Don’t invest in Stagecoach Group plc, Hargreaves Services plc and Mortgage Advice Bureau (Holdings) plc until you’ve read this

These 3 stocks have released important updates today: Stagecoach Group plc (LON: SGC), Hargreaves Services plc (LON: HSP) and Mortgage Advice Bureau (Holdings) plc (LON: MAB1).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

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.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

Shares in Hargreaves Services (LSE: HSP) have risen by around 12% today after it released details of a restructuring. The UK’s leading supplier of solid fuels and bulk material logistics will focus on its core operations, develop and realise the value of its property and energy projects, as well as realise its legacy assets into cash.

Hargreaves Services’ core operations will now comprise coal distribution, specialist earthworks and infrastructure services, industrial services and transport and logistics services. And with Hargreaves Services controlling around 18,500 acres of property across the UK, it plans to create significant medium-term value and cash generation from the development of projects within its property portfolio.

Clearly, Hargreaves Services has experienced a difficult period in recent years, but today’s announcement seems to have been well-received by the market and could indicate the start of an improved period for the business. However, it may be prudent to wait for evidence of improving financial performance before buying a slice of the business – especially since Hargreaves Services trading remains mixed.

Sticking to the timetable

Also reporting today was transport company Stagecoach (LSE: SGC), with its trading statement showing that it’s on target to meet full-year expectations. Although like-for-like (LFL) sales growth of 4.6% was recorded in the company’s Virgin Rail Group alongside LFL growth of 2.5% for Stagecoach’s UK rail segment, it has warned of a challenging future for the division.

That’s because the overall industry rate of revenue growth has slowed in recent months and looking ahead, Stagecoach sees further deterioration over the medium term. It expects weakening consumer confidence, terrorism concerns, sustained lower fuel prices, the related effects of car and air competition as well as slower UK GDP growth to have a negative impact on the industry.

Clearly, this paints a downbeat picture of the company’s outlook. However, Stagecoach continues to offer a fairly wide margin of safety so its risk/reward ratio remains appealing. For example, it trades on a price-to-earnings (P/E) ratio of just 9.2 and with it yielding 4.7%, remains an enticing income and value play for the long term.

Stake sale

Meanwhile, shares in Mortgage Advice Bureau (LSE: MAB1) have slumped by 11% today after it announced that a group of major shareholders is planning to sell a 15% stake in the financial advisory business. With this including a number of senior directors including the Chief Executive, the market has reacted negatively to the news.

With Mortgage Advice Bureau forecast to increase its bottom line by 12% in the current year and by a further 19% next year, investor sentiment could improve over the medium term. And with Mortgage Advice Bureau having a price-to-earnings-growth (PEG) ratio of just 0.9, it seems to offer good value for money. However, with the outlook for the UK housing market being relatively uncertain, it may be prudent to look elsewhere at the present time – especially while investor sentiment in the company is apparently coming under pressure.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Stagecoach. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young Black man sat in front of laptop while wearing headphones
Investing Articles

3 reasons I’m avoiding Lloyds shares despite their huge dividends!

Lloyds shares offer some of the most reliable dividend yields on the FTSE 100. But our writer Royston Wild still…

Read more »

Number three written on white chat bubble on blue background
Investing Articles

Just released: the 3 best growth-focused stocks to consider buying in July [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Portrait of a boy with the map of the world painted on his face.
Investing Articles

Warren Buffett’s Berkshire Hathaway dumped this growth stock. Here’s why I won’t

Eyebrows were raised when Warren Buffett's company invested in this Latin American fintech disruptor a few years ago. But now…

Read more »

Fireworks display in the shape of willow at Newcastle, Co. Down , Northern Ireland at Halloween.
Investing Articles

£15k to spend? 3 UK shares, investment trusts and ETFs to consider for a £1,185 second income

By harnessing a range of different dividend stocks, I'm confident this mini portfolio might pay a large long-term second income.

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

Is Tesla stock about to crash?

Tesla stock was on the slide today, shedding around $80bn in market value. What's going on with the electric vehicle…

Read more »

Thoughtful man using his phone while riding on a train and looking through the window
Investing Articles

Should British investors consider buying Apple stock while it’s down 14% in 2025?

Apple stock has underperformed in 2025, falling more than 10%. Is this the buying opportunity UK investors have been waiting…

Read more »

Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.
US Stock

2 AI growth shares that I think are still undervalued

Jon Smith flags up two AI growth shares that aren't as overhyped as some peers, making them appealing for him…

Read more »

Thoughtful man using his phone while riding on a train and looking through the window
Investing Articles

Where is the next Nvidia stock right now?

Nvidia stock has delivered jaw-dropping gains. Here are 10 growth shares that have the potential to also produce big returns…

Read more »