The week’s best buys

Aviva The Times

The insurer’s capital is “as resilient as it could be” – well ahead of market expectations – and all sides of the group are performing well. There is at least £800m of surplus cash, half of which could be returned with buy-backs. Buy. 540p.

Breedon Group The Times

The acquisition of rival Hope makes Breedon Britain’s largest independent construction materials firm, with a network of regional quarries. Margins are rising; and the firm is set to benefit from infrastructure spending. Buy. 79.5p.

Harworth Group Investors Chronicle

Harworth majors in the regeneration of collieries and brownfield land. It has low debt, planning consent for 9,500 residential plots, and good sales momentum boosted by a 43.7-acre site sale to Lidl. Profits are up 21%. Buy. 99p.

Inchcape Investors Chronicle

Car distributor Inchcape offers a defensive play on the motor sector. It is globally diverse, with a growing focus on used cars and aftersales. Strong UK sales have boosted profits, and shares trade at a deserved premium. Buy. 796p.

J. Sainsbury The Daily Telegraph

Unloved by most investors, supermarkets are “relatively defensive”, and the growth of discounters has “probably peaked”. Sainsbury’s is cheaper than Tesco and Morrison, and its Argos offshoot is performing well. Buy. 263.6p.

Secure Income Reit The Times

This property firm is invested in health care, leisure (Alton Towers and Thorpe Park) and 55 Travelodge hotels; all have upwards rental reviews on long leases. Shares are good for income (yields 4.2%) and capital gain. Buy. 337p.