FOMO Reality Check

Headlines this week said Reality check for the FOMO rally in equities and top stock picks were 82% BUY, 9% HOLD and 9% SELL.

1. HOLD MCBRIDE

Top interesting stock pick this week was HOLD Mcbride by Peel Hunt with a tip performance of 11%. The white label cleaning product manufacturer’s fortunes have turned this winter with the cost of living crisis & inflation driving more families to explore lower cost cleaning options.

Even with increases in energy costs McBride are recovering from a stagnant or downward period and this was reflected with the analyst reiterating the HOLD rating.

The Manchester manufacturer listed at 138p way back in 1995 and grew to a high of 206p in 2017. It now sits at 26p after mixed fortunes. The target price of 36p reflects a full 25% growth from the current position.

The company said private-label volume grew at 2.6% and that is the main cause of better results; and said it expects to post a higher-than-expected profit in the second half of the year.

In Stockomendation three analysts rate McBride as HOLD, AVOID and LOND TERM BUY being Peel Hunt, Steve Moore from ShareProphets and Jabran Khan of The Motley Fool respectively. There are no active short positions on the company in Stockomendation.

2. BUY ECO OIL & GAS

Second top stock pick this week was BUY Eco Oil & Gas by Berenberg with a tip performance of 11%. Toronto based Eco Oil & Gas has exploration projects in South Africa, Namibia and Guyana. In its third quarter investor announcement the company mentioned 3 South African blocks and is looking to farm out an interest up to 55% in the exploration licence to a new partner and commence drilling. It was positive about both Guyana and Namibia projects.

Berenberg reiterated its buy recommendation and listed a target price of 125p. The company listed at 17p in 2017, went steeply to an all-time high of 175p in 2019 and now resides at 20p.

In Stockomendation Beaufort Securities also rates it as a BUY and there are no active short positions listed for the company in Stockomendation.

3. EQUAL WEIGHT Anglo American

Third top stock pick this week was EQUAL WEIGHT Anglo American by Barclays with a tip performance of 6%.

The British miner wiped £1.4 billion off the value of its huge North Yorkshire fertiliser mine last week but share price was up twice this week presumably on the back of Barclays reiteration of the EQUAL WEIGHT rating announced on the 27th. That tip is now closed. Barclays has a target price of 2,900p on Anglo American and insider Ian Tyler bought 701 shares worth around £20,000

In Stockomendation three out of four analysts rate Anglo American as HOLD being Barclays, Bank of America and Credit Suisse, and JP Morgan says OVERWEIGHT. Natixis has a short position on Anglo American being 1.4%.

Forewarned is forearmed! As always you can see the aggregate data in Stockomendation which equips you to make good investing decisions. Check out www.stockomendation.com before your next trade for maximum understanding of your target stock.

Featured image © McBride 2020

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 2nd March 2023.