent decline in the stock is a short-term concern. “Hold”, and “wait to see how the shares perform” next year. (794p).

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.