Share Tips of the Week

Headlines like AIM dividends rocket, but a slowdown is on the cards: Stockomendation top stock pickers are tipping to BUY anyway!

1. Top interesting stock pick this week was Buy Hargreaves Lansdown (HL.) by Dr. James Fox in The Motley Fool

It’s obvious Mr. Fox sees this as a value stock at a bargain price – this tip from 5 September reached a tip performance of 7% by the end of the week. This once-treasured stock became one of the UK’s top ten most shorted companies in August. Not an accolade to aim for.

The announcement that revenue was down 8% and assets under management was down 9% in the latest financial statement has not filled investors with confidence. Overall shares are down a huge 47% over the past 12 months.

But this tip was a buy! Fox sees light at the end of the tunnel for this financial institution, but why? Could it be because most financial institutions have had their earnings downgraded recently due to the state of things, making HL a little more attractive? Does Fox view it as a bargain stock that will outperform in the future making it an opportunistic buy stock? Or is it because Dr. Fox has a financial position in the company? We shall see!

2. Second tip this week was Buy Vistry Group (VTY) by Jefferies

Next interesting tip was a BUY Vistry with a tip performance of 6%. This optimistic signal on the FTSE 250 housebuilding holding company for brands Bovis and Linden Homes may reflect hope in the next prime minister to do well by housebuilders but probably more significantly, the news was announced of a £1.25bn takeover offer by Vistry to buy major rival Countryside. This was all agreed by shareholders last week.

If we look at the max timeline we see a list price of 180p back in 1997 that has so far stood the test of time and climbed – with more than a few ups and downs – to today at 862p.

The takeover initially upped Countryside shares whilst Vistry suffered a small decline but combined value is projected to increase value in the new larger Vistry.

3. Third tip this week was a Buy easyJet (EZJ) by Kepler Cheuvreux

This BUY tip placed on 5 September enjoyed a respectable performance of 5% in the wake of a 44% value drop in 2022. As always, the key to understanding is in the macro – travel is still one of the most shorted sectors since COVID as it struggles to recover from the seismic loss caused by a global travel ban which lasted more than a year. Coupled with rising operational costs and a drive to recover lost revenues, smooth sailing it is not – for any of the airlines.

We believe Kepler Cheavreux upgraded its rating as easyjet is famous for bullish analyst ratings especially lately, and we think this is due to a projected rise in demand for travel. As we take to the skies again for business and pleasure, easyjet remains a good choice. Currently trading at 350p from a pre pandemic all-time high of around 1,600p, Kepler Cheuvreux sees a canny opportunity to buy a value stock at a bargain price.

The fact is nobody knows what will happen next except next week’s top share pickers. Follow them on www.stockomendation.com

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 8th September 2022..