Three to sell

JD Sports

The Daily Telegraph

High inflation could “create increasingly challenging trading conditions” for this sportswear chain. “A rapidly rising price level is likely to put severe pressure on discretionary incomes”, which could make consumers put off the purchase of non-essential clothing. Booming sales have also been funded by “vast stimulus measures”, which will soon come to an end. Supply disruption might also make trading conditions difficult.

The company has a solid financial position and a strong multichannel presence, but the investment case is becoming “increasingly difficult to make”. Bank profits now. 179.05p

Moonpig

The Times

Despite a recent sell-off, online greetings-card and gift retailer Moonpig still trades at a “plump” 26 times forwards earnings. The firm upgraded revenue guidance to the top end of its range for the year, but that still falls “substantially below” last years’ sales now that physical stores have reopened. Earnings aren’t expected to recover to 2020 levels even by 2024. It’s “solidly profitable… but the best of its gains look like they’re behind it”. 276.2p

Shell

Investors’ Chronicle

Oil major Shell “roared back to profitability” in the fourth quarter of its fiscal year and upped its quarterly dividend payouts by 4% to $0.25 a share thanks to booming oil and gas prices. The oil industry is still struggling to keep up with demand due to lack of investment in exploration and production in recent years. Shell looks very appealing in the short term, but the question of where it will go after this “sugar rush” remains. Sell. 1,955p