Investors Cheer

Headlines say FTSE rallies as investors cheer soft inflation data and all stock picks this week are 80% BUY, 8% HOLD and 12% SELL.

1. OUTPERFORM Atalaya Mining

Top performing stock pick this week is OUTPERFORM Atalaya Mining by RBC Capital with a tip performance of 14%.

Atalaya Mining is a mining company with copper deposit assets in Spain. Listed in London under the ticker ATYM, it is a constituent of the FTSE 250 Index.

Atalaya Mining share price launched at 262p in 2005, rose to an all-time high of 1,074p in January 2026 and is today at 927p.

On 14th July the company issued its Q2 Operational Update in this RNS, followed by a subsequent update on 21st July, reporting a strong second quarter with improved operational performance as mining conditions normalised, plant performance remained robust and copper production increased. The company highlighted a significantly stronger cash position driven by supportive copper market conditions while continuing to advance growth projects across its portfolio, including the Touro permitting process in Spain, development work at Riotinto and exploration activities in Sweden. Management expressed confidence in the outlook for the remainder of the year, citing resilient copper demand and continued progress across its development pipeline. A subsequent correction amended the previously reported net cash position following the identification of a clerical accounting error. The company stressed that the revision related only to balance sheet figures, did not affect any other operational or financial information and that additional reporting controls are being implemented.

Following the operational update, RBC Capital Markets upgraded Atalaya Mining to OUTPERFORM from SECTOR PERFORM and increased its target price, citing stronger-than-expected operating performance and an improved likelihood of the Touro copper project receiving permits. The broker believes investors should increasingly value Atalaya as a future multi-asset copper producer rather than solely a cash-generative operator at Riotinto.

In Stockomendation three analysts cover the stock: RBC Capital has OUTPERFORM, while Berenberg and Canaccord Genuity both have BUY ratings.

2. BUY SThree

Second top performing stock pick this week is BUY SThree by Berenberg with a tip performance of 10%.

SThree is a recruitment and workforce company specialising in the Science, Technology, Engineering and Mathematics (STEM) sectors. Founded in 1986, it is listed in London under the ticker STEM.

SThree share price launched at 205p in 2005, rose to an all-time high of 590p in 2021 and is today at 230p.

On 21st July the company released its FY26 Half Year Results in this RNS reporting challenging trading conditions, particularly across parts of Europe, with weaker profitability reflecting softer hiring markets and restructuring costs. However, management highlighted improving momentum through the period, resilient demand for contract staffing, growth in key markets such as the US and Japan, and a stronger contractor order book. The company believes recent investments in technology, operational efficiency and AI-enabled tools are improving productivity, and it maintained its full-year outlook while continuing shareholder returns through dividends and share buybacks.

Berenberg has maintained a positive view on SThree, arguing that the market continues to undervalue the quality of the business. Following the latest results, the broker believes its investment case has strengthened, supported by resilient contract recruitment, a strong balance sheet, improving trading momentum and signs that the recruitment cycle may be approaching a recovery despite continued weakness in Europe.

In Stockomendation two analysts cover the stock: Berenberg has BUY while Steve Moore says AVOID.

3. BUY Funding Circle Holdings

Third top performing stock pick this week is BUY Funding Circle Holdings by Canaccord Genuity with a tip performance of 8%.

Funding Circle is a financial technology company that provides loans and financial services to SMEs. Listed in London under the ticker FCH, it is a constituent of the FTSE 250 Index.

Funding Circle share price launched at 440p in 2018, its all-time high, and is today at 232p.

On 16th July the company released its Half Year Trading Update in this RNS reporting a strong first half driven by continued momentum in its core lending business and growth across its newer products. Management highlighted robust demand from small businesses, successful product innovation and improving profitability. The company said it continued to generate strong cash flow, expanded its funding capacity, increased assets under management and maintained investment in future growth while continuing share buybacks. Reflecting the strong performance, management said the business remains on track to meet its full-year expectations, while remaining mindful of the wider economic environment during the second half.

Canaccord Genuity's BUY recommendation reflects Funding Circle's successful transition from a traditional peer-to-peer lender into a broader SME finance platform with improving profitability and operational leverage. The broker believes the market is only beginning to recognise the company's earnings potential as scale, technology and product diversification continue to drive growth.

In Stockomendation three analysts have BUY ratings: Canaccord Genuity, Shore Capital and Deutsche Bank. There are no active UK fund manager short positions.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 23rd July 2026.