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Our monthly Ice Best Buys Now are designed to highlight our team’s three favorite and most timely buys from our growing list of income-focused Ice recommendations, to help Fools build their portfolios.
#1 “Best Buys Now” Pick:
AG Barr (LSE: STOCK EXCHANGE)
- Semi-family soft drink company that has an attractive portfolio of brands.
- In its first half, sales grew 33%, representing comparable growth of 10%, driven by higher prices and volume growth. Profits are expected to arrive “marginally above the upper end of analyst expectations” for the full year.
- While its operating margin is under pressure from cost inflation, the company believes it can rebuild margins in the medium term, helped by supply chain optimization, cost management and the development of its brand portfolio.
- While former CEO Roger White will leave his position at “a mutually agreed upon date within the next 12 months”, The company continues to look attractive, thanks to attractive brands, a strong balance sheet and an excellent long-term track record of dividends, earnings growth and high ROCE.
- Just announced £12.3m deal for tropical drinks brand River, financed with its cash resources. The deal should expand Barr’s portfolio of brands and, with its strong balance sheet, the company is likely to make more add-on acquisitions.
- It currently trades at just over 16 times forecast earnings, which we believe offers attractive value for a well-run company with a strong balance sheet and recognizable brands.
“Best Buys Now” Pick #2:
Written up
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