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

Three to buy

Dunelm

Investors’ Chronicle Homeware retailer Dunelm thrived in the pandemic and the boom has continued. The firm’s market share has grown thanks to the collapse of “indebted high-street rivals” such as Debenhams, and it has “far outstripped the overall market”. Management is now expecting pre-tax profits for the full year to be nearly a third higher than they were in 2021. The challenge for the coming year will be how it deals with inflationary pressures and a slowdown in consumer growth due to increasing costs of living, but “as a retailer with a focus on value” it could continue to benefit. 1,285p

Pets at Home

Shares

Shares in the UK’s leading pet equipment and veterinary services group have dropped 13% from late

December, “which means they look even better value than before”. Pets At Home published positive results for the 12 weeks to the end of December: like-for-like revenues were up 9% from 2020 and 28% from 2019 “as pet-loving Brits continued to indulge their furry friends”. Christmas saw higher sales of premium products. Forecast pre-tax profit for the 12 months to the end of March has been raised from £132m to at least £140m. 407p

Syncona

The Sunday Times

Life sciences investor Syncona focuses on early-stage science, including gene therapies to fight eye cancer and blindness and cell therapies to treat immune system diseases. In the last quarter, net asset value rose 16% to 199p per share, so the shares are on a 5% discount compared with its usual 20% premium. “Look beyond the existing value of its holdings” and towards the possible returns if its early-stage bets “become blockbuster cures”. 187p