Aston Martin Lagonda (LSE:AML) shares recently plunged on fears over US tariffs on car imports. Two Fools talk about whether this could be a buying opportunity to consider.

Note: return data correct as of time of recording.

Transcript:

CHRIS: Hi Fools, Chris Nials here and I’m joined by Motley Fool analyst Zaven Boyrazian. Morning Zaven!

ZAVEN: Hello!

CHRIS: We’re going to be talking about Aston Martin today, and how fears over US tariffs on car imports have sent its share price tumbling. Zaven, what’s been happening?

ZAVEN:  Well Chris, we’ll get to the tariff talk in just a moment, but before we do it’s important to point out that Aston Martin Lagonda shares have actually been stuck in reverse (if you’ll excuse the pun) over the last year or so.

The FTSE 250 carmaker now deals at 70.2p per share, a whopping 59.5% lower than it was 12 months ago. So someone who bought £10,000 worth of shares back then would have seen the value of their investment tumble to £4,046. They wouldn’t even have received any dividends to help soften the blow, either.

But while Aston Martin’s share price sits significantly below the 661.9p it was at five years ago, there’s no doubt that it could yield sterling potential returns if it recovers. But that looks like quite a significant ‘if’ to me right now.

CHRIS: That sounds somewhat ominous!  So do you think that investors should consider buying Aston Martin shares today?

ZAVEN:  Well I think it’s easy on one hand to see the company’s incredible appeal. Its products are the epitome of style, speed. sophistication, and let’s face it, sex appeal.

Aston Martin’s had an association with the likes of James Bond since the mid-1960s, and the brand’s involvement in the dynamic world of Formula One haven’t done it any harm, either.

But while its label and products are highly desirable, the same certainly can’t be said for the company itself, at least in my view. So what’s the problem?

The issue is that Aston Martin is fighting fires on a number of fronts. Last year, pre-tax losses rose by 21% to £289.1m, partly due to a 9% drop in wholesale volumes. Sales declined on the back of supply chain disruptions and tough conditions in China, troubles that still persist.

As a result, net debt — which was already pretty concerning — shot up sharply. At the end of 2024, Aston had net debt of £1.2bn, up 43% year on year. And so the spectre of fresh rights issues and debt issuances still looms large.

CHRIS: And as if Aston Martin didn’t have enough problems, President Trump has of course drawn global carmakers further into his escalating trade battle, and AML are certainly not immune to these.

ZAVEN: Yes that’s right – so as everyone watching will no doubt have seen, the US has slapped heavy tariffs on all imported cars, putting a hefty premium on already-expensive marquee car manufacturers like Aston Martin.

On the plus side though, the delays to previously announced tariffs from the US may suggest that this thumping import tax isn’t a done deal. In addition, the UK chancellor Rachel Reeves has said the government is “in intense negotiations” with Washington to avoid any car tariffs.

But just the mere threat of trade tariffs is enough to chill my bones and I’m sure that’s the same for any investors watching who own shares in Aston Martin. Last year, sales to the Americas — dominated by demand from US customers — accounted for 40% of group revenues, making it by far the company’s single largest market.

With all of its manufacturing located in the UK, Aston Martin would be especially vulnerable to any ‘Trump Tariffs.’

CHRIS: Ok great – thanks so much for the insight Zaven, So what’s next for Aston Martin then?

ZAVEN: Well it’s hoped that a string of new car launches (including the recently revamped Vanquish and the upcoming Valhalla) could revive the company’s fortunes. But the highly competitive nature of the car market means that success is by no means guaranteed.

And on top of that, Aston Martin’s recovery is made even more difficult given those challenging economic conditions in key markets that we’ve already talked about. On balance, I believe that this is a FTSE 250 share that investors should strongly consider steering well clear of.

CHRIS: Thanks so much again Zaven, and thanks so much to everyone watching. Fool on!

The post “£10k invested in Aston Martin shares a year ago is now worth…” [VIDEO] appeared first on The Motley Fool UK.

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Chris Nials has no position in any of the shares mentioned. Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Tesco (LSE:TSCO) shares recently saw a sharp spike followed by a subsequent decline. How is the stock looking now, as a potential investment to consider buying?

Note: return data correct as of time of recording.

Transcript:

CHRIS: Hi Fools, Chris Nials here and I’m joined by Motley Fool analyst Zaven Boyrazian. Morning Zaven!

ZAVEN: Hello!

CHRIS: We’re going to be talking about Tesco today, which was probably about as solid as a FTSE 100 share could get. But recent events have certainly shown that there are always surprises in store. Zaven, what’s been happening?

ZAVEN:  Well Chris, I don’t think it’s unfair to say that Tesco has been something of a “steady Eddie” for many UK investors over the past year or so, with its share price gaining around 25% between the end of February 2024 and Mid-March 2025. But as experienced, long term investors, we should have known better to assume that its resurgence would continue uninterrupted!

CHRIS: Yes indeed it’s certainly been a rocky week or so to say the least.  What’s been the driver of the slump?

ZAVEN:  So this all started on the 14^th of March and came from an unexpected source: its underpowered rival Asda. And despite Asda being the UK’s third-largest grocer with just a 12.6% market share, it’s suddenly spooked the entire sector. Tesco, by comparison, leads with 28.3%, but that hasn’t stopped its share price taking a hit.

Asda’s looking to revive its fortunes by slashing prices, even at the expense of denting short-term profitability. Some investors now fear another supermarket price war, which could hit margins across the sector.

Tesco shares slumped 6% on the day, as did Sainsbury’s. One week later, Tesco was down a hefty 12.97%. This meant that someone who had invested £10,000 just before this would be sitting on £8,703, a painful paper loss of £1,297.

Nobody likes to see a sudden drop in their portfolio. But the shares are still up 12% over the past year and 79% over five years, if you reinvested dividends. And I think it certainly has the resilience to recover from this blip, though it may take time. Though past performance is not an indicator of future results.

The wider economic climate remains tough though. Inflation’s proving sticky, consumers are feeling the pinch, and economic growth is slowing. Tesco will need all its strengths, such as scale, brand loyalty and operational efficiency, to weather the latest storm.

CHRIS: You mentioned a pretty heady stat there – a 79% return over the past 5 years if you’d reinvested the dividends, which would have certainly pushed its valuation up.  Has this dip perhaps made it more attractive to investors who perhaps have been watching on the sidelines, looking for a good point to consider buying?

ZAVEN: Well, in my opinion at least, the shares now look decent value with a price-to-earnings ratio of 13.7. The dip has also nudged its current dividend yield to a slightly more appealing-looking 3.73%.

And analyst forecasts still suggest that Tesco could have a stellar year. In fact, the predictions of 13 brokers forecasting Tesco’s one-year share price produces a median target of 410p. If that’s correct, that’s a potential gain of around 23% from today’s price.

But there are two very important things to consider with that. First of all, forecasts are very slippery things. And secondly, most of them were probably made before the Asda bombshell and could certainly be revised down.

But for me, Tesco’s recent tumble is a reminder that even the quote unquote “Steady Eddie” stocks can face short-term turbulence. And while I don’t expect a quick rebound, I still believe this dip presents an opportunity for long-term investors looking for a strong, market-leading company at a better price to consider.

Just don’t expect it to be plain sailing throughout. Investors must always expect short-term volatility and, in truth, that’s a good thing too. Because when shares dip, re-invested dividends could pick up more stock at the lower price.

CHRIS: Ok great – thanks so much for the insight Zaven.  Any final thoughts before we  sign off?

ZAVEN: We can’t ignore the threat of another pricing war. Like many retailers, Tesco operates with razor thin margins and downward pressure on pricing during a period of sticky inflation is a nasty combo.

However, it’s worth pointing out that this isn’t the first time a company has tried to take Tesco’s crown as industry leader. And with plenty of experience with competing against discount retailers like Aldi and Lidl, I think it would be a mistake to underestimate the retail giant.

CHRIS: Thanks so much again Zaven, and thanks so much to everyone watching. Fool on!

The post “£10k invested in Tesco shares one week ago is now worth” [VIDEO] appeared first on The Motley Fool UK.

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Chris Nials has no position in any of the shares mentioned. Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended J Sainsbury Plc and Tesco Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Tesla (NASDAQ:TSLA) stock fell sharply at the beginning of the month. Investors who thought they were picking up a bargain then were engaging in a challenging investment activity: trying to catch a falling knife.

Note: return data correct as of time of recording.

Transcript:

CHRIS: Hi Fools, Chris Nials here and I’m joined by Motley Fool analyst Zaven Boyrazian. Morning Zaven!

ZAVEN: Morning Chris, I’m very well thank you.

CHRIS: We’re going to be talking about Tesla today, and how some retail investors have been trying to catch the proverbial ‘falling knife’ with its stock, but many have had their fingers nicked… Zaven, what’s been happening?

ZAVEN: Well Chris, the headline figure is that Tesla stock is down 17% over a fortnight. As such, a £10,000 investment then would be worth just £8,300 today.

Investors who thought they were picking up a bargain then were actually engaging in that incredibly challenging investment activity that you mentioned: trying to catch a falling knife.

We believe Tesla’s decline is attributed to a combination of weak global sales, leadership concerns, and analyst downgrades. Additionally, broader market volatility and Tesla’s fundamental challenges, such as declining deliveries and increased competition, have further eroded investor confidence.

While some remain optimistic about the company’s long-term potential, as reflected by brief rallies, the current trend suggests caution is warranted.

CHRIS: Now, I don’t think we can really talk about Tesla without mentioning its founder Elon Musk, who, and I don’t think this is unfair to say, cuts something of a divisive figure now, due to his involvement in US politics. Is this also having a bearing on Tesla’s downturn?

ZAVEN:  Yes so Tesla’s stock has faced a steep selloff since Elon Musk’s move to Washington, D.C., to assume a key role in the Trump administration.

But it’s important to remember that this decline is attributed to several factors beyond Musk’s political involvement. Weak global sales, particularly in key markets like Germany and China, have raised concerns about Tesla’s growth trajectory. This has led to analysts downgrading delivery forecasts, further unsettling investors.

Additionally, market volatility driven by President Trump’s tariff policies and broader economic uncertainty has weighed heavily on Tesla and other tech stocks.

But Musk’s leadership distractions, including his role in the Department of Government Efficiency, have also fuelled doubts about his focus on Tesla. And despite his optimistic reassurances, the selloff reflects a combination of operational challenges, market dynamics, and investor skepticism.

CHRIS: Now, when we see a significant dip in a company’s share price, particularly one that has performed so admirably over a multi-year period, it can sometimes present investors with a more attractive buy-in price. So how’s the valuation now looking?

ZAVEN: Well, in my opinion, Tesla’s valuation metrics reveal a significant disconnection with reality.

The forward price-to-earnings (P/E) ratio of 82.9 times represents a staggering 450% premium to the consumer discretionary sector average. What’s more, the company doesn’t appear to have the growth to back this valuation up, with the price-to-earnings-to-growth (PEG) ratio sitting at 4.8 — a 235% premium to the sector average.

This overvaluation persists largely because some analysts and investors continue to tout Tesla’s long-term prospects in autonomous driving and robotics. However, in autonomous driving, competitors like Waymo appear to already have a substantial headstart.

Waymo, a subsidiary of Alphabet, has already launched commercial robotaxi services in multiple cities. This is leveraging years of testing and regulatory approvals, while Tesla’s Full Self-Driving (FSD) technology remains in beta and faces scrutiny over safety and reliability. You can also, as of just a few weeks ago, now hail a Waymo in Austin on Uber. That’s a big step.

In robotics, Tesla’s Optimus project aims to revolutionise automation with humanoid robots, targeting deployment in factories and eventually consumer markets. However, Optimus is still in its infancy, with plans to scale production to 10,000 units by 2025. This is a far cry from the ambitious 100m units Musk envisions long term.

So while I think Tesla’s AI and robotics initiatives are promising, there are significant execution risks. This makes the company’s current valuations, in my opinion at least, appear disconnected from its near-term realities.

And given the current volatility, I’m keeping my powder dry. And I say this as someone that actually wants Tesla to succeed, because its long-term focus is really exciting. However, I simply can’t put my money behind it at these valuations.

CHRIS: Ok great – thanks so much for the insight Zaven.  Any final thoughts before we  sign off?

ZAVEN: Underestimating Tesla’s ability to innovate has historically resulted in a lot of investors missing out on growth. And long-term I actually think there’s a lot of potential value this business can deliver for investors and the world in general.

But as previously mentioned, the current valuation, even after all the recent volatility, is still pretty demanding. As such, all it likely takes is one small stumble for the shares to correct sharply. So, for investors considering this business today, I think taking a cautious approach with dollar cost averaging is likely a sensible idea.

CHRIS: Thanks so much again Zaven, and thanks so much to everyone watching. Fool on!

The post “£10,000 invested in Tesla stock a fortnight ago is now worth…” [VIDEO] appeared first on The Motley Fool UK.

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Chris Nials has no position in any of the shares mentioned. Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Shares in Rolls-Royce (LSE:RR.) are up around 100% in just one year, and close to 370% over the past five years.

Despite yet more recent upwards momentum in the share price, is the company one for UK-focused investors to consider buying?

The post What’s behind Rolls-Royce shares’ recent move higher? [VIDEO] appeared first on The Motley Fool UK.

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Chris Nials has no position in any of the shares mentioned. Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Yes, as it’s a gift to myself I could have speculated a little and moved for a slightly sexier small-cap growth stock, but there’s one thing that the pharma giant can offer my portfolio that most of my other holdings can’t: a great dividend.  Since 2009, the dividend yield has hovered somewhere between 4.6% and 5.5%, with last year’s coming in at a very respectable 4.8%.

Now could be a good time to buy, too, in terms of the share price.  It may have seen a steady rise to just under 1,500 since its October low of 1,324, but overall, the price is still down nearly 6% over the last 6 months.  I could even consider that to be an early January bargain.

The post If I Could Buy Just One Stock For Christmas, It’d Be GlaxoSmithKline plc appeared first on The Motley Fool UK.

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

Today I’m going to quickly review three figures for anyone thinking about investing in Quindell (LSE: QPP)

1.  £153.7m

This is Quindell’s pre-tax profit that the company reported in its most recent trading update – a jump of 292%.

It also saw overall revenues soar by 119% to £357.3m during January to June.  This can be partly attributed to a number of large contract wins in the Professional Services Division.

2. 76%…

… That’s the overall drop in share price that Quindell has seen in the last six months.  Back on 7 April, shares were priced at a lofty 656p.  Now, they’re languishing at around 159p.

The main reasons for this have been much publicised.  The prime attack coming from Gotham City Research, which declared that the business was “built on sand”, and stated that the shares were worth no more than 3p each.

3. 12,500

This is the number of words contained in the 22-page rebuttal that Quindell released in response to Gotham City Research’s claims, calling them a “co-ordinated shorting attack.”

Quindell’s reply specified that it believed short positions had been taken ahead of the report’s publication, and announced that it intended to take legal action against the research house.  This was on the back of them stating that the comments were “highly defamatory” and “deliberately misrepresentative”.     

And it seemed the courts agreed, as the company released a statement on 9 September stating that it had received judgement in its favour.  The process of evaluating the damages will begin at the end of November.

The post 3 Numbers To Consider Before Buying Quindell PLC appeared first on The Motley Fool UK.

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Chris does not own any share mentioned in this article.

But large, established companies such as BP often come with many interesting stories from years gone by. I’ve trawled the Internet and discovered these fun facts you probably never knew about the FTSE 100 member:

Awesome Power

In order to stay as a front-runner in searching for new sources of oil and gas, BP continues to invest in its supercomputer based in Houston, Texas.    

This is used to process the vast amounts of data that the seismic exploration teams produce, and has the unbelievable capacity of more than one petaflop.  This means it can runover a thousand trillion floating point calculations per second.

BP at the forefront of Biofuel research

In July 2013, BP (in a joint venture with AB Sugar and DuPont) opened the UK’s largest Bio-refinery in Hull.   

The Vivergo plant will produce 420 million litres of bioethanol a year when it finally gets up to full capacity.  This is equivalent to a third of the UK’s current demand. Bioethanol is a renewable transport fuel which is added to petrol. 

Always the Innovators

As you would have probably guessed, BP is often the first to develop new drilling and mining techniques.  But what might not be so obvious is the somewhat tiny tweaks they make to existing methods that go on to provide a real difference. 

For example, water has always been used to flush out trapped oil in rocks.  However, BP developed (and subsequently now own outright) a slight variation on this, which has resulted in being able to harvest 40% more.  This ground breaking discovery?  Using water with a slightly lower salt content.  It really is the little things. 

The post 3 More Facts About BP plc appeared first on The Motley Fool UK.

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Chris Nials 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.

https://youtu.be/sFqzdOAx2bI

The post 2 Stocks Making The News: HSBC Holdings plc And Unilever plc appeared first on The Motley Fool UK.

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The Motley Fool owns shares in Unilever.

Firstly, I become physically unable to ever want any pancake-related item of foodstuff anywhere near my person for at least another year.

Secondly, my inbox becomes clogged with emails from numerous financial institutions reminding me that it’s ISA season again.  Large in number they may be,  but they raise a good point.  Stocks-and-shares ISAs should be a key part of any long-term investor’s armoury — they do provide tax-free returns after all!

One of the challenges with leaving it to (or as there’s still the best part of a month left – close to) the last minute before the 5 April deadline, is figuring out quickly what shares to buy into.  So, in order to help, let’s have a look at one stock that I think would be a stellar contender for a portion of your £11,520 allocation: BT (LSE: BT-A) (NYSE: BT.US).

To start with, you cannot argue that BT is a telecommunications stalwart.  It has a 61% market share of the UK landline business,  over 7 million broadband users in the UK (making it the largest) and is now taking on BSkyB for the rights to show more Premier League football.  It has already replaced ESPN as the ‘secondary’ Premier League broadcaster, and recently completed a £900m deal for the rights to show European Champions League and Europa league matches.  Beating BSkyB in the process, no less. 

So, what about its financials?  Well, BT currently trades on a P/E of 14.69, so perhaps could be considered relatively well priced at this moment in time.  With regards to dividends, its yield is currently just over 2.5%, so a little below the 3.5% FTSE 100 average.  However, over the past couple of years, its dividends per share has been on the increase, posting totals of 7.4p in 2011, 8.3p in 2012 and 9.5p in 2013. 

The main reason, however, as to why I would consider BT a great selection for your ISA is because of its growth potential. In its last quarter results (released in December last year), it posted a 2% gain in group revenue and an 8% rise in group profits.  Its EPS was up a fantastic 12%, too.  And that’s just in the short term:  BT’s long-term growth has been solid, too.  In fact, the share price is up over 440% since March 2009.  So, to apply a pound value to that, if you invested your entire £11,520 allocation in BT shares and saw similar growth, they may be worth over £50,500 in just five years’ time.

And when you remind yourself that that’s nearly £40k of tax-free profit, you’ll hopefully understand why this telecoms giant is firmly in my thoughts.

The post Why BT Group plc Is A Top ISA Buy appeared first on The Motley Fool UK.

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> Chris does not own shares in BT.

Firstly, I become physically unable to ever want any pancake-related item of foodstuff anywhere near my person for at least another year.

Secondly, my inbox becomes clogged with emails from numerous financial institutions reminding me that it’s ISA season again.  Large in number they may be,  but they raise a good point.  Stocks-and-shares ISAs should be a key part of any long-term investor’s armoury — they do provide tax-free returns after all!

One of the challenges with leaving it to (or as there’s still the best part of a month left – close to) the last minute before the 5 April deadline, is figuring out quickly what shares to buy into.  So, in order to help, let’s have a look at one stock that I think would be a stellar contender for a portion of your £11,520 allocation: SABMiller (LSE: SAB) (NASDAQOTH: SBMRY.US).

To start with, you cannot argue that SABMiller is a FTSE 100 stalwart.  It has operations in 75 countries across the world, and sells over 20 billion litres of lager per year.  It has a market cap of around £47bn, making it the second biggest brewer in the world after Anheuser Busch InBev, with household name brands such as Fosters, Miller, Grolsch and Peroni under its wing.  

So, what about its financials?  Well, SABMiller currently trades on a P/E of 13.29, so perhaps could be considered relatively well priced at this moment in time.  With regards to dividends, its yield is currently just under 2.4%, so well below the 3.5% FTSE 100 average.  However, over the past couple of years its dividends per share has been on the increase, posting totals of $81 in 2011, $91 in 2012 and $101 in 2013. 

The main reason, however, as to why I would consider SABMiller a great selection for your ISA is because of its growth potential. In its last half-year results (released in November last year), it posted a 5% rise in group profits.  Its basic EPS was up a solid 8%, too.

And that’s just in the short term. SABMillers’s long-term growth has been solid as well. In fact, the share price is up over 318% since March 2009.  So, to apply a pound value to that, if you invested your entire £11,520 allocation in SABMiller shares and saw similar growth, they would be worth over £36,600 in just five years’ time.

And when you remind yourself that that’s nearly £37k of tax-free profit, you’ll hopefully understand why this beverage giant is firmly in my thoughts. 

The post Why SABMiller plc Is A Top ISA Buy appeared first on The Motley Fool UK.

More reading

• How £100 can start a portfolio of UK stocks
• How £16,000 can generate a second income in a Stocks and Shares ISA
• This crazy growth stock is up 97% inside 2 months in my ISA!
• How to target a million-pound SIPP by investing in UK shares
• Buying £20k of BAE Systems shares could give me a £360 income this year!

> Chris does not own shares in SABMiller.