This week we are looking at some of the best UK stocks on our radar. This analysis will be a regular feature for our Armchair Trader Plus subscribers going forward.
Stocks on this list are those we are following more closely and which our screens have told us could present a buying opportunity for our in-house tip list. We will be presenting similar analysis on a number of other important markets and sectors in the coming weeks.
On The Beach Group [LON:OTB]
Shares in On The Beach Group rocketed from about 142p at the end of October to hit 252p at time of writing. This has caused investors to sit up and take notice. On The Beach stock is currently up +70% in the last 12 months, currently trading at a PE of 32.83x. On The Beach specialises in short-haul beach holidays, including acting as a travel agent in the UK market. It also has a transport brokerage operation.
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The share price is being supported by very positive news flow, including record levels in bookings, rising profits and a share buyback program. CEO Shaun Morton attributed part of 2024's success to the company's successful integration with Ryanair. It is also continuing to invest in its proprietary booking technology platform.
Imperial Brands [LON:IMB]
Imperial Brands has done very well for shareholders in the last year, up 51% and delivering extremely consistent returns. The stock has been on a very good run since March. As reported here in November, a number of factors seem to be underpinning Imperial Brands' success in the market: it has made money in the so-called next-generation products market - e.g. heated tobacco, vaping and tobacco-free oral pouches.
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Analysts worry that the company is boxing itself into the smaller, price-conscious market, and leaving competitor Philip Morris [NYSE:PM] to harvest the more lucrative, premium end of the market. Our own analysis in November showed Imperial Brands was still well-positioned to compete against Philip Morris and British America Tobacco [LON:BATS].
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