Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Sunday share tips: Tesco, DS Smith

(Sharecast News) - The Financial Mail on Sunday's Midas column recommended shares of five companies to readers, pointing out that history proved that the best time to buy shares was often when everyone else was running scared. First on its list was Tesco, with Midas highlighting the grocer's pricing strength and track record spanning decades of its ability to deliver growth despite the inevitable ups and downs.

Infrastructure outfit HICL meanwhile was touted as "ideal for your Isa" given that its customers, ultimately, were governments and its decades-long inflation-linked contracts.

Speaking of track records, Midas also recommended Coats, the world's largest maker of threads for garments, which had been literally been around since George II was on the throne.

And yet, it continued to be a pioneer in its field, as it had done for centuries.

"At 69p, the shares have real long-term potential. Buy."

Self-storage group Lok'n'Store was another of the tipster's recommendations, which pointed to the company's "ambitious" plans to grow its footprint, analysts' forecasts for continued strong sales growth and history of steady dividend increases.

Specs maker Inspecs was seen as a "buy and keep" given the vast amount of people around the world who need glasses and with Midas predicting that the shares "should go far".

Midas also highlighted the fact that the group's chairman was Lord Ian MacLaurin, the man credited with turning Tesco into the country's largest retailer in 1980's and 90's.

The Sunday Times's Lucy Tobin laid out the investment case for investing in paper and packaging specialist DS Smith, arguing that 'boring is beautiful'.

"It does not even try to make itself sound sexy," Tobin said.

"But in these turbulent times, the company's dullness makes it interesting. DS Smith's shares jumped during the pandemic as much of our shopping was delivered in cardboard boxes to our door."

Like most firms, the FTSE 100 outfit would be impacted by the geopolitical crisis and economic turbulence, she conceded.

Indeed, the company held a stake in a Ukrainian outfit that had been forced to close because of the war.

However, DS Smith's strong free cash flow was helping it to reduce the leverage in which it incurred for the 2018 acquisition of Spanish rival Europac.

She also cited market chatter around the possibility that Amazon might take a look at DS Smith.

Furthermore, the company had so far managed to pass on price rises on inputs to customers, helping it cover higher costs.

"But in these turbulent times, the company's dullness makes it interesting.

"DS Smith's shares jumped during the pandemic as much of our shopping was delivered in cardboard boxes to our door."

Share this article

Related Sharecast Articles

Thursday newspaper round-up: AI models, bank taxes, AstraZeneca
(Sharecast News) - Advanced artificial intelligence models have stunned the UK's AI Security Institute (AISI) by carrying out a hacking campaign against real people during a cybersecurity test. The institute said the incident was unprecedented and involved sending targeted emails to software developers in an attempt to pass a cyber challenge. - Guardian
Wednesday newspaper round-up: Palantir, SpaceX, Aston Martin, Ryanair
(Sharecast News) - The software group Palantir paid just £2m in corporation tax in the UK in 2024, despite holding public sector contracts worth hundreds of millions, thanks to tax breaks that are likely to reduce its contributions to governments around the world for years to come. The US-headquartered company, which has harnessed AI to secure lucrative work for the NHS and the Ministry of Defence, is growing exponentially. - Guardian
Tuesday newspaper round-up: Tariffs, used EVs, Apple
(Sharecast News) - A coalition of 25 US states sued the Trump administration on Monday over new tariffs pegged at 10% to 12.5% on goods from 60 trading partners, calling them a pretext for replacing import taxes struck down by the supreme court in February. The states are asking the US Court of International Trade to halt the tariffs, declare them unlawful and order refunds of duties that have already been paid. - Guardian
Monday newspaper round-up: Truth Social, TalkTalk, Brunswick
(Sharecast News) - The chancellor, John Healey, has said the government is standing by to prevent the public from "being taken for a ride at the pump or the till" as the Iran war continues to hit prices. While he said there had been "no significant evidence of so-called price gouging" during the crisis, he used a weekend column to tell the big retailers that ministers were "watching closely" for any signs of profiteering. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.