We pride ourselves on the practice of allowing our writers and analysts to post dissenting opinions, or the “official” recommendations of our subscription-based advisory services, because we believe that leads investors to consider multiple sides. investment debate. Two out of five FTSE 350 the stocks mentioned here are recommended within our resources. Why not share with friends and family that you agree with the authors below!
Aston Martin Lagonda
What it does: Warwick-based Aston Martin Lagonda Global Holdings is a luxury car company.
Written by Paul Summers. Since we’re down 96% since listing, it’s certainly the only way to go Aston Martin Lagonda (LSE: AML) share? As things stand, I’m not sure. It could be worse for a company that is now on its fourth CEO in four years.
My issue is not good cars; it is a mountain of debt on its balance sheet. This is currently almost equal to the value of the company itself (£1.3bn). That is hardly a solid foundation for a tragic recovery. Then again, I’m not surprised. Aston Martin has gone bankrupt seven times before.
To be honest, the entire luxury sector is struggling. And at least the board predicted that prices and profits will rise in the second half of 2024. If this continues into 2025 and beyond, I might change my mind.
But for now, this is a punt stock and nothing else.
Paul Summers has no position in Aston Martin Lagonda Global Holdings.
Burberry
What it does: Burberry is one of the world’s largest fashion houses with over 450 stores worldwide.
Written by Royston Wild. I Burberry (LSE:BRBY) share price has fallen by almost 50% in the last six months. The fashion giant has now lost three-quarters of its value in the past year, and it is difficult to see how it will emerge from the downward trend that began in May 2023.
Investors were intrigued by the company’s failure to increase profit guidance during that period. But things have gone from mild to intimidating over time, its realignment to focus on the more expensive end of the luxury goods market backfiring spectacularly.
The latest figures showed sales fell by 22% in the three months to June. So Burberry hopes the appointment of Joshua Schulman as its new chief executive in July will spark a recovery. Schulman is an industry veteran who has achieved success at the likes of Jimmy Choo and Michael Kors, so that experience has paid off well in the business.
It could prove a masterstroke. However, turning Burberry around is a difficult task, as the entertainment of CEOs in recent times has proven. And Schulman’s job is especially difficult against the background of the struggling luxury sector.
I see FTSE 100 strong as he continued to struggle.
Royston Wild does not own shares in Burberry.
The Dowlais Group
What it does: Dowlais is an automotive engineering business group focused on the transition to sustainable vehicles.
Written by Mark David Hartley. To say The Dowlais Group (LSE: DWL) had a bad year would be an understatement. It went public about a year ago and already shares are down 50%. The company was founded in 2023 as a combination of two companies from the aerospace manufacturer Melrose Industries. It operates as a group of engineering businesses focused on sustainable vehicles. With the sustainable car market expected to grow significantly, the company is well positioned to benefit.
Despite bringing in £1.14bn of revenue last year, it posted a loss of £50.5m, with earnings per share (EPS) at -4p. However, such losses are not unusual for newly listed companies. Sales wise, it seems to be doing well, with a price to sales (P/S) ratio of 0.16. I think the shares could still fall further but with a dividend yield of 9.78%, the low price seems like a good opportunity to grab them while they are cheap.
Mark David Hartley has no shares in any of the companies mentioned.
The Ocado Group
What it does: The Ocado Group is a grocery, e-commerce and goods business operating in 12 countries.
Written by James Beard. Since its share price is down 70% since September 2019, I think The Ocado Group (LSE:OCDO) qualifies as an FTSE flop.
Its preferred measure of profit is EBITDA (earnings before interest, tax, depreciation and amortization) which was £51.6m during the year ended 3 December 2023 (FY23). But it is heavily indebted to invest in its smart technology that will need to be replaced at some point. This means ‘I’ and ‘D’ are important – its pre-tax loss for FY23 was £393.6m.
Currently, its collaboration with Marks & Spencer make up about 70% of the revenue.
But Ocado describes itself as a technology business and sees a path to profitability by licensing its platform to third parties and providing automated warehousing solutions and delivery services to others.
However, even after 24 years, there is no hope that the company will go dark. For this reason, I would not touch the stock with a bargepole.
James Beard does not own shares in the Ocado Group.
Vodafone
What it does: Vodafone is a telecommunications giant. During the dotcom boom, it was the largest company in Europe by market capitalization.
Written by Charlie Keough. Despite posting a profit this year, Vodafone (LSE: VOD) has been a bad performer in recent times. In the last 12 months, its price has decreased by 1.8%. Over the past five years, the stock has lost 52.2% of its value.
While it may seem cheap on paper, I think the stock could be a classic price trap. It’s one I’ll avoid adding to my portfolio anytime soon.
Its shares are looking on the expensive side. At the time of writing, they trade at 20.9 times earnings, above the FTSE 100 average of 11.
Granted, the business has changed, which I have to consider. And it has the power to transform. As part of its development work, it has spun off underperforming businesses to raise capital.
But I have given up the huge debt it has on its balance sheet. I think that would stop growth going forward.
Charlie Keough does not own Vodafone shares.
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