Forget Bitcoin! I think these 3 FTSE 250 stocks could double your money

first_img See all posts by Roland Head Roland Head | Friday, 13th March, 2020 | More on: PFC SMWH SSPG 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 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 “This Stock Could Be Like Buying Amazon in 1997”center_img Forget Bitcoin! I think these 3 FTSE 250 stocks could double your money The Bitcoin price has fallen by more than 40% in one month. That’s a bigger loss than we’ve seen with the FTSE 250 index, which is down by 27% at the time of writing.Unlike Bitcoin, good quality stocks generate earnings that support their valuation. I think stocks could provide some of the best opportunities for investors to profit from the market crash. Today I want to tell you about three FTSE 250 stocks I believe could double from current levels.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…Read all about itNewsagent WH Smith (LSE: SMWH) was founded in 1792, making this FTSE 250 firm one of the UK’s oldest listed businesses. However, this impressive longevity hasn’t stopped the WH Smith share price falling by 50% from the all-time highs seen in January.Investors’ are worried that sales at the group’s travel division — including airports — will collapse.WH Smith confirmed these fears with a warning on Thursday that the company is seeing a significant drop in passenger numbers in the US and Europe. Together, these regions account for 85% of the group’s travel sales. This is expected to lead to a 20%-25% fall in pre-tax profit, compared to last year.I suspect the eventual impact will be worse than this. But I’ve long admired WH Smith as a high quality business that generates strong shareholder returns. The shares look historically cheap to me at current levels. I think they could double over the next few years.Is this 14% yield for real?FTSE 250 oil and gas sector service provider Petrofac (LSE: PFC) faces two very serious problems. The first is this week’s oil price crash. This could lead to a downturn in new orders and put further pressure on profit margins.The second problem is that the company is under investigation by the Serious Fraud Office. This has been ongoing since 2017 and has not yet resulted in the company or any current employees being charged. But it’s not over yet.CEO and 19% shareholder Ayman Asfari remains in charge of Petrofac and has made sure that the company is generating cash and is largely debt-free.But Petrofac’s falling share price has left the stock trading on just four times forecast earnings, with a dividend yield of 14%.There are obviously some serious risks here. But the shares are starting to look cheap to me compared to more heavily-indebted rivals. If the SFO investigation can be settled, I think Petrofac stock could be worth upwards of 300p.This travel stock could bounce backI’m avoiding airlines at the moment. But I do think there are some opportunities in the travel sector. One company I rate highly is catering firm SSP Group (LSE: SSPG), whose shares price has halved so far this year.This FTSE 250 firm operates more than 2,800 food units in airports and railway stations around the world. SSP runs franchised outlets for brands such as Burger King, Starbucks and Jamie’s Deli, but the group also has its own brands — you may be familiar with Upper Crust and Ritazza, for example.Profits rose by 12% last year and the company generated a return on capital employed of 20%. I see these as impressive figures in difficult conditions.SSP has been in business for 50 years. I’m pretty confident it will recover after the coronavirus outbreak. I’d be a buyer here, for a long-term portfolio. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of SSP Group. The Motley Fool UK has recommended WH Smith. 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. Simply click below to discover how you can take advantage of this.last_img read more

Read More →

A safe-haven stock with big dividends that I’d buy for my ISA

first_imgSimply click below to discover how you can take advantage of this. Enter Your Email Address 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. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Royston Wild With financial markets set to remain volatile for some time yet, loading up on stable safe-haven stocks continues to be a good idea. Assura (LSE: AGR) is one such share I’d happily stash my ISA cash into.Healthcare stocks are some of those most popular targets when the economy is beginning to flag. We still need drugs and critical medical services irrespective of whatever troubles are raging outside our windows. And as a creator and manager of general practitioner (or GP) surgeries and other primary healthcare facilities, this particular FTSE 250 stock is a wise buy for ISA investors in these troubled times. News in early April that “March quarter rents [are] being received in line with normal patterns” underlined the robustness of the company’s operations.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…Don’t think of Assura as a stodgy defensive pick, though. Through its aggressive expansion policy, it’s putting itself in the box seat to capitalise on the UK’s ageing population and turbocharge profits growth. A mix of acquisition activity and new developments meant that it had 576 properties on its books as of December. This represented an increase of 13 from end of 2018.Estimates show that half of Britain’s GP surgeries are not fit for purpose. The demand outlook for Assura’s state-of-the-art properties looks quite bright for the next few decades then.A perky pipelineNow, the Covid-19 outbreak threatens to put the brakes on Assura’s grand plans. In last month’s update, the healthcare firm advised that it is following government lockdown advice concerning its construction sites. And as a consequence, it said that it’s “prepared for delays to anticipated completion dates for our on-site developments and start dates of the immediate pipeline.”This is a mere hindrance to the FTSE 250 firm’s growth strategy, of course, rather than a critical development. In fact Assura’s pipeline remains quite mighty. On the acquisition side, its immediate pipeline stands at £67m, while its corresponding development pipeline sits at £77m. It’s in great shape to keep expanding its estate once lockdown measures are eased.What’s more, a recent share placing saw the property giant raise £185m last month. The move gives it scope to transact an extra £250m of property additions before the group’s loan-to-value level hits the 40% marker, a level that could see its corporate rating take a hit.A terrific ISA buyIn the meantime, City analysts expect the healthcare play to grow annual earnings by single-digit percentages. They forecast rises of 1% and 6% for the fiscal years to March 2021 and 2022 respectively. Predictions of more profits growth underpin expectations of more dividend growth too. Thus yields sit at a chunky 3.7% and 3.9% for this year and next.Assura commands a princely premium at current prices around 80p. A price-to-earnings (P/E) ratio of 28 times illustrates this point. But don’t turn your nose up. I reckon the firm’s safe-haven qualities, coupled with its exciting growth strategy, merit a hefty price tag. I’d happily add it to my own ISA.center_img A safe-haven stock with big dividends that I’d buy for my ISA Royston Wild | Friday, 8th May, 2020 | More on: AGR 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 Royston Wild 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. 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.last_img read more

Read More →

Terry Smith says there are only two types of UK investor. Which is best?

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. Tom Rodgers | Monday, 26th October, 2020 Image source: Getty Images 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! Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. 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 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 Tom Rodgers Terry Smith says there are only two types of UK investor. Which is best? “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Terry Smith has built his reputation on being the UK’s best no-nonsense fund manager. He’s my kind of guy. As the head honcho at Fundsmith he’s driven market-beating returns for over a decade. And he’s got a specific piece of potentially life-changing advice for UK investors.   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…Investing one way is super-difficult and fraught with danger. Choosing the other option? It’s “safer and more profitable”, according to Terry Smith. So it’s a wonder anyone chooses the wrong path at all. It’s only our livelihoods and potential pension pot at risk, isn’t it?How it goes wrongWhen stock markets are volatile — like the FTSE 100 is these days — then UK investors start to think one thing is important. Buying shares at the very lowest, nailed-on, absolute bargain price point: so-called ‘timing the market’.This usually involves them holding back investments because they think a stock market crash may be coming. I can tell you now that I didn’t foresee March: the worst crash in 30 years that wiped a painful chunk from my net worth.Trying to ‘time the market’ requires sifting through thousands of tiny variables. Covid, Brexit, demand for oil, the weather, how a single investor feels on a Tuesday. Any one of them could change depending its interrelation to another variable. It’s maddeningly complicated. How to put it rightA much better way to invest, according to Terry Smith, is to use pound-cost averaging.“When it comes to so-called market timing there are only two sorts of people: those who can’t do it, and those who know they can’t do it“, he told the Financial Times earlier this year. The method has only four steps. Do the research. Pick the finest long-term investments available. Then set a specific monthly amount. Pay that into a Stocks and Shares ISA or SIPP every month. It’s the exact same principle that got a young Warren Buffett so enamoured with his brilliant mentor Benjamin Graham. In the skyscrapers and boardrooms across the Atlantic they call it dollar-cost averaging, of course. It’s why I’ve set a target of £333 a month to invest in my Stocks and Shares ISA. I’ve proven with maths that this amount will compound my cash to £1m, given enough time! It doesn’t require so many hours sat staring at screens. It’s less stressful. It doesn’t require a preternatural ability to see the future. In my view, and Smith’s, and Buffett’s, it’s an all round better way to live. Terry Smith rulesI get it. Stock portfolios can be addictive. It took me a while to learn this lesson and stick to it. But it’s provided me with much better results ever since I started.  I buy my preferred stocks and shares when they are valued at a higher price, and a lower price. I don’t have to wince at paying a little more, because it’s automated. And my hard-earned cash is working to create passive income for me while I sleep. Or watch TV. Or go golfing.If someone’s never heard of Terry Smith, by the way, the first thing I do is tell them to search him out. One of his best recent performances was at the Fundsmith Annual General Meeting 2020.  In a world of snake-oil salesmen sometimes it’s just nice to hear sensible advice from a born straight-talker.last_img read more

Read More →

Boohoo shares are Freetrade investors’ top pick. What else are they buying?

first_imgBoohoo shares are Freetrade investors’ top pick. What else are they buying? 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Roland Head | Wednesday, 28th October, 2020 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. Last week, customers of online stockbroker Freetrade spent more money on Boohoo shares than any other single stock.But other top picks suggest that investors on the platform see growth opportunities in several other exciting sectors.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…Stay-at-home livingShares in the fast-growing online fashion retailer Boohoo have fallen by almost 30% over the last month. Although the firm reported a 51% rise in pre-tax profit for the six months to 31 August, Boohoo has faced criticism this year relating to working practices at its suppliers.More recently, the firm’s auditor has resigned and The Sunday Times has reported that one of Boohoo’s suppliers is under investigation on suspicion of money laundering and VAT fraud.Other consumer stocks on Freetrade’s most-bought list have managed to avoid such negative headlines.In third place is Amazon. Shares in the online giant have risen by more than 70% so far this year.Streaming giant Netflix — in eighth place — is up by 50% so far this year. However, the Netflix share price has fallen by more than 5% since the company reported a sharp slowdown in new subscriber numbers, which fell to 2.2m during the third quarter.Finally, electrical retailer AO World made it into 10th place on the list last week. Shares in the online retailer have risen by 45% since 15 October, when the firm said that sales rose by 57% to £715m during the six months to 30 September. AO boss John Roberts believes that the electricals market has seen “a lasting step change in online penetration” this year.Electric mobilityDespite the impact of coronavirus, environmental concerns have gained a high profile this year. One area of investor interest is electric transportation, which has attracted substantial interest.Freetrade’s top-10 list includes two electric car companies. In second place is US giant Tesla, whose share price has risen by around 390% so far this year.In second place is Chinese firm NIO, which is listed on the New York stock exchange. Although the electric vehicle maker does yet sell cars outside China, NIO stock has risen by a staggering 640% so far this year, giving the business a market cap of around $38bn.Work-from-home sharesMillions of office workers around the world are still working from home. One stock that has done well in this market is video-conferencing group Zoom, whose service has become widely used by companies and by friends and family wanting to meet up.Another area of growth has been freelancing sites. Fiverr is a marketplace that connects business clients with freelancers. Fiverr’s share price has risen by 540% this year, although the stock has pulled back somewhat from September’s record high of $185.Of course, all this online activity depends on internet-enabled devices. Apple remains the platform of choice for many consumers and the firm’s shares were the seventh most-bought among Freetrade investors last week. After a 55% gain so far this year, Apple’s market cap has reached $1.5tr, but broker forecasts suggest the group’s growth will continue in 2021. Image source: Getty Images Our 6 ‘Best Buys Now’ Sharescenter_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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon, Apple, Fiverr International, Netflix, Tesla, and Zoom Video Communications. The Motley Fool UK has recommended boohoo group and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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. Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address See all posts by Roland Headlast_img read more

Read More →

Why is the FTSE 100 lagging the Dow Jones and the S&P 500?

first_img Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. 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. See all posts by James J. McCombie 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. Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Yesterday the Dow Jones Industrial Average closed above 30,000 for the first time. That is a remarkable turnaround, given that the Dow slumped to under 19,000 in March this year. From its March low of under 2,250, the S&P 500 index has risen to over 3,600.Both the S&P 500 and the Dow are back above their pre-market crash highs. Meanwhile, the FTSE 100, while still well over 1,000 points above its market crash lows, is well shy of its pre-crash highs.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…And it’s not just the FTSE 100. Both the French CAC 40 and the German DAX also sit below their pre-crash highs and lag their American counterparts.Why is the S&P 500 outperforming?In the US, unemployment benefits were increased in light of the coronavirus pandemic. In the UK and Europe, firms were given support to pay wages to furloughed staff. One theory is that allowing people to lose their jobs in the US means they can, over time, move into more profitable parts of the economy. In Europe and the UK, furloughing staff in otherwise unprofitable areas of the economy, and keeping ailing firms alive, might hold up the creation of more productive jobs and place a drag on the economy.The spectre of Brexit is still hanging over the UK and Europe. Uncertainty around the future relationship between the UK and Europe will be a headache for businesses looking to plan for the future on both sides of the channel. Investors might also be lacking confidence. This is not positive for the FTSE 100 and European stock markets.A weakening US dollar, against both the pound and euro, is also favourable for profits of American firms and its stock markets. A weaker dollar means foreign profits converted back to dollars are increased. That’s good for US markets. However, since the dollar is weaker, the pound and euro are stronger, so any US profits will shrink in pound and euro terms. That isn’t good for European markets.FTSE 100 lacking tech stocksI think the main reason the FTSE 100 lags both the S&P 500 and the Dow is down to the type of stocks in it. In the chart below, the sector weightings of the FTSE 100 and the S&P 500 are compared. The S&P 500 has significantly more tech exposure than the FTSE 100. The FTSE 100 has much more exposure to energy (including oil and gas stocks) and financials (which includes banks).Source: Author’s own calculationsTech stocks have been on a tear this year. Banks and oil majors have suffered. Of all the reasons offered, I think the fact that the FTSE 100 is underexposed to the best performing sectors and overexposed to the worst explains its underperformance best. The Dow, although often considered stodgy and old economy-focused, has the likes of Microsoft and Apple in it.Unless the structure of the FTSE 100 changes, then it will likely continue to underperform the S&P 500. However, that does not mean all FTSE 100 stocks are laggards. Some, like Ocado and Scottish Mortgage Investment Trust, are up 90% over a year.  So, picking the right stocks can make a huge difference to returns. And let’s not forget that over the last 10 years, the FTSE 100’s dividend yield has been a little under around 4% on average. The S&P 500’s average yield is closer to 2%. So, income investors might find the FTSE 100 a fertile hunting ground.center_img Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Why is the FTSE 100 lagging the Dow Jones and the S&P 500? James J. McCombie | Wednesday, 25th November, 2020 Enter Your Email Address There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! James J. McCombie owns shares of Scottish Mortgage Inv Trust. 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.last_img read more

Read More →

Cheap UK shares for 2021: 3 top bargains I’d buy for my ISA and hold ‘til 2030

first_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. Image source: Getty Images Simply click below to discover how you can take advantage of this. 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. “This Stock Could Be Like Buying Amazon in 1997” Royston Wild | Wednesday, 23rd December, 2020 Cheap UK shares for 2021: 3 top bargains I’d buy for my ISA and hold ‘til 2030 Enter Your Email Addresscenter_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. Even the Covid-19 crisis and continued Brexit saga haven’t stopped me from investing in 2020. As a long-term investor I’ve continued to build my Stocks and Shares ISA with top-quality UK shares.If anything, the huge number of bargains that emerged following the stock market crash of early 2020 encouraged me to get busy buying for my ISA. The modest share price recovery (certainly compared with overseas stock markets) means that there are still plenty of cut-price stars out there waiting to be snapped up. So I’ll keep investing in 2021 too.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…3 cheap UK shares on my ISA wishlistHere’s a cluster of cheap UK shares I’m thinking of buying next year and holding for years to come:#1: Kainos GroupProfits are lifting off at Kainos Group as the Covid-19 ‘test and trace’ system turbocharges sales at its healthcare division. City analysts reckon annual earnings here will leap 82% as a consequence in this fiscal year (to March 2021). This leaves the software company trading on a bargain-basement price-to-earnings growth (PEG) ratio of 0.5.However, this UK share is no flash in the pan. It can expect demand for its cloud-based IT and other services to continue rocketing during the ongoing digital revolution. Kainos currently has a “robust pipeline” of business with FTSE 100 companies and government organisations and this is only going to grow and grow.#2: CentaminGold prices might still be some distance off the summer’s record peaks above $2,050 per ounce. But I don’t think the bull market has run its course yet. There’s still plenty of macroeconomic and geopolitical uncertainty (Covid-19 and otherwise) that will keep investor nerves on tenterhooks. The likelihood that central banks will keep printing money and will maintain low interest rates to support the recovery is another reason I’m expecting gold values to rise again.I’d invest in gold-producing UK share Centamin to ride this train. Firstly, it trades on a reasonable price-to-earnings (P/E) ratio of 12 times for 2021. Secondly it carries an enormous 5.3% dividend yield for next year. And thirdly, revised plans to develop its world-class Sukari mine in Egypt announced last week will significantly bolster profits in the years ahead.#3: TharisaPlatinum digger Tharisa is another mining stock I’m thinking of adding to my ISA today. Like Centamin, it can expect strong investor demand to drive sales of its platinum group metals over the next few years at least. It can expect industrial uptake of its product to take off as the decade progresses too. This is because environmental legislation being introduced all over the world means that higher and higher PGM loadings are required in car exhaust systems.Today Tharisa share trades on a P/E ratio of 4 times for 2021. It boasts a chunky 4.8% dividend yield too. Combined, I think these factors make the company a terrific buy for ISA investors seeking cheap UK 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 has no position in any of the shares mentioned. The Motley Fool UK has recommended Kainos. 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. Our 6 ‘Best Buys Now’ Shareslast_img read more

Read More →

Royal Dutch Shell shares: is this a great time to buy?

first_img See all posts by Stuart Blair “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address 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. Stuart Blair owns shares of Royal Dutch Shell. 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. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Oil stocks were some of the worst performers of 2020 and many oil companies are struggling to survive. The Royal Dutch Shell (LSE: RDSB) share price itself is still 50% off its peak. However, the past few weeks have been slightly more favourable to oil stocks. Indeed, the price of Brent crude oil has now hit $56 per barrel.I also believe that Shell’s recent decision to acquire the electric vehicle (EV) charging company Ubitricity is a sign of progress. As such, with demand potentially continuing to increase throughout 2021, is it the right time for me to buy Shell shares?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…The deal to buy UbitricityAlthough it was only announced yesterday, and the sum has not yet been disclosed, I believe that the deal to buy Ubitricity is a shrewd piece of business. This is despite the fact that Shell shares fell 3% on the day.Ubitricity operates the largest public EV charging network in the UK, and has also seen growth in France and Germany. I think the move to buy the company comes at a good time. Boris Johnson recently announced that the sale of new petrol and diesel vehicles would be banned from 2030. A number of car companies, such as Volkswagen and Renault, have also increased electric car production this past year.This acquisition demonstrates Shell’s expansion into this fast-growing market. It also represents the company’s commitment to a net-zero emissions business. With climate change such a prominent issue within society right now, I believe this is essential for Shell’s longevity. This recent deal underlines a commitment to this future, and I think it will lead to gains in the Shell share price in the long term.Further factors to considerThe firm’s third-quarter trading update was actually fairly positive, considering the challenging environment. Indeed, profits of $489m represented a significant improvement in comparison to the $18.1bn loss in the second quarter. Gearing had also fallen by over 1% over the period, due to net debt falling. With the fourth-quarter update due at the start of February, signs of further improvements may therefore be met by gains in the Shell share price.Nevertheless, there are also negative factors to consider. For example, although the price of crude oil has been rising, lockdowns around the world may lead to falling demand, and tougher weeks to come. Joe Biden’s presidency may also lead to greater taxes, regulations, and restrictions on oil stocks.Would I buy (more) Royal Dutch Shell shares?Since news of the Covid-19 vaccine, the Shell share price has seen very large gains. This has reflected increased optimism within the oil market. But it’s still a long way away from its pre-Covid price. I already own Shell in my portfolio, and I’m tempted to add more. Although the long-term future of many oil stocks is in doubt, I believe Shell has shown sufficient commitment to renewable energy. This has included the sale of many of its assets, in order to invest further into renewable energy sources. The opportunity for further dividend growth in the next trading update may also boost investor sentiment. center_img Royal Dutch Shell shares: is this a great time to buy? Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Stuart Blair | Tuesday, 26th January, 2021 | More on: RDSB 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. Image source: Getty Images. last_img read more

Read More →

3 reasons why I’d buy stocks now and aim to hold them forever

first_img See all posts by Peter Stephens Enter Your Email Address Simply click below to discover how you can take advantage of this. Peter Stephens | Friday, 5th February, 2021 Our 6 ‘Best Buys Now’ Shares Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. 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. Get the full details on this £5 stock now – while your report is free. 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. A strategy to buy stocks now and hold them over the long run has been relatively successful in the past. This does not mean it will necessarily be profitable in future. However, giving holdings with time to deliver on their potential could be a shrewd move.Furthermore, the potential for a long-term economic recovery could lift the performances of many businesses in the coming years. This could lead to rising stock market valuations from which short-term investors do not fully benefit.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…Buying stocks today to benefit from a potential economic recoveryAn economic recovery from today’s challenges cannot be guaranteed. However, the past performance of the economy suggests that it is likely to take place in the coming years. After all, no recession or depression has ever been permanent in nature. A plan to buy stocks now could be a means of benefiting from a potential improvement in operating conditions for many businesses.Of course, some companies and sectors may respond more positively than others to an economic recovery. Therefore, it is important to reduce risk through diversifying across a wide range of companies. In doing so, it may be possible to harness a long-term recovery that also leads to improving investor sentiment and rising stock prices.Providing time to deliver on strategy changesThe coronavirus pandemic has caused many companies to experience disruption and change within their industries. For example, retailers may need to shift additional resources online. Similarly, hospitality companies may need to service consumers at home to an increasingly large extent.A plan to buy stocks and hold them for the long run provides businesses with the opportunity to put into effect their revised strategies. They may take time to develop and implement. They may take even longer to make a positive impact on financial performance. Clearly, there is no guarantee that strategy change will lead to a rising share price. But, allowing a company the time to grow could be a prudent move.A short-term focus may cause additional challengesA long-term focus when buying stocks may also be beneficial because of the potential for high volatility in the stock market. Even though there has been a market rally since the 2020 market crash, an uncertain economic outlook may mean there is scope for further ups and downs in future.This could negatively impact both long- and short-term investors. However, investors with a long-term focus may be able to capitalise on it through buying shares when they trade at lower prices. They may deliver on the aim of experiencing a recovery over the long term. Furthermore, they may be less concerned by the performance of their portfolios in the short run, in terms of experiencing paper losses, if they are focused on valuations over a long time horizon. 3 reasons why I’d buy stocks now and aim to hold them forever FREE REPORT: Why this £5 stock could be set to surge Image source: Getty Images last_img read more

Read More →

The Scottish Mortgage share price doubled in 2020: should I buy now?

first_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. “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. The Scottish Mortgage share price doubled in 2020: should I buy now? See all posts by Roland Head 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Roland Head has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Roland Head | Sunday, 7th February, 2021 | More on: SMT Our 6 ‘Best Buys Now’ Shares The Scottish Mortgage Trust (LSE: SMT) is an unlikely name for an investment trust that invests in the best global growth stocks its managers can find. This strategy has paid off in recent years. The SMT share price doubled in 2020 and has risen by more than 450% since 2016.I have to admit I’m slightly in awe of the performance achieved by the trust’s managers. They’ve delivered massive gains by buying successful growth stocks such as Amazon and Tesla at an early stage in their development. I’ve been wondering if I should give up managing some of my own money and buy shares in SMT instead.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…Why I might buyPast performance is no guide to the future performance of an investment. But SMT’s share price has risen by 1,200% in 10 years. This strong history of growth suggests to me the trust’s managers have a distinctive strategy that’s worked well for quite a long time.Checking the SMT website, I find the trust’s aim is to “add value over five year time frames, preferably much longer.” Interestingly, SMT’s managers believe that, over short periods, “we don’t see that we can add much more than anyone else.”So they appear to have great long-term vision about the potential of new business models. They also have the patience and discipline to stay with businesses through short-term problems.These attributes have seen Scottish Mortgage outperform the market for more than 10 years and grow into a FTSE 100 company. It’s an impressive result, but I think it’s worth considering what might go wrong.Is this a bubble?Scottish Mortgage’s growth has been impressive for years. But things really exploded after the market crash in March last year, when popular US tech stocks skyrocketed.The trust’s largest shareholding is in electric car maker Tesla. At the end of last year, Tesla stock accounted for 8.9% of SMT’s value. Chinese electric vehicle maker NIO is another top holding and represented 4.5% of the trust’s assets at the end of 2020.Tesla shares rose by 700% last year, valuing this business at nearly eight times more than Volkswagen, even though VW generates more than twice as much profit. NIO stock rose by 1,400% in 2020, valuing this loss-making business at about £65bn.I’m just not comfortable with these sky-high valuations and rocketing share prices. For me, the performance of these shares over the last year looks very much like a bubble.SMT share price: my decisionIf I’m right and there is a bubble, then history suggests it will pop at some point. If this happens, the value of Scottish Mortgage shares would also be likely to fall sharply. This is because the value of SMT shares is based on the value of the investments held by the trust.Don’t get me wrong — I think many of the businesses in which SMT is invested are great with strong futures. But everything has a price. For me, many of SMT’s holdings are just too expensive right now.I won’t be investing in Scottish Mortgage at the current share price. But I’ll continue to follow the trust’s progress with interest. Image source: Tesla 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 Addresslast_img read more

Read More →

5G shares UK investors can 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! Rupert Hargreaves | Saturday, 27th March, 2021 5G shares UK investors can buy today 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. “This Stock Could Be Like Buying Amazon in 1997” The 5G market may be one of the most significant growth markets of the next decade. One estimate suggests the US 5G infrastructure market could grow at a compound annual rate of 87% between 2020 and 2027, from $1bn in 2019 to $152bn by 2027.Figures suggest something similar will happen on this side of the pond. With that in mind, here’s a selection of 5G shares UK investors can buy today. I’d buy these stocks to capitalise on the growth of the market over the next five to 10 years.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…In my opinion, there are two ways investors like me can buy into the 5G revolution. Either owning the infrastructure companies or the telecommunications giants. Each strategy comes with benefits and drawbacks.5G sharesTelecommunications is a viciously competitive industry, and companies are constantly fighting each other for market share. As such, these businesses tend to be slow burners, although they can return a lot of cash to investors. On the other hand, equipment suppliers’ products are usually protected by patents. This means profits can be higher, but these businesses have to reinvest a large percentage of their profits in research and development. One company that falls into the latter bucket, which I’d buy today, is Spirent Communications. This business tests 5G and broadband connections and devices. It also has a small Connected Devices division that helps corporations with wireless networks. Thanks to the growing demand for 5G connectivity and connected devices, the group reported a 4% increase in revenues last year. Its operating profit margin increased to 20% from 18% in 2019. While it looks as if the business could continue to benefit from the 5G trend, it’s highly dependent on contract revenues. If a contract is delayed or a competitor steals market share, Spirent’s growth could slow. This is the most considerable risk the business faces right now. Another option I’d buy is XP Power. The power control solution designer supplies semiconductor manufacturers, among other customers. As the demand for connected devices grows, manufacturing capacity will likely increase, translating into more business for XP.That said, this company is exposed to other industries as well. Even if the 5G market continues to expand, a general economic slowdown could hit the business. Competition from lower-cost Chinese competitors is also a significant threat the enterprise is facing. Telecoms In terms of customer-facing businesses, I’d also buy Vodafone and BT. The latter owns the largest 5G network in the country, EE, and the UK’s national broadband infrastructure, Openreach. This suggests the company has two ways to benefit from the data revolution.Still, it’s facing increasing challenges from other competitors such as Vodafone, as well as newer upstarts. As I noted above, the group’s biggest challenge is competition in the telecommunications sector.The same is true of Vodafone. This company has more geographic diversification and owns one of the largest data networks in Europe. This could make the corporation a better buy than the domestic-focused BT in the long run, although it still faces similar challenges and risks.  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 Image source: Getty Images Simply click below to discover how you can take advantage of this. Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended XP Power. 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. 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 Rupert Hargreaveslast_img read more

Read More →