{"id":34390,"date":"2023-01-07T01:21:50","date_gmt":"2023-01-07T02:21:50","guid":{"rendered":"https:\/\/peymantaeidi.net\/stem-cell\/?p=34390"},"modified":"2023-01-07T02:59:59","modified_gmt":"2023-01-07T02:59:59","slug":"share-tips-of-the-week-06-january-2023","status":"publish","type":"post","link":"https:\/\/peymantaeidi.net\/stem-cell\/2023\/01\/07\/share-tips-of-the-week-06-january-2023\/","title":{"rendered":"Share tips of the week – 06 January 2023"},"content":{"rendered":"
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Here are the top share tips from the rest of the UK\u2019s financial pages. These have been collated from newspapers and magazines published over the last week and are aimed at active investors<\/a>. <\/p>\n

Unlikely our usual weekly share tips, these are the tips for the year ahead<\/a>, not just the week. <\/p>\n

We have all the updates from the Times, Telegraph and other publications. <\/p>\n

Here are the share tips of the week and the companies tipsters are recommending for 2023<\/a>. <\/p>\n

Share tips for 2023<\/h2>\n

The Times <\/h3>\n

Industrial products distributor Diploma <\/strong>provides seals, gaskets and other vital widgets for the construction, mining and agriculture industries. The accompanying technical support gives the group pricing power that helps it maintain \u201csuperior margins\u201d in spite of inflation<\/a>. This is a high-quality firm with the potential to offer \u201chigh compound returns\u201d (2,790p). <\/p>\n

Premier Inn owner Whitbread\u2019s <\/strong>\u00a33bn estate of hotels and restaurants could spark takeover interest in the year ahead. The pandemic has weakened independent competitors and with less capacity in the market, hotel room rates are rising (2,589p). <\/p>\n<\/div>\n

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Safety-equipment specialist Halma <\/strong>operates in an industry with \u201chigh barriers to entry\u201d and consequently \u201cenviable\u201d gross margins<\/a> of 60%. Yet it has still been caught in the market sell-off. With the shares down by 39% in 2022 they trade on a valuation discount to the five year-average and offer a tempting entry point (1,974p). <\/p>\n

Upper Crust and Caff\u00e8 Ritazza-owner SSP <\/strong>returned to pre-tax profit last year after a costly pandemic. UK rail strikes are hampering the group\u2019s post-Covid recovery (British sales are still just 84% of pre-pandemic levels), but an end to that problem and expansion in North America could bring upside in the new year (229p). <\/p>\n

Rentokil <\/strong>Initial\u2019s $6.7bn acquisition of US rival Terminix has \u201cdramatically\u201d increased the pest control group\u2019s position in the American market. There are also opportunities in emerging markets as population growth and urbanisation increase demand for the group\u2019s services (508p).<\/p>\n

Shares <\/h3>\n

The technology slump presents a golden opportunity to buy into semiconductor equipment maker ASML<\/strong>. The Dutch firm has few competitors and has grown earnings per share at \u201can average rate of more than 25% per year for the past 18 years\u201d. Sales could triple over the next eight years compared with 2021 levels, which should generate \u201cvast amounts\u201d of cash for share buybacks (\u20ac535). <\/p>\n

Complex supply chains and inflationary pressures<\/a> are strong tailwinds pushing new businesses towards catering outsourcer Compass<\/strong>, a group with \u201cunderappreciated growth potential\u201d (1,908p).<\/p>\n

US litigation over heartburn drug Zantac has weighed on GSK <\/strong>this year. Yet on 9.9 times 2023 forecast earnings and a 4% prospective dividend yield, it is now \u201cfar cheaper\u201d than pharmaceutical peers. The demerger of consumer healthcare arm Haleon means the shares could finally be \u201cgoing places\u201d (1,418p). <\/p>\n<\/div>\n

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The cost-of-living crisis spells trouble for retailers, but JD Sports<\/strong> boasts a robust balance sheet and the weaker economic outlook<\/a> \u201clooks more than priced in\u201d. The store\u2019s \u201csneakerhead\u201d customers are devoted trainer shoppers and business has proved resilient in previous downturns (115p). <\/p>\n

Photo booth-to-laundry play ME Group International<\/strong> (formerly known as Photo-Me International) enjoys roughly 30% returns on invested capital thanks to \u201clong-term contracts with infrastructure owners\u2026 and government agencies\u201d. A strong post-pandemic recovery has seen the shares rally by 75% in 2022 and there should be more to come (113p). <\/p>\n

The spending squeeze will see households eschew dining out for home-cooked meals<\/a>, driving greater demand for the convenience foods, cakes and cooking sauces produced by Premier Foods<\/strong>. The group\u2019s brands have enough pricing power to preserve margins and on ten times forecast earnings for the year to March 2024 the shares are \u201clooking tasty\u201d (108p). <\/p>\n

Asia-focused insurer and asset manager Prudential <\/strong>offers a way to buy into China\u2019s reopening without the risks of investing in opaque local firms. An estimated 80% of Asia\u2019s population currently has no insurance, so as the region\u2019s middle class expands the growth opportunity is large (1,049p). <\/p>\n

If gold shines in 2023 then East Africa-focused Shanta Gold<\/strong> is likely to rise with it. Just remember that miners are a risky way to play the gold price (9p). <\/p>\n

The return of former CEO Bob Iger to Walt Disney<\/strong> could deliver a new lease of life to the \u201cHouse of Mouse\u201d. The shares now offer an attractive entry point after a bumpy year ($86).<\/p>\n

Motley Fool <\/h3>\n

The low-cost offerings from baker Greggs <\/strong>will prove popular in a recession<\/a>. The business enjoys \u201cimpressive cash-flow generation, a solid brand, and a fully integrated supply chain\u201d. It also has room to grow through new store openings and by doing more trading in the evening (2,346p). <\/p>\n<\/div>\n

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Growth will be hard to come by this year, so income stocks look especially attractive. Landlord PRS Reit <\/strong>commands a portfolio of \u201calmost 5,000 residential rental homes\u201d and the shares look poised to yield 4.6% for the year to June 2023 (89p). <\/p>\n

Higher interest rates<\/a> are driving better profit performance at banking group NatWest<\/strong>. Despite a strong earnings outlook and a \u201cmarket-beating\u201d dividend yield the shares trade on a bargain six times forecast 2023 earnings (265p). <\/p>\n

Shell\u2019s <\/strong>shares roared in 2022, but they are still \u201cdirt cheap\u201d. The West\u2019s incoherent energy policies, which combine curbs on investment in new capacity with stop-gap attempts to force down prices, mean the long-term outlook for commodities is auspicious (2,326p). <\/p>\n

Small and medium-sized firms need ways to hedge currency risks, but the traditional corporate banking institutions are prohibitively expensive. Currency exchange fintech Alpha Group<\/strong> is muscling in. Revenue and pre-tax profits are rising at a \u201cdouble-digit pace\u201d and the group is also keen to conquer the Australian market (1,850p). <\/p>\n

Digital advertising specialist S4 Capital<\/strong> has been squeezed by rising costs and shrinking advertising budgets, but on a longer view Martin Sorrell\u2019s new outfit could still prove a \u201cphenomenal\u201d growth story (183p). <\/p>\n

There is room to consolidate the fragmented US industrial equipment-rental market and Ashtead<\/strong>, which has a 12% US market share, is well placed to do it. The group, which also operates in the UK, has spent \u201cmore than $2bn on dozens of bolt-on acquisitions since 2020\u201d as it seeks to build scale. A recession could even help<\/a> it to \u201cmop up weaker competition\u201d (4,720p). <\/p>\n<\/div>\n

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Shares in housebuilder<\/a> Barratt Developments<\/strong> are down by 50% in a year, but this \u201cstrongly cash generative\u201d business offers \u201clong-term value\u201d. A \u201cforecast 9% dividend yield\u201d is also nothing to sneer at (397p).<\/p>\n

The Telegraph <\/h3>\n

Shares in Wagamama-to-upmarket pub owner The Restaurant Group<\/strong> have plunged by more than two-thirds over the past year, but the group\u2019s \u201clucrative freeholds\u201d and \u201ccash cow airport concessions\u201d could start to attract bids from private-equity players (31p). <\/p>\n

The outlook is grim for British retailers, but the sort of customer who spends \u00a32,000 on a Burberry <\/strong>trench coat is probably \u201cnot facing as tight a squeeze as others\u201d; China\u2019s reopening could also make for a more lucrative year (2,038p). <\/p>\n

Shrinking digital advertising budgets have hit shares in advertising giant WPP <\/strong>hard over the past year, but with the shares down by a third over five years the group looks \u201cprimed for a takeover\u201d (820p). <\/p>\n

The energy squeeze is accelerating investment in renewable energy projects, sending shares in California-based solar giant Enphase Energy<\/strong> up by 50% in a year. Rising demand for residential solar and electric vehicle charging will remain a strong tailwind ($263). <\/p>\n

Unfortunately, a weak economy and dearer credit will send more companies to the wall this year. That will at least create more work for corporate restructurer Begbies Traynor<\/strong>, which also pays a 2.5% dividend yield (145p). <\/p>\n

While technology slumped in 2022, demand for the mundane work done by enterprise productivity software endures. Shares in sector play Softcat <\/strong>are down by 30% in a year, but could be due a rebound once the market bottoms out (1,184p). <\/p>\n<\/div>\n

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Optimists inclined to bank on a consumer recovery by the end of 2023 may wish to look at Tesco<\/strong>, whose shares could bounce after hitting a six-year low in October (225p). <\/p>\n

In turbulent times the \u201csteady, regulated returns\u201d from National Grid\u2019s<\/strong> UK and US gas and electricity networks are appealing. The \u201curgent need\u201d to build out grids for the energy transition should also keep the share price ticking along (1,001p). <\/p>\n

Manchester-based nanotech play Nanoco Group<\/strong> is suing Samsung <\/strong>for intellectual property infringement over its use of \u201cquantum dot\u201d technology in QLED televisions. If the claim is upheld in court the City believes the complaint \u201ccould be worth north of $500m (\u00a3414m)\u201d, far above the group\u2019s current \u00a3140m market capitalisation (44p).<\/p>\n

The Sunday Times <\/h3>\n

Power converters specialist XP Power<\/strong> had a dire 2022 (the shares lost 60%), but could be better placed as we enter a new year. The supply problems that have plagued the business should begin to ease and the near-5% dividend will provide welcome relief if we enter recession<\/a>. The shares should also offer \u201ca bit of va-va-voom\u201d should a recovery arrive later in the year (2,005p). <\/p>\n

Shares in electric trucks and Amazon <\/strong>delivery vans manufacturer Rivian <\/strong>crashed by 80% in 2022 as investors grew weary of funding losses that could top $7bn this year. But production is ramping up and as Tesla <\/strong>has shown, \u201conce manufacturing starts at scale, the finances improve dramatically\u201d. With a bit of luck Rivian could be \u201cthe next Great American car brand\u201d ($18). <\/p>\n

Uncertainty around windfall taxes has dampened enthusiasm over energy supplier SSE<\/strong>, but this is \u201cone of the few big British businesses investing heavily in energy security\u201d. Its renewables division also means it could attract a bid from an oil major looking to go green (1,713p). <\/p>\n<\/div>\n

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Commercial and logistics landlord Segro <\/strong>has had a strong decade thanks to the rise of e-commerce. Last year\u2019s ructions have left property firms<\/a> \u201coversold\u201d and Segro looks \u201cvery cheap\u201d (764p). <\/p>\n

Homeware specialist Dunelm <\/strong>is gaining market share, with sales up by more than 40% on pre-pandemic levels. The group\u2019s focus on \u201cgood-value products in cheap, out-of-town locations\u201d should preserve it from the worst of the cost-of-living squeeze (979p). <\/p>\n

The slump in City flotations has hampered stockbroker and corporate adviser Numis<\/strong>. While few expect a revival in early 2023, the company should be well placed for any pick-up later in the year (191p). <\/p>\n

Rising interest rates and weak equity markets have left private-equity groups such as 3i <\/strong>in a tricky position, but the group\u2019s value-focused holdings in infrastructure and healthcare leave it poised to \u201cthrive in the tougher economic climate\u201d (1,342p).<\/p>\n

Interactive Investor <\/h3>\n

Self-storage business Lok\u2019nStore Group<\/strong> looks a resilient pick for tough times. The group has been a \u201cconsistent performer\u201d for two decades and the rising book value<\/a> of the group\u2019s sites should limit any downside surprises (980p).<\/p>\n

Infrastructure maintenance group Renew Holdings<\/strong> is highly cash-generative, but trades on just 11 times 2022-2023 prospective earnings. A significant amount of its business comes from long-term contracts, which should cushion the hit from a weaker economy (689p). <\/p>\n

DSW Capital<\/strong> licenses its brand and provides back-office support for corporate finance and accounting professionals in return for a slice of their income. Insolvency work is picking up and there is still \u201cplenty\u201d of growth potential from recruiting new \u201cfee earners\u201d and expanding into new regions. A forecast yield of 5.1% is also attractive (120p). <\/p>\n

ActiveOps <\/strong>offers management software that automates back-office operations, with a particular focus in the finance sector. Such tools are especially appealing at a time of spiralling business costs. The group is loss making, but could break even in 2023-2024, with a decent cash pile to tide it over until then and promising growth prospects thereafter (76p).<\/p>\n<\/div>\n

<\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Here are the top share tips from the rest of the UK\u2019s financial pages. These<\/p>\n","protected":false},"author":1,"featured_media":34392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/posts\/34390"}],"collection":[{"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/comments?post=34390"}],"version-history":[{"count":2,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/posts\/34390\/revisions"}],"predecessor-version":[{"id":34393,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/posts\/34390\/revisions\/34393"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/media\/34392"}],"wp:attachment":[{"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/media?parent=34390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/categories?post=34390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/peymantaeidi.net\/stem-cell\/wp-json\/wp\/v2\/tags?post=34390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}