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

Five to buy BAE Systems The Telegraph

A more dangerous world has pushed shares in this defence giant up by 169% over the past five years. Profits are forecast to rise by an annual 9% over the next two years, giving management scope to grow through takeovers or return more cash to shareholders. On a price/earnings (p/e) ratio of 20.2 and yielding a modest 2.4%, BAE is far from the value stock it once was. Yet “a sound financial position”, diversified growth opportunities and its role as a hedge against geopolitical risk mean the shares are still worth buying. 1,277p

Cake Box Holdings Interactive Investor

Shares in this egg-free creamcakes seller have bounced recently thanks to improved trading. Many people do not eat eggs for religious or dietary reasons, so Cake Box operates in an attractive niche. While competition from supermarkets is a risk, a marketing pitch focused on “creating indulgences for a special event” has allowed the brand to stand out. Yielding 5.6% and on a forward p/e of 13, this small cap could serve up some tasty returns. 165p

Mitie Group Shares

Outsourcer Mitie is a lean and margin-focused operator. Covid initiated a turnaround, bringing higher demand for cleaning services. Mitie is Britain’s largest “facilities management” company; its work maintaining buildings (everything from banks to hospitals) is in a structural growth area as health and safety rules and net-zero targets prompt more businesses to call in a specialist. On a p/e of ten, the shares are cheap, especially given scope for further earnings upgrades. 112p

YouGov Investors’ Chronicle

This is a busy year for elections worldwide. That will keep this pollster in the headlines, although only about 5% of its business is actually in political polling. Instead, it is a “welldiversified data and analytics business” that makes most of its money by selling market insights to corporate clients. It has major US exposure, while the recent €315m purchase of a Germany and Italy-focused consumer-panel firm promises to be a “game changer” that will expand its global reach. The shares, on a forward p/e of 20, trade at a marked discount to the five-year average of 36. 970p

PPHE Hotel Group The Mail on Sunday

This hotels group operates everything from the Park Plaza hotel opposite Big Ben to campsites in Croatia. Unlike most of its peers, PPHE both builds hotels and runs them. That enables it to find optimal locations and to tailor floor plans to firms’ needs. Sales rose by 26% and underlying profit by 35% last year. Bookings are solid and new openings will also help bring in business. The shares look “significantly undervalued”. 1,435p