The honest answer depends on time, consistency, and return rates. But one thing is clear — the ISA itself gives you a powerful head start.

Any capital gains and dividends earned inside an ISA are completely tax-free. No income tax. No capital gains tax. That means more of your returns stay invested and compound over time.

As Vanguard founder John Bogle once said:

“Time is your friend; impulse is your enemy.”

And nowhere is that more obvious than with long-term ISA investing. So what happens if you put that into practice?

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Calculating potential income

Over the 10-year period between 2016 and 2026, the Vanguard FTSE 100 ETF achieved a total return of 143% (with dividends included). That equates to an annualised return of 9.3% per year.

If it maintained similar performance over the next decade, a £500 monthly investment would compound to £99,678 by 2036.

In other words, a total invested amount of just £60,000 would deliver £39,678 of passive income.

That’s already a favourable return, but if held for a further 10 years, it could skyrocket to £350,146. At that point, the returns would have significantly outpaced the £120,000 invested.

This illustrates the power of starting early and compounding the investment for as long as possible.

But while an index-tracking ETF is a good way to capture broad market growth, individual stock picking can achieve even greater returns.

Which stocks deliver the most passive income?

Dividend stocks are often the go-to for passive income. But chasing the highest yield can backfire. Companies offering yields above 7% often struggle to sustain them.

Common risks include:

• Weak earnings failing to cover dividends.
• High debt levels squeezing cash flow.
• Sudden dividend cuts during downturns.

A yield around 5%–7% tends to be more sustainable.

Look at Hilton Food Group (LSE: HFG), for example.

It’s not the first name that pops into many people’s heads when thinking about dividend income. 

But it offers a decent 6.5% yield backed by a solid 20-year track record. Its cash flow covers dividends by 2.93 times and earnings only account for 65.4% of payouts.

So what’s the catch?

Recently, a sharp profit dip irked investors, leading to a 38% price drop in 2025. But an aggressive business overhaul has seen the appointment of a new CEO and a refocus on its core meat business.

Subsequently, revenue jumped 11.9% in H2 2025 to £4.2bn and it managed to increase dividends by 1.4%.

With the future now looking more promising, the low price could be an excellent opportunity for value hunters.

The group’s price-to-earnings growth (PEG) ratio is an attractive 0.46, so the price could still rally once the market realises the growth potential.

The bottom line

Hilton certainly has potential and I think it’s a good income stock to consider, but nothing is risk-free. A recovery isn’t guaranteed and margins in food production can be tight.

So while the income looks appealing, investors need to stay realistic.

When targeting passive income, a Stocks and Shares ISA is a good start. However, it must be combined with disciplined saving and a carefully curated portfolio of proven income stocks.

Mark Hartley has no positions in the shares mentioned. The Twelfth Magpie has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor and Hidden Winners.

The post How much passive income could a £500 monthly investment in a Stocks and Shares ISA achieve? appeared first on The Twelfth Magpie.

A perfect example of this would be Hilton Food Group (LSE:HFG). The food processing and packaging enterprise has encountered a few hurdles lately that have punished its share price.

In fact, the stock’s down 39.5% in the last 12 months alone. Yet despite these challenges, dividends continue to flow to shareholder pockets, offering an impressive 6.52% yield.

The question now becomes, will dividend payments continue, and can the company start bouncing back?

What’s going on?

Hilton’s situation is a little complicated. Investors have been hit by a cascading wave of bad news that resulted in three back-to-back profit warnings that understandably decimated confidence.

A big source of the problems comes from its Foppen smoked salmon business. A US regulatory intervention following Listeria contamination blocked Foppen’s Greek production facility from shipping its products to America. In turn, unsold inventory started to build and spoil, leading to stock write-offs, triggering the multiple profit warnings.

This all came at a time when food inflation, particularly for beef and white fish, proved to be a persistent challenge, plaguing Hilton’s other operations.

While the firm’s open-book contract model with customers makes it easy to pass along these costs, inflation-driven demand destruction has also resulted in a notable slowdown in volumes.

The impact of all this mess became clear in the firm’s full-year results for 2025. While revenue was up 10.3%, volume growth flatlined, with underlying operating profits falling by 5.2% and free cash flow contracting by 13.8%.

Has a hidden buying opportunity emerged?

As previously mentioned, even with all these internal and external headwinds, dividends have continued to flow. In fact, management actually just raised payouts by 1.4% from 34.5p to 35p per share.

It’s a modest bump. But it also signals confidence that better times lie ahead. And to be fair, there are some valid reasons for optimism.

The group’s core meat business is proving to be quite resilient with stable volumes even as prices rise. At the same time, more troubled operations, including Foppen, have undergone a strategic review and are now seemingly being considered for divestment to refocus the business. And even net debt seems to be moving in the right direction.

So is the worst behind us?

What’s the verdict?

Hilton Food Group definitely seems to be taking the right steps – adjusting strategically, re-evaluating non-core assets, and repairing the balance sheet. However, sadly, the financial pain’s likely not over.

Restrictions on Foppen are seemingly here to stay until the end of the first half of 2026 at the earliest. And as such, full-year pre-tax profits are expected to fall further, applying more pressure to the dividend yield.

Assuming leadership’s turnaround attempt is a success, investors will likely start to see positive signs emerge in 2027, with dividends continuing to flow in the meantime. But if the updated strategy fails to generate momentum and earnings continue to suffer, a payout cut could indeed be on the horizon.

Overall, Hilton Food Group appears to be a solid income and turnaround opportunity worth investigating further. But investors will need to be patient.

The post Down 39.5%, this UK stock offers a 6.52% dividend yield for investors! appeared first on The Twelfth Magpie.

Recent issues

I’m talking about Hilton Food Group (LSE:HFG). The stock is down 40% over the past year, and a late January trading update revealed that profits could fall 10%–20% in 2026. In terms of reasoning, disruptions to the Foppen business, inflationary pressures, and overall weak demand were cited.

The Foppen issue is arguably the biggest headache for investors. The brand, which specialises in seafood, has been hit by US regulatory restrictions, showing how operations for a large FTSE 250 group company can be impacted by something rather unusual.  At the moment, the US has restricted salmon shipments from Foppen’s facility in Greece. This has forced the company to temporarily shift production to the Netherlands.

The issues and profit warnings have pushed the stock lower and lower, to what some believe is now at an overly cheap price. Given where the stock trades relative to the past decade, it’s clear why it could be called a once-in-a-decade opportunity.

Reasons for optimism

At a basic level, the management team is aware of the problems and is working to resolve them. The company is reviewing its entire portfolio and considering potential actions to cut costs or restructure. I wouldn’t rule out a sale of Foppen in the near future. This is key because at least senior leaders are conscious that change is needed.

The full-year results are due at the end of the month. This should detail the changes that will be made. Given that the trading update from January got the bad news out of the way, I struggle to see how the results could cause a significant negative reaction.

Outside of this, the company is doing well with expansion opportunities. This includes Canada with the Walmart supply deal and Saudi Arabia. This could act to help diversify risk away from other areas of the business.

Finally, the problems with Foppen can be solved. If progress with the US authorities comes later this year, it could spark a large rally. If it can’t be resolved, selling the entity and moving on is another route. Either way, I don’t see this as an issue that’ll drag on for years. So with a long-term investment horizon, the share price should be able to enjoy a brighter future.

With a price-to-earnings ratio of 8.2, it’s cheap, as I use a benchmark figure of 10 for fair value. Given where the stock currently trades, I do believe it’s a rare opportunity, and so I’m seriously thinking about adding it to my portfolio.

The post It could be a once-in-a-decade opportunity to buy this cheap FTSE 250 stock appeared first on The Twelfth Magpie.

Over the last 12 months, two of the worst-performing shares across the FTSE 350 are Hilton Foods Group (LSE:HFG) and PayPoint (LSE:PAY), both falling 42% and 36% respectively.

So what’s behind the decline? And has a lucrative buying opportunity potentially emerged here?

Investigating the problems

These businesses are quite different. Hilton Foods is a British food producer and packager working with some of the largest retailers across the UK and Europe. Meanwhile, PayPoint offers a point-of-sale and cloud-based retail management solution for convenience stores.

As such, the companies have encountered starkly different challenges of late.

Hilton’s seafood segment’s hitting multiple headwinds from regulatory shutdowns and inflation-driven demand destruction following quota restrictions on fishing in the North Sea. And even though its primary meat business is chugging along nicely, an overall downturn in consumer spending has resulted in multiple profit warnings.

PayPoint’s situation’s a bit different, driven primarily by managerial missteps and operational disruption.

The group’s investment in open banking venture Obconnect has so far failed to keep up with performance expectations, dragging down profits instead of boosting them.

At the same time, InPost’s acquisition of Yodel resulted in many of PayPoint’s Collect+ partnered stores being temporarily removed from the delivery network due to integration challenges. And consequently, these headwinds have ultimately led to management warning that its target of reaching £100m EBITDA will take longer than initially expected.

With that in mind, it isn’t surprising that both these shares took a tumble.

A hidden buying opportunity?

Hilton Foods Group’s CEO stepped down in November, and while the search for a successor is underway, Mark Allen has temporarily taken over as executive chair. And with his extensive experience within the food and consumer goods industries, investor sentiment has started to improve.

As for PayPoint, the parcel network disruption was ultimately a temporary setback rather than a drop in demand. And the firm’s already started seeing parcel volumes recover.

Meanwhile, its core merchant solutions business has recently launched new e-commerce tools and remains on track to expand its merchant network to over 10,000 by the end of 2026.

There are, of course, still plenty of challenges for both businesses to overcome.

With multiple external headwinds surrounding Hilton, a turnaround even under an experienced leader like Allen could prove challenging. And with PayPoint’s parcel volumes recovering, the new three-year contract signed with InPost is far less favourable than before, with the company receiving a lower fee per parcel delivered through Collect+.

So where does that leave investors?

The bottom line

With strong execution, PayPoint could steer itself back on track and enjoy solid revenue and profit growth. But given its recent track record, that’s not a risk I’m willing to take.

By comparison, Hilton Food Group seems to be in much more capable hands. The company’s appointed two new operating officers covering different regions as part of a wider turnaround. And with a weakened stock price, it could be worth a closer look for investors seeking turnaround shares to buy in 2026.

The post After crashing up to 42%, are these some of the best UK shares to buy today? appeared first on The Twelfth Magpie.

The challenge, of course, is figuring out which stocks are cheap for a good reason and which ones are hidden bargains.

In my experience, a good place to start is looking at the worst-performing shares over the last 12 months. And right now, Hilton Food Group‘s (LSE:HFG) on that list.

After two share price crashes in 2025, the stock’s now trading near a decade-low. The forward price-to-earnings ratio now stands at an attractive 8.9 with a dividend yield of 7.2%. But if the broker forecasts are right, the share price could surge by as much as 92% by this time next year!

So is this a screaming bargain that investors should rush to buy? Let’s find out.

What happened to Hilton Food Group?

While not a household name, most consumers interact with Hilton’s products every day. The company’s a British food producer and packer that supplies private-label products to leading retailers around the world. As such, when buying packaged steak or fish fillets from Tesco, there’s a good chance Hilton prepared them.

In 2025, the company encountered numerous surprise challenges. This included a massive 44% slash to whitefish fishing quotas in the North Sea that triggered significant price inflation for the protein. With UK consumers already under financial pressure, whitefish volumes tumbled on the back of affordability concerns.

Meanwhile, the group’s Foppen business had its own set of challenges with regulatory intervention disrupting salmon shipments to America. And with the later US government shutdown delaying operational restarts, Foppen was left in limbo.

These enormous headwinds effectively crippled Hilton’s seafood segment. And with profit warnings subsequently emerging alongside a weakened outlook for 2026, the share price understandably crashed.

A cheap turnaround stock?

Despite the numerous problems this business has encountered, there’s room for optimism. Fishing quotas are ultimately cyclical, while the regulatory hurdles for Foppen are slowly being worked out. Meanwhile, management’s currently executing an operational review to identify where new efficiencies can be implemented.

As external headwinds soften and normalise, the demand destruction for white fish should taper off as inflationary forces ease and consumers adjust to the new price environment. In the meantime, demand for its meat, vegan, and convenience meals seems to still be intact, generating solid and slowly expanding cash flows.

Combined, that certainly sets the stage for a potential recovery. And it explains why institutional analysts are placing aggressive share price targets, especially if the operational review unlocks new shareholder value.

However, it’s important to recognise that until the seafood situation is resolved, the recovery timeline remains unclear.

Economic weakness across the UK, US, and Europe could keep consumer spending on fish weak. And based on management’s cautious comments about 2026, the recovery analysts are expecting it may take much longer than 12 months to materialise.

The collapse of free cash flow generation back into negative territory is also a concern, along with the sudden jump in the group’s net debt position.

Nevertheless, with these concerns seemingly already priced into the stock, Hilton Food Group could be worth a deeper investigation for patient investors.

The post With a 7.2% yield, is now the time to buy this dirt cheap stock? appeared first on The Twelfth Magpie.

Fortunately, this means my stocks usually don’t appear in the list of fallers either. But I’m realistic enough to know there are never any guarantees when it comes to investing in the stock market.

However, it’s the losers that continue to interest me the most. That’s because — I believe — investors often over-react to bad news, sometimes sending a share price lower than is justified.

A bad day at the office

An example of this occurred on 3 September.

The share price of Hilton Food Group (LSE:HFG) tanked 17% after investors took a dislike to its interim results for the six months ended 30 June (H1 25). The company is a supplier of meat, seafood, vegan, and vegetarian foods to customers in Europe, Australia, and New Zealand.

Don’t get me wrong, I’m not saying the results were particularly impressive. After all, a 0.4% fall in adjusted operating profit, compared to the same period in 2024, isn’t what you would expect from a listed business.

In addition, the company recorded a net cash outflow of £30.8m compared to an inflow of £30m in H1 24. Also, over the past 12 months, net debt has increased by £65.4m.

A closer look

However, the company said it expects “to deliver full-year results within the range of expectations”. The consensus of analysts is for a pre-tax profit of £76.8m-£81m. It made £61m in 2024.

On this basis, I think wiping around £150m off the group’s market cap is unjustified. This is particularly the case when the increase in its net debt is explained by “increased tactical inventory holding” and additional capital expenditure. It’s not as if the group’s been wasting its surplus cash.

And it announced a 5.2% increase in its interim dividend. When added to last year’s final payout, today’s share price crash means income investors might be tempted by the stock’s healthy yield of 5.1%.

Been here before

But it’s not the first time that the group’s shareholders have suffered. In September 2022, on the day it issued a profit warning, its share price tanked 28%.

This is just one example of how investor patience has been tested in recent years. In April 2022, the shares were worth over 80% more than they are today.

A more positive view

However, I think there are plenty of reasons to consider today’s reaction by investors as a mistake.

The group’s plans to expand internationally remain on schedule. It’s due to commence trading in Saudi Arabia with a joint venture partner in the second half of 2026. And it plans to launch a new business in Canada in 2027.

And if it does meet analysts’ expectations this year, it means the stock’s trading at around 12 times forward earnings. Others in the sector, including Cranswick, Kerry Group, and Greencore Group, attract a higher multiple.

That’s why I think today’s share price movement means Hilton Food Group is a stock for investors to consider. And why I think large share price falls are worth keeping a close eye on.

The post Is this an easy way of identifying potentially cheap FTSE shares? appeared first on The Twelfth Magpie.

Nevertheless, all businesses and stocks come with risks as well as opportunities. So it’s important to research well and choose with care.

Value comes in several shapes

Good value can be defined in more than one way. First, there’s the cheap-on-the numbers approach. It looks for low price-to-earnings ratings, high dividend yields, modest price-to-asset ratings, low debt and other things.

However, that’s not the only method that can be successful. Quality and growth prospects can also be an essential component of overall value.

A third angle is to look for businesses that have the potential to turn themselves around after a period of decline or some shock to the enterprise. Recent examples of that strategy working well can be found in Roll-Royce Holdings and Marks and Spencer, to name just two.

My watchlist is filling up with several UK shares with decent value and long-term investment potential.

For example, telecoms company BT looks like a business with turnaround potential. The directors recently declared that peak capital expenditure had been passed regarding the firm’s fibre broadband rollout.

That suggests the potential for better cash flow ahead and increasing earnings. However, there are plenty of risks. The company had been struggling for years with declining earnings until recently, and the share price has suffered a multi-year crash.

Nevertheless, I’d dig in with deeper research now with a view to perhaps picking up a few of the shares to hold long term.

Income and growth potential

But I also like the look of financial services business Legal & General as a cheap-on-the   numbers value play with a big dividend yield.

There are risks though. Perhaps the biggest is that the financial industry is cyclical and that means we could see volatility in earnings, cash flows, dividends and the share price over the coming years.

Nevertheless, I’d consider it along with Hilton Food (LSE: HFG), the UK-based specialist international food packing business.

It’s an international multi-protein producer dealing in quality meat, seafood, vegan and vegetarian foods and meals.

The operation is sizeable and includes 24 “technologically advanced” food processing, packing and logistics facilities located in Europe, Asia Pacific and North America.

In September, the company released its half-year results report featuring “strong profit performance and like-for-like volume growth”.

The outlook statement was upbeat and the directors are focused on growing the business in the coming years. Meanwhile, City analysts expect normalised earnings to shoot up by just over 37% in 2024 and around 7% in 2025.

That all sounds promising but the loss of a contract or failing to secure others may affect the growth trajectory and earnings in the future. Competition is a factor too. The food sector has many attractions because of its steady nature. So it will likely attract several other players that will all want a slice of Hilton Foods’ market share.

Nevertheless, with the share price near 892p, the forward-looking price-to-earnings rating is around 14 for 2025 and the anticipated dividend yield is almost 4%. That valuation looks fair to me, so I’d consider the stock for inclusion in a diversified portfolio now.

The post UK shares are still on sale and I think there’s investment gold out there appeared first on The Twelfth Magpie.

Bumble

What it does: Bumble is an online dating platform that sets itself apart from competitors as women make the first move.

By Muhammad Cheema. It’s easy to be pessimistic about Bumble (NASDAQ:BMBL) shares. They’ve declined by 92% since going public in 2021 and have fallen by 60% in the last year alone. This is mainly because of the slower-than-expected growth. Recently trimming its growth forecast from 8-11% to 1-2% didn’t help.

Don’t get me wrong, there are risks of it fading out if growth doesn’t pick up. But I’m betting it will, so I’ve recently added to my position.

I truly believe that online dating is the future of dating. It’s not my preference, to be honest, but it’s the way the world is trending. Many people are glued to their phones, and meeting people online is becoming more common.

Let’s not forget the company is still growing and is profitable. In fact, in its recent quarterly results, net earnings increased by 306% year-on-year.

Finally, Bumble shares seem oversold to me. They’re now trading at a forward price-to-earnings (P/E) ratio of 8.9. This represents a potential bargain.

Muhammad Cheema owns shares in Bumble.

Hilton Food Group

What it does: FTSE 250 member Hilton Food is a leading “multi-protein” producer with a core focus on meat production.

By Roland Head. Shares in Hilton Food (LSE: HFG) look good value to me after a recent share price correction.

The company’s recent half-year results revealed a mixed picture. Although adjusted pre-tax profit rose by 25% to £33m, sales only rose by 1% on a comparable basis.

What interested me was the improvement in Hilton’s profitability in the UK. Margins in the group’s home market were boosted by its growing seafood business and sales of premium meat products.

Looking further ahead, the firm is set to expand into North America with the opening of a new facility in 2026/27. This is backed by a contract with Walmart Canada.

Hilton has disappointed before and the group’s profits could be hit by consumer downtrading or the loss of a major contract.

However, broker forecasts have been upgraded recently and I think the shares look reasonably valued at current levels. I’ve recently added Hilton Foods to my portfolio.

Roland Head owns shares in Hilton Food.

iShares Edge MSCI USA Quality Factor UCITS ETF

What it does: iShares Edge MSCI USA Quality Factor UCITS ETF invests in US companies that enjoy strong and stable earnings.

By Royston Wild. With an average annual return of 14.72% since it started eight years ago, the iShares Edge MSCI USA Quality Factor UCITS ETF (LSE:IUQA) has been near the top of my shopping list for some time. In recent days I pulled the trigger and finally added it to my portfolio.

As its name implies, the fund provides me with exposure to the strongly performing US stock market. Major holdings here include tech giants Apple and Nvidia, soft drinks maker Coca-Cola, and payment card services providers Visa and Mastercard.

This selection illustrates the ETF’s focus on companies with solid profits records. More specifically, it targets companies that have “[a] high percentage of company earnings allocated to shareholders; low levels of debt; and low variability of year on year company earnings.”

On the downside, a high concentration of cyclical stocks may leave the fund vulnerable during economic downturns.

Information technology, financial services and consumer discretionary companies alone make up more than 52% of the fund. However, a proven ability to deliver a strong return over time still makes it an attractive investment in my book.

One final thing: with an ongoing charge of just 0.2% per annum, it’s also extremely cost effective.

Royston Wild owns iShares Edge MSCI USA Quality Factor UCITS ETF.

Norfolk Southern

What it does: Norfolk Southern is one of the US Class 1 railroads. It operates on the Eastern side of the country.

By Stephen Wright. Warren Buffett used to own shares in US railroad Norfolk Southern (NYSE:NSC). And since I think there are reasons why this company can do well, I’ve been buying it for my own portfolio. 

Since 2014, the US transportation market has shifted from roughly even between truck and rail to now being 64% trucking. That’s despite trains being cheaper and less carbon-intensive.

The reason is that railroads almost across the board have focused on margins and provided a poor service. But Norfolk Southern is looking to change that, and I expect this to continue even after Alan Shaw’s departure. 

The company has been working on improving its reliability and efficiency in ways that benefit its customers. And I think this means it has a good chance of regaining market share over time. 

The risk is that this approach is going to result in lower margins, which could offset revenue growth. But I think its strategy is the right one and that’s why I’ve been buying the stock.

Stephen Wright owns shares in Norfolk Southern.

Rolls-Royce

What it does: Civil aerospace giant Rolls-Royce manufactures aircraft engines, marine propulsion systems, and power-generation system. It also makes engines for military aircraft, ships and submarines.

By Harvey Jones. When a stock goes gangbusters like Rolls-Royce (LSE:RR.), I get whipped up into a frenzy of fear and greed, just like everybody else.

I was lucky in one respect. I spotted the FTSE 100 group’s recovery potential in October 2022, and bought right at the start of its index-smashing run. Unfortunately, I only invested a small sum, and was left with the sticky decision of whether to buy more as the Rolls-Royce share price flew ever higher.

I held back, knowing sod’s law would strike and the stock would fall as soon as I piled in. I finally gave into FOMO on 1 August, after Rolls-Royce beat first-half guidance and announced the return of its dividend. 

I paid 495p and the stock fell the moment I clicked the ‘buy’ button, exactly as I feared. I averaged down on 6 August at 455p. So far I’m down 3.16% on those trades. Which is a bit rubbish given that Rolls-Royce shares are up 503% off over two years and 113% over one. Timing the market never works. I should stop.

The rapid recovery phase is over but I still expect a steady stream of growth and income over the years. If Rolls-Royce shares dip in the short run, I’ll buy more.

Harvey Jones owns shares in Rolls-Royce.

Taylor Wimpey

What it does: Taylor Wimpey is one of the UK’s largest home builders. In 2023, it completed 10,848 homes. 

By Charlie Keough. I’ve had FTSE 100 housebuilder Taylor Wimpey (LSE: TW.) on my watchlist for some time now. I recently decided to snap up some shares. 

There are a few reasons for this. Firstly, the stock has been soaring. It has climbed 8.6% in 2024 and a whopping 41.6% in the last 12 months. I’m confident it can keep this form up. 

That’s because the current housing shortage should benefit the firm. To fix the issues we’re currently facing, the Labour government has promised to build 1.5m new homes over the next five years. 

That’s not to say I don’t see potential risks with Taylor Wimpey. The housing market has struggled over the past couple of years and any further setbacks would impact its share price. For example, a delay in further interest rate cuts would have negative implications for the business. 

Yet despite potential issues in the months ahead, I couldn’t resist its meaty 5.9% dividend yield. That’s considerably above the Footsie average of 3.9%. 

Charlie Keough owns shares in Taylor Wimpey. 

TripAdvisor

What it does: TripAdvisor runs a digital platform offering a range of travel-related services such as hotel reviews and experiential travel bookings.

By Christopher Ruane. In August, I wrote that I was eyeing buying more TripAdvisor (NASDAQ: TRIP) shares for my portfolio in September. That is exactly what I ended up doing.

The share has lately been trading close to its one year low. As well as a potential bid that never materialised, investors have been concerned about whether a weak economy could dampen travel spending, hurting revenues and profits at TripAdvisor.

But does the company, with strong cashflows, really merit a market capitalisation of under $2bn?

Its brand is unique and ubiquitous, the experience booking offering has seen strong growth and, for now at least, travel demand remains robust.

Yes, it operates in a cyclical business. But I think the business has a strong competitive position for the long term that means it looks cheap at the current price.

So, even though my existing holding showed a loss on paper, I used the price weakness to buy more shares.

Christopher Ruane owns shares in TripAdvisor.

Uber Technologies 

What it does: Uber Technologies is a leading global rideshare and food delivery company.

By Ben McPoland.I recently became a shareholder in Uber Technologies (NYSE: UBER). The previously loss-making firm has reached a point where its massive scale and cost-cutting efforts are translating into profitable growth.

In the first six months of the year, it generated $968m in operating profit. This was a 15-fold increase over last year. Earnings per share growth is expected to exceed 100% over the next couple of years then rise by double-digits after that.

This year, the company partnered with Instacart in the US, enabling the latter’s customers to order from hundreds of thousands of Uber Eats’ restaurant partners.

Looking ahead, the rise of autonomous vehicles (AVs) might pose challenges. Uber has partnered with over 10 AV players, including Waymo and Cruise (subsidiaries of Alphabet and General Motors, respectively). But there remains a long-term risk that these firms use their own consumer apps to poach some of Uber’s customers.

As things stand though, the company appears to have solid growth potential in countries like Spain, Germany, Japan, India and South Korea. It notes that in these places, ‘Uber’ isn’t yet used as a verb.

Ben McPoland owns shares in Uber Technologies.

The post 8 shares that Fools have been buying! appeared first on The Twelfth Magpie.

First is Primary Health Properties (LSE: PHP), which announced its latest acquisition on Tuesday. The company is to buy Sarak Group Limited, along with its Crwys Medical Centre in Cathays, Cardiff. The deal is worth £4.5m, of which £1m will be settled in new shares.

Why does this attract me? I think there are plenty of companies and assets out there that are valued too cheaply right now. PHP’s chief executive Harry Hyman says the company has “a strong pipeline of opportunities in the UK and Ireland and are well positioned to continue to grow our portfolio.”

The acquisition only makes a modest addition to Primary Health’s overall portfolio of 516 properties, but it sounds like it could be followed by plenty more.

My main caution is over the current price. PHP shares are on a lofty growth valuation with a trailing P/E of 26. But I’m going to look more closely at this one.

A substitute for cows

My next FTSE 250 pick is Hilton Food Group (LSE: HFG). Hilton has agreed “to acquire the remaining 50% shareholding of leading vegan and vegetarian manufacturer, Dalco Food.“

CEO Philip Heffer said the buyout “will further strengthen Hilton’s position within the vegan and vegetarian market, at a time when our customers are increasingly seeking out innovative, high quality vegetarian products at scale.”

Is Hilton’s expansion into this area of the food business a good one? I think it could be, considering the growing movement away from meat products. We only need to look at where the Beyond Meat share price has gone in the US to get a feel for the potential of this market.

We’re looking at a more modest growth valuation here, but there’s also been a fair bit of volatility. Hilton shares have gone nowhere overall since I looked a year ago. And that up and down trend could continue. I’m still tempted, mind.

FTSE 250 property investment

The third acquisition that caught my eye today comes from LondonMetric Property (LSE: LMP). With the retail business so badly hammered by the pandemic lockdown, there must be plenty of commercial properties available at good prices now, right? LondonMetric seems to think so.

The FTSE 250 real estate investment trust has just announced the acquisition of three urban logistics warehouses for a total of £35.4m. One is in Worthing, one in Uckfield, and the third in Exeter. Chief executive Andrew Jones says the three are “in good locations and let on long leases with certainty of income growth.”

What’s the risk? Well, the commercial real estate business faces a very uncertain future. And I think we could be in for a period of stagnation in occupancy and rental incomes. But I can’t help feeling that could make this a good time to buy for those happy with the risk. And I’m a big fan of investment trusts of all varieties.

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The FTSE 250 tends to be more attractive to growth investors. It’s a stopping-off point for those companies working their way up to the top tier, so that’s perhaps not surprising. It can be more volatile too, but that can be put to advantage when looking for oversold bargains.

Playtech (LSE: PTEC) is a good example. In the early days of the Covid-19 slump, the FTSE 100 quickly lost a third of its value. But over the same short timescale, the FTSE 250 fell more than 40%. And the Playtech share price crashed by 65%.

FTSE 250 recovery

But Playtech shares recovered way faster than the two indexes. They’re now only 11% down on the year so far. The FTSE 100 and FTSE 250 are pretty much tied on drops of approximately 20%.

Playtech, which provides trading software used by the gambling and finance industries, saw its price drop 8% Thursday on the release of first-half figures. Does that mean avoid, or does it just offer a better buying opportunity?

The hit is due to a 22% fall in revenue for the half, to €564m. Reported profit fell 85%, but the firm revealed an adjusted profit fall of a less painful 36%. That might not look great, but the company described the performance as resilient. And it reported an “exceptional” performance from its TradeTech division – though it looks like it will probably be selling off that business.

Playtech looks like an oversold FTSE 250 stock to me.

Speedy rebound

I was also drawn to Hilton Food Group (LSE: HFG), the international food packing business, on Thursday. The Hilton share price gained a couple of percent on the day, and has shown a better 2020 performance all round.

After an early dip, Hilton Food shares recovered quickly. The price is now 10% up since the beginning of the year, and the half-time figures show why. Revenue climbed 40% to £1,264.2m, with adjusted operating profit up 19.6% at constant currency.

Net bank debt did rise by 35%, but at £131.7m I’m really not concerned. The company lifted its interim dividend by 16.7% to 7p per share. So who says FTSE 250 shares are all about growth and not income?

Full-year outlook

Hilton confirmed that full-year results should still be in line with expectations. So we should see full-year EPS around 10% ahead, continuing the trend of recent years. If the final dividend is raised in line with the interim, we’d see a yield of around 2%. That’s not the biggest on the market, but I’d take a strongly progressive dividend over a higher but static yield any day.

We’re looking at two very different companies here, and I rate both as long-term buys.

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