Four jolly stocks to thaw your portfolio this festive season

Just in time for Christmas, we unwrap four companies that could gain a boost this festive season.

Article updated: 12 December 2018 1:00pm Author: Ian Forrest

International Consolidated Airlines (IAG)

IAG owns the Spanish flag carrier Iberia, the budget airline Vueling and British Airways. It may benefit as people travel home at Christmas to visit friends and family, or it may see a surge of those looking to escape the winter weather with a trip to warmer climes over the festive period. Prospects have improved in recent months as the company said in October it expected full-year operating profits to rise by around Eur200m, and then raised its longer term earnings growth forecasts in November. Brexit uncertainty remains a concern but the shares are good value relative to peers Easyjet and Ryanair, and are recommended for investors seeking growth but willing to accept a higher level of risk.

Diageo

Anyone who decides to celebrate Christmas with a dram of Johnnie Walker whisky, a pint of Guinness or a Baileys on ice will be purchasing one of the many famous brands owned by Diageo. The company has enjoyed good sales growth in the US market and is increasingly looking to major emerging market such as India. Cost reduction and good cash generation support steady rises in dividends and share buybacks. We recommend the shares for lower risk investors seeking a balance of growth and income.

Boohoo

This AIM-listed group may benefit as people look for some new clothes to show off in the festive party season, or to give to others as gifts. It owns the PrettyLittleThing and Nasty Gal brands and targets people in the 16-30 age group. The widespread trend among consumers to look online for clothing, instead of making the trip to the high street, is set to continue so we recommend the shares as a buy for medium to high risk investors seeking growth.

IG Design Group

As the producer of a many Christmas cards and gift wrap, among a much wider range of stationery and creative play products, AIM-listed IG Design Group is a clear beneficiary of the festive period. The company has grown steadily in recent years and now sells its products in 200,000 stores in 80 countries around the world. Its most recent acquisition in the US offers good growth potential in what is a large market. In November the company reported a 76% increase in underlying pre-tax profits to £18.5m and said full year earnings would be better than expected. We recommend the shares as a buy for higher risk investors seeking growth.

All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

Ian Forrest portrait photo
Ian Forrest

Investment Research Analyst

Ian’s background in investments, financial journalism and research has seen him advising private investors on equities and helping to manage portfolios. His qualifications include the Certificate in Financial Planning and the Chartered Institute for Securities & Investment’s Investment Advice Diploma.

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