Every month, we ask our freelance writers to share their top ideas for shares to buy with investors — here’s what they said for March!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]
Burberry
What it does: Burberry is a UK-based global luxury goods manufacturer, retailer and wholesaler
By Paul Summers. Since I can’t see many investors panicking about the UK being in a recession, I’m continuing to prioritise stocks that stand to benefit from a cutting of interest rates later in 2024.
For a mix of income and potential capital gains, Burberry (LSE: BRBY) looks particularly attractive. While the share price has crashed in the last year as a result of falling sales, I reckon it’s just the sort of company that could bounce back to form as discretionary spending recovers. That’s if it’s not acquired on the cheap beforehand!
Naturally, no one knows when the next UK bull market will kick in. Burberry is also heavily reliant on sentiment improving in markets such as China.
But at least I’ll be paid to sit and wait. The shares are forecast to yield just shy of 4% in the next financial year (beginning April).
Paul Summers has no position in Burberry
Coca-Cola Hellenic Bottling Company
What it does: Coca-Cola Hellenic Bottling Company produces some of the world’s favourite drinks including Coke and Fanta.
By Royston Wild. Soft drinks business Coca-Cola Hellenic Bottling Company (LSE:CCH) has been on a bit of a wild ride in recent weeks. Having sunk at the start of February, the release of impressive full-year numbers saw it shoot through the roof again on Valentine’s Day.
Investors are falling back in love with the company. And it’s easy to see why: at recent prices, the FTSE 100 bottler still offers stunning value for money.
City analysts reckon earnings will rocket 21% year on year in 2024. This leaves Coca-Cola HBC trading on a forward price-to-earnings growth (PEG) ratio of 0.6. A reminder that any reading below 1 indicates that a share is undervalued.
The business bottles drinks on behalf of The Coca-Cola Company, which enables it to benefit from the significant brand power of the US drinks giant. This in turn helps it perform strongly during good times and bad — in 2023, it delivered record profit and free cash flow even as consumer spending remained under pressure.
Over the long term, I think Coca-Cola HBC could be a great way for investors to profit from rising wealth in emerging markets.
Royston Wild owns shares in Coca-Cola Hellenic Bottling Company.
Coca-Cola HBC AG
What it does: Coca-Cola HBC AG is a growth-focused consumer packaged goods company and a strategic bottling partner of the Coca-Cola Company.
By Edward Sheldon, CFA. This month, I think investors ought to consider buying shares in Coca-Cola HBC AG (LSE: CCH). It helps the Coca-Cola Co and other companies such as Monster Beverage, Brown-Forman, and Campari sell their products in different markets.
I’m bullish on this stock for several reasons. For starters, the company is performing really well right now. In 2023, it generated net sales revenue growth of 17%. For 2024, it expects growth of 6-7%.
Secondly, the stock is trading at an attractive valuation. As I write this, the forward-looking P/E ratio is only about 13. That strikes me as a steal.
Third, the company is rewarding shareholders with dividends and share buybacks. It’s worth noting here that the dividend payout declared for 2023 was nearly 20% higher than the payout for 2022. This increase suggests that management is confident about the future.
Of course, an economic slowdown could affect the growth story here. At the current valuation, however, I think the risk/reward proposition is attractive.
Edward Sheldon owns shares in Coca-Cola Company.
Games Workshop
What it does: Games Workshop is a leader in entertainment, focusing on fantasy board games. It is well known for Warhammer.
By Oliver Rodzianko. I bought Games Workshop (LSE:GAW) shares in October 2023, and I think it is one of the best British companies I own. Its leading position in fantasy board games and exceptional brand power means that it commands some financials I find truly compelling.
For example, it has a net margin of 28%. That’s better than 92% of other companies in its industry. Also, with a balance sheet where 75% of assets are covered by equity, I sleep well at night owning the shares.
Of course, even the best investments have risks. Games Workshop doesn’t have an ideal price-to-earnings ratio. At a high 22, I think its valuation is somewhat concerning.
However, in my eyes, the company has taken the fantasy board game world by storm. So, I’m holding my shares for as long as I can, especially as they also have a 4.5% dividend yield.
Oliver Rodzianko owns shares in Games Workshop.
