Image source: M&S Group PLC
In January Bell He looked at all FTSE 100 Recommendations issued by British brokers. Then the investment platform ranked the elections based on the percentage of “experts” advising their clients to buy every shares.
At the top of the league
Number one on the list was Games WorkshopAlthough it should be noted that the group of games and miniature data was covered only by three brokers. Despite this, his annual return was almost four times higher than FTSE 100 index.
From January 1, only five out of 10 exceeded the foot. Of course, there is no need for panic, because in my opinion successful investing requires a long -term view. But AJ Bell analysis illustrates that there is no certainty in the world of action and action.
| Warehouse | Analysts (number) | % Buy Recommendations | Change in stock price (%) |
|---|---|---|---|
| Workshop Group games | 3 | 100 | +15 |
| Prudential | 15 | 93 | +37 |
| Beazley | 14 | 93 | +11 |
| Intermediate capital group | 16 | 88 | -3 |
| Glencore | 15 | 87 | -26 |
| DCC | 13 | 85 | -8 |
| Information | 12 | 83 | -1 |
| Barclays | 17 | 82 | +20 |
| Name | 17 | 82 | +6 |
| Marx & Spencer | 16 | 82 | -8 |
No crystal ball
For example, it is impossible to accurately predict metal prices or global demand for goods. Fears of both variables probably played a role at the disappointing price of the action Glencore.
And then he is needy Marx & Spencer (LSE: MKS), Seller of food and fashion. On Easter Monday, the details of the attack on his IT systems appeared.
On April 25, the events changed for worse. As a result, the company decided “pause“Taking orders through their website and application. However, customers could still view online and all of its stores were open as usual.
Then the newspapers reported the exhausted sleeping staff at their headquarters and the bosses had to operate personal phones to communicate with each other.
On May 13, it was revealed that the personal data of some clients were stolen. To be candid, nothing could be predicted.
Expensive business
However, the financial consequences for Marx & Spencer will probably be significant. In 2024, online revenues in the clothing and house department amounted to 1.22 billion GBP, about 3.3 pounds. At this stage, it is not clear how much you can recover from his insurers.
Shareholders also suffered. The price of the group’s shares is currently 14.5% below its 52-week level. However, from May 2020 it is still impressive 29%.
But now there may be a good time to buy shares. Although the cyber attack was destructive – and potentially roads – I don’t think the company has changed. Having said this, his reputation knocked a bit.
However, I am convinced that the group will learn its lesson and improve its IT systems. It seems to me that another successful attack is unlikely.
And there are other reasons why I like supplies. The group works difficult to refresh their product lines and closed some loss stores. In addition, it had another good Christmas with similar sales of food by 8.9% and clothing by 1.9% higher.
For a budget year 2025, analysts forecast profit per share of 28.98 pence. If this is correct, it implies a forward price ratio of 12.3, which is similar to other retail sellers on the main streets.
But fashion detail is a tough business. Consumer flavors can change quickly, leaving a lot of unsold stocks. In addition, the company’s dividend is on the average side.
Personally, I think that cyber attack is an unfortunate blow, from which the group will soon recover. Due to the iconic brand, reasonable valuation and mighty sales of M&S food, they can be growth shares for investors.
