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

Three to buy

Adobe

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Software firm Adobe has consistently strong financial performance, exposure to structurally growing markets and a powerful balance sheet. The company is a dominant player in the production of digital content, through programs such as Photoshop and InDesign, and controls 50% of the creative software market. Its tools are also likely to make it “a key creative force in building the metaverse”. Sales have grown from $9bn in 2018 to $15.8bn in 2021, with 92% from recurring subscriptions. “Once the global economy and markets are able to find some stability, Adobe will once again win the recognition the business richly deserves.” $376.91

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The Telegraph

This retailer’s shares have fallen amid concerns about the impact of the cost of living crisis. But it has the financial strength to survive and take advantage of changes in the sector. Next expects to generate £220m surplus cash in 2022 and some of that could be spent on acquiring stakes in businesses that could join its “total platform” – a service that lets other sellers use its online infrastructure in return for a cut of sales. 6,052p

Serco

The Sunday Times “Straitened state coffers tend to trigger an outsourcing boom.” That should be good for Serco, which provides services at prisons, hospitals and other state facilities, yet markets haven’t priced the possibility in. Business is already strong

– it won £5.5bn of work last year – and it is paying regular dividends again, yet trades on a price/earnings ratio of just ten. “The company looks set to flourish even as Britain’s economy wilts.” 147p