Five to buy
GSK
The Times GSK’s market value has fallen sharply recently owing to legal battles over its heartburn drug Zantac, which has been hit by fears that it increases the risk of cancer. The pharmaceutical giant has also faced criticism for its handling of mergers and Covid-vaccine development. However, GSK has been steadily improving its drug pipeline, increasing research and development (R&D) spending, “fattening up” its margins, and has a “chunky dividend yield to boot”. Possible litigation costs are “already priced in.” 1,615p
Oxford Instruments
The Telegraph Oxford Instruments, which manufactures equipment used to analyse matter at an atomic and molecular level, has risen by 20% in 18 months. Despite a decline in its operating profit margin owing to investments, its return on equity is 18%, and it maintains a strong net cash position. With plans for acquisitions and a reorganisation, Oxford is positioned for future growth. The stock is “worthy of its premium valuation” and is a “long-term purchase”. 2,630p
Northcoders
This is Money Manchester-based Northcoders offers three-month coding boot camps to train individuals for lucrative careers in technology. Some 14,000 applicants vied for 1,000 spots in 2023. Last year was tricky for Northcoders as hiring in the tech sector faltered, but a swift recovery is expected this year. With 80% of boot-camp applicants being state-funded, Northcoders plays a vital role in addressing Britain’s need for skilled workers in key sectors. The stock is for “adventurous investors”. 165p
Ashtead
Investors’ Chronicle Full-year profits at this industrial-equipment rental group dipped slightly owing to slower rental growth and speculation about a switch of its primary listing to the US. With the majority of rental revenue generated in the US, the strategic rationale is evident. However, the current interest-rate environment is hampering performance, given $8bn of net debt. Despite potential disruptions, the equipment-rental company is optimistic. It’s a “long-term buy.” 5,358p
Nike
Barron’s Nike’s shares have declined by 12% this year, with the US sportswear giant facing headwinds from slower sales in China, the high cost of living hitting consumers, inventory problems, and competition from upstarts. But the Summer Olympics, a focus on innovation, and new product launches are expected to boost the brand. Despite potentially disappointing financial results in the short term, Nike’s pipeline and market-lead
