The UK stock market is chronically undervalued, affording value hunters rich pickings as we approach the end of 2024.  

etoro has picked out a selection of ‘bargain’ UK shares for Black Friday spanning various sectors, each with its own compelling thesis. The selection spans a variety of sectors and highlights a number of companies that could benefit from increased spending during the end-of-year period.

“Whether you’re looking for growth, stability, or value, there are plenty of UK stocks across key sectors that could offer intriguing opportunities this Black Friday. By strategically investing in companies with attractive valuations, investors can potentially capitalise on market shifts and seasonal trends,” said Sam North, market analyst at eToro.

Here are etoro’s picks explained in their own words: 

JD Sports

Black Friday is an important annual event for JD Sports as the company capitalises on promotions to boost sales or clear older stock. With its P/E ratio and other valuation metrics near historical lows, the stock appears undervalued. For the share price to return to the highs seen in 2022, it would require a 50% increase, making it an intriguing opportunity for investors.

Burberry

While luxury brands often resist widespread sales to maintain exclusivity, the heightened interest during Black Friday could still benefit Burberry indirectly. The company’s P/E ratio is near historical lows, and its stock price recently rebounded from a 14-year low. If CEO Joshua Schulman can execute a strong strategy, there could be significant upside potential from here.

Dr. Martens

As the bootmaker’s stock price is down over 35% year-to-date, the company could be an undervalued opportunity for investors willing to take on some risk. A strategic recovery could position Dr. Martens well if it can bridge the gap between tradition and evolving consumer tastes.

Standard Chartered

While banks don’t participate directly in Black Friday, retail events like these can influence consumer spending and borrowing habits. Standard Chartered could benefit from increased holiday financing, which may drive up credit card usage and borrowing. Trading at a 9-year high, the bank’s P/E ratio is near historic lows, signalling that there could still be room for further gains, particularly with a solid outlook for the coming quarters.

Frasers Group 

As the owner of major retail brands like Sports Direct, Frasers Group is poised to take advantage of Black Friday and offer discounts across its multi-brand portfolio to attract shoppers across a variety of demographics. Frasers’ P/E ratio is near historical lows at 9.09, its P/B ratio is near a three-year low, and its share price remains 25% below its all-time high. All of this demonstrates strong underlying performance and potential value for investors.

Berkeley Group Holdings

While not directly affected by Black Friday, companies like Berkeley Group can benefit from increased consumer confidence and spending. Investors looking for opportunities in the real estate sector may find value in Berkeley, as it is trading below peak levels. Although its stock price is in decline, it could present an opportunity for investors if shares approach a historically strong support point at 3,700p.

Greggs

Known for its popular bakery items, Greggs continues to attract customers during Black Friday with promotions like this year’s 25% off orders via Just Eat. While the company is not heavily reliant on Black Friday, such discounts can still boost both foot traffic and online sales. The stock offers a low-risk investment, with a strong dividend yield near a three-year high.

Diageo

As one of the world’s leading beverage alcohol companies, Diageo is a reliable choice for investors seeking stability and growth in the consumer goods sector. Trading at a P/B ratio of 6.49, close to a five-year low, and a P/E ratio of 16.98, near a 10-year low, Diageo could be undervalued. Its P/S ratio of 3.24 is also near a 10-year low, suggesting potential for long-term growth. The company’s strong dividend yield is near a 10-year high, making it an attractive option for investors looking for both growth and income.

Auto Trader

As one of the UK’s leading online automotive marketplaces, Auto Trader capitalises on increased consumer activity during the holiday season, even though it doesn’t directly participate in Black Friday. From a technical perspective, the 2021 high of 748p serves as an important level to watch. With solid fundamentals, Auto Trader represents a good option for investors looking for value stocks.

Helix Exploration shares tanked on Wednesday following the release of ‘sub-economic’ test results from their Montana helium exploration activities.

The announcement follows the completion of testing at the Amsden formation, one of three target zones at the Clink #1 well.

The company said the result is not significantly impactful to the overall project, as the Amsden formation is a secondary target that represents less than 6% of the total 2.3Bcf resource outlined in the Competent Person’s Report (CPR).

Nonetheless, the market Helix shares sank on Wednesday, shedding over 20% as investors reacted to the news.

Despite the setback, Helix is moving forward with its exploration program. It plans to begin acidification and appraisal testing of the Charles formation at Clink #1 as soon as possible and has scheduled testing at their Darwin #1 well in the Rudyard project for December. Investors will hope the upcoming testing program yields better results than the Amsden formation.

“While not the results we were hoping for from the Amsden formation, one of three reservoir targets in the Clink #1 well, there is significant opportunity within the Ingomar project from the Charles formation, where acidisation and appraisal is due to commence, and our primary target in the Flathead formation which has supported the case for the Ingomar Dome with the presence of 2.5% helium and 55% hydrogen,” said Bo Sears, CEO of Helix Exploration.

“Testing at Rudyard is due to commence on Monday, where commercial grade helium has been found with high flow rates in historical drilling.  We are confident about the upcoming developments at both Ingomar and Rudyard well tests and look forward to sharing results in due course.”

Aston Martin has raised approximately £211 million through a combined share offering and debt issuance to bolster its financial position amid its push into electric vehicles and new product launches.

The funding round comprises £111 million from a share offering and £100 million from a senior secured notes placement.

The share offering consisted of three components: a primary institutional placing, a retail investor opportunity through the PrimaryBid platform, and a director subscription.

The company issued a total of 111,249,416 new ordinary shares at 100 pence per share, representing a 7.3% discount to the closing price of 107.90 pence on the announcement date. Of these shares, 110 million were allocated to institutional investors and company directors, raising £110 million, while retail investors subscribed for 1.25 million shares, contributing an additional £1.25 million.

The funds will be allocated to deliver Aston Martin’s strategic plans and strengthen its product offering.

The company has undertaken a comprehensive renewal of its core model range over the past 18 months, beginning with the DB12 in Q3 2023, followed by the Vantage and DBX707 in Q2 2024. The launch cycle will culminate with the delivery of the V12 flagship Vanquish by the end of 2024, a model the company hopes will refresh the portfolio.

In addition, a significant portion of the funds raised will support Aston Martin’s ambitious electrification strategy, part of a broader £2 billion investment plan scheduled between 2023 and 2027. The company will also use the proceeds to repay existing borrowings under its super senior revolving credit facility and strengthen its overall financial resilience.

This financing comes as Aston Martin faces a slowdown in demand, and investors will hope the cash injection has the desired effect. The company recently announced a reduction of approximately 1,000 units in its 2024 wholesale volumes, citing supply chain disruptions and weakened market conditions in China.

Parkmead shares jumped on Tuesday after the diversified energy group returned to profit and boosted production levels at key assets.

Parkmead Group has reported a significant turnaround in its financial performance, posting a profit after tax of £4.9 million for the year ended June 2024, compared to a £42.3 million loss in the previous year.

The independent energy group achieved this recovery through increased operational output across its portfolio and a substantial reduction in tax liabilities.

Production from the company’s Dutch assets showed notable growth, with gross production increasing to 3.3 thousand barrels of oil equivalent per day, up from 3.0 thousand in 2023. This increase was driven by the successful development of the LDS-01 well and the steady performance of the Diever-02 facility following its return to production in February.

Despite the improved production figures, revenue for the period fell to £5.7 million from £14.8 million in the previous year, primarily due to lower average realised gas prices, which dropped to €34.23 per megawatt-hour from €105.73 in 2023.

“We have delivered another year of strong operational results, which has led to a healthy profit for the Group and earnings of over four pence per share,” said Parkmead’s Executive Chairman, Tom Cross.

“Parkmead continues to benefit from its balanced portfolio, and in particular its exposure to the UK renewables market which the new UK Government sees as a key area for growth.  We welcomed the removal of the de facto ban on onshore wind energy developments across England which may unlock a range of investment opportunities.”

The FTSE 100 went into reverse on Tuesday as Donald Trump trounced any hopes of softer tariffs by targeting China, Mexico and Canada with threats of tariffs on social media.

The mild optimism created by Trump’s selection of hedge fund manager Scott Bessent as his Treasury secretary pick yesterday was removed from markets on Tuesday following Trump’s social media posts, and the FTSE 100 dipped 0.2% as a result.

London’s leading index had started the session deep in the red but recovered as the session progressed.

Signs that Trump could be easing back on his election campaign rhetoric went a long way to lifting the mood in European stocks earlier this week, only for them to be dashed by Trump singling out Mexico and Canada for tariffs and reigniting fears of damaging trade wars. There will be concerns that Trump’s approach to Europe and the UK may be detrimental to the continent as a whole.

“Talk about swinging from one extreme to the other. The week started on a calm note with the nomination of Scott Bessent as US Treasury secretary, a hedge fund manager seen as a safe pair of hands and someone who might rein in Donald Trump’s more aggressive ideas, such as toning down tariffs,” said Dan Coatsworth, investment analyst at AJ Bell.

“Trump was clearly having none of that, given he immediately took to social media to promise bigger than expected 25% tariffs on all products supplied from Mexico and Canada into the US, and a further 10% for Chinese goods, all on day one of his new presidency. That took the market by surprise, driving up the dollar and prompting a sell-off in the Mexican peso and Canadian dollar. The US dollar index rose by 0.2% to 107.06.”

Despite London’s flagship index giving up ground on Tuesday, several positive corporate stores helped offset the broader selling.

Compass Group share rose 2.5% on Tuesday after the group announced stellar full-year results driven by 16% underlying revenue growth and a focus on core markets.

“Contract caterer Compass Group has dished out results in line with twice upgraded guidance. Organic growth of 10.6% came from the existing customer base and a 4.3% uplift in new business, which encouragingly picked up over the second half. Compass feeds hungry mouths in global venues, from offices to student digs and football stadiums, and across these demand for outsourcing is growing, as customers seek to manage cost inflation and a labyrinth of red tape and regulation,” said Derren Nathan, head of equity research, Hargreaves Lansdown.

“That’s creating the growth opportunity, and Compass isn’t wasting it, translating the top line uplift into additional free cash flow which was up 18.7% to $2.6bn and improved operating margins. That’s providing the ingredients to snap up acquisition opportunities where it trebled expenditure to $1.3bn and a step up in dividend payments. “

After being added to JP Morgan’s ‘Positive Catalyst Watch,’ Melrose was the top gainer, with a 6% increase.

Threats of inflationary pressure from tariffs hit consumer-facing stocks heavily. Marks & Spencer fell 3%, while Kingfisher lost another 2.5%.