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

Six to buy Centamin

Gold miners are a volatile, geared play on gold prices. That mining “roller coaster” is currently in steep ascent, with shares in this Egypt-focused miner up by 25% this year. The fruits of a three-year investment programme to raise operational efficiency and cut costs are coming through at just the right time. On a forward price/ earnings (p/e) ratio of ten, the valuation still looks reasonable despite the rally. While there are political risks, for value investors the shares still appear “the best pick among Londonlisted gold miners”.

Costain

Last year saw 4,400 (mainly smaller) building firms go bust, but easing inflation and a rise in contracts up for tender make for a brightening outlook. Costain’s historic pivot from building houses to becoming an “infrastructure contractor” that works across roads, rail and nuclear decommissioning appears especially judicious given the state’s priorities. With more than 80% of revenue

...and the rest

already booked for this year, management has had the confidence to restore annual dividends. On just five times forecast earnings, the shares look a decent bet.

Keller Group

Saudi Arabia’s decision to scale back Neom, its linear city project, means this groundworks contractor won’t enjoy the bonanza of contracts it had hoped for. Still, underlying operating profit doubled in North America last year, while falling net debt makes for a more robust balance sheet. On a trailing p/e of 8.9, the shares trade at a discount to the sector. The 4.3% dividend is appealing, not least given a “record of uninterrupted payouts” since 1994. plunged 90% since 2021 as ardour for speculative green technology has cooled. The business continues to make a loss, but on the plus side revenue is starting to come through on contracts and the shares should at least rally. Hold

Marks & Spencer

A turnaround plan is reaping rewards. The outlook for consumers is improving as inflationary pressures relent. That will boost supermarkets in general, and M&S in particular, as households feeling flush will buy more of its top-quality products. Declining net debt strengthens the financial position. On a forward p/e of 11 the shares still look “excellent” value.

Mitie

From cleaning toilets in shopping centres to controlling platform access gates at train stations, Mitie staff keep a multitude of everyday services running. A recent full-year trading update revealed an 11% rise in revenue to £4.5bn.

Shares

Long limited to use in factories, robots are now going domestic and can already mow the lawn (pictured) and vacuum the house. Advances mean that “within the next decade” they could be doing ever more human chores, aided by advances in artificial intelligence. The iShares Automation & Robotics ETF provides a quality, low-cost (ongoing charges are just 0.4%) way to gain exposure while spreading bets across the sector. Buy

Mitie is pivoting from its base in “facilities management” to more lucrative work in “facilities transformation”, meaning that it helps firms to achieve Net Zero targets or to analyse building-usage data. Wage-cost inflation remains a challenge, but strong cashflow and a robust order book mitigate the risk. The shares seem “relatively cheap”.

Ultimate Products

With inflation finally cooling, a consumer revival looks to be in the works. That is good news for this homeware brands business, which owns Salter and Beldray, among others. Nearly 80% of UK homes are thought to own at least one Ultimate product, whether it be houseware, cleaning, floorcare or a small domestic appliance. The products enjoying a reputation for being high-quality and affordable. While recent trading hasn’t been smooth, management has been using strong cashflow to slash debt. On a p/e ratio of 10.1 and yielding 4.9%, the shares look a bargain given scope for “years of robust growth ahead”.

The Telegraph

Ethically conscious US shoppers are willing to pay a steep premium to buy the familyfarm-produced eggs sourced by Vital Farms. The brand’s “formidable pricing power” rests on a network of trusted farmers and distributors that adhere to its strict standards and its ability to sell a “lifestyle” as much as a product. While the valuation is steep, it appears less so when you factor in forecasts of 27% average annual earnings growth over the next three years. Buy