The best share to buy isn’t always a red hot momentum stock. Typically, I favour last year’s losers over the big winners. They’re usually cheap, have higher yields and bags of comeback potential.
The potential rewards are high, but so are the risks. With that in mind, I’ve been loading up on the single biggest loser so far in 2024. Was this wise? Shares in international luxury fashion chain ( ) are down 36.
51% year date. Over 12 months, they’ve crashed a thumping 56.28%.
Profits after tax plunged from £492m in 2022 to £271m in 2023. The cost-of-living crisis and plunging demand in key market China are the main culprits. Stock going cheap As a result, the shares are cheap.
In February 2023, for example, they traded at just over 23 times earnings. Today, they’re roughly half that at around 12 times earnings. Let’s see what the charts say.
Chart by TradingView At the same time, the . From less than 3% Burberry is now offering income of more than 5% a year, as this chart shows. Chart by TradingView That yield was a key attraction, but I’m also concerned.
has warned Burberry could cut its total dividend from 61p per share to 52p this year. Given the company’s troubles, that wouldn’t surprise me at all. A turnaround for a struggling company isn’t an overnight job.
It can take years. Burberry’s operating margins have plunged from 28.86% in March 2021 to just 13.
3% at last count. Again, let’s see what the charts say. Chart by TradingView Just because a maj.
