You are here: Home - Investing - Experienced Investor - News -

Share Centre stock of the week: Dixons Carphone

Written by:
Ian Forrest, investment research analyst at The Share Centre, explains why he has chosen Dixons Carphone as stock of the week this week:

Dixons Carphone is our share of the week this week as expectations rise on the basis that the company may have been one of the biggest beneficiaries of the Black Friday sales weekend. The company is one of Europe’s largest consumer electrical and mobile telecoms retailers and the scale and scope of its products make it ideally placed to benefit from the steady rise in consumer sentiment in the UK. Investors should note that this should continue as wages begin to outpace inflation and employment levels increase.

An update in September saw the company report a rise in like-for-like sales in the UK of 10% in the first quarter, helped by increased mobile phone sales. Sales depend heavily on the new product cycle and so the recent release of the latest Apple iPhone should help to keep the company on track for another successful trading period.

We currently recommend Dixons Carphone as a ‘buy’ for medium risk investors seeking both growth and income due to the strong sales growth, the potential boost to retailers from the fall in the oil price and the benefits of scale provided by the merger. Analysts have been raising their expectations rapidly since the merger and with the company outperforming that trend looks likely to continue.

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week