Money Week

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

Three to buy

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Moneysuper­market The Sunday Times

Many consumers will turn to this comparison site to save money amid the rising cost of living, but the investment case is not as straightfo­rward as it seems. Revenues from energy, which amounted to £70m in 2020, have fallen to nothing as high energy costs mean no cheap tariffs. Insurance has also been hurt by the regulator’s move to ban companies from offering cheaper deals to new customers. Still, the travel division is back at pre-pandemic levels, its money arm beat forecasts and the acquisitio­n of cashback site Quidco has contribute­d £14m in revenues for the first quarter of the year “The stock seems to have been punished too far.” 176p

Nestlé Investors’ Chronicle

Food producers are “walking a tightrope” trying to manage inflation costs, but Nestlé benefits from the fact that over a third of its brands are “premium” offerings whose consumers are better placed to “stomach price rises”. At 25 times forward earnings the shares might feel a little steep, but the company’s “resilience” justifies the premium. It also has the “financial firepower” to return money to investors while still reducing debt. CHF122

Whitbread Shares

If consumers turn to a “cheap staycation” to save money on their holidays, Premier Inn owner Whitbread is “in a prime position to benefit”. Accommodat­ion sales are now roughly 30% above pre-pandemic levels thanks to a 10% hike in room rates and an 80% occupancy rate. Other leisure firms in the UK are posting positive reports. Dividends are resuming from July, making now a great time to buy the shares. 2,688p

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