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        <title>Halfords Group plc (LSE:HFD) Share Price, History, &amp; News | The Motley Fool UK</title>
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	<title>Halfords Group plc (LSE:HFD) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-hfd/</link>
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                                <title>2 British income shares to consider before the Christmas boom</title>
                <link>https://www.fool.co.uk/2025/12/09/2-british-income-shares-to-consider-before-the-christmas-boom/</link>
                                <pubDate>Tue, 09 Dec 2025 07:37:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1614377</guid>
                                    <description><![CDATA[<p>Our writer scoured historical market data to uncover which income shares typically do well in the run up to Christmas. Has he found two winners?</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/09/2-british-income-shares-to-consider-before-the-christmas-boom/">2 British income shares to consider before the Christmas boom</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>While everybody else is busy packing gifts under the Christmas tree, savvy investors are also watching retail stock profits soar. In the hope of boosting my dividends in 2026, I&#8217;ve identified two British income shares that typically benefit from the holiday spending spree.</p>



<p>Let&#8217;s see if this year will deliver the same fortunes for these retail giants.</p>



<h2 class="wp-block-heading" id="h-sainsbury-s">Sainsbury&#8217;s</h2>



<p>Time and time again, <strong>Sainsbury&#8217;s</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-sbry/">LSE: SBRY</a>) wins grocery market share over the festive season, with shoppers trusting it to deliver top quality goods. I&#8217;ll admit, I&#8217;m a <strong>Tesco</strong> loyalist, but I can&#8217;t deny that Sainsbury&#8217;s has the upper hand when it comes to Christmas products.</p>



<p>According to results, last Christmas saw a 16% sales rise in its <em>Taste the Difference</em> products, while festive food sales soared nearly 40%. In the run up to the big day, the retail giant was selling over 200 bottles of bubbly every minute &#8212; testament to its festive season dominance.</p>



<p>For income investors, the attraction&#8217;s clear: a 4.5% <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">dividend yield</a> backed by a decades-long track record of payouts and a share price up 46.4% in five years.</p>



<p>With UK food spending forecast to reach £38bn this season, Sainsbury&#8217;s position as the market leader ensures it captures a disproportionate share of this spending.</p>



<p>But investors still need to consider long-term risks. Competition in the retail sector is fierce, with inflation nudging consumers toward lower-cost rivals like Asda and Lidl. With already razor-thin margins, Sainsbury&#8217;s could face a dividend cut if profits dip or debt payments take priority.</p>



<h2 class="wp-block-heading" id="h-halfords">Halfords</h2>



<p>While Sainsbury&#8217;s sorts out the festive spread, <strong>Halfords</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE: HFD</a>) dominates a different but equally important role: gifts. As the UK&#8217;s leading cycling and auto spares retailer, it benefits from one simple but powerful truth &#8212; bicycles remain one of the nation&#8217;s most popular Christmas presents.</p>



<p>Adding to this, the company has strategically positioned itself to capture demand across motoring accessories, tools and tech gadgets &#8212; categories expected to see strong growth this season.</p>



<p>For income investors, the 6.3% dividend yield makes it one of the <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-the-ftse-250/" target="_blank" rel="noreferrer noopener">FTSE 250</a>&#8216;s more generous stocks to consider. Recent interim results for the 26 weeks to 26 September, show a 4.1% increase in like-for-like sales, driven by strong performance in the Cycling and Autocentres segments. The company declared an interim dividend of 3p per share and increased its net cash to £18.6m.&nbsp;</p>



<p>With a favourable returns policy and generous delivery options available, Halfords is well-positioned for a strong festive quarter.&nbsp;</p>



<p>Cost inflation remains a key risk though, adding around £120m to the cost base in three years. A 43% price decline since the pandemic reflects this, and if stubborn inflation continues to limit consumer spending, it could fall further.</p>



<h2 class="wp-block-heading" id="h-a-long-term-outlook">A long-term outlook</h2>



<p>At <em>The Motley Fool</em>, we encourage a long-term outlook rather than catching cyclical dips. Critically, past performance doesn&#8217;t guarantee future returns – particularly in the current economic climate. Consumer spending remains cautious and UK retail volumes are forecast to decline 0.3% even as values rise.</p>



<p>Still, for UK income investors keen on retail exposure, now may be a good time to consider Halfords and Sainsbury&#8217;s. Together, they could give a portfolio a much-needed boost heading into 2026. But don’t stop there: similar Christmas-friendly stocks to consider include <strong>Marks &amp; Spencer,</strong> <strong>Next</strong> and <strong>Games Workshop</strong>.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/09/2-british-income-shares-to-consider-before-the-christmas-boom/">2 British income shares to consider before the Christmas boom</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 FTSE 250 stocks with new CEOs who could spark a big change</title>
                <link>https://www.fool.co.uk/2025/08/28/2-ftse-250-stocks-with-new-ceos-who-could-spark-a-big-change/</link>
                                <pubDate>Thu, 28 Aug 2025 09:55:18 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1567008</guid>
                                    <description><![CDATA[<p>Jon Smith points out a couple of FTSE 250 shares that have taken on new leaders this year that could help to improve profitability in the near future.</p>
<p>The post <a href="https://www.fool.co.uk/2025/08/28/2-ftse-250-stocks-with-new-ceos-who-could-spark-a-big-change/">2 FTSE 250 stocks with new CEOs who could spark a big change</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Any change at the top of a business is a big deal. When the company is a <strong>FTSE 250</strong> constituent with a significant <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/what-is-market-cap/" target="_blank" rel="noreferrer noopener">market-cap</a>, it&#8217;s even more important. A new CEO can signal a change in direction that could help the stock outperform in the coming years. Here are two companies that could slot in this category.</p>



<h2 class="wp-block-heading" id="h-looking-to-the-future">Looking to the future</h2>



<p>First up is <strong>Future</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-futr/">LSE:FUTR</a>), a specialist media company operating a global platform of over 200 brands across content verticals. The group delivers content via websites, email newsletters, magazines, and live events. It mainly makes money from selling advertising space, subscriptions and via affiliate partners.</p>



<p>Over the past year, the stock is down 27%. Some of the reasons for the move lower are macroeconomic headwinds, advertising softness, and competitive pressures from larger US media peers.</p>



<p>The underperformance is one reason why Kevin Li Ying officially assumed the role of CEO at the beginning of April this year. A 20-year veteran of Future, he has served as the executive vice president of the company’s business-to-consumer division before getting the promotion.</p>



<p>The move could help to spark a turnaround for Future and the stock price. He&#8217;s helping to push the growth acceleration strategy, which revolves around focusing on growing audience engagement, optimising the brand portfolio, and boosting revenue per user. Further, he&#8217;s pushing investment in US digital advertising and the use of AI. This could help to win back market share in the region.</p>



<p>It&#8217;s still too early to tell whether the new CEO will make a big difference, but the early signs are positive from my view.</p>


<div class="tmf-chart-multipleseries" data-title="Future Plc + Halfords Group Plc Price" data-tickers="LSE:FUTR LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-a-new-lick-of-paint">A new lick of paint</h2>



<p>Another company with a new CEO is <strong>Halfords</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE:HFD</a>). Henry Birch took over in April, bringing turnaround experience from his previous posts.</p>



<p>The stock might be up 1% in the last year. However, his experience is needed, given that Halfords is still trying to break out from a traditional cycling and motoring retailer into a much broader services provider. I think the strategy makes sense, as it provides a more diversified revenue source for the company in the future. At the same time, <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/" target="_blank" rel="noreferrer noopener">the latest results</a> show that motoring services now account for 80% of the company&#8217;s sales!</p>



<p>Based on recent comments, Birch is expected to drive further growth by enhancing Halfords&#8217; digital capabilities. This should allow it to scale faster but in a more efficient way. Further, he&#8217;s looking to expand its service offerings even more. I think this is smart, but it needs to be careful that the business doesn&#8217;t go to the other extreme in offering everything and not really specialising in anything.</p>



<p>One risk from now on is higher labour costs, fuelled by higher inflation. The company has already warned about experiencing higher costs in this area. With a large workforce, rising UK inflation could pose a challenge for Birch as he aims to boost profits in the coming year.</p>



<p>Overall, I think both FTSE 250 stocks are worth investors considering.</p>
<p>The post <a href="https://www.fool.co.uk/2025/08/28/2-ftse-250-stocks-with-new-ceos-who-could-spark-a-big-change/">2 FTSE 250 stocks with new CEOs who could spark a big change</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Halfords shares are 32% cheaper than a year ago. Time to buy?</title>
                <link>https://www.fool.co.uk/2024/06/27/halfords-shares-are-32-cheaper-than-a-year-ago-time-to-buy/</link>
                                <pubDate>Thu, 27 Jun 2024 12:10:52 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Charticle]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1326149</guid>
                                    <description><![CDATA[<p>Halfords shares trade on a relatively cheap looking valuation and pay dividends. Our writer pores over the latest results considering whether to invest.</p>
<p>The post <a href="https://www.fool.co.uk/2024/06/27/halfords-shares-are-32-cheaper-than-a-year-ago-time-to-buy/">Halfords shares are 32% cheaper than a year ago. Time to buy?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Speeding downhill can feel exhilarating on a bike. The same is not necessarily true in the stock market. Cycle and motoring retailer <strong>Halfords </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE: HFD</a>) is a case in point. Halfords shares have dipped 32% over the past year.</p>


<div class="tmf-chart-singleseries" data-title="Halfords Group Plc Price" data-ticker="LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>With the company releasing its results today (27 June), now seems like a good opportunity to look into whether that price tumble has been overdone. Could Halfords shares be a bargain to scoop up for my portfolio?</p>



<h2 class="wp-block-heading" id="h-improving-sales-trend">Improving sales trend</h2>



<p>On the profit side of things, the results were not especially exciting. Still, the group remains firmly profitable, with earnings after tax of £39m. That was within 1% of what it managed last year, though underlying basic earnings per share fell 14%. Those figures are for continuing operations though. Including discontinued operations like Halfords’ tyre supply chain operation, profit before tax fell 45% to £20m.</p>



<p>The good news though came in the topline. Revenues rose 8%, driven by an 18% increase in Halfords’ autocentres division.</p>



<p>This continues a long trend of impressive revenue growth at the company.</p>



<figure class="wp-block-image size-large is-resized"><img fetchpriority="high" decoding="async" width="663" height="338" src="https://www.fool.co.uk/wp-content/uploads/2024/06/Halfords-revenue-663x338.png" alt="" class="wp-image-1326154" style="width:840px;height:auto"/></figure>



<p><em>Created using TradingView</em></p>



<p>I think that bodes well for the business, as it shows ongoing high customer demand. That will hopefully be the basis for <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term profitability</a>.</p>



<p>One general concern I have about investing in retailers is that <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">profit margins</a> can be slight. Including discontinued operations, Halfords’ gross margin last year was 48.2%, but its net margin (profit after tax as a percentage of revenue) was just 1%. That is wafer thin.</p>



<h2 class="wp-block-heading" id="h-uncertain-dividend">Uncertain dividend</h2>



<p>The final results contained the news that the business plans to cut its annual dividend by a fifth compared to last year.</p>



<p>With a yield standing at 7%, cutting the dividend by a fifth could still leave it at over 5%. Still, I rarely take a dividend cut as a positive sign. Halfords’ dividend has been all over the place over the past 20 years.</p>



<figure class="wp-block-image size-large is-resized"><img decoding="async" width="663" height="345" src="https://www.fool.co.uk/wp-content/uploads/2024/06/Halfords-dividend-per-share-663x345.png" alt="" class="wp-image-1326152" style="width:840px;height:auto"/></figure>



<p><em>Created using TradingView</em></p>



<p>So when weighing up the option of investing now, I am not focusing too much on the historical yield. If the restructuring pays off and earnings boom next year, the dividend could well move up again. Equally, the board has shown it has no compunction about cutting the shareholder payout.</p>



<h2 class="wp-block-heading" id="h-long-term-potential">Long-term potential</h2>



<p>With a restructured business, could Halfords shares do better in future than they have in the past year?I think the business should benefit from strong long-term customer demand. It is a well-recognised brand and shop network could help it capitalise on that. Its <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings ratio</a> of 11 does not look expensive.</p>



<p>That said, while cars and bicycles may have a lot of moving parts, I fear the same is true of Halfords’ business. There has been a lack of consistency in its long-term performance that concerns me. So while I think the shares look fairly priced, I do not plan to buy.</p>
<p>The post <a href="https://www.fool.co.uk/2024/06/27/halfords-shares-are-32-cheaper-than-a-year-ago-time-to-buy/">Halfords shares are 32% cheaper than a year ago. Time to buy?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 FTSE stocks at 52-week lows that probably won&#8217;t be this cheap for long</title>
                <link>https://www.fool.co.uk/2024/01/25/2-ftse-stocks-at-52-week-lows-that-probably-wont-be-this-cheap-for-long/</link>
                                <pubDate>Thu, 25 Jan 2024 15:41:00 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1273954</guid>
                                    <description><![CDATA[<p>Jon Smith runs over two ideas of FTSE stocks that are at low levels right now, but could rally back higher in coming years in his opinion.</p>
<p>The post <a href="https://www.fool.co.uk/2024/01/25/2-ftse-stocks-at-52-week-lows-that-probably-wont-be-this-cheap-for-long/">2 FTSE stocks at 52-week lows that probably won&#8217;t be this cheap for long</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p><strong>FTSE </strong>stocks that are at 52-week lows can sometimes present a unique buying opportunity. There&#8217;s the potential for the company to become a <a href="https://www.fool.co.uk/investing-basics/types-of-stocks/investing-in-value-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">value stock</a>, in that the share price has fallen below the long-term fair value. Here are two examples that I&#8217;ve spotted right now, that could provide me with long-term gains.</p>



<h2 class="wp-block-heading" id="h-needing-a-fix">Needing a fix</h2>



<p>The first company is <strong>Halfords</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE:HFD</a>). At 165p, the stock is down 6% over the past year. This isn&#8217;t a disaster of a performance, but is still at the lowest price over the 52 weeks.</p>



<p>The UK retailer of motor and cycle products posted some strong interim full-year results back in November. Revenue was up 13.9% versus the previous year, with group profit before tax also jumping 15.8% to £21.3m.</p>



<p>I think the slump in the share price recently comes following weaker than expected December trading. This was blamed on the weather, along with customers generally spending less. I think both factors are just blips. In fact, given the amount of the products sold by Halfords for car or bike maintenance, I&#8217;d expect demand to be fairly constant going forward.</p>



<p>A risk is that given most products are imported, the company is exposed to the exchange rate between the British pound and US dollar.</p>



<p>I&#8217;m considering using this dip to pick up some Halfords shares, as the broader full-year results show good momentum to me.</p>



<h2 class="wp-block-heading">An off-the-wall idea</h2>



<p>Another firm in the mix is <strong>Funding Circle</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-fch/">LSE:FCH</a>). With a market cap of £114m, the business is close to being a <a href="https://www.fool.co.uk/investing-basics/types-of-stocks/investing-in-penny-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">penny stock</a>. The share price has fallen by a whopping 40% over the past year and is at 52-week lows.</p>



<p>This is definitely a high-risk idea for consideration. One of the reasons for the drop in value is the increase in interest rates. This is because the business focuses on raising funding through loans for small and medium-sized firms. Given that the cost of taking out a loan has increased due to the interest rate shooting higher, it&#8217;s no surprise to see demand for this has fallen.</p>



<p>The half-year results highlighted this, with group total income, origination revenue, loans under management, and profit before tax all lower than a year ago.</p>



<p>Yet I believe this could be a great value play on the assumption that interest rates in the UK won&#8217;t go any higher from here. If this is correct (and if we see some interest rate cuts), then Funding Circle may have already hit rock bottom. </p>



<p>If we see rate cuts coupled with strong economic growth over the coming year and beyond, demand for loans could increase significantly. I note that this is a risky play but the reward (given the extent of the share price fall) could be large. I&#8217;m considering allocating a small amount of money to the stock.</p>


<div class="tmf-chart-multipleseries" data-title="Funding Circle Plc + Halfords Group Plc Price" data-tickers="LSE:FCH LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>
<p>The post <a href="https://www.fool.co.uk/2024/01/25/2-ftse-stocks-at-52-week-lows-that-probably-wont-be-this-cheap-for-long/">2 FTSE stocks at 52-week lows that probably won&#8217;t be this cheap for long</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Do Halfords shares offer good value right now?</title>
                <link>https://www.fool.co.uk/2023/06/21/do-halford-shares-offer-good-value-right-now/</link>
                                <pubDate>Wed, 21 Jun 2023 09:19:56 +0000</pubDate>
                <dc:creator><![CDATA[Kevin Godbold]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1221524</guid>
                                    <description><![CDATA[<p>Value indicators look promising for Halfords shares, so is the stock worth adding to a diversified portfolio for income and growth?</p>
<p>The post <a href="https://www.fool.co.uk/2023/06/21/do-halford-shares-offer-good-value-right-now/">Do Halfords shares offer good value right now?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p></p>



<p><strong>Halfords&nbsp;</strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE: HFD</a>) shares nudged just over 5% higher when the market opened on 21 June following the release of the preliminary&nbsp;<a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/">full-year results report</a>.</p>



<p>That’s a minor move and probably means nothing unexpected troubled investors on the day. Indeed, most companies flag up their performance well in advance of results day. So most of the news is likely already in the price, as investors are often fond of saying.</p>



<h2 class="wp-block-heading" id="h-a-rollercoaster-ride">A rollercoaster ride</h2>



<p>The company describes itself as the UK’s leading provider of motoring and cycling services and products. But before digging further into what the report contains, let’s set it in the context of what the share price and the financials have been doing over the past few years.</p>



<p>As I write, the stock changes hands at just over 202p. And that’s well down from the brief peak above 430p it reached in June 2021 – two years ago.</p>



<p>Back then, the business was benefiting from a boost in sales of bikes and bits driven by pandemic fallout. Everyone wanted bikes, and Halfords was happy to oblige.</p>



<p>But that was something of a bubble. And it followed a big plunge in the stock in 2020 when Covid first arrived. In March 2020, Halfords was below 70p. But that nadir was also short-lived.</p>



<p>The stock’s been on a bit of a roller coaster. But over the past year, it’s up about 25%.&nbsp;</p>


<div class="tmf-chart-singleseries" data-title="Halfords Group Plc Price" data-ticker="LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>However, there’s no denying what looks like a longer-term downtrend in net profit, earnings, and shareholder dividends.</p>



<p>Despite revenue with a compound annual growth rate of around 4.5% over the past few years, those other measures are lower.</p>



<p>This isn’t a business growing profits right now, it’s a declining business. And that may be why the valuation looks undemanding against traditional measures. The forward-looking earnings multiple is just over 10 for the year to April 2024 and the anticipated dividend yield is around 4.4%.</p>



<h2 class="wp-block-heading">Can the business turn around?</h2>



<p>I wouldn’t buy Halfords for dividend&nbsp;<a href="https://www.fool.co.uk/personal-finance/share-dealing/guides/should-i-buy-growth-or-income-shares/">income or for growth</a>&nbsp;right now. But it’s always possible that any business can turn itself around. So let’s see what the company’s been saying.</p>



<p>Chief executive Graham Stapleton described a “<em>very challenging year”.</em>&nbsp;And the main reason for that has been the cost-of-living crisis. Stapleton talked of&nbsp;<em>“investment”</em>&nbsp;in competitive pricing. And that means slashing prices to try to get customers through the doors.</p>



<p>But one consequence of that policy is the reduced forecasts for profits and earnings ahead. It seems to me that Halfords has suffered little choice. After all, low margins are better than no margins. And ongoing cash flow can help keep the lights on until better times arrive.&nbsp;</p>



<p>Looking ahead, one positive is that around 48% of sales came from service-related sales in the motoring category. And I see that as potentially being a source of steady repeat business.</p>



<p>If Halfords can rebuild its profitability in the coming years, a stock purchase now may prove to be a good investment. However, I’ve decided to watch from the sidelines.</p>
<p>The post <a href="https://www.fool.co.uk/2023/06/21/do-halford-shares-offer-good-value-right-now/">Do Halfords shares offer good value right now?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>How I&#8217;d invest £20,000 in a Stocks and Shares ISA to target £100 in monthly income</title>
                <link>https://www.fool.co.uk/2022/08/03/how-id-invest-20000-in-a-stocks-and-shares-isa-to-target-100-in-monthly-income/</link>
                                <pubDate>Wed, 03 Aug 2022 08:15:33 +0000</pubDate>
                <dc:creator><![CDATA[Andrew Woods]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1155379</guid>
                                    <description><![CDATA[<p>Andrew Woods explains how he'd use his Stocks and Shares ISA to achieve a decent level of income in the form of dividends. </p>
<p>The post <a href="https://www.fool.co.uk/2022/08/03/how-id-invest-20000-in-a-stocks-and-shares-isa-to-target-100-in-monthly-income/">How I&#8217;d invest £20,000 in a Stocks and Shares ISA to target £100 in monthly income</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>My <a href="https://www.fool.co.uk/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/">Stocks and Shares ISA</a> is a great way to invest up to £20,000 every year without worrying about capital gains tax. While I strive for a diverse portfolio, I’m set on using future allowances to create an income stream through dividends. I’m going to see if it’s possible to derive the equivalent of over £100 per month. Let’s take a closer look.</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<h2 class="wp-block-heading" id="h-high-yields-growing-profits">High yields, growing profits</h2>



<p>First,&nbsp;<strong>City of London Investment Group</strong>&nbsp;(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-clig/">LSE:CLIG</a>) has seen its share price fall 18.8% in the past year. It’s down 10.5% in the last three months. At the time of writing, the shares are trading at 420p.</p>



<div class="tmf-chart-singleseries" data-title="City Of London Investment Group Plc Price" data-ticker="LSE:CLIG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Currently, the company has a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> of 7.6%. Last year the global asset management firm paid a dividend of 33p per share.&nbsp;</p>



<p>Using half of my allowance I could buy 2,380 shares. Multiply this by the dividend payment and I could be looking at a potential annual income of £785.&nbsp;</p>



<p>It’s important to note, however, that dividend policies can be subject to change at some future date.</p>



<p>And funds under management fell to £7.6bn for the year ended June 2022. The year before, this figure stood at £8.3bn. This decline has been caused in a large part by rising interest rates and inflation.</p>



<p>Nevertheless, the business reported that net profit rose to £18.1m from £17m over the same period.  </p>



<h2 class="wp-block-heading" id="h-speedy-earnings-growth">Speedy earnings growth</h2>



<p>Second, shares in <strong>Halfords</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE:HFD</a>) have fallen 52% in the last year and they’re up 17% in the past month. Currently, they’re trading at 170p.</p>



<div class="tmf-chart-singleseries" data-title="Halfords Group Plc Price" data-ticker="LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>For the year ended April, the motoring and cycling retailer paid a dividend of 9p. This equates to a dividend yield of 5.2%.</p>



<p>With my remaining £10,000, I could buy around 5,848 shares. Multiplied by the dividend per share, this results in an annual payment of £526.</p>



<p>Between 2018 and 2022, earnings per share (EPS) grew from 29.6p to 35.5p. By my calculations, this results in a compound annual EPS growth rate of 3.7%. While this isn’t particularly exciting, it’s consistent. </p>



<p>It’s worth noting, however, that this growth is not guaranteed in the future.</p>



<p>There&#8217;s also the risk that the customer base continues to decline in the midst of the cost-of-living crisis. There&#8217;s a possibility that this could negatively impact future balance sheets.</p>



<p>On the other hand, revenue was up 6% year-on-year, to £1.37bn. This was largely due to the sale of products related to electric vehicles and e-scooters.  </p>



<p>Overall, my calculations suggest that I could get £1,311 per year in dividend payments by investing in these two companies. This is the equivalent of just over £100 per month. I find this attractive, and I’ll deploy this plan during the next tax year, when my £20,000 allowance resets.</p>
<p>The post <a href="https://www.fool.co.uk/2022/08/03/how-id-invest-20000-in-a-stocks-and-shares-isa-to-target-100-in-monthly-income/">How I&#8217;d invest £20,000 in a Stocks and Shares ISA to target £100 in monthly income</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Income stocks: should I buy Marks &#038; Spencer, Greggs and Halfords?</title>
                <link>https://www.fool.co.uk/2022/07/25/income-stocks-should-i-buy-marks-spencer-greggs-and-halfords/</link>
                                <pubDate>Mon, 25 Jul 2022 07:19:00 +0000</pubDate>
                <dc:creator><![CDATA[Roland Head]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1153277</guid>
                                    <description><![CDATA[<p>These high street chains are all popular income stocks, but they're under pressure from rising inflation.</p>
<p>The post <a href="https://www.fool.co.uk/2022/07/25/income-stocks-should-i-buy-marks-spencer-greggs-and-halfords/">Income stocks: should I buy Marks &#038; Spencer, Greggs and Halfords?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Buying unloved income stocks can sometimes be a good way to lock in future profits. I&#8217;ve been taking a look at these popular retailers to see if they deserve a slot in my portfolio. I see one in particular as attractive right now.</p>



<h2 class="wp-block-heading" id="h-marks-and-spencer-a-contrarian-buy">Marks and Spencer: a contrarian buy?</h2>



<div class="tmf-chart-singleseries" data-title="Marks And Spencer Group Plc Price" data-ticker="LSE:MKS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p><strong>Marks and Spencer Group </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-mks/">LSE: MKS</a>) has been a turnaround stock for as long as I can remember. But there are signs of improvement. Sales during the 12 months to April were 7% higher than the year before the pandemic. Profits were nearly 30% higher.</p>



<p>Management has updated the M&amp;S store network and reduced the level of discounting. Online sales have risen as the company&#8217;s internet offering has improved significantly.</p>



<p>However, management turnover is a potential concern for me. Chief executive Steve Rowe left earlier this year, while finance boss Eoin Tonge announced his departure last week. Pressure on consumer spending is also a risk.</p>



<p>In my view, the best that investors can hope for is slow, steady progress. I think that&#8217;s why M&amp;S shares have fallen by nearly 40% so far this year.</p>



<p>But fortunately for new buyers, the shares now trade on a modest eight times earnings, with a forecast dividend yield of 4.6%.</p>



<p>M&amp;S isn&#8217;t the first income stock I&#8217;d buy today, but I do think the shares look reasonably priced and could deliver attractive returns.</p>



<h2 class="wp-block-heading" id="h-greggs-cheap-eats-are-still-popular">Greggs: cheap eats are still popular</h2>



<div class="tmf-chart-singleseries" data-title="Greggs Plc Price" data-ticker="LSE:GRG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Sales at bakery chain <strong>Greggs </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-grg/">LSE: GRG</a>) rose by 16% in the 10 weeks to 14 May compared to the same period last year. It seems consumers still want its cheap, tasty snacks.</p>



<p>The Newcastle-based business said that sales in larger city centres and office locations are still lagging behind. But it added that sales in transport locations are rising fast. Greggs is confident enough to have opened 49 new shops since the start of 2022, closing only six.</p>



<p>However, despite its strong performance so far, management has cited rising costs as a concern. The company also expects consumer spending to come under greater pressure during the second half of the year.</p>



<p>I reckon that Greggs&#8217; products are the kind of cheap treats people will continue buying. But with the shares trading on 16 times earnings and offering a yield of only 3.3%, I think the shares are probably priced high enough for now.</p>



<h2 class="wp-block-heading" id="h-halfords-is-this-5-yield-safe">Halfords: is this 5% yield safe?</h2>



<p>Cycle and motoring retailer <strong>Halfords </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE: HFD</a>) triggered a price slide in June when management warned of slowing cycling sales and said profits would fall this year.</p>



<div class="tmf-chart-singleseries" data-title="Halfords Group Plc Price" data-ticker="LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>According to chief executive Graham Stapleton, pre-tax profit could drop by around 20% to £65m-£75m this year. That&#8217;s a sharp reversal from the bumper performance seen over the last couple of years, when Halfords benefited from the pandemic boom in cycling and staycations.</p>



<p>Broker forecasts suggest a dividend of 9p per share this year. This would give a dividend yield of 5.3% and should be covered three times by earnings, giving a decent margin of safety.</p>



<p>The main risk I can see is that the UK will suffer a deeper recession than expected. But on balance, I think Halfords could be a decent buy at current levels.</p>
<p>The post <a href="https://www.fool.co.uk/2022/07/25/income-stocks-should-i-buy-marks-spencer-greggs-and-halfords/">Income stocks: should I buy Marks &#038; Spencer, Greggs and Halfords?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Down more than half, is the Halfords share price a bargain?</title>
                <link>https://www.fool.co.uk/2022/07/21/down-more-than-half-is-the-halfords-share-price-a-bargain/</link>
                                <pubDate>Thu, 21 Jul 2022 11:32:41 +0000</pubDate>
                <dc:creator><![CDATA[Christopher Ruane]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1152473</guid>
                                    <description><![CDATA[<p>The Halfords share price has fallen by over half in the past year. But our writer likes the underlying business. So, should he buy the shares?</p>
<p>The post <a href="https://www.fool.co.uk/2022/07/21/down-more-than-half-is-the-halfords-share-price-a-bargain/">Down more than half, is the Halfords share price a bargain?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>Freewheeling downhill, it is easy to pick up speed (in a bad way). That seems to be the case for car parts and cycle retailer <strong>Halfords </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE: HFD</a>). The Halfords share price has fallen 54% over the past year.</p>



<p>So does that make the company a bargain I ought to add to my shopping list?</p>



<h2 class="wp-block-heading" id="h-what-i-like-about-the-business">What I like about the business</h2>



<p>In general I like the business model of specialist retailers, whether they focus on cycling gear, angling supplies or power tools. For some purchases, customers like the ability to speak to someone who can advise them on different options. Having made the purchase, they will often go back to the same retailer in future if they want accessories, or to upgrade their kit.</p>



<p>That is how I see the business model at Halfords both for motorists and cyclists. Indeed, I think the cycling market in particular will keep growing. The National Cycle Network covered over 12,000 miles in 2020, after more than doubling in size over just 15 years. I expect continued cycle path expansion, high fuel costs and health benefits to mean the number of cyclists keeps increasing.</p>



<h2 class="wp-block-heading" id="h-why-has-the-halfords-share-price-fallen">Why has the Halfords share price fallen?</h2>



<p>Given that, why has the Halfords share price been stuck in the wrong gear?</p>



<p>It is worth noting that what looks like a big fall in the past year simply unwinds a lot of the increase seen during the pandemic when cycling became especially popular. In fact, the Halfords share price today is within a few pence of where it began 2020.</p>



<div class="tmf-chart-singleseries" data-title="Halfords Group Plc Price" data-ticker="LSE:HFD" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>More specifically though, the company issued a profit warning last month. Alongside its results for last year, Halfords said that profits before tax for the current 12-month period are expected to come in at £65m-£75m. Compared to £97m for last year, that is quite a big step down.</p>



<p>Like-for-like cycling revenues last year fell by a quarter compared to the prior 12 months. But they were still well ahead of 2020. So although 2021 may have been exceptional, I think the uplift to Halfords’ cycling business we saw in 2020 may be here to stay. Meanwhile, both the motoring retail and autocentres divisions showed strong revenue growth last year.</p>



<h2 class="wp-block-heading" id="h-health-of-the-business">Health of the business</h2>



<p>However, while profits are expected to slide significantly this year, I do wonder whether the share price fall has been overdone. Last year, profits before tax grew almost 50%. So the baseline is high.</p>



<p>Meanwhile, the company is clearly performing well in many ways. 2022 revenue of £1.4bn was 6% higher than the previous year, which was itself very strong. Cost inflation is a risk to profits, but I expect the company to manage inflation in the long term by pushing up prices.</p>



<h2 class="wp-block-heading" id="h-valuation">Valuation</h2>



<p>At the moment, Halfords has a market capitalisation of £375m. Even if profits this year come in at the bottom end of the company’s expectations, that means the prospective <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings ratio</a> is in the mid-single-digits. </p>



<p>Net debt at the end of last year was £345m, which is higher than I would like. There is a risk that servicing debt will eat heavily into profits.</p>



<p>However, I reckon the shares offer good long-term value and would consider purchasing them for my portfolio.</p>
<p>The post <a href="https://www.fool.co.uk/2022/07/21/down-more-than-half-is-the-halfords-share-price-a-bargain/">Down more than half, is the Halfords share price a bargain?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>The Halfords share price is dirt-cheap! Should I buy or avoid the shares?</title>
                <link>https://www.fool.co.uk/2022/06/20/the-halfords-share-price-is-dirt-cheap-should-i-buy-or-avoid-the-shares/</link>
                                <pubDate>Mon, 20 Jun 2022 16:15:00 +0000</pubDate>
                <dc:creator><![CDATA[Jabran Khan]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Dividends]]></category>
		<category><![CDATA[Halfords Group]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1145512</guid>
                                    <description><![CDATA[<p>Jabran Khan delves deeper into the current state of play with the Halfords share price and decides if he should buy the shares.</p>
<p>The post <a href="https://www.fool.co.uk/2022/06/20/the-halfords-share-price-is-dirt-cheap-should-i-buy-or-avoid-the-shares/">The Halfords share price is dirt-cheap! Should I buy or avoid the shares?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p><strong>Halfords</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE:HFD</a>) shares have come under pressure in recent months. At current levels, is the Halfords share price a bargain or one for me to avoid?</p>



<h2 class="wp-block-heading" id="h-automotive-and-cycling-retail-giant">Automotive and cycling retail giant</h2>



<p>Halfords is an automotive and cycling goods retail business. It has over 100,000 employees at more than 750 locations throughout the UK, along with an online store. It claims that 90% of people in the UK are never more than 20 minutes away from one of its locations.</p>



<p>So what’s happening with the Halfords share price currently? Well, as I write, the shares are trading for 154p. At this time last year, the shares were trading for 402p, which is a 61% decline over a 12-month period.</p>



<p>I believe Halfords shares have declined due to the stock market correction. The correction has been caused by the tragic events in Ukraine but also by macroeconomic factors at play &#8212; but more on that later.</p>



<h2 class="wp-block-heading" id="h-to-buy-or-not-to-buy">To buy or not to buy?</h2>



<p>So what are the pros and cons of my buying this stock?</p>



<p><strong>FOR</strong>: Halfords&#8217; presence and profile is a big positive point for me personally. Its extensive footprint throughout the UK and online offering tell me it should still be able to perform well despite macroeconomic issues. In addition to this, Halfords has performed well in recent years. I do understand past performance is not a guarantee of the future, however. It has grown revenue and profit in the past three years in a row. Preliminary full-year results released last week for 2022 were positive too. Revenue and profit growth were among the headlines I noticed from the results.</p>



<p><strong>AGAINST</strong>: Macroeconomic issues have placed pressure on performance and the Halfords share price. Rising inflation and raw materials costs, coupled with the supply chain crisis, have hampered many businesses and Halfords is no different. Rising costs mean passing this on to customers. Supply chain issues have resulted in fewer products to sell on the shelves.</p>



<p><strong>FOR</strong>: I like the fact Halfords regularly completes acquisitions to boost its offering and grow its profile and performance. In the past fiscal year, 2022, it procured three new businesses. One of these was to boost its automotive centre presence to offer motorists more convenient and accessible locations to service their vehicles. It purchased Axle Group Holdings which has the National Tyres and Autocare brands under its umbrella.</p>



<p><strong>AGAINST</strong>: The current cost of living crisis is a worry for me. Although automotive products and services are often essential to maintain vehicles, cycling goods could be considered a luxury item. This could result in Halfords seeing a material impact on sales and performance in this aspect of its business. Furthermore, the price rises mentioned earlier could mean consumers looking to make their cash go futher may seek alternative, online-only brands that may beat Halfords on price.</p>



<h2 class="wp-block-heading" id="h-the-halfords-share-price-looks-too-good-to-miss">The Halfords share price looks too good to miss</h2>



<p>I believe Halfords shares look attractive and I would happily add the shares to my holdings and hold them for the long term. I view the risks noted above as shorter-term issues.</p>



<p>The shares look good value for money on a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings ratio</a> of just four. The shares also pay a dividend which would boost my passive income stream and currently yield close to 5%. Dividends can be cancelled, however.</p>
<p>The post <a href="https://www.fool.co.uk/2022/06/20/the-halfords-share-price-is-dirt-cheap-should-i-buy-or-avoid-the-shares/">The Halfords share price is dirt-cheap! Should I buy or avoid the shares?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Investing In Cars: Top UK Car Stocks of 2026</title>
                <link>https://www.fool.co.uk/investing-basics/market-sectors/investing-in-car-stocks-in-the-uk/</link>
                                <pubDate>Mon, 16 May 2022 15:01:31 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                
                <guid isPermaLink="false">https://www.fool.co.uk/?page_id=1135674</guid>
                                    <description><![CDATA[<p>Interested in car shares? Here's everything investors need to know about investing in the automotive sector and which UK shares lead the sector.</p>
<p>The post <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-car-stocks-in-the-uk/">Investing In Cars: Top UK Car Stocks of 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>With an estimated 36 million cars on UK roads, it&#8217;s no surprise that many investors are keen to tap into this space, and the popularity of car stocks has further accelerated in recent years, thanks to growing interest in the electric vehicle revolution.</p>



<p>With this in mind, let&#8217;s take a closer look at car shares and some of the top options available to investors.</p>



<h2 class="wp-block-heading" id="h-what-are-car-stocks">What are car stocks?</h2>



<p>Car shares can be defined as those companies operating in the automotive industry in some capacity. These include manufacturers, those supplying parts or technology such as seats, tyres and batteries, auto dealer groups and parts retailers. There really is a lot of choice for the nimble private investor.</p>



<p>What makes this sector particularly interesting is the differing levels of competition companies face. Some firms have a commanding presence in a niche part of the car market; others are forced to battle it out to attract consumers to their products and services. Other companies operate exclusively online; others adopt a more hybrid approach. At the same time, some have brands that are household names; others have no direct contact with the consumer and are only known by the most committed of car aficionados.</p>



<h2 class="wp-block-heading" id="h-top-car-stocks-in-the-uk">Top car stocks in the UK</h2>



<p>Here are some of the largest cart stocks listed on the <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/the-london-stock-exchange/">London Stock Exchange</a> by descending <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/what-is-market-cap/">market capitalisation</a> as of February 2026.</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Company</strong></td><td><strong>Market Cap</strong></td><td><strong>Description</strong></td></tr><tr><td><strong>Auto Trader</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-auto/">LSE:AUTO</a>)</td><td>£4.0bn</td><td>A digital automotive marketplace offering visitors a selection of new and used car listings, motoring services and advice.</td></tr><tr><td><strong>Aston Martin</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-aml/">LSE:AML</a>)</td><td>£594.8m</td><td>A leading manufacturer in the high-luxury sports car market.</td></tr><tr><td><strong>Halfords </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hfd/">LSE:HFD</a>)</td><td>£323.1m</td><td>The UK&#8217;s leading retailer of automotive products and operator in MOT, tyres, car servicing and car repairs.</td></tr><tr><td><strong>Seeing Machines</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-see/">LSE:SEE</a>)</td><td>£178.1m</td><td>A designer, manufacturer and seller of advanced software with the goal of enhancing driver safety and reducing accidents.</td></tr></tbody></table></figure>



<h3 class="wp-block-heading" id="h-auto-trader">Auto Trader</h3>



<p>Online marketplace Auto Trader has arguably become the go-to destination for anyone interested in buying a vehicle in the UK. This popularity has driven many investors to take a position, pushing the company into the <a href="https://www.fool.co.uk/personal-finance/share-dealing/guides/what-is-the-ftse-100/">FTSE 100</a>.</p>



<p>According to Auto Trader, consumers spend 10 times more minutes on its site compared to its nearest rival and over 75% of all time spent looking at classified advertisements of vehicles for sale.</p>



<p>The boom seen in car sales since the Covid-19 pandemic has only served to reassert this dominance. Not just for new cars, but second-hand ones as well. And while the motor industry is notoriously cyclical, the company remains an industry titan within the online space.</p>



<h3 class="wp-block-heading" id="h-aston-martin-lagonda-global-holdings">Aston Martin Lagonda Global Holdings</h3>



<p>Aston Martin doesn&#8217;t need much in the way of an introduction. Regularly featured in the<em> James Bond</em> movies, the firm designs and produces some of the most luxurious cars in the world, including the Vantage, DB12, DBX, and Valhalla. It then exports and sells these highly coveted vehicles in 55 countries around the world.</p>



<p>Unfortunately, this quality hasn&#8217;t been reflected in the performance of Aston Martin shares. Since listing in October 2018, the company has lost over 98% of its value due to concerns over its finances and pandemic-related headwinds.</p>



<p>Despite efforts to right the ship, multiple CEOs have struggled to get the group&#8217;s finances under control. However, after being appointed in September 2024, Adrian Hallmark has begun executing a revamped turnaround strategy aiming to bring the group back to profitability, using his prior experience at Bentley.</p>



<p>This multi-year process is still ongoing, with early signs of improvements beginning to emerge.</p>



<h3 class="wp-block-heading">Halfords</h3>



<p>As any car owner will know, regular maintenance of one&#8217;s vehicle is essential. This is where Halfords comes in.</p>



<p>From fluffy dice to child seats to engine oil, the company sells every conceivable product a driver might need for keeping their car in top condition and passengers safe.</p>



<p>In addition to this, the mid-cap also runs a huge estate of Autocentres, delivering services that every owner needs to factor into their running costs every year.</p>



<h3 class="wp-block-heading" id="h-seeing-machines">Seeing Machines</h3>



<p>The vast majority of UK investors are unlikely to know about Australia-based minnow Seeing Machines. However, this could be set to change as it rapidly becomes the biggest player in software and systems designed to monitor driver distraction and fatigue and, in doing so, reduce accidents on the road.</p>



<p>Although only currently available on the premium models, this tech is likely to become standard over time in accordance with legislation. Seeing Machines also makes money from having its Guardian tech fitted retrospectively to fleets.</p>



<p>But Seeing&#8217;s eye-tracking tech isn&#8217;t just limited to cars and trucks. The company also has its fingers in multiple pies, including aviation and rail. This could further turbocharge growth in the years ahead.</p>



<h2 class="wp-block-heading" id="h-how-have-car-stocks-performed">How have car stocks performed?</h2>



<p>The car stocks mentioned above go some way to demonstrating the variety of opportunities available to UK investors in this space. This is not to say that they are necessarily right for everyone.</p>



<p>Depending on the time period used, there have certainly been some winners. Those investing in Auto Trader between March 2020 and March 2025 have reaped a 76% gain before factoring in dividends. Yet between March 2025 and the end of February 2026, the stock has taken a near-40% tumble due to wider market forces and cyclicality.</p>



<p>The share price of Seeing Machines also climbed from under 2p to 12p from March 2020 to August 2021. Sadly, those who hopped on the bandwagon at this high price point have been sorely disappointed as the stock has steadily declined back towards 2p as of March 2025. Yet since then, the car stock has started making a comeback, rising by over 100% since May 2025 to February 2026.</p>



<p>In sharp contrast, anyone holding Aston Martin will probably be nursing significant losses on paper, even since Adrian Hallmark moved into the corner office. But with deliveries of its long-awaited Valhalla supercar starting to ramp up, the tide may soon start to change.</p>



<p>This diverse range of investment returns perfectly demonstrates the cyclicality and difficulty for businesses to execute within the automotive sector. However, for investors who can identify where a company sits in the current cycle, some tremendous gains can be unlocked.</p>



<h2 class="wp-block-heading" id="h-are-car-shares-right-for-you">Are car shares right for you?</h2>



<p>Investors also need to remember that demand for vehicles can depend on a huge range of factors that are beyond the control of these businesses. Tricky economic times can force people to postpone a new purchase, especially if there is nothing wrong with their existing vehicle. High fuel prices can also impact demand.</p>



<p>On a more positive note, some UK car stocks generate income for those holding them, which may help to take the sting out of any temporary fall in a company&#8217;s value.&nbsp;Naturally, these can never be guaranteed.</p>



<p>In summary, car shares certainly have the potential to generate great returns for those who are willing to take more risk with their cash. The gradual switch away from internal combustion engines to more environmentally friendly solutions, combined with lowering production costs and rising levels of affluence, could see even more investors pile into the space over the next few years.</p>



<p>However, the potential for significant <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">volatility</a> can&#8217;t be overstated. As such, ensuring a portfolio that also has exposure to other sectors and is intelligently diversified is a prudent move.</p>
<p>The post <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-car-stocks-in-the-uk/">Investing In Cars: Top UK Car Stocks of 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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