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Why we like it: “Judges Scientific (LSE: JDG) owns a carefully acquired, select group of niche specialist scientific equipment manufacturers, growing from a £4m investment vehicle in 2003 to a business valued at over £440m by the market today. It has achieved this growth with a common-sense, savvy approach to acquisitions — buying world-leading companies that boast ‘an established product range, an international customer profile and sustainable sales, profits and cash generation’.

“Chief executive David Cicurel founded the company and has led it ever since, sticking to his method of acquiring companies like these very selectively. Cicurel remains the ‘key man’ at Judges. Even in retirement – which the 74-year-old CEO isn’t contemplating any time soon – he would like to work in an advisory capacity on acquisitions. Additionally, we’re satisfied with what we see as the strength of the wider management team, which includes Mark Lavelle, formerly of Halma, and COO of Judges since 2017.”

Why we like it now: Judges Scientific experienced a challenging year in 2024, impacted by the delayed Geotek coring expedition and generally weak order intake, particularly from China. However, the share price has already halved and appears to have overreacted. The 2025 performance so far is in line with the board’s expectations, supported by the Japanese coring contract and a “healthy” order book. We recommend buying on the dip in anticipation of an earnings recovery in 2025. Currently, analysts’ consensus forecasts are for revenue growth of 11% for Judges in 2025.

There was an epic rally across the pond yesterday (9 April), with the Nasdaq Composite surging 12.16% for its best day since 2001. Incredibly, Tesla (NASDAQ: TSLA) stock soared 22.7% — its second-best daily gain on record!

This will come as a relief to those who invested in Tesla in mid-December, though the stock is still 43% below that high, even after this sudden jump. Over five years, the share price is up 612%.

What’s going on?

Yesterday, President Trump issued a 90-day pause on most ‘reciprocal’ tariffs, which sparked the massive relief rally. However, the 25% auto tariffs remain, meaning a lot of uncertainty remains for Tesla shareholders.

Moreover, China tariffs were hiked to 125%, which is another major headache. China is the largest electric vehicle (EV) market in the world and accounted for 21% of Tesla’s global sales last year.

It’s no secret that government sentiment in China often shapes the business environment. By directly aligning himself with a president who, in the eyes of Beijing, is waging economic war, Elon Musk risks drawing the ire of Chinese leaders.

Whether through regulatory crackdowns, media criticism, or nudging consumer behaviour, the authorities have plenty of levers to pull to bring companies to heel. My fear is that Tesla’s China operations could get caught in the crossfire during a protracted trade war between the world’s two largest economies. 

To give one example, authorities could strongly encourage consumers to favour Chinese EV brands over foreign automakers, especially US ones. And there are plenty to choose from, including BYD, NIO, and Xpeng.

Tesla is already facing regulatory challenges in China with its AI/self-driving technology, but that could be the tip of the iceberg if US-China trade tensions escalate further. So I don’t think yesterday’s announcement really changes much, and the share price could easily pull back in the coming days.

But robotaxis…

Musk has been telling investors that robotaxis are just a couple of software updates away for close to a decade now.

Somewhat confusingly though, Tesla cars have long had a Full Self-Driving (supervised) option. It’s not the proper thing though, as owners still need to stay in charge of the wheel and can’t chill in the back with a movie.

But in June, Tesla plans to finally launch its long-awaited robotaxi service in Austin, Texas. The technology will be AI-based and not reliant on high-precision local mapping like most competitors. This could make it highly scalable and give Tesla an enormous competitive edge.

The vehicles, the Teslas will be in the wild with no one in them in June in Austin. So what I’m saying is this is not some far-off mythical situation.

CEO Elon Musk, Q4 2024 earnings call.

Should I invest?

Based on current 2025 estimates, the stock is trading at a forward price-to-earnings multiple of 96. The continuation of this sky-high valuation rests upon the successful deployment of robotaxis over the next few years.

Put simply, it’s crunch time for Tesla, as we’ll soon find out whether the technology is truly up to scratch. If it is, the stock could take off like a rocket again.

On the flip side, an early high-profile incident could throw things off track.

Me? I’m going to stay on the sidelines for now, with plenty of popcorn.

When share prices are moving higher, buying can be hard. Despite this, I think there are a couple of UK stocks that are worth considering even as markets rally after the recent drop.

Nobody likes seeing something they were thinking of buying trading at a higher price. But being a good investor is about looking past the short-term movements at the bigger picture.

Quality

There are two things I look for in a quality business. The first is a strong competitive position that’s hard to disrupt and the second is the ability to earn strong returns on capital.

To be a good investment, a firm has to be able to differentiate itself over the long term. If a competitor can make a cheaper or better product, this is going to be a problem sooner or later.

Equally, a business needs to be able to earn a good return on its growth investments. Shares in a company that invests £100m to grow its profits by £1m are unlikely to be a good investment. 

Finding these kinds of companies trading at attractive prices isn’t easy. But even with share prices moving higher, I still think there are opportunities available. 

WH Smith

FTSE 250 retailer WH Smith (LSE:SMWH) probably isn’t the first name that comes to mind for investors looking for quality stocks. But I think it’s a better business than most people realise.

The firm has recently agreed to sell off its high-street stores and focus on its travel operations. These are located in airports, hospitals, and train stations, where competition is very limited.

This brings increased exposure to travel, which increases the risk from a recession. I’m keeping a close eye on this, but I’m also mindful that the stock still looks like good value.

WH Smith’s travel division generated £189m in operating profit in 2024 – over 15% of the current market cap. So even with the share price rising, I think it’s worth considering.

FW Thorpe

Industrial lighting company FW Thorpe (LSE:TFW) is a stock a lot of investors might not be familiar with. But it has a number of attractive features from an investment perspective. 

The company isn’t the biggest – and this creates a risk of larger organisations with greater scale looking to compete with it. But it does have a strong competitive position.

FW Thorpe focuses on industries with specific regulatory requirements, such as hospitals and road tunnels. This allows it to use its technical expertise to provide added value for customers. 

The stock hasn’t really participated in the recent rally. And with a consistent track record of returns on equity above 10%, I think it’s well worth a look at today’s prices. 

Investment opportunities

It can be tough to buy stocks that were trading at cheaper prices only a few days ago. But what matters is where the share price is now, now where it has been. 

Investors should be careful not to fall into the trap of thinking a stock that has recently gone up can’t continue to do so. This can be an expensive mistake.

What matters most of all is finding a quality business. And I think there are still some in the UK that are worth a closer investigation for investors looking to buy shares right now.

Lloyds (LSE: LLOY) shares have had a turbulent time lately, along with almost every other FTSE 100 stock. 

But over the last year, the journey hasn’t been too shabby. Despite plunging 11% in the last week, Lloyds is still sitting on a 22% gain over 12 months.

Add in a dividend yield of around 4.75%, and investors who’ve held on have enjoyed a total return approaching 27%. 

Not bad at all, especially given the chaos out there.

Is this FTSE 100 stock a buy?

Global trade worries and political tensions have knocked Lloyds back, just as it was hitting its stride.

Markets welcomed its full-year results published on 20 February, choosing to look past concerns over the motor finance mis-selling scandal, and focus on the board’s hefty £1.7bn share buyback programme, a sure sign of confidence. 

The numbers weren’t perfect, though. Annual profits dropped 20%. Net interest margins, the difference between what Lloyds pay savers and charges borrowers, and a key profitability metric, dipped 16 basis points to 2.95% as interest rates started to ease. 

That’s something to watch, especially if the Bank of England cuts rates faster than expected in response to recent economic turbulence. Some are now predicting four quarter-point rate cuts this year, while they were previously predicting just two.

On the other hand, lower interest rates might lift mortgage demand, boosting demand for Lloyds as the UK’s number one lender via subsidiary Halifax.

Lloyds also set aside £700m more for potential motor finance compensation, pushing the total provision towards £1.15bn. There’s still a lot of uncertainty over how that will play out, with a key court ruling due this month.

As a mainly UK-focused bank, it won’t be directly hit by tariffs, but if the UK economy slows, people may borrow less, struggle to make repayments and draw down their savings. All of which puts pressure on banks like Lloyds.

Still, there are reasons for cautious optimism. The 17 analysts who’ve crunched the numbers think Lloyds shares could be worth just under 79p in 12 months’ time. 

Growth, dividends, and buybacks

That would be an increase of more than 18% from today’s 67p. Combine that with the forecast 5.25% dividend yield for 2025, and an investor is potentially looking at a total return of around 23.25%. 

If correct, that would turn £10,000 into £12,235. Which doesn’t sound bad to me.

Forecasts like these need to be taken with a healthy pinch of salt, especially today. Many were made before the recent market dip, and sentiment can shift quickly. But for long-term investors, moments like this can offer rare chances to pick up quality income shares at a discount. Lloyd shares look good value with a trailing price-to-earnings ratio of 10.2.

I hold Lloyds shares myself and have no plans to sell. I’m thinking in terms of years, and with luck decades, not days or weeks. 

Investors who are focused on steady dividends and patient growth might consider taking advantage of recent volatility. Although they should brace themselves for more ups and downs, as we wait to see how trade wars pan out. Not to mention that mis-selling case. It could go either way. In the longer run, I remain optimistic.

Officially, Warren Buffett doesn’t make predictions about what the stock market is going to do. But the Berkshire Hathaway CEO has an uncanny knack for seeing trouble coming.

Buffett has been actively reducing Berkshire’s stake in both Apple and Bank of America recently. And while they initially seemed like mistakes, they now look like incredible decisions.

Market timing

During the fourth quarter of 2023 – when Buffett started selling off Berkshire’s stake in Apple – the stock traded at prices between $166 and $199. After that, it got up to $255.

That makes the decision to sell look unwise. But earlier this week, the stock fell back to $169, meaning the Oracle of Omaha’s move was almost certainly a good one.

The same is true with Bank of America. Buffett sold a lot of shares at prices between $39 and $44, but the stock got up to $48 – a clear 10% above where Berkshire reduced its position.

In the recent volatility, however, the stock fell right the way back to $33. Again, that makes the decision to sell at higher prices look like an extremely intelligent one.

How does Buffett do it?

Buffett’s skill as an investor is remarkable. But the secret to his success isn’t his ability to forecast where the stock market is going to go – it’s something quite different. 

Instead of looking directly at share prices, Buffett focuses on businesses. Over the long term, the amount of cash a company makes is the clearest sign about where its share price is going.

Exactly when the stock market catches up to the reality of the underlying business isn’t something the Berkshire CEO takes a view on. But Buffett is clear this happens sooner or later.

Whether it’s buying or selling, this is the guiding principle that informs Buffett’s investment decisions. And it’s the reason they’ve generated such strong results over the last 60 years.

An example

I think RELX (LSE:REL) is a good example of this kind of thinking. Like Apple, the FTSE 100 analytics company is a high-quality outfit – but it might be hard to justify the current share price.

The stock has a market cap of just over £72bn and the business made just over £2bn in free cash last year. That implies a return of just under 3%, which isn’t particularly outstanding.

For the current share price to make sense, the company is going to have to grow significantly. And this isn’t entirely out of the question with the emergence of artificial intelligence.

Over the last decade, though, revenue growth has been steady without being spectacular. And this is why I think investors might want to consider other opportunities at the moment. 

Long-term investing

Buffett’s big advantage over the stock market is time. Short-term movements in share prices are hard to forecast, but things are much easier to predict over the long term. 

Berkshire Hathaway’s decision to sell Apple shares looked premature for quite some time. But the stock eventually came to trade at a level that justified the move. 

In the UK, I think RELX might be in a similar position. So I think investors who own the stock and want to follow Buffett’s example might consider doing the same.

FTSE 100 dividend shares are my top choice for generating long-term passive income.

Who wants tech stocks lurching up and down daily when we could just buy a Footsie index tracker and expect an annual return of around 3.7% from dividends alone? That’s what the consensus of forecasts currently suggests, according to AJ Bell‘s latest Dividend Dashboard.

The survey gives us a quarterly update on what the City folk are thinking. They currently reckon FTSE 100 dividends could total £83bn in 2025. And this year we’ve also seen £28.9bn in buybacks already announced.

Dividend forecasts

Dividends are never guaranteed, mind. In fact, in recent years, the City analysts have been at their most bullish in the first quarter, then they’ve softened their expectations a bit.

Even so, it looks like FTSE 100 shareholders could be well rewarded with cash this year. And by 2026, the all-time dividend record of £85.2bn set in 2018 has a decent chance of being beaten.

Yield and cover

I want good dividend yields, but with sufficient earnings to easily cover them. Right now, I’m seeing a tempting 5.8% yield forecast for J Sainsbury (LSE: SBRY).

It’s boosted by a share price dip after Tesco lowered its forecasts for the year ahead. Blaming potential price wars, the UK’s biggest supermarket chain now expects £2.7bn to £3bn operating profit for the 2025-26 year, down from the £3.1bn just reported for 2024-25.

Sainsbury is due to report on 17 April, so that’s something to watch for.

Dividend cover

Sainsbury’s dividend looks like it should still have a bit safety, with the survey putting cover by earnings at a little over two times.

The year seems to going well, judging by January’s third-quarter update. CEO Simon Roberts said: “We have won grocery market share for the fifth consecutive Christmas, with more customers choosing Sainsbury’s for their big shop.”

The company maintained its full-year guidance, saying it expects retail cash flow of “at least £500m“.

The biggest risk does seem to be pressure on the dividend from price competition. But strong earnings and cash flow means this is definitely a dividend share I’m considering.

Property prospects

I like the dividend outlook for a couple of property-related stocks too. House builder Taylor Wimpey has a forecast yield of 8.4%, with a cover by earnings of about 1.6 times.

The industry isn’t out of the woods yet, not with interest rates and mortgages still high. But if the company makes this year’s dividend and shows good cash-flow prospects, I think it’s another for income investors to consider. The only thing that stops me is that I already have enough house builder shares.

Investment trust

LondonMetric Property is the other related one, with a 6.6% yield. It’s a real estate investment trust (REIT), and it puts some of its cash in retail parks, distribution facilities, and offices. So it’s going to face similar risks to the other two I’ve covered.

But we’re looking at expected cover of 1.4 times, which could provide a bit of dividend safety.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

As i write (2 pm, 10 April) the Barclays (LSE:BARC) share price is up 11% on the day. It was up 25% in early trading. The move upwards reflects Donald Trump’s decision to put a pause of higher tariffs on 75 countries. But why is the jump so pronounced?

Back to the base case

Before Trump’s tariff were announced on ‘Liberation Day’, the base case forecast anticipated something like the 10% global tariff we see today. As such, the huge tariffs implemented on trade partners such as Vietnam, China, and the European Union were something of a surprise. This resulted in a global sell-off.

So why did Barclays, a UK-focused bank, slump on Trump’s tariffs? Well, analysts forecasted that the severity of these tariffs would force the US economy and much of the global economy into a recession. This isn’t good for the vast majority of companies. But it’s particularly bad for banks that typically reflect the health of an economy.

As such, Trump’s 90-day pause on these higher tariffs see a return of the base case — a 10% global tariff — with the exception of the huge duties implemented on China.

Out of the woods?

Does this mean a return to some sort of normality? Absolutely not. Despite the pause, Goldman Sachs sees the US economy growing by just 0.5% in 2025. Moreover, it still sees a 45% chance of recession within the next year. That’s quite an incredible turnaround from the forecasts at the beginning of the year. Nobody really expected a US growth slowdown.

What’s more, the huge gains on Thursday (10 April), are likely driven by short covering. This occurs when investors who had previously bet against the stock rush to buy shares to close out their positions, often in response to unexpected positive news or upward momentum.

The resulting surge in demand can significantly inflate the share price in a short period, amplifying gains beyond what fundamental developments alone would justify.

Moreover, we’re just entering earnings season where we’re likely to see reduced guidance from companies, as it’s simply too hard to forecast and it’s possible that the first quarter hasn’t been a stellar one. With plenty of uncertainty in recent months, some customers and companies may have cut back on spending. Some analysts suggest the US may already be in recession.

Why is this important for a UK-focused bank? Well, while Barclays does have some US operations, it’s worth remembering that old saying: “When the US sneezes, the world catches a cold”.

The bottom line

Personally, I’m being cautious during this period of volatility. I believe we may see more US recession forecasts that will likely push stocks lower. As such, I’m not planning to add to my Barclays holding in the immediate future.

However, the environment’s changing quickly and I appreciate the stock’s still cheap on a price-to-earnings basis compared to its US-listed peers.

HSBC (LSE:HSBA) shares jumped 5% in Thursday’s (10 April) morning session reflecting broader market optimism after Donald Trump paused the introduction of higher tariffs on 75 nations. This move has provided temporary relief to global markets, but HSBC’s significant exposure to China places it at the centre of ongoing trade tensions between Washington and Beijing.

Closing short positions

I’d be cautious to say that the rally in US stocks on 9 April and European stocks on 10 April are real, lasting rallies. It likely reflects two things. Firstly, the pausing of higher tariffs for 90 days probably means that the worst possible trade outcome is off the table. The second is short covering. That is, traders who had bet against the market by taking short positions were forced to buy back shares to close those positions as prices began to rise. This buying pressure can accelerate upward moves. This also creates the appearance of a broader rally even if underlying sentiment hasn’t fundamentally improved.

China exposure: a double-edged sword

HSBC’s deep ties to China are both a strength and a vulnerability. The bank has invested heavily in its mainland operations, with $450m earmarked to expand its presence by 2025. The bank operates 150 branches across 50 cities in China. It employs over 7,000 staff and providing services ranging from wealth management to global banking. This extensive footprint means that HSBC is the foreign bank with the largest geographical reach in mainland China.

China accounted for 63% of HSBC’s revenues in 2024. This far surpasses contributions from other regions such as the UK (22%) and North America (3%). While this positions HSBC to benefit from China’s long-term growth potential, it also exposes the bank to risks stemming from escalating trade tensions. With the US-China trade war intensifying and tariffs on Chinese imports reaching as high as 125%, it has effectively made trade between the two nations unviable as it stands.

In 2023, Chinese exports to the US accounted for around 2.8% of GDP. With that in mind, and should these tariffs stick, it’s hard to imagine how China couldn’t see a considerable economic slowdown, even if it does introduce new stimuli. Of course the tariffs, in their current form, would remain a worst-case scenario.

The bottom line

The current earnings forecasts — made and compiled before the sanctions were introduced — looks strong. The stock is trading at 7.6 times forward earnings, and this falls to 6.7 times for 2026 and then six times for 2027. Coupled with a 7.3% dividend yield — rising to 8.4% for 2027 — it looks good value. However, I’m very cautious to make hasty investment decisions at this moment in time. While I’d expect a negotiated outcome to Trump’s trade war, HSBC would be heavily exposed to any negative outcome for China. That’s why I’m not buying right now.

Tesco (LSE:TSCO) shares failed to join the broader market rally on Thursday (10 April), with the FTSE 100 retailer warning of a likely profits drop this year.

Last at 314.1p per share, Tesco’s share price was 6.3% lower on the day. It had sunk to nine-month lows of 310.4p earlier in the session.

Britain’s biggest retailer said intensifying price wars would drive its bottom line lower in the near term. But could Tesco shares now be cheap enough to consider buying?

Profits rise…

The supermarket industry’s notoriously competitive, and retailers have to perform a delicate balancing act of cutting prices without decimating their profit margins.

To be fair to Tesco, it’s made a good fist of navigating this tough environment more recently. Today’s update showed group sales up 3.5% in the financial year ended February, to £63.6bn. Adjusted operating profit leapt 10.6% to £3.1bn, which was actually ahead of forecasts.

Like-for-like sales were up 3.1%, driven by a 4% increase in its core UK operations. Volumes at home also came in ahead of expectations, which Tesco said was helped by “ongoing investments in product quality and innovation” across its food lines.

… but are tipped to reverse again

The bad news is that Tesco predicted things could get much tougher, pulling its shares through the floor.

While being in “the most competitive position and highest market share we have had for many years,” the grocer added that “we have seen a further increase in the competitive intensity of the UK market” over the last few months.

As a consequence, it expects adjusted operating profit to fall to between £2.7bn and £3bn in the current financial year.

Tesco’s adjusted operating margin rose 33 basis points in fiscal 2025, to 4.5%. But it remains in peril as a double-whammy of rising competitive pressures and major cost increases.

It said higher National Insurance contributions — which came into effect at the beginning of April — will alone take a £235m bite out of its bottom line this year. Tesco’s announced a £500m cost-cutting programme to help it navigate the problem of rising expenses.

Rivals stepping up

Tesco’s hugely successful Clubcard loyalty scheme is providing it from some protection against rivals. In fact, the business has relied heavily on it in recent times by offering lower ‘Clubcard Prices’ for its members.

But intensifying industry price wars mean that its influence may be limited going forward, and especially as consumer spending across its markets remains under the cosh. News last month that Asda — the UK’s third largest supermarket by share — plans to use what it descrives as a “pretty significant war chest” to slash shoppers’ bills comes with obvious risks.

At the same time, Tesco faces the long-running problem of aggressive estate expansion from its cheaper German rivals Aldi and Lidl.

Cheap but risky

Tesco deserves credit for its resilience in recent times. But recent successes could prove fleeting as competition tightens.

Today, the FTSE company trades on a forward price-to-earnings (P/E) ratio of 10.8 times. This is some distance below the five-year average of 18-19 times.

But even at these prices I’m not tempted to invest. I think there are much better UK value shares to consider right now.

My Stocks and Shares ISA became a sea of red at the beginning of this crazy April. However, history teaches us that sudden market downturns often present great buying opportunities for long-term investors.

Right now, I think a few stocks look attractive at current prices, even after the massive US market rally yesterday (9 April). Here’s one that’s worth considering, in my opinion.

Fintech disruptor

The stock in question is Nu Holdings (NYSE: NU), which is the parent company of digital bank Nubank. This name isn’t widely known outside of Latin America, yet within the region it certainly is — it has over 114m customers!

This actually makes it the largest digital bank outside China, despite only operating in three countries (Brazil, Mexico, and Colombia). Incredibly, the company was only founded 12 years ago.

Over half of adults in Brazil now use Nubank’s app, which offers various accounts, loans, insurance, stock and crypto trading, and more. And 61% of active customers are using it as their primary bank account.

It’s disrupting the traditional banking industry in the region through innovation, low fees, and by offering a frictionless service. Oh, and by dishing out purple credit and debit cards because that was the most anti-bank colour the firm’s founders could imagine!

I had to open a bank account…when I moved to Brazil [in 2012], and it was one of the worst experiences I ever imagined, going to the branch, being trapped in this bulletproof door, being escorted by armed policemen, waiting an hour to get attended and later going back to the branch about six times, then waiting five months.

Co-founder and CEO David Vélez, in an interview with Fortune.

Attractive-looking business (and stock)

Revenue has grown tremendously in recent years, from $1.7bn in 2021 to $11.5bn last year. But this isn’t some cash-incinerating fintech — its digital-first approach is leading it to become highly profitable.

In the fourth quarter, for example, it cost Nubank $0.80 to serve each of its customers per month. Yet it generated an average of $10.70 in monthly revenue per active customer. Older customers generate around $25. This showcases the company’s strong operating leverage.  

Last year, net income almost doubled to just under $2bn. And looking ahead, both revenue and earnings are expected to continue growing strongly.

	2024	2025	2026	2027	2028
Revenue	$11.5bn	$12.5bn	$15.8bn	$19.6bn	$25.2bn
Earnings per share (EPS)	$0.40	$0.55	$0.76	$1.05	$1.36

The share price has fallen 31% since November and now sits at just under $11. Based on forecasts, this puts the stock on a forward price-to-earnings ratio of 19.7, then falling as low as 10 by 2027. These multiples look very attractive.

Massive opportunity

As far as risks go, there a couple worth pointing out. The first is that the number of non-performing loans on its books could rise if its main market, Brazil, were to suffer a recession.

Meanwhile, it faces stiff competition from MercadoLibre‘s fintech division (Mercado Pago) and the UK’s Revolut. It will have to keep innovating with ambitious rivals like that around.

Finally, Latin America is no stranger to periods to economic instability and high inflation. So this is worth bearing in mind.

On balance though, I think the stock is worth considering at $10. Many millions of people across Latin America remain either unbanked or underbanked, presenting a very large long-term growth opportunity.