With Wimbledon nearly here, Nick Raynor, Investment Adviser at The Share Centre, serves up his tennis stocks.
Rafael Nadal
Rafael Nadal's aggressive and speedy game play can be seen in the explosive nature of BG Group's (LON:BG.) share price. When the international gas production and marketing company finds oil the share price soars, which can see investors benefit from what seemed to be a relatively lacklustre position – a trait that Nadal continually forces upon opponents. Nadal plays to the present conditions of the game, which is also true of BG Group whose position changes as a result of the exposure to outside factors such as oil prices and changes to demand. Investors looking for a consistent return should steer clear from BG Group as commodities are likely to remain volatile. However, the company has a great track record of finding new fields and going forward may attract investors seeking growth.
Roger Federer
Supermarket giant Tesco (LON:TSCO) can be likened to the all rounded player Federer, known for his versatility, as it remains one of the most dynamic companies in British retailing. Competition remains tough amongst the top three supermarket giants, as it does for the world number one tennis ranking. Tesco's international exposure and continued expansion plans are attractive for investors seeking growth and we recommend it as a long-term buy. Like Federer, Tesco is a consistent player and doesn't cause a frenzy of excitement; this stability attracts low risk investors. This well executed strategy has driven the company's success as it focuses on keeping prices down, margins steady and extending its range and volume. Tesco remains our preferred play in the retail sector.
Andy Murray
This late developer to the tennis world can be compared to the rags to riches story of online retailer ASOS (LON:ASC) who arrived late on the scene with a bang. Like the Scottish star the company has so far shown a low error rate in tough market conditions with increased competition. UK sales in the year to 31 March increased by an impressive 25%, to £184.1m, but it is the company's international exposure that is the real attraction for the investor. ASOS is pushing for less reliance on the UK market and overseas sales increased by 142% over the same time period. Like…
