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Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due to a combination of business performance and potentially attractive share valuation.

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The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Premium content from Motley Fool Share Advisor UK

Our monthly Ice Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of income-focused Ice recommendations, to help Fools build out their portfolios.

“Best Buys Now” Pick #1:

B&M European Value Retail (LSE: BME)

  • B&M’s share price was down roughly 17% year to date as of writing (16th July) due to investor fears over slowing growth for the UK’s leading discounter. 
  • While FY25 is likely going to be a year of negative like-for-like growth at B&M’s UK stores, the sky is not collapsing on the business. In Q1 overall group revenue was still up 2.4% year-on-year thanks to new store openings, great trading from B&M France, and Heron Foods continuing to do well.
  • We were also told in the Q1 trading update that gross margins were strong and the company is exiting the summer months with a clean inventory position. That its buying teams accomplished this despite a poor summer so far weather-wise points to the impressive work in forecasting and purchasing B&M’s purchasing managers do. 
  • Although free cash flow is going to continue reducing from the peak of the lockdown-impacted pandemic years, B&M is still recording significantly higher profits and cash flow than it was pre-pandemic. With rising scale and the French business growing quickly and now profitable, we’re hopeful that can continue. 
  • At 13 times trailing earnings with a trailing ordinary payout of 3.1% supplemented by fairly regular special dividends, we think B&M is worth considering this month. 

“Best Buys Now” Pick #2:

Redacted

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The Motley Fool UK has recommended B&M European Value Retail.  Ian Pierce owns shares of B&M European Value Retail.

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