The Motley Fool

Should you buy these 3 stocks after today’s updates?

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.

These three companies have all released updates today, but should Foolish investors buy, sell or just watch them right now?


AA (LSE: AA) has risen by over 5% today after releasing a positive trading statement. It notes that the company is trading in line with expectations and has arrested the decline in personal member numbers in recent months.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

In fact, AA recorded growth in membership in the first half, which is reflective of the success of its new strategy where the company has improved brand advertising, added additional benefits to the membership proposition and focused on greater digital engagement with customers.

On the topic of digital applications, AA’s relationship management system is now fully operational and the company continues to build its digital profile. Its roadside assistance app is seeing increased usage, which leads to not only a better customer experience but also greater efficiency for the business.

AA expects Brexit to have a minimal impact on its business and with its shares trading on a price-to-earnings (P/E) ratio of 10.8, it seems to offer good value for money. Furthermore, its earnings are due to rise by 11% next year and this could act as a positive catalyst on its future share price.

Hill & Smith

Infrastructure and galvanizing specialist Hill & Smith (LSE: HILS) has also updated the market today, with its sales rising 6% in H1. With operating margins rising by 170 basis points to 13%, Hill & Smith has recorded a 20% increase in operating profit. And due to 90% of operating profit being derived in the US and UK, where infrastructure investment spending remains relatively high, its medium-term outlook continues to be positive.

Hill & Smith has also announced the £12.5m acquisition of Signature, which specialises in road sign and traffic management systems. This should complement its existing product offering and contribute to positive earnings growth.

On this topic, Hill & Smith is expected to grow its earnings by 18% in the current year, which could act as a positive catalyst on investor sentiment and on its share price. And with it having a price-to-earnings growth (PEG) ratio of just 1, its upside potential seems high.


Ceramic tableware and cookware specialist Portmeirion (LSE: PMP) has today released a rather disappointing set of first-half results. Although sales rose by 2% versus the prior year’s period, pre-tax profit fell by 22% during what was a highly challenging six months for the business. It has seen a reduction in demand from some of its Asian markets and while it sees this as a short-term issue, investor sentiment could come under further pressure in the weeks and months ahead.

However, looking ahead to next year, Portmeirion is expected to return to growth. Its bottom line is forecast to rise by 18% and with its shares trading on a PEG ratio of 0.8, it seems to offer excellent upside potential. Furthermore, its completion of the acquisition of Wax Lyrical for £17.5m could positively catalyse its earnings and this makes now a good time to buy Portmeirion for long-term investors.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

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

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.