Buy five
Would
Interactive Investor
shares in Dignity (LSE: DTY), a provider of funeral services, has been badly affected by the regulatory scrutiny in recent years. ‘Debts of around £500m’ also eroded confidence but bears may have pushed shares into value now. With a “new CEO” and a plan to sell and lease back crematoria to address debt, there could be upside here for more risk-tolerant investors. With an aging population (not to mention an overwhelmed NHS), the death rate is likely to increase in the years to come. The stock is a buy for those with a “gallows mindset.” 370p
Eagle Eye Solutions
shares
Dedicated Business Eagle Eye Solutions (LSE: EYE) uses software to help clients, including Sainsbury’s, Diageo and Coca-Cola, manage their coupon and loyalty programs. These brands, in turn, collect valuable data about customers’ shopping habits. According to one estimate, the global digital customer engagement market could grow from $40.3 billion last year to $98 billion in 2032. At a price-to-earnings (P/E) ratio of around 35, the stock is highly valued, but given the “huge” growth opportunity, that’s a fair price for investors to pay.” 605p
Regal Rexnord
Barrons
The markets are dissatisfied with the US industrial group Regal Rexnords (NYSE: RRX) Acquired smaller competitor Altra Industrial Motion for $5 billion. The move is perceived as overly aggressive at a time of economic uncertainty, but investors shouldn’t be so gloomy. The expanded group will manufacture everything from “powertrain equipment” to “actuators and servomotors.” In short, “many of the products needed to run factories”. With the US Congress passing tens of billions of dollars in support under the CHIPS Act (to strengthen the domestic semiconductor sector) and the Infrastructure Investment and Employment Act, the prospects for the US industrial sector are extremely promising. $120
Glencore
The Telegraph
Commodity trading and mining giant Glencore (LSE: GLEN) has significantly outperformed the FTSE 100 in recent years but still trades at a forward P/E of “less than five”. This reflects investors’ concerns about “legal issues” and a weaker outlook for the global economy and commodity prices. Still, by switching to “future commodities” like nickel, cobalt and copper, Glencore is well positioned to benefit from the energy transition and the stock is now yielding 5.5%, including special dividends. In view of the current “extraordinarily low valuation”, the stock offers a “favorable risk-return opportunity”. 531p
…and the rest
The Telegraph
Newcastle based enterprise software group Sage (LSE:SGE) did a good job of maintaining margins during the inflationary turmoil. The company’s pricing power stems from the fact that companies looking to switch their software systems are faced with uncomfortably “high switching costs” so they choose to pay instead. With an expected price-to-earnings ratio of 27, the stock is attractively valued, but the rating is justified by an “attractive risk-reward ratio, so buy”. (794p).
Chronicle of Investors
A consumer slowdown has caused the packaging giant’s carton sales to fall 3% year over year DS Smith (LSE: SMDS), but the group was able to leverage a strong market position to raise prices. That has resulted in an “outstanding” performance, with revenue up 28% year over year and a dividend increase of 25%. It remains to be seen if the group can pull the same trick if inflation continues, but with an expected forward price-to-earnings ratio of just 8.5, the shares look cheap, so buy them (321p).
The Post on Sunday
The war in Ukraine has left defense groups such as BAE Systems (LSE: BA). The prospect of higher defense spending in the US and UK has pushed the stock up 50% this year. With the stock near an ‘all-time high’ they are now a ‘strong hold’ (841p).
shares
Investors seeking growth in Asia Pacific without the headache in China should check this out Pacific Assets Trust (LSE:PAC). This economic and social governance (ESG)-focused vehicle has only a modest 7% to 8% allocation to China, favoring India, Taiwan and Indonesia. The shares have an “attractive 8.1% discount to portfolio net asset value.” (354p).
