I didn’t appreciate the threat of a sector shake-up and what this could mean for earnings. I wasn’t alone, and sold my holdings in September 2023 as the CVS share price crashed.

I’m pleased I sold when I did, given the scale of the share price fall. At £14.28 per share today, CVS shares remain well below the £17.09 that I sold out at.

But the healthcare group has risen strongly in 2025, up 74% in the year to date. It’s risen an extra 2% today (15 October) after the Competition and Markets Authority (CMA) published provisional findings that were less damning than the industry had feared.

Can CVS shares continue climbing following the news? And should I consider re-adding this touted growth stock to my portfolio?

What has the CMA said?

The CMA launched its investigation over fears over pricing and transparency in the animalcare market.

To remedy a system it’s deemed “not fit for purpose“, the watchdog has proposed 21 provisional changes. These include requiring vets to publish comprehensive price lists, making it simpler for consumers to purchase medicines online, capping prescription prices, and requiring practices to state if they are part of a larger group.

Such changes would represent the largest overhaul of the industry to date. Yet they’re not as bad as the industry had feared, prompting CVS’s and Pets at Home‘s share prices to rise.

Analyst Charles Weston of RBC Capital notes that “there continues to be no enforced asset divestment, and a continued preference to focus on improved transparency in order to build a more competitive marketplace for veterinary pharmaceuticals, rather than any major focus on pricing controls“.

Is CVS a buy?

CVS itself said it welcomed “the additional certainty that this morning’s announcement brings“, noting that the 21 suggested reforms are seven below what was proposed in the spring.

Veterinary practitioners aren’t out of the woods just yet. The CMA’s final report isn’t due until March. However, substantial changes from what was touted today are highly unlikely.

So are CVS shares now a buy for growth investors? As the table shows, City brokers expect earnings to rise rapidly:

Forecasts are supported by signs the CMA will not impose price controls that crush margins. They also reflect the impressive progress CVS is making in Australia where rapid expansion is continuing.

That said, the firm faces signficant hurdles that may threaten these forecasts and weigh on its share price.

There is still some uncertainty over the watchdog’s final findings, which merits attention. CVS also faces sustained sales pressure in its core UK market as the cost-of-living crisis endures, and especially for its front-of-store products.

I’m also mindful of the firm’s growth prospects further out as labour costs steadily climb. And while the CMA’s recommendations could have been worse, it still potentially limits the company’s expansion opportunities at home.

Today’s news provides CVS with a welcome boost. But on balance, I’d still rather find other growth shares to buy.

The post Up 74%, can this soaring growth share keep rising after CMA news? appeared first on The Motley Fool UK.

CVS Group

What it does: CVS Group operates veterinary practices, veterinary diagnostic businesses, pet crematoria, and an online retail business

By Paul Summers. Holders of CVS Group (LSE: CVSG) are having a terrible time. As I type, shares in the veterinary services provider have almost halved in the last twelve months.  

This sell-off makes some sense. The Competition and Markets Authority (CMA) is currently looking at whether pet parents are being overcharged. If this turns out to be the conclusion of the final report, CVS could face caps on prescription fees or even worse.

But with shares now trading at under 11 times forecast FY25 earnings I’m questioning whether the stock is oversold. Interestingly, analysts at Berenberg Bank seem to think so. They slapped a price target of 2,370p on the stock in May. That’s more than double where it currently stands. 

Considering that the pet population keeps growing, I suspect this might become a great recovery play if the outcome of the CMA investigation isn’t quite as negative as feared. 

Paul Summers has no position in CVS Group.

Legal & General

What it does: Legal & General Group is a  financial services company selling insurance, pensions, annuities, investment funds and equity release plans to individuals and businesses in the UK and Europe.

By Harvey Jones. At first I was well chuffed with last year’s purchase of FTSE 100 insurer Legal & General Group (LSE: LGEN), thinking I’d grabbed a fabulous long-term buy and hold at a bargain price. When the share price climbed and the dividends started rolling in, I was happier still.

Then investors suddenly turned against it, and the shares are down 10% in three months. The L&G share price is down just 1.9% over one year but over three years the drop is almost 20%. It’s now trading at similar levels to a decade to go. I just don’t get it.

On 7 August, we learned first-half profits had climbed 1% percent to £849m. Okay, that’s hardly spectacular, but it did beat forecasts of £834m.

Investors get one of the highest yields on the FTSE 100, at 8.96%. Shareholder payouts look set to grow, too, with the board hiking interim dividends 5% last week.

I’m concerned that when interest rates are cut, this will hit annuity sales. However, the bulk annuity market offers an exciting new opportunity, and L&G is looking to spread it swings in the US. The sell-off has gone too far. When I have the cash, I’ll buy more before the shares recover. While I wait for the re-rating, I’ll admire my fabulous income stream.

Harvey Jones owns shares in Legal & General Group.

Prudential  

What it does: Prudential is a global financial services company offering insurance, investment management, and retirement solutions across Asia and Africa.  

By Ben McPoland. As I type, Prudential (LSE: PRU) stock is down around 36% in one year. This slide saw it recently hit a 12-year low!

Driving this sell-off has been the struggling economy in China, which was meant to represent a major growth opportunity for the FTSE 100 insurer. Instead, it is weighing heavily on investor sentiment and could hamper earnings growth in the near term.

While these concerns are legitimate, I think the selling has gone too far. The shares are dirt cheap, trading at just 8.4 times forecast earnings. And after the board hiked the dividend by 11% last year, there’s a 2.6% yield on offer. The payout this year is expected to grow by 7-9%.

Meanwhile, the company is in the process of buying back $2bn worth of its own shares. Executives and directors have also been buying shares recently, which is clearly a positive sign. The combination of a rising dividend and share repurchases signals capital strength to me.

Long term, I still believe the growth markets of Asia will support rising profits and dividends. I recently invested.

Ben McPoland owns shares in Prudential.

Schroders

What it does: Schroders is an asset management firm with over £750bn in assets under management. It operates in 38 countries.

By Charlie Keough. Many investors have been offloading their shares in asset manager Schroders (LSE: SDR) recently. The stock is down 21.1% in 2024 and 22.8% in the last 12 months.

That’s likely due to the choppy market conditions we’ve endured during that time. And while I’m expecting these to continue in the coming months, which is a risk to the Schroders share price, I think, for long-term investors, the stock could be one to consider buying.

We’ve now seen our first interest rate cut. In the years to come, we’ll see rates continue to come down. That should help Schroders as it’ll boost market sentiment. What’s more, I like Schroders for its strong brand recognition and large customer base.

Its shares also look decent value right now. They trade on 13.8 times earnings and 11.5 times forward earnings. Along with that, the stock has a chunky dividend yield of 6.4%, comfortably above the FTSE 100 average.

Charlie Keough does not own shares in Schroders.

The post 4 FTSE stocks Fools think are massively oversold appeared first on The Motley Fool UK.

As the operator of vet practices, diagnostic centres, an online retail business, and even pet crematoria, CVS was riding the coattails of a secular boom in all things pet-related.

Then in September the UK’s antitrust watchdog came along and, like a muddy Labrador jumping into a pristine pool, severely clouded the waters for CVS shareholders.

Specifically, the Competition and Markets Authority (CMA) announced it would look into the fees charged for veterinary services. “There has been a lot of consolidation in the vet industry in recent years, so now is the right time to take a look at how the market is working,” it said in a statement.

Indeed, there has been consolidation, and CVS has been behind a lot of it, snapping up numerous smaller vet practices. Unsurprisingly, investors took fright and the stock is down 48% since this announcement.

Now though, analysts at Berenberg Bank think the selling is overdone. On 21 May, the broker reiterated a 2,370p share price target. That’s 120% higher than the current price of 1,074p!

So, should I squirrel away some shares? Let’s take a look.

Tightening the leash on the vet sector

On 23 May, it was announced that the CMA will launch a full investigation into the UK’s £5bn vet market. This probe is expected to take around 18 months.

The watchdog said: “We have heard from people who are struggling to pay vet bills, potentially overpaying for medicines and don’t always know the best treatment options available to them.”

Of course, the big risk here is that this could affect CVS’s market position and growth potential. It could be made to cap prescription fees. In the worst-case scenario, it may be forced to divest certain assets.

Interestingly though, the share price rose 3% in response to this news. This suggests that most of the bad news might already be priced in to the stock.

Some things I like

From an investing perspective, there are three things that I like here.

First, a whopping 16m households across the UK have a pet. And owners will spend on their furry companions regardless of whether the economy is going to the dogs or not. It’s a resilient market.

Second, the company has been growing its profits rapidly, from £10.7m in 2018 to a forecast £67m in fiscal 2024 (which ends in June).

Finally, as things stand, CVS is trading at an attractive valuation. It has a forward price-to-earnings (P/E) ratio of just 11.5.

That’s a massive discount to its historical average and lower than rival Pets at Home (13.7).

Time to pounce?

I’m torn on whether this is a timely opportunity or one to avoid.

A couple of years from now, once the investigation is over, the stock might have doubled. Then again, the outcome might not be favourable.

In the meantime, there’s that 18-month wait, during which time the stock could drift lower.

Still, I’m hearing Warren Buffett’s timeless words in my head: “Be fearful when others are greedy and greedy when others are fearful.”

There’s an awful lot of fear around the stock today, so it’s on my watchlist while I weigh up what to do.

The post This unloved UK stock could rise 120%, according to a City broker appeared first on The Motley Fool UK.

BP

What it does: BP is a global oil and gas company. It’s one of the largest companies in the world measured by revenues.

By Charlie Keough. The BP (LSE: BP.) share price has been gaining momentum in 2024. As I write, it’s up 7.2% year to date.

As such, I decided to increase my holdings in the Footsie powerhouse. The stock looks cheap, trading on around seven times trailing earnings. To go alongside that, it boasts a 4.5% dividend yield. That’s above the FTSE 100 average of 3.9%.

The largest risk to the business is the transition to a greener future. We’ve seen mounting pressure placed on firms such as BP in recent years.

However, I’m confident it’ll be some time before we see fossil fuels completely phased out. It has been widely touted that the target for reaching net zero is 2050. But that’s now being questioned. What’s more, BP has a strong energy transition strategy in place.

At its current price, I couldn’t resist. If I have any spare cash going forward, I may look to pick up some more shares.

Charlie Keough owns shares in BP.

GigaCloud Technology

What it does:  GigaCloud’s platform connects furniture factories in Asia with resellers in Western Europe and North America.

By James Fox. GigaCloud Technology (NASDAQ:GCT) has created a niche for itself, connecting ‘large parcel retailers’ – furniture makers – typically in China, with resellers and consumers in higher wealth markets. As such, the name is slightly misleading, and having followed analysis of this stock closely in recent months, it’s putting some investors off. 

Nonetheless, the business looks highly attractive. It’s trading at 14.1 times forward earnings and 11.7 times earnings for 2025. GigaCloud is a business in overdrive, with revenue increasing 94.8% over the past 12 months. Management recently guided towards another strong quarter, with revenue above estimates. 

There is some concern about the impact of Red Sea disruption on the business. However, management has suggested that Asia-Europe is a much smaller part of its business compared to Asia-North America. There was no mention of the Panama drought. 

All in all, I find this highly volatile stock an attractive long-term pick, with considerable potential for share price growth. 

James Fox owns shares in GigaCloud Technology.

Hunting

What it does: Hunting produces specialised equipment used for oil and gas drilling and related activities.

By Roland Head. I added Hunting (LSE: HTG) to my portfolio in early March, after the company published a strong set of 2023 results and confirmed a positive outlook for 2024.

Hunting suffered during the pandemic period due to a slowdown in drilling activity. This highlighted the company’s main weakness – it’s heavily cyclical and dependent on the spending plans of its energy producer customers.

However, demand recovered strongly last year, with revenue up 28% to $929m and pre-tax profit of $50m, reversing a 2022 loss. The company’s balance sheet remained in good health, in my view, with modest net debt of $33m and an overall net asset value of $957m.

This net asset figure is equivalent to a book value of around 455p per share, substantially above Hunting’s recent share price of 320p. I think there’s value here – also highlighted by the stock’s 2024 forecast price-to-earnings ratio of 10 and dividend yield of 2.8%.

Roland Head owns shares in Hunting.

Imperial Brands

What it does: Manufacturers and markets tobacco and tobacco-related products to customers in the UK and abroad.

By Mark David Hartley. With headquarters in London and Bristol, Imperial Brands (LSE:IMB) is one of the largest multinational tobacco producers in the world. I decided to buy shares in the company for two reasons – a buyback program and a high 8.5% dividend yield.

The controversial nature of the tobacco industry threatens valuations, leading firms to initiate incentives such as buybacks and increased dividends. The trade-off is a subdued share price in exchange for more profitable dividend returns.

Imperial’s most recent earnings reported an impressive £3.4bn in operating profit, representing an increase of 26% from the previous year. Subsequently, analysts forecast an average 16% price rise in the coming 12 months.

However, despite strong financials, shares are down 5.5% this year. The weakened performance has prompted IMB to initiate a £1.1bn buyback program, half of which is already done with the second half to be completed by the end of October.

Mark David Hartley owns shares in Imperial Brands.

Kraft Heinz

What it does: Kraft Heinz is a packaged foods company. Around 33% of the company’s revenues come from condiments and sauces.

By Stephen Wright. I started buying shares in Kraft Heinz (NASDAQ:KHC) for a while now. When I started, I had a specific investment thesis.

While I wasn’t expecting huge revenue increases from the company, I thought an improving balance sheet would allow it to return more money to shareholders over time. And that’s been happening.

After bringing its debt down over the last few years, the firm has now reached a point where its leverage is under control. As a result, it has begun a share buyback programme.

The market doesn’t seem too impressed – the stock hasn’t responded particularly positively. But with my initial thesis seemingly playing out, I’ve been adding to my investment.

Results from the fourth quarter of 2023 were hampered by inflation and this is a risk going forward. In my view, though, the stock looks like a bargain at today’s prices.

Stephen Wright owns shares in Kraft Heinz.

Legal & General Group

What it does: Legal & General Group is one of Europe’s largest investment managers and financial services companies.

By Royston Wild. Back in March, I bought shares in financial services colossus Legal & General Group (LSE:LGEN) for the second straight month.

I had cash to invest after selling out of veterinary care provider CVS Group on rising regulatory threats. And Legal & General shares still looked attractively priced despite recent price gains.

Today the company still looks dirt cheap. It trades on a forward price-to-earnings (P/E) ratio of 9.2 times. Furthermore, its dividend yield stands at a brilliant 8.8% dividend yield.

I was especially attracted to the company on account of its dividend prospects. Its forward yield is currently far ahead of its ten-year average of 6.9%. This reading also comfortably beats the 3.8% average for Footsie shares.

This dividend yield is also well supported by Legal & General’s cash-rich balance sheet. The company’s Solvency II capital ratio stood at an enormous 224% as of December.

These formidable financial resources could give it scope to pay above-average dividends for years to come, as well as the means to invest for future growth.

Royston Wild owns shares in Legal & General Group.

The post 6 stocks that Fools have been buying! appeared first on The Motley Fool UK.

Experian

You may think of Experian as one of the largest credit score checking services, which is correct. However, there’s much more to the business and this is where the growth potential really excites me.

The shares are up 13% over a 12-month period, climbing from 2,825p at this time last year, to current levels of 3,235p.

In the digital world we live in, data is arguably one of the most coveted commodities and Experian has access to bucket loads of it! Credit scoring is already a great tool it offers and has helped the firm grow massively. With the AI revolution ramping up, the firm potentially has endless products and services it could provide with the data it possesses, which could boost share price, performance, and payouts.

To date, Experian’s excellent market share and growth has helped it perform well and record excellent organic growth. Plus, at present, there’s a dividend yield of 1.3% on offer. This isn’t the highest but could grow, in line with the business. However, dividends are never guaranteed.

From a bearish perspective, Experian shares trade for a premium on a price-to-earnings ratio of 30. Any bad news could send the shares tumbling. Conversely, I’m of the belief that sometimes you must pay a premium for quality companies. Furthermore, a bigger worry is the firm’s debt levels, standing close to £3.5bn. Paying down debt during times of higher interest can be costlier, and could take priority over growth aspirations.

So yes, I could wait for the shares to dip, but I don’t think they will. Barring a major issue, the only way is up for Experian shares, in my opinion.

CVS Group

CVS is a veterinary service provider to help us look after our pets. The business is split into four divisions, veterinary practices, laboratories, crematoria, and online retail.

The shares are down 16% over a 12-month period, from 1,918p at this point last year, to 1,685p as I write.

CVS’s growth potential is sky high, if you ask me. Firstly, pet ownership has never been higher than now, at least in the UK. Our pets need the same love, attention, and amenities that we do! That leads me nicely onto my next point, which is CVS’s multi faceted offering. This ranges from general healthcare, unfortunate but essential funeral services, as well as retail for owners to buy essentials and spoil their pets!

The company’s organic and acquisition-led journey has been impressive to date. However, the latter is something I do consider risky. When acquisitions don’t work out, they can be costly financially, as well as have lasting damage to investor sentiment and potentially returns too.

Its half year update released yesterday was positive. For the six months ended 31 December 2023, four new acquisitions were completed in Australia as the company broadened its footprint. Revenue and like-for-like sales increased by 11% and 6%. Furthermore, membership numbers increased too.

CVS looks well positioned to benefit from rising pet ownership numbers and there’s no telling where the shares could go, especially when volatility dissipates.

The post 2 exciting growth stocks that could fly high! appeared first on The Motley Fool UK.

Unfortunately, this impressive display came to a screeching halt the following year, with shares dropping 30% in September 2023. Despite what the downward trajectory would suggest, the business appears to be thriving, with the group’s latest results showing a massive 50% jump in pre-tax profits!

What’s going on? And is this one of the best growth stocks to buy now? Let’s take a look.

The power of a monopoly

Throughout the British economy, there are certain sectors dominated by a handful of businesses. And one of those is the pet care industry. As a leading provider of veterinary services, CVS can be easily described as being a near-monopoly.

The firm continues to make acquisitions of small independent practices to expand its network. And these efforts are clearly reflected in the financial results. In the 12 months leading to June 2023, the company bolstered sales by 9.8% to £608.3m. But its bottom line expanded by a whopping 63%, from £25.7m to £41.9m.

It seems the group is successfully capitalising on the rise of pet ownership following the 2020 pandemic. And with demand for pet care largely being unaffected by economic turbulence, this business hasn’t exactly felt the pain from inflation since it can just pass the costs onto customers.

The rising level of debt from continuous acquisitions does provide some cause for concern. However, the balance sheet is far from overleveraged. So why did the stock plummet last year? And why hasn’t it recovered since?

The end of the gravy train?

It seems that investor concerns surrounding CVS Group have less to do with the company and more to do with regulators. The continuous acquisitions of smaller veterinary practices haven’t gone unnoticed. In 2013, around 89% of the market was controlled by independent vets. As of 2021, this number has dropped to 45%, and the downward trend continues with each purchase made by CVS.

As a result, this activity has caught the attention of the Competition and Markets Authority (CMA). The CMA has launched a formal review into the sudden price hikes within the veterinary sector to determine whether companies like CVS are taking advantage of their monopoly-like status.

If this is proven to be the case, regulatory intervention may follow, potentially creating significant problems for this business. It could put an end to the group’s acquisition activities, causing growth to slump. In extreme cases, CVS may end up getting broken up. Either outcome is bad news for shareholders.

Despite this, the CMA continues to approve new acquisition proposals from CVS Group even after the launch of its review. As such, it’s possible investors may have overreacted, creating a potential window of opportunity for those happy to take on some risk.

The post UK stock investing: 1 of the top growth stocks to buy now? appeared first on The Motley Fool UK.

While I could be wrong, I think this looks to be the case with a few UK shares today.

Down… but not out

Relative to earnings, shares in property portal Rightmove (LSE: RMV) haven’t been this cheap for a while. Considering this company consistently boasts some of the largest profit margins in the entire UK stock market, that feels like an opportunity.

This isn’t to say that the current valuation is wrong. Right now, the business must contend with a sluggish housing market brought about by last year’s multiple interest rate hikes.

However, we seem to be through the worst. With inflation continuing to cool, many analysts are predicting the Bank of England will begin cutting rates this year.

Sure, the stock could remain volatile if cuts don’t come fast enough or they aren’t as significant as first hoped.

But I reckon the long-term investment case remains strong considering the UK’s obsession with property, the ongoing shortage of it and Rightmove’s dominant position.

Patience required

Another FTSE stock trading at a big discount relative to its average valuation over the years is financial services provider Hargreaves Lansdown (LSE: HL).

Again, I don’t think we should be surprised. With the cost-of-living crisis still with us, people will be less inclined or able to invest.

More recently, there has been concern that profits could be impacted by another issue. Firms in the sector have been warned by the Financial Conduct Authority (FCA) against charging customers for holding cash and then retaining some of the interest they earn on it.

When it rains, it pours.

On an optimistic note, I suspect a lot of this is priced in. The rise in the number of people recognising the need to take control of their financial futures should also mean Hargreaves’ total addressable market will continue growing. For now, the cashed-up FTSE 250 member remains the biggest player in what it does.

There’s even a chunky 6.2% dividend yield in the offing for those prepared to wait.

Storm in a teacup?

CVS Group (LSE: CVSG) looks cheap compared to its average valuation over time as well.

Then again, the Competition and Markets Authority’s (CMA) ongoing probe into the British veterinary services industry goes some way to explain this.

There’s a chance that the CMA’s report will confirm that prices are already sufficiently transparent. Should this happen, I reckon the shares will rocket.

Probe aside, the outlook for CVS looks positive to me. Thanks in part to the pandemic, we know that pet ownership has jumped in the UK in recent years. Spending on our furry (and not-to-furry) friends is also far less discretionary than it once was.

But there’s always a risk things won’t turn out well.

If I had the cash, I’d be tempted to take a position here. But I’d check that my portfolio wasn’t already exposed to the pet industry via other holdings.

This should help to cushion the blow if this stock isn’t quite the ‘bargain’ I think it might be.

The post A once-in-a-decade chance to buy these brilliant FTSE stocks at bargain prices? appeared first on The Motley Fool UK.

Let’s find out why these five Fools parted ways with some of their investments.

Concurrent Technologies

What it does: Concurrent produces computer boards and other embedded systems for use in critical applications such as military equipment.

By Roland Head. I bought shares in Concurrent Technologies (LSE: CNC) for my ISA in 2021 and 2022. I expected to hold them for years, but I sold my entire holding a few weeks ago.

Why? Although the company appears to be trading well, I think the story has changed since I invested.

When I bought the shares, Concurrent had a committed dividend policy and a cautious approach to growth.

Admittedly, the company was probably a bit sleepy. But I felt that newly arrived chief executive Miles Adcock was likely to fix these problems and improve performance.

What’s actually happened is that Dr Adcock has taken a more aggressive approach to growth than I expected.  The dividend has been cut drastically to free up cash, and the company is expanding through acquisitions as well as organically.

I think this strategy may be successful, but it’s not what I signed up for. That’s why I sold these UK shares.

Roland Head does not own shares in Concurrent Technologies.

CVS Group 

What it does: CVS Group operates around 500 veterinary surgeries across the UK, Ireland, Australia, the Netherlands. 

By Royston Wild. The animal care market is booming as pet ownership steadily increases. It’s why I’ve been buying shares in UK-listed CVS Group (LSE:CVSG) in recent years. 

However, I slashed my holdings in the company in early September and removed my ‘buy’ rating on the stock. This follows the Competition and Markets Authority’s (CMA) decision to probe the British veterinary services industry. CVS generates the lion’s share of profits from these shores. 

The watchdog will look at issues like price transparency and whether practices adequately state if they are part of a wider group. In short, the probe could have large implications for CVS Group, a company which has steadily grown earnings through acquisitions.

It’s also possible that the CMA’s report due in 2024 could have little impact on the Alternative Investment Market (AIM) company’s investment case. Still, buying its shares at this moment requires a huge leap of faith from investors. I think there are safer ways to try and capitalise on the growing petcare market.

Royston Wild owns shares in CVS Group.

Rolls-Royce 

What it does: Rolls-Royce is a British engineering giant focusing on civil aviation, power systems, and defence. 

By Dr James Fox. I recently sold my shares in UK behemoth Rolls-Royce (LSE:RR.) as it was becoming clear to me that there were clearer value picks elsewhere on the FTSE 100. 

But it wasn’t an easy decision. Rolls-Royce still looks like an attractive proposition when observing long-term forecasts, especially in civil aviation. 

OEMs Boeing and Airbus see as many as 40,000 new aircraft being added to the global fleet internationally by 2042. 

This represents a huge market for Rolls, assuming it can expand its offer for narrow-body aircraft – traditionally the company’s engines are used on wide-body craft. 

However, there is something speculative about the recent surge. There remains plenty of unknowns as the company recovers from the impact of the pandemic, and some risks, including the impact of a global economic downturn on travel demand. 

My weighted buying price for the stock was around 95p. So Rolls was good for me, but I believe the momentum is slowing. 

James Fox does not own shares in Rolls-Royce.

Tritax Big Box REIT

What it does: Tritax Big Box REIT is a real estate investment trust that owns a portfolio of logistics warehouses.

By Edward Sheldon, CFA. Recently, I sold my holding in Tritax Big Box REIT (LSE: BBOX). I ended up selling the stock for around the same price as I bought it for. However, after dividends are factored in, I came away with positive returns.

Why did I sell? Well, the main reason was that I wanted to free up some cash to take advantage of other opportunities.

I still like Tritax Big Box a lot. It offers an attractive dividend yield, and in the long run, it should benefit from the growth of online shopping.

However, with interest rates now at a much higher level than they were a few years ago (when I bought the stock), the medium-term outlook for the property company has become a little more clouded, in my view.

As for where I reinvested the proceeds of my sale, I put the capital into Hargreaves Lansdown shares.

Compared to Tritax Big Box shares, they were trading at a lower valuation, with roughly the same dividend yield. And higher interest rates are a plus for Hargreaves, as they are creating more interest in the company’s Active Savings products.  

Edward Sheldon owns shares in Hargreaves Lansdown

Yellow Cake

What it does: Yellow Cake is a fund that gives investors exposure to uranium oxide, a key component in nuclear energy.

By Mark Tovey. When I invested in Yellow Cake (LSE:YCA) in early 2022, I had expected to hold for five years.

I was bullish on the uranium price because of figures suggesting a looming supply squeeze. The roughly 440 nuclear reactors globally gobble up more uranium than is extracted by mines each year. At the same time, there are over 50 new reactors under construction worldwide.

My thesis was simple: the price of uranium would have to rise to bring more miners online.

Yellow Cake’s stock price started 2022 at 340p and peaked at 560p this year.

While many uranium bulls believe this is just the beginning of an epic moonshot, I’m not convinced. The uranium spot price has already hit my target of $75 per pound, a figure I’d seen reported as being sufficient to bring on enough supply to meet the growing demand.

Uranium prices could still rise due to slow supply growth, but having met my price target, I opted to exit.

Mark Tovey does not own shares in Yellow Cake.

The post 5 UK shares that Fools have recently sold appeared first on The Motley Fool UK.

CVS Group

What it does: CVS Group runs veterinary practices, diagnostic businesses, pet crematoria, and an online retail business 

By Paul Summers: My decision not to buy shares in veterinary services provider CVS Group (LSE: CVSG) a few years back still remains a big regret.

In 2019, I had an opportunity to snap up the stock at a bargain price. Investors were jumping ship as the firm struggled to recruit suitably qualified staff in a post-Brexit jobs market. As a result, salaries were hiked to get the best talent, impacting the bottom line.

Since then, the stock has multi-bagged.

But it’s not just about the missed gains. My annoyance is down to not trusting my instincts that these headwinds were temporary. I’ve learned that most businesses related to pet ownership tend to be fairly resilient. 

The problem is that this now looks priced in. A forecast P/E of 22 for FY24 isn’t cheap. The dividend yield is also so low that it won’t really compensate for any share price falls from here.

Paul Summers has no position in CVS Group.

easyJet

What it does: easyJet is a low-cost airline operator that flies mostly short-haul services into Europe.

By Jon Smith. I remember looking at easyJet (LSE:EZJ) shares during the holiday season at the end of 2022 around 350p. I had a hunch that the airline sector could do well in 2023, with continued pent-up demand from consumers. The recovery had been stalling due to spiking jet fuel prices and the general cost-of-living crisis. 

easyJet shares are up 30% from that December period, as a positive trading statement in January identified that it was expecting to beat full-year profit expectations. Further, the May trading update confirmed this summer it expects to be back at pre-pandemic levels of capacity. 

There are still risks associated with the business. Fundamentally, it’s still posting losses before tax in the hundreds of millions of pounds, which isn’t sustainable. Yet I feel the tide has turned and wish I had bought the shares last year for my portfolio.

Jon Smith does not own shares in easyJet

Greggs

What it does: Greggs is a popular UK-based food-on-the-go bakery chain that has over 2,000 stores across the country.

fool_stock_chart ticker=[LSE:GRG]

By Matthew Dumigan. One stock I wish I’d been brave enough to buy midway through last year is Greggs (LSE:GRG). At its lowest point in 2022, the food retailer’s shares traded at 1,712p. Today, they’re up by over 60%.

At the time, I failed to appreciate that despite inflation taking a toll on its profits, the company remained in a solid position looking ahead.

For example, one of the company’s key strengths is that it’s a low-budget option, which was always likely to result in greater resilience in trading than many might have otherwise expected during a cost-of-living crisis.

That said, there are plenty of uncertainties ahead for Greggs. For example, an even sharper economic slump would certainly cause some pain if a shop-bought lunch turns into a luxury that people are willing to forego.

Ultimately, while I certainly wouldn’t rule out even more upside over the long term, I think the strong share performance in recent months means growth prospects are beginning to look priced in.

Matthew Dumigan does not own shares in Greggs.

Judges Scientific

What it does: Judges Scientific owns a variety of small and medium-sized specialist instrument makers

By Christopher Ruane. Over the past few years, I have repeatedly looked at the share price of Judges Scientific (LSE: JDG) and decided that it was overvalued. Currently, it trades on a price-to-earnings ratio of 50.

Despite my valuation concerns, the shares are up 22% in the past year alone. Over five years, they have more than tripled.

Judges has a Buffett-like business model. A central office allocates capital and expertise to a range of operating companies that are then largely left to do their own thing. Scientific instruments require precision, so quality matters. That gives Judges pricing power. Its disciplined valuation approach when acquiring businesses has helped it grow quickly but profitably.

The valuation still puts me off. Risks include a recession hurting customers’ budgets, leading to lower sales for Judges.

Over the long term, though, Judges has created enormous shareholder value. I wish I had bought in early on!

Christopher Ruane does not own shares in Judges Scientific.

National Grid

What it does: National Grid owns and operates the electricity grid in the UK. It also distributes gas in parts of the USA.

By James Beard. Nearly five years ago I didn’t buy shares in National Grid (LSE:NG.). I thought there were more exciting opportunities elsewhere.

I now regret this.

Others have performed better, but I should’ve included the stock in my ISA and forgotten about it. Because it has guaranteed revenues with no competitors, its share price tends to be less volatile. It has a beta value of 0.29, which means if the wider stock market loses 10%, it’ll fall (on average) by less than 3%.

Stocks with these defensive properties are missing from my portfolio.

I’d have also received some steadily increasing dividends — up 17% since 2019.

However, due to changes in UK tax laws, earnings per share are likely to be around 10% lower this year. And its monopoly status means it’s a regulated business, making it vulnerable to changes in government policy.

But I’ve learned that slow and steady sometimes wins the race.

James Beard does not own shares in National Grid.

The post 5 shares that Fools wish they’d bought appeared first on The Motley Fool UK.

One stock I like the look of currently is CVS Group (LSE: CVSG). I believe it could be set for major growth and could boost my holdings. Here’s why.

UK shares fall but CVS Group rallies

CVS Group is a veterinary service provider with four core business divisions. These are veterinary practices, laboratories, crematoria, and its online retail business.

Despite many UK shares falling in recent months, CVS shares are actually on an upward trend when reviewing the 12-month share price activity. As I write, the shares are trading for 2,047p. A year ago, they were trading for 1,725p, which is an 18% increase.

Why I like CVS Group and risks to consider

One of the biggest bullish aspects of CVS is the fact that the pet care and veterinary market, especially in the UK, is a growing one. In fact, pet adoption in the UK is at the highest levels it has been for some time.

With this in mind, people need businesses like CVS to help care for their pets. This includes essential healthcare, as well as non-essential products and goods too. I believe there is great scope for growth here for CVS Group.

Next, CVS Group has an excellent track record of performance which shows growth and progress in recent years. I can see that revenue and profit have increased year on year for the past four years. However, I am aware that past performance is not a guarantee of the future.

Looking at returns, CVS Group does pay a small dividend at present with a modest dividend yield of 0.5%. I expect this could grow as earnings potentially grow too. I do understand that dividends are not guaranteed and can be cancelled by the business at any time, which applies to all UK shares.

Finally, looking at CVS Group’s recent growth aspirations, it has an eye on expansion into fragmented European markets. The business also has a propensity for smart acquisitions that would further boost the business.

From a bearish perspective, CVS’ bread and butter is its veterinary business, with approximately 500 practices in total. There is a severe shortage of doctors and nurses and this could impact its growth aspirations negatively.

Furthermore, although CVS Group has experienced great results due to its veterinary services, some of its other divisions, such as its retail business, may suffer in the short-term due to the cost-of-living crisis. Consumers may have less cash to spend on non-essential pet care items.

What I’m doing now

To summarise, I believe CVS Group is one of a number of excellent UK shares on the market today that could boost my holdings. I would be willing to buy some shares if I had the spare cash to do so.

I believe the pet care market is set for huge growth and CVS Group is in a great position to capitalise on this trend. Another stock I’m buying in the same industry, albeit with a different modus operandi is Pets At Home Group.

The post UK shares could be set to soar! Here’s one I like for major growth appeared first on The Motley Fool UK.