Share tips 2024: this week’s top picks
Share tips 2024: MoneyWeek’s roundup of the top picks this week – here’s what the experts think you should buy
(Image credit: Yuichiro Chino)
By Kalpana Fitzpatrick
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 each week.
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.
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.
Share tips 2024: top picks of the week
Five to buy
- Unilever (LON: ULVR)
The Telegraph
Unilever’s dividend growth has lagged behind inflation since 2019. But the consumer-goods giant’s prospects are improving, with inflation cooling and interest rates falling in developed economies; growth in emerging markets should also prove a tailwind. Recent first-half results showed growth in sales and operating profit margins. A shift in strategy, including planning to sell the ice cream business, is expected to boost profitability. Unilever offers “good value for money”. 4,912p - Nintendo (TYO: 7974)
The Times
Nintendo, home to Super Mario Bros. and Donkey Kong, is a giant in the videogame industry. The launch of a new console and sequels to some of its most popular titles next year should bolster the shares. Since Nintendo launched its Switch console in 2017, sales have tripled and the stock has more than quadrupled. The Japanese firm’s success is owed to family-friendly games, digital services, loyal users and powerful intellectual property. ¥8,253 - Windward (LON: WNWD)
This is Money
With shipping becoming more challenging, aim-listed Windward helps companies, ship owners, and governments manage maritime journeys more efficiently by analysing shipping data. Its clients include the US government, Interpol, BP and Glencore. Windward’s new tool, MAI Expert, which uses generative artificial intelligence to assess risks with vessels quickly, is set to drive future growth. “Buy and hold.” 138p - Renold (LON: RNO)
Shares
Renold is the world’s second-largest maker of industrial chains and specialist torque transmission products. Despite having less than 10% market share, there is room for growth through acquisitions in a fragmented market. Customers are prepared to pay a premium for its products, and Renold is benefiting from increasing automation across industries. The potential for double-digit profit growth and increasing cash generation isn’t reflected in Renold’s “lowly” seven times forward price/earnings (p/e) ratio. 55p - Hochschild Mining (LON: HOC)
Investors’ Chronicle
Hochschild Mining’s half-year earnings improved thanks to record gold prices, increased production from a new Brazilian gold mine, and closing a costly silver mine. Costs are expected to fall as the new mine hits capacity. The shares are up by 70% this year. They took a knock on the lack of a payout alongside the interims, but Hochschild’s focus on refinancing $300m of debt and hitting free cashflow first “looks sensible”. 174p
One to sell
Starbucks (NASDAQ: SBUX)
The Times
Sales at Starbucks are declining owing to high prices; long waiting times; increased competition in China where younger players are snatching market share; and a social media-driven boycott thanks to the US coffee giant’s position in the Middle East. Investors are pinning their hopes on new CEO Brian Niccol’s impressive record, but the problems at Starbucks seem more complicated than the ones he faced at Chipotle Mexican Grill. Starbucks’ 26.6 times forward earnings ratio and Niccol’s controversial pay package are a steep price for a company with much to prove. “Avoid.” $95
The rest…
Cranswick (LON: CWK)
The Telegraph
FTSE 250-listed Cranswick has “solid fundamentals”, a strong balance sheet, and a solid return on equity. The food producer’s growth strategy makes sense and is set to be turbocharged by lower inflation and expected interest rate cuts. Since July 2022, Cranswick’s shares have gained 55%, outperforming the FTSE 100 and 250. Including dividends, the stock has achieved a 62% total return in just over two years. Investors should “keep buying” it (4,765p).
Melrose Industries (LON: MRO)
The Times
Melrose Industries’ shares dropped by 7% after UBS suggested that the group’s jet-engine business could be worth about half of what its management says. Melrose disputes the report and stands by its calculations. Melrose started as a turnaround specialist but became an aerospace manufacturer after buying GKN in 2018. UBS has downgraded Melrose’s stock to “sell”, arguing that Melrose overestimates the value of revenue and contracts. Melrose’s rising net debt has also prompted concern. Yet recent half-year results beat profit expectations and Melrose has announced a share buyback. Hold (486p).
EDX Medical (EDX.PL)
This is Money
EDX Medical is developing tests for the rapid diagnosis of heart disease and hospital infections such as sepsis and MRSA. The start-up has also devised a blood test for those whose family history suggests they could be vulnerable to cancer. EDX listed in 2022 at 6p. Shares hit 12p this year but are now at 10p, and “at this level, the stock should yield rewards”. With strong partners and billionaire backers, EDX is an “attractive punt for the adventurous investor”. Buy (10p).
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.
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