Money Week

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

Three to buy

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Cheniere Energy

Shares

Cheniere Energy buys natural gas in the US – where prices are lower – and exports it as liquefied natural gas (LNG). As the invasion of Ukraine pressures European powers to “wean themselves off Russian gas”, which accounted for 41.9% of gas imports into the bloc in 2019, Cheniere offers a strong alternativ­e source. The firm has raised its 2022 earnings forecast by 20% to $7.5bn and is looking to expand its fuel terminal capacity. Shares in the company aren’t cheap, on 13.6 times earnings and a dividend yield of a little over 1%. But Cheniere occupies a leading position in its market and has strong growth prospects, so it’s a buy. $135.98

Domino’s Pizza

The Telegraph Pizza-delivery firm Domino’s is one of Britain’s most-shorted stocks at the moment, but its shares are set for a comeback. Investors fear that the costof-living squeeze will hurt profitabil­ity. However, while costs are likely to rise as high inflation persists, its “vertically integrated” business model should be a competitiv­e advantage. A price/earnings (p/e) ratio of 18 isn’t cheap but Domino’s has a strong brand with loyal customers. It plans to open 45 new stores each year for three years and invest £20m into digital operations to improve its delivery service. 394.70p

Keyword Studios

The Sunday Times

Video gaming was once reserved for teenagers, but lockdown accelerate­d its popularity and revenues in the sector are expected to exceed £61bn this year. Keyword doesn’t publish its own games – it tests and polishes the products of other studios, and is the world’s largest gaming translator for character dialogue. It has bought almost 60 firms since listing in 2013 and now has 70 studios in 23 countries. Growth forecasts are strong and net cash should eclipse £132m this year. 2,088.55p

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