- Kitwave Group
- 07 July 2024 18:23:25
Source: Sharecast
That was not necessarily because of Labour's economic agenda, so much as due to its "thumping" majority in the House of Commons, the tipster said, which should put the country on a steadier footing.
Indeed, an analysis of the FTSE All Share by Fidelity Research showed that to be the case. It's not the colour of government that matters, but whether the government is strong and stable.
Fidelity investment expert Tom Stevenson meanwhile pointed out to Midas how cheap the UK stock market was, whether by historic standards or relative to peers such as the US.
Clive Beagles, joint manager of the J O Hambro Capital Management UK Equity Income fund was in a similar frame of mind.
In his opinion, some UK stocks had the potential to double or more in price.
Improved consumer confidence, rising real wages and the unleashing of a "vast" amount of personal savings that had been stashed during the 2020 lockdown could drive the market higher, led by consumer stocks, Beagles said.
The Sunday Times's Lucy Tobin tipped shares of Kitwave to her readers
During the week just ended, the food and drink wholesaler had warned of the impact that the wet weather over the year-to-date was having on business, including the impact on its customers in the hospitality sector.
Capital expenditures and acquisition also played a hand in the drop in the company's first half operating profits.
The shares duly fell.
Kitwave's new boss was planning to introduce more robotics at its warehouses and AI for routing software and invoicing.
Even so, and despite the rain, the company was still on track to meet consensus estimates for the year.
"That's thanks to a boost from its deal-making and a soft July and August last year," Tobin explained.
She also cited analyst Mark Photiades at Canaccord Genuity, according to whom the shares' valuation was "low" given the company's "strong" cash generation, robust balance sheet and the opportunities for consolidation that were still available.
"Results look set to improve: stock up on Kitwave."
