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Five summer stock picks

Your Money
Written By:
Your Money
Posted:
Updated:
29/07/2013

The last few weeks of sunshine have buoyed British spirits. But can these stocks recommended by The Share Centre boost your portfolio?

Britvic

With summer finally upon us, beverage sales could rise as the public fight to quench their thirst. As parent to a vast portfolio of brands including Robinsons, Fruit Shoot and J20, and also owning the Pepsi, 7UP UK franchise, Britvic appears to have all sub-sector bases covered. What’s more, with Robinson’s sponsorship of a successful Wimbledon, helping attract an additional 789,000 households to the squash category, Britvic’s share price has steadily risen.

The beverage sector is generally suitable for medium risk investors due to the highly consolidated nature of the sector, and Britvic certainly has the potential to benefit from these sunny spells.

Restaurant Group

As one of the UK’s largest independent restaurant groups it offers investors a strong portfolio, containing Frankie & Benny’s, Chiquito, and Garfunkel’s, among others.

Sales are 11% ahead of last year’s and the group is targeting an additional 30-35 new expansion sites this year. Situated mostly in out of town complexes, dense urban areas, and airports the Restaurant Group are well positioned to reap the summer indulgence rewards. Alongside the rising temperature, the Restaurant Group’s share value has climbed.

Halfords

As the UK’s leading retailer in car parts, bikes and accessories, Halfords is set to take prime opportunity of the summer period. Both weather and sporting events such as the Tour de France can impact company prospects, reflected in its somewhat erratic figures of late due to wet start to the year.

“However, the recent heat wave is self-evident as families rush to take full advantage of UK holiday sun. Should it continue it may be good for Halfords.

Young & Co’s Brewery

With a slow start to the year due to the poor weather reported in the sector, Young & Co, one of the UK’s leading independent and pub retailing businesses, will be hoping to capitalise on the summer weather.

Having a strong, London based focus, Young & Co’s well managed approach targets a more affluent market, acquiring a further three freehold pubs in the capital within the last month.

Majestic Wine

Majestic also suffered a slow start due to the weather. However, the company is expecting a promising summer, especially in sparkling wine demand. Reducing the minimum online order to six bottles in June last year boosted sales.

Holding a list of well positioned stores and a popular format with its customers, Majestic has plans to add another 140 stores to its portfolio, offering favourable prospects to investors.


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