Can these 2019 FTSE 250 winners continue surging in 2020?

first_imgCan these 2019 FTSE 250 winners continue surging in 2020? Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Our 6 ‘Best Buys Now’ Sharescenter_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’ve always followed a rule of not buying shares in companies with which I have some sort of emotional or personal attachment, because it can make it hard to see the downsides and form an objective opinion.Sometimes that’s served me well, but in 2019 it contributed to my ignoring Greggs (LSE: GRG), whose shares have climbed by 83% over the year. I kept away because I get my lunch from the high street bakery most days of the week, and my view is perhaps biased.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…TastyGreggs has managed to get its name well known during the year through some good PR (though, perhaps ironically, I think its famous vegan sausage rolls are horrible), and that must have helped attract investor attention. That, and the past few years of phenomenal earnings progress, which many a high-tech growth company can only hope to match.If forecasts for 2019 come good, we’ll have seen a 97% EPS rise over five years, and the dividend will have grown by 130% — though that does include a 35p per share special dividend. The yield is low, however, at around 2%.Greggs’ forecasts look very reliable to me, after the firm upped its profit guidance in November for the fourth time in the year.The only downside I see is the valuation of the shares, which are on a P/E of 26.6. In my experience, every company going through a growth phase like this suffers a share price fall when that spell comes to an end. But I’ve no reason to think that will happen in 2020.SoftTalking of soaring growth stocks that don’t come from the usual technology sources, shares in furnishings retailer Dunelm Group (LSE: DNLM) have done even better this year than Greggs, with a rise of 110%. That has come mostly in December, though, as they were only up around 50% at the end of November.It was all down to a 5 December update, when the company announced the successful transition of all of its customers to its new digital platform (so maybe there is a technology angle after all) without any impact on overall performance. Full-year guidance was lifted too, and the shares soared — and they’ve gained further after the election result.In addition to share price gains, Dunelm has been lifting its dividend and its strong cash generation allowed for a special dividend of 32p per share.My problem is I that I think there’s too much exuberance here, with Dunelm not coming close to Greggs’ earnings rises. By year-end at June 2020, forecasts suggest an EPS improvement of a very modest 11% in five years, and I think we’d need something better than that in 2020 to justify a forward P/E of 22.3.SteepMy Fool colleague Roland Head spotted Dunelm’s potential early in the year, but at today’s price he “wouldn’t rush to buy” the shares. He believes Dunelm deserves a premium rating, and I agree — but I think today’s is a bit too premium.I don’t expect any big crash in 2020, but I can’t foresee any significant rise either — and I think we might even see a modest price consolidation. Simply click below to discover how you can take advantage of this. Alan Oscroft | Tuesday, 31st December, 2019 | More on: DNLM GRG “This Stock Could Be Like Buying Amazon in 1997” See all posts by Alan Oscroftlast_img read more

NMC was the worst performing FTSE 100 stock in 2019. Should I buy it?

first_imgNMC was the worst performing FTSE 100 stock in 2019. Should I buy it? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Jonathan Smith | Tuesday, 7th January, 2020 | More on: NMC Now that 2019 has come to a close, taking stock of both the good and the bad can give us various lessons to take forward into 2020. I have already written a piece looking at the star performer from the FTSE 100 index last year, which you can read here.However, it is also worth reviewing the worst performer, and seeing what we can spot to avoid when making investment choices this year.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Firstly, it is actually quite hard to pinpoint the specific ‘worst performer’ as the FTSE 100 relegates companies that have a sharp drop in the share price (and thus the market capitalisation) down to the FTSE 250 on a quarterly basis. For example, Marks and Spencer was in the FTSE 100 at this time last year, but dropped out in Q3. Then there is the issue of whether to include dividends in the performance, or the exact date range we choose.To keep it clean, I’ve used the numbers of the companies that were in the FTSE 100 for all of last year, to give a fair comparison. In this case, the wooden spoon goes to NMC Health (LSE: NMC). It is the largest healthcare provider in the Middle East, but also has a network of hospitals in Europe.This time last year it was trading at 2,620p, and opened in the New Year at 1,800p. This is a fall of some 31.3%.What happened here?Taking the performance over an annualised period as we have done usually smooths out a bumpy road, but not so for NMC. For most of last year, the share price was fairly muted. If you had checked your portfolio containing NMC in May or September then it would have shown you a profit (assuming you bought it at the start of 2019). The real kick in the teeth that saw it take the booby prize came just last month. The share price dropped by almost 50% following a report about the validity of the company’s financial statements from Muddy Waters. Muddy Waters calls itself a “due diligence based equity research” firm, and has been in the news previously for questioning or exposing company practices. The firm claimed that NMC had potentially overpaid on acquisitions, inflated its margins and understated reported debt. The market reacted fast, with the share price yet to make a meaningful bounce back.Should I buy it?At the moment, I do not believe that retail investors such as myself have enough information on what is true or not. NMC called the report by Muddy Waters “false and misleading” and has opened its books for independent review. If the business has nothing to hide, then sure the current share price makes it cheap on a relative basis if the company is actually in good financial health.However, if NMC does have problems (Muddy Waters claim it has understated debt of $320m as of 2018) then this could be a serious can of worms that could see the share price tumble further. On balance, without more publicly available information, buying into NMC seems more of a gamble than an investment to me at the moment. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Our 6 ‘Best Buys Now’ Shares Jonathan Smith does not own shares in NMC Health. The Motley Fool UK owns shares of and has recommended NMC Health. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Image source: Getty Images. See all posts by Jonathan Smithlast_img read more

Forget Brexit! A growth stock I’d buy for my ISA to get rich and retire early

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Image source: Getty Images. Times remain extremely tough for the UK retail sector. Department store Beales is the latest shopping institution to go into administration this week after almost a century-and-a-half of trading. And it’s not just the sellers of mid-to-high-priced goods that are suffering. Just ask Card Factory and Shoe Zone, for instance, retailers operating at the ‘budget’ end of their respective markets that are also struggling as broader consumer confidence sinks.That’s not to say that all of the low-cost retailers are in danger, however. The continued surge of German discounters Aldi and Lidl are perfect evidence of this. So it can be said that sellers of non-discretionary items at lower price points are the exception to this rule. And in this theme I consider B&M European Value Retail (LSE: BME) to be a top buy right now.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Sales still risingI’m not saying that investor appetite for the FTSE 250 retailer has been that strong of late. Indeed, B&M’s share price has plummeted in the wake of worse-than-expected trading numbers earlier this month. Like-for-like sales in the UK edged 0.3% higher in the three months to December, it said back then, falling short of broker expectations of a 2.5% rise.The Liverpool-based business put the result down to “a challenging broader retail market and our decision not to engage in any early discounting activity.” Trading at the business had been quite robust up until that third fiscal quarter — like-for-like sales at its British stores had grown 3.7% in the prior six-month period.Those numbers didn’t have the market punching the air, sure. But B&M is still to be commended for growing sales at all given the dire state of the retail sector. Latest Office for National Statistics data showed sales in the UK fell for their fifth consecutive month in November.Expansion plansCity analysts are expecting rampant medium-term profits growth at B&M. They predict a 17% earnings rise for the fiscal year ending March 2020. And despite the threat of Brexit uncertainty lasting through 2020 at least, the number crunchers anticipate a 13% bottom-line leap in the following period too.B&M’s store expansion is key to their bullish forecasts. This programme helped total UK revenues jump 8.8% between September and December, the business opening 15 new B&M-monikered stores in the period. And the ribbon is set to be cut on another half a dozen shops in the current quarter alone.Underlying sales at B&M might be under the cosh right now. But that expansion scheme, allied with its push into France and Germany (markets in which budget retailers have also thrived in recent times) should pave the way for excellent profits growth once broader trading conditions normalise. I reckon the recent share price pullback makes B&M a brilliant long-term buy for share investors, the business now trading on a rock-bottom price-to-earnings growth (PEG) reading of 0.9. This is a retailer that could help you get rich and retire in comfort. Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Forget Brexit! A growth stock I’d buy for my ISA to get rich and retire early Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of B&M European Value and Card Factory. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Royston Wild Royston Wild | Wednesday, 22nd January, 2020 | More on: BME “This Stock Could Be Like Buying Amazon in 1997”last_img read more

Stop saving & start investing! Three 5% dividend stocks I’d buy today

first_imgStop saving & start investing! Three 5% dividend stocks I’d buy today Simply click below to discover how you can take advantage of this. Roland Head | Monday, 10th February, 2020 | More on: ADM CEY DC I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Roland Head John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Roland Head owns shares of Dixons Carphone. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Admiral Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! You probably have a cash savings account. These used to be a good way to make money. But with best-buy interest rates hovering around 1.3% these days, making money from cash savings is pretty difficult.This is why all of my retirement savings are invested in the stock market. My plan is to build a portfolio of dividend stocks that will provide long-term gains and a reliable income when I’m older. Today I want to look at three companies I’d buy for such a portfolio.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Profit from goldMy first pick is gold miner Centamin (LSE: CEY), which owns the Sukari gold mine in Egypt. As I’ve explained before, I’m not tempted to own gold directly. But I think Centamin has a good track record, with double-digit profit margins and a six-year history of cash-backed dividends.Management recently fought off a takeover bid from Canadian firm Endeavour Mining. Investors have mixed views on whether Centamin should have engaged with Endeavour, but in my view, the company remains an attractive investment as a standalone firm.The board plans to declare a total dividend of 10 US cents (approx. 7.7p) for 2019, giving the stock a yield of around 5.8%. I’d expect a similar payout in 2020. In my view, Centamin provides an attractive way to gain exposure to gold, while still enjoying a reliable income. I rate CEY shares as a buy.Best-in-class pick?Car insurance firm Admiral Group (LSE: ADM) is a well-known name. But what you may not realise is what an outstanding investment this stock has been. Admiral shares have doubled over the last six years and risen by 840% since the firm’s IPO in September 2004.Throughout this period, shareholders have also enjoyed generous dividends. These have been made possible by an unusual business model that generates a return on equity of over 50% in most years.My colleague Rupert Hargreaves recently explained why this business is so unusually profitable. But all you really need to know is that as a general rule, Admiral pays out almost all of its earnings as dividends each year.Admiral shares currently trade on about 18 times forecast earnings and offer a dividend yield of 5.5%. Given the group’s track record, I think that’s a fair price to pay. I’d be happy to buy the shares for a long-term investment portfolio.This turnaround yields 5.1%My final pick is more unusual. FTSE 250 retailer Dixons Carphone (LSE: DC) is the owner of Currys PC World. But the group has faced problems over the last couple of years, mostly relating to its Carphone Warehouse mobile phone business.With sales of more than £10bn each year, I believe Dixons Carphone is strong enough to survive the threat from online-only retailers such as Amazon. Recent trading has supported this view, with sales of electricals up over Christmas, despite tough market conditions.CEO Alex Baldock says that a new mobile phone offering is due to launch later this year. This is expected to support a return to profit growth during the second half of 2020.The market seems to be gaining confidence in Mr Baldock’s plans. The shares have gained 20% over the last six months, but still look affordable to me on 10 times 2020 forecast earnings. With a dividend yield on offer of 5.1%, I continue to rate Dixons Carphone as a buy. Image source: Getty Images. last_img read more

2 FTSE 100 stocks I think you should consider in the market crash

first_img “This Stock Could Be Like Buying Amazon in 1997” Jabran Khan has no position in any shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address The market crash, caused by the COVID-19 pandemic, has affected a lot of different industries and types of companies. In a time such as this, people will often panic and look to protect themselves from further financial woes. What savvy investors do is bide their time. They do their research and look into what stocks they can pick up cheaply. Even if the price has not fallen much, some stocks are almost ‘crash-proof’ and too attractive to ignore. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A couple of the stocks that come into the above category for me are Reckitt Benckiser Group (LSE:RB) and Unilever (LSE:ULVR). RB GroupThe name of the parent company may not resonate with some, but the British multinational boasts many well-known brands. The RB family produces health, hygiene, and home products, including brands such as Gaviscon, Dettol and Durex. With over 40,000 employees worldwide, RB’s products reach households around 190 countries. It recently reported a £2.1bn loss for the 12 months ending 31 December 2019. This is in stark contrast to 2018’s profit of £2.7bn. The primary reason for the loss relates to a £5bn write-down it had to take on a 2017 acquisition of baby formula maker Mead Johnson.The consumer goods giant said that it was investing £2bn into its business over the next three years as part of wider efforts to restructure the firm. The restructuring plans include dividing its brands into three categories, namely hygiene, health, and nutrition.RB added that it was seeing a spike in demand for Dettol and Lysol products, as well as increased online sales from consumers in China.The crash saw RB’s share price dip by almost 15%, but at the time of writing the price sits close to 6250p. This price is close to pre-crash levels, and a promising indicator moving forward. UnileverI wrote about Unilever a couple of months ago, pre-Covid 19, and suggested exercising caution. I did mention I would be keeping an eye on developments, and boy, have there been developments. With the pandemic, consumer goods companies are seeing unprecedented demand.Currently Unilever boasts over 400 brands and operates in 190 countries across the world. It also has a turnover of over 50 billion euros. Split into four main divisions, food and beverage, cleaning agents, beauty products and home care, some of its brands include Lynx, Dove, Ben & Jerry’s, and Surf. It is estimated over 2bn people across approximately 200 countries use Unilever products. A dozen of its brands generate annual sales of over $1bn. Last month, Unilever announced its full year results to 31 December 2019. The key highlights for me were its 3% increase in underlying sales growth, almost 13% increase in free cash flow, and almost 5% growth across each of its divisions. Impressive results in my opinion, which further sweeten the pot from an investment perspective. The crash initially saw a decrease of more than 20% in share price. However that price has improved somewhat since then. The current price-to-earnings ratio sits at just under 22, which is a bit high and represents a slight risk but not something that overly concerns me. It is fair to say that having a large, global footprint is especially advantageous in such turbulent times for these two consumer goods monsters. Jabran Khan | Wednesday, 8th April, 2020 | More on: RKT ULVR 2 FTSE 100 stocks I think you should consider in the market crash Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. center_img Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. See all posts by Jabran Khanlast_img read more

Want to buy dirt cheap FTSE 100 stocks? I’d check out the Aviva share price

first_imgSimply click below to discover how you can take advantage of this. See all posts by Harvey Jones Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares The Aviva (LSE:AV) share price has taken a hammering during the coronavirus crisis. It is down more than 40% this year, which you might expect. Worryingly, it failed to participate in the FTSE 100 rebound in March and April. This tells me investors are suspicious about its prospects.Aviva slipped today after its operating update showing an estimated £160m of additional general insurance claims stemming from the pandemic. Yet I still think this FTSE 100 dividend hero is in better shape than recent performance would suggest.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I should have said fallen dividend hero back there. Last month, Aviva cancelled its final 2019 payment. This follows requests for dividend restraint from regulators, although not everybody listened. Rival insurer Legal & General Group is still paying its dividend.Aviva share price crashThere are benefits to cancelling the dividend. This has bolstered the firm’s Solvency II cover ratio, estimated at 182% at the end of March. Today, management said it has the capital strength and liquidity to get through the crisis.Aviva reported a 28% rise in new life insurance business to 31 March, with new UK Life business sales up 162% to £2.9bn. Bulk purchase annuities were particularly strong. General insurance sales rose 3%, helped by a recovery in Canadian premiums. The Aviva share price has solid foundations.The group’s investment operation has done fairly well, although it warns numbers could be hit by “changes in investment performance, capital generation, and remittances”.There was no way the Aviva share price was going to escape unscathed from the crisis. However, I think markets are taking an overly dour approach to its prospects. Yes, management has suspended the dividend, but when the pandemic recedes, it will be back.Capitalisation looks healthy, so the group’s future is in little doubt. Obviously, a long recession and slow recovery will hit its investment arm in particular, and knock insurance sales too. That’s how it is with every company, right now. There are risks to investing today, but also potential rewards.Dirt cheap FTSE 100 stock Lately, investors have prized Aviva for its dividend, which is sorely missed. Management will be keen to restore shareholder payouts to reward loyal investors as soon as it can.If you buy today you will not get any income to tide you over until the stock picks up, which is a blow. However, its dirt cheap valuation reflects this, with the Aviva share price trading at 3.75 times earnings, one of the lowest on the FTSE 100.All valuations have to be taken with a pinch of salt right now, obviously. Yet this does suggest its problems have been priced in. If buying stocks for the long term, as you should be, Aviva’s dirt cheap valuation makes it a tempting buy. Just give it time to recover. Want to buy dirt cheap FTSE 100 stocks? I’d check out the Aviva share price Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Harvey Jones | Thursday, 21st May, 2020 | More on: AV Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997”last_img read more

I think this is the best UK pub stock to buy today

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. I think Young’s (LSE: YNGA) is the best pub stock to buy today as pubs look set to open early than expected. Ministers are pushing for outside spaces, like beer gardens and terraces, to be allowed to open on 22 June. Inside spaces should open later on 4 July. However, I would caution investors against getting overly optimistic about the pub sector in general.Its a pub, just not as we know itFor one thing, a new spike in coronavirus infections could push back the reopening dates, or force pubs to shut again. For another, the planned reopenings will be very restrictive. Two-metre social distancing will limit customer numbers to under 40% of normal. There will be queues to get in and for toilets, and propping up the bar will not be allowed.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Some pub chains have already opened for takeaway during the spell of sunny weather. Passing pints over the walls to customers to consume elsewhere was not widespread, and you have to wonder why. It might be because supermarkets and corner shops already sell alcohol for consumption off the premises. Or it could be because most pubs didn’t want to risk people getting drunk in public on their beer.It could also be that a takeaway service did not make financial sense. Pubs are burning through cash as premises sit idle, but they could continue to do so with limited openings. I think the number of staff will need to be something like a world cup semi-final would call for, but with a fraction of the customers. And those customers might not be knocking their drinks back like they used to.Pacing themselvesYoung’s boss has said none of its pubs will open before early August. Given that Young’s has already warned of a substantial loss for 2020 and has cut its dividend, it might sound mad to pass on the option to open early. But I see Young’s not in a hurry to rush an opening as a reason why its the best pub stock to buy today.The company has already informed investors that it could remain closed without going bust until March 2021. It has made use of the government’s job retention and business rate relief schemes, and will not want to jeopardise them until it makes sense to do so. Young’s management expects social distancing rules of one-metre in August, which should allow pubs to operate at around 70% of capacity.At over two-thirds capacity, it seems Young’s management is confident of at least not adding to the losses it is already making. It could also learn from the experiences of other pubs that may open this month, and avoid a potentially tricky emergency shut down should the outbreak spike again in the coming weeks.Last orders, pleaseGetting a slice of Young’s pre-crisis revenue, earnings, and dividend growth would be a steal at the current share price. Emerging from the crisis in an orderly fashion and avoiding doing more damage will help Young’s get back on track. Having management brave enough to keep doors shut until it makes sense to open – and having the financial strength to allow this – bodes well for Young’s. I think its the best pub stock to buy today. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Addresscenter_img Our 6 ‘Best Buys Now’ Shares James J. McCombie | Monday, 8th June, 2020 | More on: YNGA James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by James J. McCombie Simply click below to discover how you can take advantage of this. I think this is the best UK pub stock to buy todaylast_img read more

Tempted by the GSK share price? Here are 3 things you should know

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Tempted by the GSK share price? Here are 3 things you should know Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. Roland Head | Wednesday, 22nd July, 2020 | More on: GSK Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Sharescenter_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Roland Head As a shareholder, I admit the GlaxoSmithKline (LSE: GSK) share price hasn’t been a dazzling performer in recent years. But if you’d held Glaxo shares for the last 10 years and reinvested the dividends, you’d have doubled your money. In my view, chief executive Emma Walmsley is doing the right things to move the business forward. I expect this FTSE 100 stock to continue to provide attractive income and capital gains for patient investors. Indeed, I’m hoping to buy more shares in the near future. Here are three reasons why I rate GSK as a buy.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…1. Taking the long view on coronavirusMany pharma stocks have rocketed this year, due to hopes they’ll be the first to discover a vaccine for coronavirus. GSK’s share price has lagged behind by comparison, but I don’t think investors should be too concerned.Glaxo makes around one-third of its profits from vaccines and is a big player in this sector. The firm is involved in several collaborations to develop a vaccine for Covid-19. However, the group’s main focus is on technical solutions to help improve the effectiveness of a coronavirus vaccine, and defend against future outbreaks.This may seem less exciting than a direct hunt for a magic bullet cure, but I suspect it’ll drive a stronger financial performance over the medium term.2. Climbing the patent cliffWe don’t hear much about the patent cliff anymore, but it’s still a real problem. Patent expiry on popular medicines tends to result in the introduction of cheap generic competitors.A good example is Glaxo’s Advair asthma drug. FTSE 100 rival Hikma Pharmaceuticals is currently in the late stages of introducing a generic alternative. Advair has been a big seller for GSK for many years, but US sales fell by 40% during the first quarter of this year, due to generic competition.I think GSK’s share price is under pressure because the firm hasn’t yet matched rival AstraZeneca‘s success in finding new big sellers. However, I expect the situation to gradually improve over the next few years. In the meantime, I think there’s another potential catalyst that could give Glaxo stock a boost.3. GSK share price could rise after splitGlaxoSmithKline currently has a rather unfashionable conglomerate structure. Its pharmaceutical businesses are grouped together with a consumer healthcare operation which owns brands such as Sensodyne, Panadol and Nicorette.Consumer brands like this are attractive assets, in my view. They generate reliable cash flows from regular repeat purchases by millions of customers. But it’s a quite different business to developing pharmaceutical products, such as vaccines and cancer treatments.Walmsley seems to agree. Over the next couple of years, she’s planning to separate GlaxoSmithKline’s consumer business into a company listed on the London stock market. The end result should be two more tightly-focused companies, with stronger finances. I believe splitting the group should lead to a higher valuation for both sides of the business.At current levels, GSK’s share price values the stock at 14 times forecast earnings, with a dividend yield of 4.9%. I see this as a good level to buy for a long-term position Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Roland Head owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline and Hikma Pharmaceuticals. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img read more

£100,000 to invest in FTSE 100 shares? Here’s what I’d do now to get rich and retire early

first_img “This Stock Could Be Like Buying Amazon in 1997” See all posts by Harvey Jones Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo, Experian, GlaxoSmithKline, and Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Harvey Jones | Monday, 3rd August, 2020 Simply click below to discover how you can take advantage of this. £100,000 to invest in FTSE 100 shares? Here’s what I’d do now to get rich and retire early Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images center_img Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Enter Your Email Address The stock market crash makes now a great time to invest in FTSE 100 shares, but also a scary one. While many top stocks are trading at reduced valuations, investors will be nervous. We haven’t seen the back of Covid-19.If I had £100,000 to invest, I’d approach today’s market with caution. Not too much caution though, as that could also backfire.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…For example, you could keep your £100,000 in cash, rather than investing in FTSE 100 shares. Given today’s near-zero savings rates, your money is unlikely to grow in real terms. After inflation, its spending power could fall.£100,000 to invest? Take your timeFTSE 100 shares are more volatile than cash, but history shows that, in the longer run, they deliver a far superior return. Successful investors buy shares when they’re cheap, then hold them for the long-term. That gives time for markets to recover, and your reinvested dividends to compound in value.You should avoid stocks if you may need the money within the next five years though. Older investors should take fewer risks as they’ve less time to recoup short-term losses. Younger ones should go for it.Let’s say you’re putting all your £100,000 into FTSE 100 shares. I wouldn’t throw the full amount into today’s market. That way you risk a short-term shock, if the market crashes the next day.Instead, I’d feed it into the market over the rest of the year, taking advantage of any dips. Today, the FTSE 100 has fallen below 6,000. It’s down almost 25% over the year. Many investors are wary of buying shares when prices are falling but, in fact, this is the perfect time to invest. You’ll pick up more for your money as a result.What you need is a diversified spread of different FTSE 100 shares to balance your risks. I’d start by playing safe. You could divided, say, £5,000 of your £100,000 between a couple of lower-risk dividend stocks. This could be a utility like National Grid or United Utilities, or a pharmaceutical company like AstraZeneca or GlaxoSmithKline.You can then move up the risk scale with your next £5,000 chunk. Household goods giant Unilever, global spirits group Diageo and cigarette maker British American Tobacco look pretty solid to me. They should also see steady demand for their products, even in a recession.Some great FTSE 100 shares out thereOther companies I’d consider for your next (slightly riskier) chunk might include asset manager and insurer Legal & General Group, outsourcer Bunzl, data specialist Experian, telecoms giant Vodafone, or consolidator Phoenix Group Holdings.Commodities giants BHP Group and Rio Tinto are also worth a look. As are housebuilders, such as Barratt Developments and Taylor Wimpey.Once you’re feeling confident, you might take a punt on a few high-risk stocks, targeting FTSE 100 shares that may bounce back when the pandemic is finally tamed. Airlines, hotels and cruise operators could fly, when the economy takes off. Personally, I’m wary.You should only take a that level of risk with a tiny proportion of your £100,000.last_img read more

Best UK shares: I reckon this FTSE 250 stock could be a millionaire-maker!

first_imgBest UK shares: I reckon this FTSE 250 stock could be a millionaire-maker! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Enter Your Email Address Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Stuart Blair owns shares in Airtel Africa. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”center_img Investing in UK shares can be very lucrative or, in some circumstances, can lead to large losses. As a result, it’s important to be discerning when picking stocks. Airtel Africa (LSE: AAF) is one stock I believe has significant potential. In fact, through dividend reinvestment over a number of years, I actually believe that it could be a millionaire-maker! Here’s why.Both a growth and income shareAirtel Africa is a provider of telecommunications and mobile money service within Africa. Africa is seen as a high-growth market, and as a market leader in 14 different African countries, Airtel Africa should be able to continue to grow its customer base. The number of customers already stands at over 100m, and with only 45% of the continent’s population owning a SIM, this should continue to grow. A rising consumer base has also seen rising profits. In fact, in the 2020 financial year, operating profits increased by over 20% to $901m.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But as well as the potential for growth, this UK share is also a very good income stock. For example, this year, the firm is paying a dividend of 6 cents per share. This equates to a 10% yield. At the moment, this dividend also looks very safe due to free cash flow of $453m. With the dividend costing $226m, this means that there is still cash left over to reinvest into the business. Consequently, with strong prospects for growth, a dividend cut does not seem likely, and increases may be in store further down the line.Are there any problems?Of course, there are no perfect shares, and Airtel Africa is no exception. One of my major concerns is the fact that its EPS (earnings-per-share) has actually been decreasing in recent years. This is mainly because the firm has issued more shares in order to pay off debt. While paying off its large debt-pile has been necessary, this share dilution does put a strain on the share price. As a result, now that its debt situation is much healthier, I hope that the firm will not have to resort to issuing more shares in the near future. Instead, buying back shares would be the ideal situation for shareholders.Airtel Africa will also be affected by the current economic downturn. This is because currencies have been devalued across many of its markets, including the Nigerian naira, the Ugandan shilling, and the Zambian kwacha. This will place a burden on profits throughout the year.Is this UK share really a millionaire-maker?Despite these problems, I’m still highly optimistic about Airtel Africa. Evidently, there is significant room for profits to grow further, especially through the data and Airtel Money divisions. The dividend is also a major attraction, especially as it does look sustainable. As such, through reinvesting these dividend payments into the stock, I really do think that this UK share is a millionaire-maker! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Stuart Blair | Monday, 31st August, 2020 | More on: AAF Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares See all posts by Stuart Blairlast_img read more