Image source: Getty Images Diageo‘s (LSE:DGE) share price has been battered in recent times. Slowing sales and worries over management strategy have seen the FTSE 100 stock shed 52% of its value over the last three years. The Johnnie Walker and Baileys maker still faces significant challenges. Yet City analysts are confident it will rebound sharply during the next 12 months. Twenty-one different analysts currently have ratings on Diageo shares, providing a strong range of opinions. The consensus view is that the battered Footsie share will rebound 31% over the coming year, to £22.25. Source: TradingView Here are four reasons…
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Image source: Getty Images The UK Budget is set to be announced next Thursday (26 November) and it could have implications for ISA and Self-Invested Personal Pension (SIPP) investors. From taxes that hit bank stocks to new rules that negatively impact housebuilders, there could be some less-than-ideal scenarios for investors. Here, I’ll look at four scenarios to be prepared for. I’ll also reveal an investment that could potentially provide protection. Bank stocks Let’s start with bank stocks because a lot of investors have these in their portfolios. Here, there’s been talk of a surcharge on banking profits. Personally, I wouldn’t…
Image source: Getty Images I asked the king of the AI chatbots, ChatGPT, what the perfect growth stock looks like. This is what it said: “A perfect growth stock sells a differentiated product into a fast-expanding market, shows strong demand and scalable economics, holds a defensible moat, has disciplined leadership and a solid balance sheet, and trades at a valuation that still leaves room for upside as margins and cash flow improve over time”. It’s obviously pretty hard to argue with this description although, in reality, it’s relatively subjective. So then I asked it: “What company fits this description?” The…
Image source: Getty Images Diageo (LSE: DGE) shares are stinking out my Self-Invested Personal Pension. When I bought the FTSE 100 spirits giant in January 2023 the stock had just plunged following a profit warning but I thought it would bounce back in no time. Wrong. It’s fallen 25% in the last year and more than 50% over five years. I’m personally down 36%. I’ve held on in the hope of a turnaround, because patience is central to long-term investing, but at times I’ve been sorely tempted to get rid. Two other SIPP holdings are testing my nerve too. Mining…
Most parents spend the early years thinking about sleep routines, nursery fees and, in my case, arguing about which “pretty outfit” is most appropriate when there’s frost on the ground. A pension is usually nowhere near the list. Yet opening a Self-Invested Personal Pension (SIPP) could be one of the most satisfying financial decisions of these early years. To kick things off, the government’s top-up is simply too good to waste. A junior SIPP allows contributions of £2,880 a year, and HMRC automatically boosts that to £3,600. That 25% uplift is instant, guaranteed, and available every single year in the form…
Image source: Getty Images For those getting started investing for passive income, I think investment trusts can provide a firm foundation. Such trusts give us the thing I think is most important when we’re starting out — diversification. And they typically go for a specific strategy — in this case I’m looking for equity income. So with the cash spread across dozens, or even hundreds, of companies, we get the diversification right from the start. Which of the many investment trusts in the UK stock market did ChatGPT suggest I should think about? Smarter searches First, a caution. Large language…
Image source: Getty Images Taylor Wimpey (LSE: TW) shares have fallen another 4% in the last week and they’re down almost 25% over the last year. They now trade at less than half the price they were a decade ago. Yet every time they fall, I buy more. They say the definition of madness is doing the same thing repeatedly and expecting a different result. I’m starting to wonder whether I need a sanity check. I keep coming back to the basics. The FTSE 250 housebuilder remains a profitable company. In 2024 it made £416m and expects profits to hit £424m in 2025,…
Image source: Getty Images By 11:00 today (21 November), the Babcock International Group (LSE:BAB) share price was down 1% following publication of the group’s results for the six months ended 30 September (H1 26). Let’s take a quick look at some of the numbers from the international defence company. What did the results reveal? In brief, it’s more of the same with most financial measures going in the right direction. Compared to H1 25, revenue was up 5.4%. And operating profit improved by 27.5%. The underlying operating margin rose by 0.9 percentage points to 7.9%. Earnings per share were 21.3%…
Image source: Getty Images The JD Sports Fashion (LSE:JD.) share price tumbled on 20 November after investors reacted to the group’s third quarter trading update. Let’s examine what’s going on. Overall, the sports and leisure retail giant reported a 1.7% drop in like-for-like (LFL) sales during the 13 weeks to 1 November (Q3) compared to the previous quarter. The UK was the worst performing market with a 3.3% fall. Looking at the year-to-date (YTD) position (39 weeks), the reduction in the group’s LFL sales was 2.2% versus the same period a year ago. However, Q3 organic revenue was up 2.4%.…
Image source: Getty Images The Dr Martens (LSE:DOCS) share price was the second-worst performer on the FTSE 250 yesterday (20 November), after the legendary boots, shoes and sandals maker reported its interim results for the 26 weeks ended 28 September (H1 26). The reaction of investors was particularly disappointing given the group’s recent share price performance. In April, it recorded a 52-week low of 43p, as President Trump’s announcements on tariffs created uncertainty for the group with its Asian-focused manufacturing operation. Since then — and prior to the publication of the results — it had increased nearly 90%. Yesterday, its…