Expert share tips this week

Here’s your round up of how the experts view key stocks this week.

William Hill, Glencore and Domino’s Pizza are among the companies under the spotlight this week.

1. Glencore – HOLD

Symbol: GLEN.L

Index: FTSE 100

Glencore share price (Image: Google)

The mining giant reported solid interim results highlighting an increase in profit and revenue – but faces money laundering investigations into its African business.

Graham Spooner, investment research analyst at The Share Centre, said the business had fallen short of competitors such as Anglo American and Rio Tinto.

“Glencore’s shares have underperformed against its peers and the overhang of political and legal risks may further hinder the group,” he said.

2. William Hill – ADD

Symbol: WMH.L

Index: FTSE 250

William Hill share price (Image: Google)

The bookmaker saw its share price fall after explaining its US investment plans – but this could provide an opportunity for investors.

Ivor Jones, an analyst at Peel Hunt, said the company had access to some US states for sports betting, as well as the added attraction of owning a profitable US business.

“We believe that is adding value and should not have resulted in a share price fall,” he said.

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3. Spirent Communications – BUY

Symbol: SPT.L

Index: FTSE SmallCap

Spirent Communications share price (Image: Google)

The telecommunications company’s revenues are expected to show steady growth over the next few years due to better prospects in many of its divisions.

Janardan Menon, an analyst at Liberum, believes significant operating leverage means revenue and earnings growth expectations may prove conservative.

“We believe Spirent is heading for a strong multi-year upturn, combining both structural and cyclical growth,” he said.


Symbol: REL.L

Index: FTSE 100

Relx share price (Image: Google)

The Anglo-Dutch publisher and information provider has completed its period of restructuring and move towards a more digital service.

Graham Spooner, investment research analyst at The Share Centre, said bolt-on acquisitions had been viewed positively by the market – as had the announcement of a £200m share buyback.

“The share price has made impressive progress over the last five years,” he said. “We rate the stock as a low to medium risk ‘buy’ for lower-risk investors.”

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5. Domino’s Pizza – BUY

Symbol: DOM.L

Index: FTSE 250

Domino's Pizza share price (Image: Google)

More than 20 new stores opened in the UK during H1, while online sales were up 14% and like-for-like sales grew 5.9%.

Douglas Jack, an analyst at Peel Hunt, believes Domino’s UK franchisees are among the most profitable in the world.

“It’s right that the company is investing for the long term – a process that is aligned to adding new and growing smaller franchisees,” he said.

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The information included in this article does not constitute regulated financial advice. You should seek out independent, professional financial advice before making an investment decision.

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