MoneyWeek’s comprehensive guide to this week’s share tips

Six to buy Fidelity National Information Services The Telegraph

Also known as FIS, this US fintech specialist has been out of favour ever since it overpaid for rival Worldpay in a 2019 deal. The resulting value destruction has wiped 40% off the shares, but new management is finally cleaning house, including selling a stake in Worldpay to private equity in order to raise cash and reduce debt. The outlook for margins and profits is finally improving, while on 15 times forecast earnings the shares are “cheap for a tech company”. A mooted $4bn share buyback is an added sweetener. $72.50

M&G Interactive Investor

This FTSE 100 savings and investment giant’s unusually high 9.5% dividend yield could be a sign that “something is profoundly wrong”. M&G has been getting little love from the market, with the shares trading on a forward price/earnings (p/e) ratio of eight, compared with 11 for peer Aviva. Yet annual accounts suggest it has “a decent cash chest” to support the payout. Provided

“management has its act together”, there are also “good odds of dividend growth”. The shares thus offer attractive income with a chance of capital gains should the price correct to something more sensible. 207p

MercadoLibre Shares

This Uruguay-based, Nasdaqlisted firm is the “Amazon of Latin America”. Its largest markets are Brazil, Mexico and Argentina, with the online marketplace receiving 668 million visits per month. It is leveraging that platform to expand into digital banking – an underserved niche in a region where a fifth of people are unbanked. MercadoLibre’s income has risen tenfold in five years and the return on capital is an impressive 27.9%. Given a dominant market position, the shares offer reasonable value on a forecast 2025 p/e of 32. $1,529

Paragon Banking Investors’ Chronicle

This bank almost went under in 2009, but has since made specialist lending work. It has built a profitable niche in buyto-let (BTL), with a bias towards the professional end of the market. It enjoys higher overall margins than many rivals. As a smaller lender, it is “nimble” enough to expand the balance sheet opportunistically when conditions are favourable in a way that larger rivals cannot. On a price-to-book value of 0.8, “there is still value to be had”. 674p

Public Policy Holding Company The Mail on Sunday

We live in an era of state meddling. Annual US government spending has soared from $1.8trn in 2000 to $6trn today. With red tape everywhere, business needs a champion. This Aim-listed, US-focused government relations-specialist fits the bill. Revenue and profit rose by 24% and 10% respectively last year; 85% of sales come from regular retainers, so loyal customers clearly value the firm’s work. The shares pay a generous dividend. 118p

Walt Disney The Times

The magic is returning to Disney. The shares have climbed by 29% in 2024 as investors cheer early signs of cost savings and better profitability. The Disney+ streaming service, launched in 2019, has been burning through cash, losing $1bn last year and shedding 1.3 million subscribers after price hikes. But management thinks it can make streaming profitable by October as billions of dollars in cost savings come through. In the meantime, Disney’s theme parks and cruise lines are tapping into the post-Covid spending boom, keeping the wider group on an even keel. $116