#PremSingh

[imagetodaytv]

इस उड़ान में पूरा आसमान नाप लेने की जिदइमेज टुडे डॉट इन की साफ बात प्रेम सिंह के साथ...हम भेड़चाल में शामिल नहीं हैं, होना भी नहीं चाहते। हमारे दोस्त कम हैं ...

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[dailyhealthynews]

Why is the Lloyds share price falling?

When June started Lloyds Bank (LSE: LLOY) hit an annual high of 50p. This was exactly what I expected from the stock. Just a few weeks earlier, I had said that it could touch these levels. In fact, I also said it could go up to 60p now.

No sooner had the Lloyds share price reached 50 pence than it began to decline again. Compared to this level, it was 4% below yesterday’s closing price. At first glance, this is puzzling for two reasons.

First, the FTSE 100 index is actually slightly higher during this time. This means that the performance of the Lloyds share is not due to general market weakness. Second, I also didn’t find any updates to the company that would explain the continuation of the slide.

What’s going on here?

Banking set shows weakness

A look at the share prices of the FTSE 100 banks reveals a similar trend for them too, with the exception of Natwest, which has seen a slight increase. But even Natwest is below its highs earlier this month. I also suspect that this sectoral trend has two reasons.

First, the full opening of the UK economy has been extended for another month. This will affect economic growth in 2021. There’s no doubt that forecasters are expecting robust growth, but I think it can mark in. Banks are closely related to the economy, so I think they could be affected too.

Inflation can dampen growth

Second, while we wait for the recovery to really kick in, inflation has started to rise. The latest inflation figure for May is 2.1% compared to the same month last year. This is above the Bank of England target and also above economists’ expectations.

Well, inflation isn’t bad in itself, it’s healthy in fact because it indicates a growing economy. The problem arises when prices rise so quickly that things just become unaffordable for the consumer. The consumer stops buying, production falls and the economy collapses.

This is one reason the BoE has an inflation target. And when inflation exceeds that target level, it means prices are rising too fast to be good for the economy. This can encourage interest rates to rise, but it can also discourage bank loans. I think inflation can also be a cause for investor caution about bank stocks.

My takeaway for the Lloyds share price

However, I am not concerned about the impact of macroeconomics on banking. It looks healthier than not, and chances are inflation is temporary.

In addition, the history of Lloyds Bank remains unchanged. The bank is getting healthier. Even with some setback in potential economic growth, it can be assumed that the next quarter will be better than the last. And it is even likely that the BoE will allow banks to pay higher dividends soon enough. I contend that Lloyds stock can go up to 60p.

Manika Premsingh has no position in the stocks mentioned. The Motley Fool UK recommended Lloyds Banking Group. Views on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make on our subscription services such as Share Advisor, Hidden Winners, and Pro. At The Motley Fool, we believe that taking a variety of insights into account makes us better investors.

source https://dailyhealthynews.ca/why-is-the-lloyds-share-price-falling/

[acharya123himal]

The crop destroyed by wild animals in Betri

The crop destroyed by wild animals in Betri

[ad_1] Dhangarhi: Baitari farmers have become worried after wild animals destroy their crops and vegetables. In all areas of the district, monkeys, night dummies and wild bandels are being destroyed during the day. Premsingh Bissa of Doggedkar-3, Srikot, said that the wild bundles had to stay awake day and night after eating corn. “We have to stay awake to chase wild animals,” he said.

Maize…

[jamieclawhorn]

Top shares for May 2019

Kevin Godbold: Bunzl

FTSE 100 distribution and outsourcing company Bunzl (LSE: BNZL) saw its shares knocked back in April on the release of its first-quarter trading statement. Revenue growth has slowed to as low as 1% in some areas of the business. But I like the set-up supplying companies and organisations with stuff they use themselves such as food packaging, grocery, films, labels, gloves, bandages, safety consumables, chemicals, and products for cleaning and hygiene.

Robust incoming cash flow is a feature of Bunzl’s financial record. I’m keen on the firm’s long-term prospects, and see potential for a bounce-back in the shares during May.

Kevin Godbold does not hold shares in Bunzl.

G A Chester: Centamin

A production update in late April has increased my confidence that FTSE 250 gold miner Centamin (LSE: CEY) is set for a much-improved performance in 2019. Q1 production was above forecast, and management also said costs are trending toward the lower end of annual guidance.

Centamin’s performance last year was marred by operational challenges. But, having strengthened its operational leadership team with “top-tier technical individuals”, I’ve made the stock my top ‘buy’ on both its near- and long-term prospects.

The company is set to publish three-year outlook guidance in Q2, and I think this could be a catalyst for further improving investor sentiment.

G A Chester has no position in Centamin.

Rupert Hargreaves: Travis Perkins 

Towards the end of last year, shares in Travis Perkins (LSE: TPK) slumped to a five-year low of 975p. Since then the stock has made a remarkable recovery rising around 50%, and I think there could be much more upside on offer for shareholders here. 

At the time of writing the stock is trading at a forward P/E of 12.6, whereas for much of the past five years investors have been prepared to pay a multiple of 15 or more. City analysts are also expecting the firm’s fortunes to improve over the next two years. Analysts are forecasting net profits of £300m in 2020, up from a loss of -£86m in 2018. 

With a dividend yield of 3.3% on offer as well, it looks to me as if shares in Travis Perkins could have much more upside ahead. 

Rupert Hargreaves does not own shares in Travis Perkins.

Edward Sheldon: Reckitt Benckiser

My top stock for May is consumer goods champion Reckitt Benckiser (LSE: RB), which owns an impressive portfolio of health and hygiene brands including Nurofen, Durex and Dettol.

RB shares were trading above £65 in March, yet they have recently pulled back to the £60 level on news that healthcare company Indivior – which Reckitt used to own – had illegally boosted prescriptions for its blockbuster opioid addiction treatment. However, analysts at Barclays believe that it’s unlikely RB will face criminal charges over this issue so I think the market has overreacted here.

With the stock now trading on a forward P/E ratio of 17 and offering a dividend yield of around 3%, I think now is a good time to be buying.

Edward Sheldon owns shares in Reckitt Benckiser

Roland Head: IG Group

FTSE 250 online financial trading firm IG Group (LSE: IGG) has been hit hard by a regulatory crackdown on spread betting and CFD services. But the firm remains highly profitable and is the market leader in this sector. It’s also diversifying into new markets.

IG shares have fallen by more than 40% since August 2018. This has left the stock trading on 12 times 2019 forecast earnings, with a dividend yield of 8.3%.

Management expect this dividend to be maintained until the business returns to growth. A strategy update is due later this month. I rate the shares as a buy.

Roland Head owns shares of IG Group.

Paul Summers: Superdry

Its entire board may have resigned but I’m cautiously optimistic on founder and major shareholder Julian Dunkerton’s chances of turning retailer Superdry (LSE: SDRY) around.

While this month’s pre-close trading statement is unlikely to contain much in the way of good news, I’m heartened by Dunkerton’s commitment to transparency, reduced discounting, the shelving of its kidswear range and returning the company to its design-led roots.

The shares have been heavily sold off since January 2018 and now trade on less than 10 times earnings. That’s an attractive risk/reward play in my book and I’ve now taken a small stake in the firm with the intention of adding if the price dips again.

Paul Summers owns shares in Superdry.

Royston Wild: Smurfit Kappa

I’d be very happy to dump some cash into Smurfit Kappa Group (LSE: SKG) ahead of first-quarter financials scheduled for Friday, May 3.

The FTSE 100 packaging giant’s recovery story, driven by the realisation that the sell-off of last autumn on supply concerns was much too exaggerated, has run out of steam more recently. And I’m backing upcoming trading numbers to remind the market of what a great buy Smurfit Kappa is. 

Back in February it advised that pre-tax profits barring exceptional swelled 56% in 2018 to €938m — and for buyer appetite to pick up again. The company’s low, low rating – a forward P/E ratio of 9.1 times – certainly provides plenty of scope for some new share price gains.

Royston Wild does not own shares in Smurfit Kappa.

Manika Premsingh: AstraZeneca

FTSE 100 listed pharmaceutical major AstraZeneca (LSE: AZN) has shown good results in the first quarter of this year, making it my top share for the month of May. Its financials have disappointed in the recent years, with a steady decline in revenues, but the tide is fast turning for the cancer drugs’ producer. It has seen revenues rise consecutively for the last three quarters and operating profit is up by a super strong 68% in the latest quarter.

Even though its price to earnings ratio is still uncomfortably high at 45x, especially when compared to companies like GlaxoSmithKline at 21x, the broad decline in price over the last month suggests that it will start inching up after the latest earnings update. 

Manika Premsingh has no position in AstraZeneca.

Peter Stephens: Taylor Wimpey 

Even though housebuilder Taylor Wimpey’s (LSE: TW) share price has surged higher in recent months, it still trades on a P/E ratio of just 8. Its dividend is covered 1.2 times by net profit and stands at almost a 10% yield. With a £500m net cash balance, it appears to have a solid financial outlook.

Although house price growth has slowed in the last couple of years, the company recently reported buoyant demand for its homes. Low interest rates and favourable government policies could lead to surprisingly strong trading conditions that may further catalyse the Taylor Wimpey share price.

Peter Stephens owns shares in Taylor Wimpey

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The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended AstraZeneca, Barclays, and Superdry. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[teasertrailer]

Tiger - movie trailer: https://teaser-trailer.com/movie/tiger/

Boxing drama movie starring Prem Singh, Mickey Rourke, Janel Parrish, and Michael Pugliese

#Tiger #TigerMovie #PremSingh #MickeyRourke #JanelParrish #MichaelPugliese

[sinhahimanshu01-blog]

Prem Singh, 65, has become famed for his unique ability. He regularly plucks fried fish from the vat - which is heated up to 200 degree Celsius - using his bare hands. But amazing fact is that he has never suffered any burns.  #fisherman 

[jamieclawhorn]

Is the Reckitt Benckiser share price finally low enough to make the stock a bargain for me?

FTSE 100 pharmaceutical and consumer healthcare giant Reckitt Benckiser (LSE: RB) is in a state of flux. Its CEO of the past eight years, Rakesh Kapoor, is retiring and the speciality pharmaceuticals company, Indivior (LSE: INDV), spun off from it a few years ago, is facing charges for promoting opioid usage.  

Unsurprisingly, this has taken its toll on the share price, which has flatlined for the past year. But while the reasons for uncertainty about the company are valid, there’s a lot happening in its favour as well. Here’s why I believe it remains a compelling buy.

Fine print of Indivior charges

Regarding the charges against Indivior by the US Department of Justice, the company fraudulently marketed its opioid drug Suboxone Film (used for treatment of opioid addiction) as safer and less addictive than it truly is. The charge is a very serious one in any scenario, but with the US Department of Health and Human Services having declared opioid usage as a public health emergency, it takes on even more gravity

While there could be implications for Reckitt from this, I think it’s jumping the gun to dump the stock, because Indivior is an entity in its own right, which is also listed on the London Stock Exchange. So far, a fine has been slapped on the company, but it remains to be seen how it reacts to the charges. Some charges are associated with the time when it wasn’t yet spun off from Reckitt, which potentially makes that firm directly responsible. But even if its ex-parent company is also found guilty, there’s no way of predicting the exact amount of damage it will cause, especially since pharmaceuticals is only one part of the wider Reckitt business.

Inheriting a healthy but changing company

I think a new CEO will have a handful to deal with as he or she joins, and not just because of the Indivior issue. In 2017, the company made its largest acquisition of consumer healthcare company Mead Johnson, and any buy takes its time to bed-in. Another structural change under way is the split of Reckitt itself into two segments – health as well as home and hygiene products. Of course these are big, bold moves and it’s possible to drop the ball on any of them.

But it is worth bearing in mind that despite massive restructuring, its growth is chugging along quite well and it expects 3%-4% revenue growth in 2019 as well. So even with ongoing changes, at the very least the CEO will inherit a healthy business. I think that growth can be maintained given its past performance and the rest can most likely be managed as it has been so far.

Emerging markets focus

There’s little to suggest that growth could be derailed. In fact, the firm’s prospects looks promising with a steady shift towards emerging markets. In less than a decade, the company’s revenue share from these markets has increased from 25% to 40%. Countries like China, India and Brazil show great promise for the firm, and the first two are enjoying strong growth rates. It is also worth remembering that ‘consumer defensive’ is a good sector to be in, and the combination of safety and growth is an investor dream. I think the soft share price would encourage me to buy some of its shares.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

3 reasons I would invest £1,000 in this FTSE 100 share

A risk-averse investor, who nevertheless likes a share with good growth prospects, needn’t look far and wide for a good bet. FTSE 100-listed conglomerate Associated British Foods (LSE: ABF) might have had a poor run at the equity markets in the past year, but its share price is recovering now. I believe there is enough wind in its sails to allow for further gains in the long term.

Here are three reasons why.

1. Diversification is the name of the game

ABF’s geographical diversification works in its favour, especially at a time when growth in advanced economies is expected to cool off as per the IMF’s latest predictions. While over one-third of its revenues come from the UK, the rest are from its  Europe and Africa, Americas and Asia Pacific operations.

I also like that the business lines are quite varied, including retail, grocery and sugar, serving as a nice cushion against sector-specific challenges that can otherwise derail growth. Half the revenues are from retail, while the rest come from the other segments including sugar, agriculture and ingredients. All segments, save sugar, have seen profit increases in 2018 for this producer of Twinings tea and the stevia leaf-based sugar substitute Truvia.

2. Promising retail expansion

Significantly, even the retail business which can be vulnerable to cyclical fluctuations, is thriving. It’s driven by Primark, which has recently reported an impressive 25% increase in profits. Compare this to FTSE 100 retailer, Next‘s performance, whose financials aren’t looking quite as rosy.

The brand has been launched in the US and will expand there, which sounds like a good move to me since it’s a large and growing consumer market. Of course, it remains to be seen whether it can make its mark, but even without the US market’s help, Primark seems to have a lot going for it. It just opened its largest store to date in Birmingham, reportedly to impressive footfall.

3. Worthy investment, despite some weakness

Clearly, ABF’s successive retail wins have kept the share price elevated, despite the fact that the group’s latest overall results have shown a meagre 1% increase in revenues and a decline of 1% in pre-tax profits. As a result, the company’s trailing price to earnings ratio is now at 21.8x, which is definitely not cheap. Compare it to a 13.5x ratio for Next and 18.3x for grocery major Tesco.

Even with the price increases, however, the levels are still lower than the five-year average and way below the highest levels. To me, for this reason alone, there’s a case for making an immediate investment. I wouldn’t be deterred by one set of lukewarm results, especially when retail and grocery have promising prospects. While it’s likely that there could be some short-term corrections in the price, and that would be the ideal time to buy this share, I would still put in £1,000 right away and accumulate more on dips.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods and Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

Why I would invest £2k in these two FTSE 100 shares today

While the financial services sector can be severely dented during sagging economic times, I believe this doesn’t have to be a deterrent for savvy long-term investors from buying shares of quality companies. To this extent, I have earlier argued in favour of other cyclical sectors, like mining, since companies like Rio Tinto and Glencore remain compelling buys despite their sectoral issues.

In a similar vein, I like two companies in financial services, both part of the FTSE100 – Prudential (LSE: PRU) and Lloyds (LSE: LLOY).

Big changes and high growth

There are major structural changes in the works for insurance giant Prudential. For one, it’s in the process of de-merging M&GPrudential, its UK and Europe business, to focus on its Asia, US and Africa operations. It could also hive off its investment management arm, Eastspring, which has recently been in the news for lay-offs after a difficult past year. On the other hand, it’s also making acquisitions, like a majority stake in African life insurance company Group Beneficial, which is in line with its strategy of targeted geographical focus.

Despite the changes, its share price is trending upwards. I like this, because major change can often create uncertainty in investors’ minds, causing at least temporary sell-offs. But not in this case. The price has risen by over 9% in April compared to March. And there is potential for the share price to rise further as it is trading below its 12-month high.

Fundamentals for the sector and the company also indicate potential for further price rises. The insurance business is poised to grow over time, with ageing populations in the west and rapid population growth in emerging economies. And I also like its healthy financials and promising 2019 outlook. As per the company’s guidance, it will continue to produce “attractive returns” going forward.

Optimism and stability

Another financial services company I am inclined towards is Lloyds Bank. This could be seen as a contrarian call and it was my choice as share of the month for April. But given the recent run-up in its price, I would like to reiterate its potential as a good investment. Of course, some gains will not be available for those buying now after a price increase of 5% in just one month. But even if it’s not an immediate purchase, it remains on my radar to invest in come the next dip.

The bank is expanding its wealth business, showing good results, and there seems to be little reason to doubt its long-term durability. Of course with Brexit around the corner, some hard times are likely, but I am optimistic that the exit deal may well turn out to be a good one. Also, as the IMF forecasts no sharp slippage in UK growth in the coming years, on balance, I think there is more good than bad possible for Lloyds going forward.

I would not think of putting all my eggs in the financial basket, but with £2,000 to invest, I would be tempted to put £1,000 into each of these shares for the long term.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group and Prudential. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

Why I believe the National Grid share price is far too cheap

There’s no better investing bargain than the share of an otherwise healthy company that’s dipped on questionable news flow and speculation, in my view. In this context, I had written about fashion brand and retailer Ted Baker a few months ago, when its share price had plunged by over 22% on the back of a company scandal. It rose steadily over the next few months, falling only after the company put out pessimistic earnings guidance recently.

Similarly, FTSE 100 listed utility provider, National Grid (LSE: NG) is a strong company whose share price fell recently on news of potential re-nationalisation if Labour came back to power. I think this is understandably difficult news to digest for investors, particularly since it comes hot on the heels of another kind of labour challenge. Its US operations had hit full stop for six months on a dispute regarding terms for workers and resumed only in January this year.

Not to mention that questions of the potential Brexit impact still hang in the air. It’s little wonder that the share price has fallen by around 5% in April so far compared to last month. However, I am of the view that this decline is an opportunity to invest, after analysing the reasons dragging the share price down.

Labour troubles

With respect to the Labour party’s plans, the most critical point to underline is that elections aren’t scheduled to take place for two years. And a lot of plans can change in that span of time. When they do take place, there’s really no guarantee that Labour will win. Further, as my colleague GA Chester pointed out recently, even if it does come to power and it does for for re-nationalisation, the shares will be converted to bonds, likely at a fair price. And that doesn’t sound like a bad deal to me!

On the other labour trouble, that is, the strike in the US, the issue has been laid to rest for the next five years. The company struck a deal with the workers on compensation, and operations have now resumed.

Brexit woes

Besides those issues, will Brexit adversely impact the company? While the utility business falls under the category of  ‘defensives’, which otherwise makes it a safe play, in this case, ‘interconnectors’ or cables across countries creates dependencies with the rest of Europe. According to UK government estimates, electricity imports could account for over 20% of the country’s requirements.

However, I like that the company seems to have sorted this issue out already. In its annual report, it said: “Our interconnector partners share a financial interest in the ownership and profits from their operation… we have been assessing these issues and….have determined that the risk of increased costs of tariffs and any possibility that our partners might be compelled to ‘switch off’ the interconnectors is low.”

Strong financials

With National Grid being financially sound and with a relatively muted price to earnings ratio of 8.4x, I see little reason to be intimidated by potential challenges on the horizon. I think it’s a good time to buy.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Ted Baker. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

Why I think HSBC is a good FTSE 100 share to buy

The share price of FTSE 100 banking and financial services giant HSBC (LSE: HSBA), has seen an impressive run-up this month, averaging around 5.5% higher than in March. Even with the fairly steep upward climb, however, it is still some distance from the highest value seen in the past year.

This begs the next obvious question: can it continue to pull towards higher levels, and importantly, stay there? The financial services sector can be quite vulnerable to macro-economic fluctuations, and with Brexit in the UK, trade disputes between the US and China, and some softening expected in global growth, there are risks on the horizon. But in analysing the company, I think that it still has a lot going for it and can overcome the impending risks as well. Here’s why.

Strong financials

I liked the company’s robust results in 2018, with a 5% increase in revenues and 16% increase in pre-tax profits. This is despite the fact that the final quarter’s numbers showed a decline in revenues due to economic challenges linked to China and indicates that the rest of the year more than made up for it. In fact, looking at annual results, it has only been strengthening its performance over the years.

Growth markets-focused

A clear focus on the fast growing Asian market has helped in this regard, with the continent accounting for almost half of revenues and much of its profits. The latest annual report noted double-digit revenue growth in the region and outlined further growth acceleration in Asia as one of the firm’s “strategic priorities”. And it sees China’s ambitious ‘belt and road’ infrastructure strategy as a significant potential spur for financing activities in the region.

Reduced Brexit risk

Besides Asian economies, countries in the Middle East, as well as the UK, are among its “scale markets,” or the markets where its share is growing. While the economic outcome for the UK remains unpredictable in the near term, I believe, there is room for optimism here as well.  The latest postponement of Brexit gives more time to strike a deal, and who is to say it won’t be a good one? I am also comforted by the International Monetary Fund’s latest World Economic Outlook (WEO) report, according to which, UK growth won’t sharply dip the next two years, even though it says that the outlook is “surrounded by uncertainty”.

Betting on size

HSBC doesn’t just have growth going for it. The firm also has impressive size, the scale of its operations towering over peer companies like Lloyds and Barclays, and I am inclined to bet on a large, profit-making entity’s ability to ride through rough times better than smaller companies do. Despite all this, the price-to-earnings ratio at 13.8x is comparable to that of the other two, which makes it a good buy in my view.

Capital Gains

In the meantime, one of our top investing analysts has put together a free report called "A Top Growth Share From The Motley Fool", featuring a mid-cap firm enjoying strong growth that looks set to continue. To find out its name and why we like it for free, click here now!

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, HSBC Holdings, and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

Top shares for April 2019

Paul Summers: Imperial Brands

With global markets continuing to wobble, I believe resilient income-generating stocks have a place in most portfolios. One that sticks out for me at the moment is Imperial Brands (LSE: IMB).

Although annual global cigarette volumes are falling, the tobacco giant’s focus on cutting costs and investing in new products over the last few years should allow it to get profits back on track in 2019.

Trading on 9 times forecast earnings at the time of writing, Imperial’s price tag is hardly demanding. The vast amount of free cash flow the company generates also allows it to be generous with dividends. A cash return of 205.2p per share is expected in the current financial year, equivalent to a yield of 8%.

Paul Summers has no position in Imperial Brands.

Edward Sheldon: Hargreaves Lansdown

My top stock for April is Hargreaves Lansdown (LSE: HL), which runs the UK’s largest investment platform. The shares took a hit late last year as global equity markets wobbled, and I believe this share price weakness has created an attractive buying opportunity. It’s worth noting that top portfolio manager Nick Train has recently been adding to his position in the stock.

The long-term growth story here remains intact. Britons desperately need to save and invest for retirement and, as the market leader in the investment platform space, Hargreaves looks well placed to profit from this. Moreover, as markets rise over time, the group should benefit. The shares aren’t particularly cheap by traditional valuation measures… however, I believe this growth stock deserves a premium valuation.

Edward Sheldon owns shares in Hargreaves Lansdown.

Rupert Hargreaves: Moneysupermarket.com

You might have used Moneysupermarket.com (LSE: MONY) to help you save money on your car, home or travel insurance, but have you ever thought about using the site to help build your savings? 

I think it is worth considering this company as an investment. Over the past six years, net profit has nearly tripled, and analysts believe EPS will rise a further 19% during the next two years. This growth, coupled with the firm’s operating profit margin of 30%, more than justifies its current P/E of 19.3 in my opinion. The group is also on the lookout for select acquisition to boost earnings growth. 

As well as the growth, there’s also a 4% dividend yield on offer.

Rupert Hargreaves does not own shares of Moneysupermarket.Com.

Royston Wild: Diageo

Diageo  (LSE: DGE) is the perfect stock for tricky times like these.

The bickering and stalemate in Westminster as to how Britain exits the European Union, and when withdrawal will actually take place, appears to be nailed on to persist for the next several weeks at least. There’s plenty of scope for sterling to sink again, then, and therefore firms like Diageo that report earnings in foreign currencies could see their share price gain some extra ground.

Regardless of Brexit, though, a host of other macroeconomic and geopolitical worries – like slowing Chinese and European growth – could turbocharge demand for classic defensive stocks like Diageo.

The FTSE 100 firm’s share price has detonated by double-digit percentages in 2019 already. And I reckon there’s room for plenty more strength in the weeks and months ahead.

Royston Wild owns shares in Diageo.

Manika Premsingh: Lloyds Banking Group

At the risk of being contrarian, I am sticking my neck out on Lloyds Banking Group (LSE: LLOY) for April. The share price might have underperformed in recent years, but the trend line is pointing steeply upwards in 2019 so far.

Strong earnings in 2018 and a positive outlook for 2019 despite the Brexit overhang have most likely contributed to this. But the reason I like it for April is because it’s made headway recently in advancing its wealth management joint venture with Schroders by announcing the management team, which further underlines its bullishness. Investing in this FTSE 100 company isn’t without risk of course, given that it’s a UK-focused bank in shaky economic times. But I believe this is a risk worth taking.

Manika Premsingh has no position in Lloyds Banking Group. 

Roland Head: Royal Dutch Shell

The UK’s largest listed company looks like a great buy to me at the moment. Oil and gas giant Royal Dutch Shell (LSE: RDSB) is pumping out surplus cash as it reaps the rewards of tough decisions made during the 2015 oil market crash.

Chief executive Ben van Beurden remains focused on building a sustainable long-term strategy. The company is starting to plan for a shift away from oil, towards renewables and gas.

In the meantime, the shares trade on a modest 12 times forecast earnings with a dividend yield of 5.9%. In my view, this is one of the safest dividends you’ll find.

Roland Head owns no share mentioned.

Kevin Godbold: Imperial Brands

Investor sentiment has floored Imperial Brands (LSE: IMB) since it peaked in August 2016. The company offers fast-moving consumer goods such as cigarettes, tobaccos, papers, cigars and next-generation smoking products.

I reckon the move down was driven by regulatory fears following noises from the US government and by the unwinding of the once-popular so-called ‘bond proxy’ trade, which affected most defensive-style shares. But the down move could be over, and the upside potential is large from today’s low valuation. I reckon the share price could creep up in April and beyond, adding to investor gains from that huge dividend yield.

Kevin Godbold owns no Imperial Brands shares.

G A Chester: BAE Systems

Defence giant BAE Systems (LSE: BA) has fallen out of favour with investors over the past nine months. The shares have lost around a third of their value. The killing of Saudi Arabian dissident Jamal Khashoggi seems to be a particular weight on investor sentiment. Political repercussions have created uncertainty around BAE’s trading relationship with Saudi Arabia, a significant customer.

However, these kinds of situation are typically resolved pragmatically. With BAE being a world-class business, and with its shares trading at little more than 10 times earnings (with a dividend yield of 5%), I believe now could be a great time to buy for the long term.

G A Chester has no position in BAE Systems.

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The Motley Fool UK has recommended Diageo, Hargreaves Lansdown, Imperial Brands, Lloyds Banking Group, Moneysupermarket.com, and Schroders (Non-Voting). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

I reckon that the Tesco share is a better buy than J Sainsbury today

With the number of structural shifts taking place in business today, I believe that in hindsight, this may well look like the age of disruption. I have recently written about the oil and gas industry’s move towards cleaner energy sources and the tobacco industry’s shift towards healthier next-generation products. The retail sector is undergoing a similar shift with the advent of online sales. From apparel to grocery, companies are currently in the process of transition, even if in-store sales are still dominant.

While this change may be global, UK -based companies are bracing for additional Brexit-driven disruption in the near future. At the very least, this will result in some lost growth and this brings me to supermarkets, which I believe are worth exploring right now. This is not so much because they promise to be high-growth stocks, but because the Brexit downside is limited for these consumer defensives. Grocery budgets can be cut only so much, even when a consumer’s discretionary spending takes a hit.

I believe that of the two FTSE 100 grocery retailers – Tesco (LSE: TSCO) and Sainsbury (LSE: SBRY) – the former is more likely to transition into next-generation shopping while managing fluctuating economic conditions way better than the latter. At least that’s the case right now. Here’s why.

Tesco: Improving performance

It’s twice the size of J Sainsbury, which, I believe provides gravity to the company not afforded by smaller operators. Its market capitalisation is an even bigger four times that of its rival. Its financials are also on the mend as pointed out by my colleague Roland Head a few days ago. I also like the fact that its online sales showed 5.1% growth in 2018.

The company also seems to be unfazed by these shaky economic times. In its outlook, it said that not only is it on the path to achieving cost reductions and better operating margins, but it is also improving its debt ratios. I don’t see any reason to doubt its ability to achieve this given the last full-year results.

J Sainsbury: Merger troubles

Sainsbury’s on the other hand has run into trouble with its proposed merger with Walmart-owned Asda. Together the two could give Tesco a run for its money, but the CMA hasn’t givent he deal a green light so far, the regulator citing the likelihood of increased prices as a result of it, which would be to consumers’ detriment.

I do not mean to discount this share completely, especially given its sound financial results in 2018. In fact, its online sales have been rising faster than Tesco’s. However, its unique merger situation makes it hard to foresee the future for the firm. If the merger does happen, it may well turn out well, but do bear in mind that it will take place during potentially tough macro-economic conditions. This means, that in case there are teething troubles or it doesn’t work out at all, there will be no economic cushion. I think there is real risk of some lasting damage here.

At a time of structural changes and with the possibility of a cyclical downturn, stability is currently more desirable than adventure. In other words, I think Tesco is a much better buy than Sainsbury’s.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

I would buy this FTSE 250 share rather than NEXT any day

If the CEOs of the UK’s consumer-focused companies are losing sleep these days, I’m not at all surprised. It’s all but given that the economy will slow down post-Brexit, though how much and for how long hinges on how the exit deal is framed.

Potentially weaker macros, in this case consumer spending, won’t affect all companies equally though. I think businesses like FTSE 100 retailer NEXT (LSE: NXT) are likely to face rougher conditions than FTSE 250 cinema chain Cineworld Group (LSE: CINE). Here’s why.

NEXT: Financial outlook cloudy

The retailer’s latest results don’t inspire much confidence. While sales have improved, net profits have declined. Its outlook for 2019 is muted too, with sales growth expected to slow down to 1.7% from 3.1% this year. I’m not sure that should be the case, in so far as the company itself is optimistic about real earnings increases, a key leading indicator of demand for its products. In its own words: “Real Earnings in the UK have remained positive since January 2018 and look like they are still gaining strength as we move into 2019.” This doesn’t add up for me.

Also, pre-tax profits are already down by 0.4% in 2018, and are expected to continue to take a hit next year as well. While this can be attributed to structural increases in costs as the company ramps up online operations, to my mind it’s just not a good mix when combined with lower sales growth expectations. It’s not a total write-off, to be sure, especially with its strong cash-flows and rapidly growing online sales. But there are better performing companies out there that I feel would be a more reliable place for you to invest.

Cineworld: US focus bodes well

This brings me to Cineworld. The company reported a strong 7.2% revenue growth rise and a 9.4% increase in earnings before interest, taxation, depreciation and amortisation (EBITDA) in 2018. Strong US markets have buoyed overall performance, which accounts for 75% of the total revenue share. Sales have increased in the UK and Ireland as well, and while this geography has dropped the ball on profits, it was more than made up by the US and the rest of the world.

Among the companies I have researched, those with big chunks of business from outside the UK have shown good financial health and I think will continue to do so in the future as well. Cases in point being Ireland-based-but-US-focused construction company CRH and packaging and paper products provider Mondi. With the US economy expected to remain strong in 2019, the outlook for US-based businesses should be good too. This includes Cineworld. There’s some concern about the 10x increase in its debt levels during the past year, due to its acquisition of US-based Regal Entertainment. But given its recent financial performance, I think the integration is going well.

With this as the background, even if it faces some rough weather on account of the massive Regal investment, I still think that it’s capable of riding out the tough times, making the shares a good buy. I am less sure that NEXT would be able to handle a demand dip as well as Cineworld.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[jamieclawhorn]

I wouldn’t miss out on investing in this US-focused FTSE 100 company

Macro-economic uncertainties can be buzzkill for equity markets. And with Brexit hanging in the air, I don’t think cyclical stocks make for the best investment suggestions at the moment. This is because cyclical companies, as the term suggests, are highly sensitive to turns in the business cycle. As a result, during downturns, their performances (as well as their share prices) can show sharp declines, although they can turn upwards during booms.

But what if there were companies that combined the best of both worlds, showing high growth during booms and staying safe during downturns? They do exist. FTSE 100 construction major CRH (LSE: CRH) is one such, I believe. It managed a pretty good financial performance in 2018 and I believe it’s likely to continue doing so in the future as well. 

Go (further) west

It might be an Ireland-based company, but its major operations are in the Americas, which account for 66% of the revenues. Europe accounts for most of the remaining business for the firm. I’ve spoken before about the merit of geographical diversification, for instance, in the case of British American Tobacco, and a broad geographic spread is a good hedge against macro risks. So, with the US economy on an upswing, CRH did well financially in 2018. And in so far as its fortunes are tied to economic growth, continued strength in the US economy should continue to bode well for the company.

Far from risk-averse

As good as the risk-management strategy of an intercontinental presence might be, I wouldn’t see this company as risk-averse for even a minute. Its growth is partly driven by a very fast pace of  acquisitions, with 46 deals being completed in 2018 alone. The largest of these was the US-based cement company, Ashgrove. The others are what the firm refers to as ‘bolt-ons’, that is, companies that fill gaps in its existing business, and bolt-on buys are expected to continue. As the annual report says, this is “an integral part of CRH’s acquisition model generating above average returns.”

Responsibly profligate

Despite the acquisitions, the company’s debt is under control at 2.1x earnings before interest, taxation, depreciation and amortisation (EBITDA). While absolute debt levels have risen in the last year, healthy growth in EBITDA of 7%, has helped in keeping the ratio manageable. And of course, the company isn’t only buying. I also like the fact that it has balanced acquisitions with disposals to generate more cash.

And it’s still cheap!

Despite all the positives in its favour, CRH is far from expensive. Its trailing price-to-earnings ratio is a very low 5.6x. While the share price has recovered significantly from its December slump, it’s still lower than its one-year average. There’s likely to be some more steam in this stock going forward and I believe it’s a clear buy.

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Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.