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

Three to buy

ConvaTec

Shares

The transformation of this medical-technology firm “appears to be bearing fruit”. The group registered 7.9% growth from its top 12 priority markets in 2021, and expects to deliver organic sales growth of between 4% and 5.5% for 2022. Focused acquisitions are helping growth, non-core businesses have been sold and efficiency measures have paid off. It’s the “clear market leader” in the disposable infusion market: its infusion sets, used by diabetic patients, have around 80% market share. Margins have the potential to continue improving. 221.9p.

Energean

Investors’ Chronicle

Gas exploration and production company Energean is predicted to double revenue this year and post over $1bn in pre-tax profit in 2023. The company is listed in London and Tel Aviv, and Israel is key to its growth. Rising demand for natural gas in the country – driven by population growth, the move away from coal and railway electrification – looks like a “fertile market” for Energean. The firm has signed 18 gas sale agreements, which will lock in sales for 16 years. It aims to pay an inaugural dividend of at least $50m by the final quarter of this year and to grow that fast, distributing at least $1bn by 2025. 1,150p.

Smiths Group

The Mail on Sunday

This engineering firm has created an upgraded airport scanner to check passengers’ bags “just as they are”, saving the hassle of “fumbling for that plastic bag of toiletries”. These are in use in Italy and the US, on trial at Heathrow, and due to be installed in busy airports around the world. Smiths’ other businesses, such as semiconductor quality checks, are also growing. The shares have seen “ups and downs”, but the future looks bright under a new CEO. 1,435p.