Sunday share tips: Moneysupermarket, Impax
Lucy Tobin at the Sunday Times tipped shares of Moneysupermarket, arguing that the energy sector would recover at some point.
Equity Investment Instruments
11,833.05
16:54 04/11/24
FTSE 250
20,461.29
16:54 04/11/24
FTSE 350
4,511.23
16:54 04/11/24
FTSE All-Share
4,468.37
16:54 04/11/24
Impax Environmental Markets
391.00p
17:15 04/11/24
Mony Group
188.90p
16:59 04/11/24
Software & Computer Services
2,406.55
16:54 04/11/24
The shares' valuation of 11 times 2025 earnings, versus 20 times in 2019, also meant that the gloom had already been discounted.
Analysts at Barclays were of the same view, calling the price comparison website "a cheap stock".
Moneysupermarket's shares had fallen year-to-date, after management said that car insurance quotes were stabilising after the rapid inflation in 2023.
The government's energy price cap after Russia's Ukraine invasion had frozen that business stream, which at one point had generated £50 of annual turnover.
But a recovery in energy would kick in at some point, according to Tobin.
In parallel, over time the company's new loyalty scheme should help limit its heavy marketing spend and the bedding-in of acquisition like Quidco was broadening its market share.
The Financial Mail on Sunday's Midas column recommended that readers "buy and hold" onto shares Impax Environmental Markets, touting the company's mix of green credentials and commercial nous.
Impax was invested in multiple outfits, including DSM-Firmenich, the maker of a digestion aid for cattle that can slash methane emissions by nearly half.
Other investments included small and mid-sized firms with an environmental twist, whether it be handling hazardous waste in the US or reusable pallets in Australia.
Midas also called attention to Impax's manager, Jon Forster, who had been at the business since 2002.
So too, the tipster highlighted how Impax focused on listed but lesser known companies.
"They gain access to businesses that would otherwise be hard to find and these firms are more likely to deliver faster growth over time," Midas explained.
One source of concern for some observers was a possible Trump administration but the company had managed to grow consistently the last time that Trump was in office.