Long and Challenging Year

Headlines say lower growth forecast in ‘long and challenging year’ for UK firms and all stock picks are a mix of 82% BUY, 9% HOLD and 9% SELL

1. AVOID Severfield

Top performing stock pick this week is AVOID Severfield by Steve Moore in ShareProphets with a tip performance of 16%.

Severfield is a North Yorkshire based structural steel contractor. By turnover it is the largest in the UK and amongst the biggest in Europe. Founded in 1978, landmark works include London's 2012 Olympic Stadium, The Shard, Wimbledon Centre Court roof, Emirates Stadium and Paris Philharmonic Hall.

Severfield share price launched at 8p in 1988, rose to an all-time high of 313p in 2007 and is today at 23p.

On 3rd March the company issued a trading update in this RNS stating lower than expected profits due to reduced demand in Europe, cancelled contracts and pricing pressures. Shares dropped 41% as a result.

In Stockomendation three analysts with three different ratings: Steve Moore with AVOID, Jefferies has BUY and Peel Hunt says ADD. In Stockomendation there are no active short positions.

2. OUTPERFORM Fresnillo

Second top performing stock pick this week is OUTPERFORM Fresnillo by RBC Capital with a tip performance of 9%.

Fresnillo plc is a Mexican precious metals mining company incorporated in the United Kingdom and headquartered in Mexico City. Fresnillo is the world's largest producer of silver from ore and Mexico's second-largest gold miner. It is listed on the London Stock Exchange under the ticker FRES and is a constituent of the FTSE 100 Index.

Fresnillo share price launched at 520p in 2008, rose to an all-time high of 2,150p in 2011 and is today at 826p.

On 4th March is issued final results announcement in this RNS stating stronger than expected results due to an increase in precious metals prices. In 2025 shares are up 25% so far.

In Stockomendation five analysts with five different ratings they are: OUTPERFORM by RBC Capital, HOLD by Canaccord Genuity, Citi says BUY, JP Morgan has OVERWEIGHT and Barclays has EQUAL WEIGHT. There are no active short positions open.

3. SELL Bunzl

Third top performing stock pick this week is SELL Bunzl by UBS with a tip performance of 8%.

Bunzl is a British multinational distribution and outsourcing company headquartered in London, England. Founded as a haberdashery in 1854, the current company was established in London in 1940 as a manufacturer of cigarette filters, crêpe and tissue paper, and the production of fibres, pulp, paper, building materials and plastics.

Bunzl share price listed in London Stock Exchange in 1957 under the ticker BNZL and the company is a constituent of the FTSE 100 Index.

On 3rd March it issued final results in this RNS stating stable revenue but lower earnings. Despite forecasting higher earnings for the year ahead share dropped as a result of the report.

In Stockomendation five analysts, three BUY and two SELL; Citi, Redburn and Shore Capital have BUY whilst UBS and Goldman Sachs have SELL. There are no active short positions open.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 6th March 2025.