Five to buy
BHP Group
Investors’ Chronicle Chronically weak nickel prices are complicating the mining industry’s pivot towards the energy-transition metals. An ongoing supply glut of electric-vehicle battery component nickel from Indonesia recently forced a $2.5bn impairment charge on BHP’s Western Australia nickel operations, with management even considering mothballing production. Still, nickel is only a small part of the group’s metals portfolio, with resilient iron ore and copper prices helping lift performance in the second half of last year; the red-metal market is tightening. 2,327p
BP
The Telegraph Shares in this oil giant have rebounded but there should be more to come. Management has pledged to “be more pragmatic in its investment decisions” about the pace of energy transition after previous pledges irritated investors. A 4.8% dividend yield plus generous share buyback plans will boost returns. Buybacks make sense given that on seven times earnings, the shares are “grossly” undervalued even by the “dirt-cheap” standards of the FTSE. 467p
Cambridge Cognition
The Mail on Sunday The number of Alzheimer’s sufferers is poised to double globally over the next two decades. Cambridge Cognition creates and analyses digital tests of brain health. The resulting data is invaluable for the pharmaceutical firms and researchers that develop treatments for the disease. Digital tests are more flexible, objective and cost-effective than traditional in-person options. The firm should swing into profit this year and is a long-term buy. 51p
EnSilica
The Sunday Times The semiconductor industry is forecast to grow at 8% a year through 2030. Aim-listed EnSilica is mining a promising niche in application-specific integrated circuits (Asics), which are specialist chips needed for the likes of luxury cars and heart monitors. Revenue and earnings are small but “growing steadily”, while turnover from the technology consultancy operation rose by 30% last year. There are risks – foreign rivals enjoy much bigger subsidies than the British government can muster – but the UK has expertise and a good record in chip science. 51p
Kingfisher
Shares The B&Q and Screwfix store owner has been squeezed by inflation and cautious consumers, but things are heading for a cyclical upswing. A recovering housing market will drive demand for home-improvement supplies and there is scope for better trading amid consumer recovery in France and Poland. While risks remain, these are mo
