Bumble

What it does: Bumble is an online dating platform that sets itself apart from competitors as women make the first move.

By Muhammad Cheema. It’s easy to be pessimistic about Bumble (NASDAQ:BMBL) shares. They’ve declined by 92% since going public in 2021 and have fallen by 60% in the last year alone. This is mainly because of the slower-than-expected growth. Recently trimming its growth forecast from 8-11% to 1-2% didn’t help.

Don’t get me wrong, there are risks of it fading out if growth doesn’t pick up. But I’m betting it will, so I’ve recently added to my position.

I truly believe that online dating is the future of dating. It’s not my preference, to be honest, but it’s the way the world is trending. Many people are glued to their phones, and meeting people online is becoming more common.

Let’s not forget the company is still growing and is profitable. In fact, in its recent quarterly results, net earnings increased by 306% year-on-year.

Finally, Bumble shares seem oversold to me. They’re now trading at a forward price-to-earnings (P/E) ratio of 8.9. This represents a potential bargain.

Muhammad Cheema owns shares in Bumble.

Hilton Food Group

What it does: FTSE 250 member Hilton Food is a leading “multi-protein” producer with a core focus on meat production.

By Roland Head. Shares in Hilton Food (LSE: HFG) look good value to me after a recent share price correction.

The company’s recent half-year results revealed a mixed picture. Although adjusted pre-tax profit rose by 25% to £33m, sales only rose by 1% on a comparable basis.

What interested me was the improvement in Hilton’s profitability in the UK. Margins in the group’s home market were boosted by its growing seafood business and sales of premium meat products.

Looking further ahead, the firm is set to expand into North America with the opening of a new facility in 2026/27. This is backed by a contract with Walmart Canada.

Hilton has disappointed before and the group’s profits could be hit by consumer downtrading or the loss of a major contract.

However, broker forecasts have been upgraded recently and I think the shares look reasonably valued at current levels. I’ve recently added Hilton Foods to my portfolio.

Roland Head owns shares in Hilton Food.

iShares Edge MSCI USA Quality Factor UCITS ETF

What it does: iShares Edge MSCI USA Quality Factor UCITS ETF invests in US companies that enjoy strong and stable earnings.

By Royston Wild. With an average annual return of 14.72% since it started eight years ago, the iShares Edge MSCI USA Quality Factor UCITS ETF (LSE:IUQA) has been near the top of my shopping list for some time. In recent days I pulled the trigger and finally added it to my portfolio.

As its name implies, the fund provides me with exposure to the strongly performing US stock market. Major holdings here include tech giants Apple and Nvidia, soft drinks maker Coca-Cola, and payment card services providers Visa and Mastercard.

This selection illustrates the ETF’s focus on companies with solid profits records. More specifically, it targets companies that have “[a] high percentage of company earnings allocated to shareholders; low levels of debt; and low variability of year on year company earnings.”

On the downside, a high concentration of cyclical stocks may leave the fund vulnerable during economic downturns.

Information technology, financial services and consumer discretionary companies alone make up more than 52% of the fund. However, a proven ability to deliver a strong return over time still makes it an attractive investment in my book.

One final thing: with an ongoing charge of just 0.2% per annum, it’s also extremely cost effective.

Royston Wild owns iShares Edge MSCI USA Quality Factor UCITS ETF.

Norfolk Southern

What it does: Norfolk Southern is one of the US Class 1 railroads. It operates on the Eastern side of the country.

By Stephen Wright. Warren Buffett used to own shares in US railroad Norfolk Southern (NYSE:NSC). And since I think there are reasons why this company can do well, I’ve been buying it for my own portfolio. 

Since 2014, the US transportation market has shifted from roughly even between truck and rail to now being 64% trucking. That’s despite trains being cheaper and less carbon-intensive.

The reason is that railroads almost across the board have focused on margins and provided a poor service. But Norfolk Southern is looking to change that, and I expect this to continue even after Alan Shaw’s departure. 

The company has been working on improving its reliability and efficiency in ways that benefit its customers. And I think this means it has a good chance of regaining market share over time. 

The risk is that this approach is going to result in lower margins, which could offset revenue growth. But I think its strategy is the right one and that’s why I’ve been buying the stock.

Stephen Wright owns shares in Norfolk Southern.

Rolls-Royce

What it does: Civil aerospace giant Rolls-Royce manufactures aircraft engines, marine propulsion systems, and power-generation system. It also makes engines for military aircraft, ships and submarines.

By Harvey Jones. When a stock goes gangbusters like Rolls-Royce (LSE:RR.), I get whipped up into a frenzy of fear and greed, just like everybody else.

I was lucky in one respect. I spotted the FTSE 100 group’s recovery potential in October 2022, and bought right at the start of its index-smashing run. Unfortunately, I only invested a small sum, and was left with the sticky decision of whether to buy more as the Rolls-Royce share price flew ever higher.

I held back, knowing sod’s law would strike and the stock would fall as soon as I piled in. I finally gave into FOMO on 1 August, after Rolls-Royce beat first-half guidance and announced the return of its dividend. 

I paid 495p and the stock fell the moment I clicked the ‘buy’ button, exactly as I feared. I averaged down on 6 August at 455p. So far I’m down 3.16% on those trades. Which is a bit rubbish given that Rolls-Royce shares are up 503% off over two years and 113% over one. Timing the market never works. I should stop.

The rapid recovery phase is over but I still expect a steady stream of growth and income over the years. If Rolls-Royce shares dip in the short run, I’ll buy more.

Harvey Jones owns shares in Rolls-Royce.

Taylor Wimpey

What it does: Taylor Wimpey is one of the UK’s largest home builders. In 2023, it completed 10,848 homes. 

By Charlie Keough. I’ve had FTSE 100 housebuilder Taylor Wimpey (LSE: TW.) on my watchlist for some time now. I recently decided to snap up some shares. 

There are a few reasons for this. Firstly, the stock has been soaring. It has climbed 8.6% in 2024 and a whopping 41.6% in the last 12 months. I’m confident it can keep this form up. 

That’s because the current housing shortage should benefit the firm. To fix the issues we’re currently facing, the Labour government has promised to build 1.5m new homes over the next five years. 

That’s not to say I don’t see potential risks with Taylor Wimpey. The housing market has struggled over the past couple of years and any further setbacks would impact its share price. For example, a delay in further interest rate cuts would have negative implications for the business. 

Yet despite potential issues in the months ahead, I couldn’t resist its meaty 5.9% dividend yield. That’s considerably above the Footsie average of 3.9%. 

Charlie Keough owns shares in Taylor Wimpey. 

TripAdvisor

What it does: TripAdvisor runs a digital platform offering a range of travel-related services such as hotel reviews and experiential travel bookings.

By Christopher Ruane. In August, I wrote that I was eyeing buying more TripAdvisor (NASDAQ: TRIP) shares for my portfolio in September. That is exactly what I ended up doing.

The share has lately been trading close to its one year low. As well as a potential bid that never materialised, investors have been concerned about whether a weak economy could dampen travel spending, hurting revenues and profits at TripAdvisor.

But does the company, with strong cashflows, really merit a market capitalisation of under $2bn?

Its brand is unique and ubiquitous, the experience booking offering has seen strong growth and, for now at least, travel demand remains robust.

Yes, it operates in a cyclical business. But I think the business has a strong competitive position for the long term that means it looks cheap at the current price.

So, even though my existing holding showed a loss on paper, I used the price weakness to buy more shares.

Christopher Ruane owns shares in TripAdvisor.

Uber Technologies 

What it does: Uber Technologies is a leading global rideshare and food delivery company.

By Ben McPoland.I recently became a shareholder in Uber Technologies (NYSE: UBER). The previously loss-making firm has reached a point where its massive scale and cost-cutting efforts are translating into profitable growth.

In the first six months of the year, it generated $968m in operating profit. This was a 15-fold increase over last year. Earnings per share growth is expected to exceed 100% over the next couple of years then rise by double-digits after that.

This year, the company partnered with Instacart in the US, enabling the latter’s customers to order from hundreds of thousands of Uber Eats’ restaurant partners.

Looking ahead, the rise of autonomous vehicles (AVs) might pose challenges. Uber has partnered with over 10 AV players, including Waymo and Cruise (subsidiaries of Alphabet and General Motors, respectively). But there remains a long-term risk that these firms use their own consumer apps to poach some of Uber’s customers.

As things stand though, the company appears to have solid growth potential in countries like Spain, Germany, Japan, India and South Korea. It notes that in these places, ‘Uber’ isn’t yet used as a verb.

Ben McPoland owns shares in Uber Technologies.

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Alphabet

What it does: Alphabet is an American multinational conglomerate. It is the parent company of Google along with other subsidiaries that include YouTube, Android, and Waymo.

By John Choong: Those who wrote off Alphabet (NASDAQ:GOOGL) stock when it tumbled below $90 earlier this year must be feeling a deep sense of regret as the shares had recently hit a one-year high. As such, investors may want to think twice now before turning bearish on the Google-owned company.

After a stellar set of Q1 results, Sundar Pichai and his team released further improvements and new offerings to the firm’s current set of AI tools. And with most of Alphabet’s more sophisticated technology still packed in its war chest, there’s still plenty of upside to be realised. NVIDIA’s massive return to prominence after rising over 200% in under a year shows how blue-chip stocks can witness massive growth too.

Pair the above with Alphabet stock’s rather lucrative multiples, which are trading close to decade lows, and I cement my buy case.

John Choong has positions in Alphabet.

Apple

What it does: Apple is the largest consumer technology company in the world, best known for its iPhones, iPads, and Macs.

By Matt Cook. Apple (NASDAQ:AAPL) has been a mainstay of my investing strategy for some time now.

However, June is a month that I’ve been specifically waiting for. Apple will be hosting its yearly Worldwide Developers Conference (WWDC) from June 5-9.

To open the event, Tim Cook will present the keynote on June 5, where he is expected to reveal Apple’s virtual/artificial reality headset.

As I’m invested for the long haul, the reveal of the AR/VR headset in June could well define my growth for the next decade — just as the iPhone has defined Apple’s growth since 2007.

It’s my belief that these headsets could represent the future of nearly all computing needs. It has the potential to replace smartphones, tablets, and computers.

I’ll be watching closely to see what Apple unveils. If it goes as well as I expect, I’ll be buying more shares than normal in June.

Matt Cook owns shares in Apple.

Norfolk Southern

What it does: Norfolk Southern owns and operates rail infrastructure, including more than 20,000 miles of track across the Eastern US.

By Stephen Wright. I think the best thing for investors to do is to go where the opportunities are, whether that’s in the UK or elsewhere. And I’ve got my eye on a US stock right out of the Warren Buffett playbook.

The stock is Norfolk Southern (NYSE:NSC), one of the two major railroads operating in the east of the USA. The company has a 30% operating margin, reasonable debt, and trades at a pricet-to-earnings ratio of 16.

Railroad companies are famously difficult to disrupt, which is why Buffett likes them so much. Usually, though, they trade at prices that reflect this stability. 

Norfolk Southern is currently dealing with the fallout from a derailment earlier this year, though. This presents a risk and this is why the share price is down.

I think this is likely to be a short-term headwind and the underlying fundamentals for the business look pretty good, though. I’d look to take advantage and buy the stock today.

Stephen Wright does not own shares in Norfolk Southern.

Visa

What it does: Visa is an electronic payments company that operates in more than 200 countries worldwide.

By Edward Sheldon, CFA. Visa (NYSE: V) was recently described as the ‘perfect stock to own’ today by a well-known investor — Joe Terranova, senior managing director and chief market strategist for Virtus Investment Partners — and I tend to agree with this view.

One reason I’m bullish on the company at present is that it’s benefitting from the ongoing recovery in global travel. In the first quarter of 2023, for example, cross-border volume growth was up 24% year on year.

Another is that it offers a natural hedge against inflation. As prices rise, so do its revenues, as it takes a small slice of every transaction on its network.  

A third reason I’m bullish is that Visa is having a lot of success with business-to-business payments. Over the last six months, it has signed up roughly 30 banks across 20 countries for its payments services.

On the downside, the stock is trading at a premium to the US market. This adds risk. I’m comfortable with the higher-than-average valuation, however, as this is a high-quality company with fantastic long-term growth prospects.

Edward Sheldon owns shares in Visa

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