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: UK shares, Kitwave

(Sharecast News) - Investment specialists are positive on the outlook for shares in the UK in the wake of Labour's victory, the Financial Mail on Sunday's Midas column said. That was not necessarily because of Labour's economic agenda, so much as due to its "thumping" majority in the House of Commons, the tipster said, which should put the country on a steadier footing.

Indeed, an analysis of the FTSE All Share by Fidelity Research showed that to be the case. It's not the colour of government that matters, but whether the government is strong and stable.

Fidelity investment expert Tom Stevenson meanwhile pointed out to Midas how cheap the UK stock market was, whether by historic standards or relative to peers such as the US.

Clive Beagles, joint manager of the J O Hambro Capital Management UK Equity Income fund was in a similar frame of mind.

In his opinion, some UK stocks had the potential to double or more in price.

Improved consumer confidence, rising real wages and the unleashing of a "vast" amount of personal savings that had been stashed during the 2020 lockdown could drive the market higher, led by consumer stocks, Beagles said.

The Sunday Times's Lucy Tobin tipped shares of Kitwave to her readers

During the week just ended, the food and drink wholesaler had warned of the impact that the wet weather over the year-to-date was having on business, including the impact on its customers in the hospitality sector.

Capital expenditures and acquisition also played a hand in the drop in the company's first half operating profits.

The shares duly fell.

Kitwave's new boss was planning to introduce more robotics at its warehouses and AI for routing software and invoicing.

Even so, and despite the rain, the company was still on track to meet consensus estimates for the year.

"That's thanks to a boost from its deal-making and a soft July and August last year," Tobin explained.

She also cited analyst Mark Photiades at Canaccord Genuity, according to whom the shares' valuation was "low" given the company's "strong" cash generation, robust balance sheet and the opportunities for consolidation that were still available.

"Results look set to improve: stock up on Kitwave."

Share this article

Related Sharecast Articles

Thursday newspaper round-up: Solar panels, OBR, Chevron
(Sharecast News) - California's home-insurance safety net does not have enough money to pay all of the claims from damage caused by the Los Angeles wildfires and has asked private insurers to contribute $1bn toward those claims. All private insurers operating in California are required to contribute to the Fair plan, a plan of last resort established so all Californians would have access to fire insurance. More than 450,000 California homeowners got their insurance through the Fair plan in 2024 - more than double the number in 2020. As of 4 February, the plan had received more than 4,700 claims from the Palisades and Eaton fires, almost half of which were for "total losses". - Guardian
Wednesday newspaper round-up: British economy, Heathrow, FOS
(Sharecast News) - The British economy is on course to expand by 1.5% this year after the budget gave a boost to public spending but could be blown off course if Donald Trump goes ahead with threatened tariffs, a leading economic thinktank has warned. In a boost to Rachel Reeves after a bruising month of negative economic figures, the National Institute of Economic and Social Research (NIESR) upped its annual growth prediction from 1.2% to 1.5%. - Guardian
Tuesday newspaper round-up: OpenAI, EVs, gas prices
(Sharecast News) - Elon Musk escalated his feud with OpenAI and its CEO Sam Altman on Monday. The billionaire is leading a consortium of investors that announced it had submitted a bid of $97.4bn for "all assets" of the artificial intelligence company to OpenAI's board of directors. The startup, which operates ChatGPT, has been working to restructure itself away from its original non-profit status. OpenAI also operates a for-profit subsidiary, and Musk's unsolicited offer could complicate the company's plans. The Wall Street Journal first reported the proposed bid. - Guardian
Monday newspaper round-up: Service charge, BP, Heathrow, Elon Musk
(Sharecast News) - An increasingly complex tax system is burdening the government and businesses with hundreds of millions of pounds more in administration costs, Whitehall's spending watchdog has warned. The report by the National Audit Office (NAO) also said "poor levels of service" meant some taxpayers and their representatives were "finding it more difficult to deal with their tax matters and are losing trust in HM Revenue & Customs [HMRC]". - 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.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.