Peace Hopes

Headlines say FTSE gains amid US-Iran peace hopes and all stock picks this week are 80% BUY, 10% HOLD and 10% SELL.

1. BUY Luceco

Top performing stock pick this week is BUY Luceco by Berenberg with a tip performance of 13%.

Luceco plc is a UK manufacturer and distributor of LED lighting, electrical wiring accessories and portable power products. Founded in 1941, it supplies to trade distributors, retailers and project developers.

Luceco share price launched at 148p in 2016, rose to an all-time high of 497p in 2021 and is today at 239p.

On 19th May the company issued its’ Q1 Trading Update in this RNS reporting a strong start to the year, with revenue up approximately 11% year on year driven by broad growth across the business and particularly very strong EV charging sales of around 80%, alongside solid performance in its core products with over 6% growth. The company highlighted increasing revenues from “Demand Flexibility” services through smart EV charging participation, a healthy balance sheet with reduced debt, and continued good demand across markets. Reflecting this momentum, management upgraded full year guidance and now expects 2026 adjusted operating profit to exceed £40m, with potential for further upside if EV-related services continue to expand strongly.

In Stockomendation four analysts with BUY they are Tom Winnifrith, Deutsche Bank, Berenberg and Steve Moore. One open UK fund manager short position, view that here.

2. ADD Marks & Spencer

Second top performing stock pick this week is ADD Marks & Spencer Group by Simon Watkins in The Motley Fool with a tip performance of 9%.

Marks & Spencer is a major retailer specialising in clothing, beauty, homeware and luxury food products. Founded in 1884, it is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

M&S share price launched at 169p in 1988, rose to an all-time high of 689p in 2007 and is today at 358p.

On 20th May the company issued its’ final results in this RNS stating Marks & Spencer’s FY26 results show a resilient but disrupted year with strong underlying trading offset by a significant cyber incident that hit profits. Group sales rose sharply partly due to Ocado consolidation, but adjusted profit before tax fell around 24% and statutory profit dropped further, reflecting £292m of exceptional costs including £131m linked to the incident. Performance was mixed, with Food the standout division as sales rose 7% and market share gains continued, while Fashion, Home & Beauty declined around 7.7% due to online disruption and International also weakened. Despite this, profit growth resumed in the second half, the balance sheet remained strong, the dividend increased and the company continued its transformation strategy across stores, supply chain and digital operations. Management expects profit growth to resume in FY27, driven by Food expansion and improvements in clothing, although inflation, taxation and geopolitical pressures remain headwinds.

In Stockomendation five analysts: Citi, Deutsche Bank, Jefferies and Berenberg with BUY whilst Barclays has OVERWEIGHT.

Three open UK fund manager short positions: view those here.

3. BUY Babcock

Third top performing stock pick this week is BUY Babcock International Group by Jefferies with a tip performance of 8.92%.

Babcock is a British aerospace, defence and nuclear engineering services company with public sector customers. It specialises in managing complex assets and infrastructure. Founded in 1891 it is a constituent of the FTSE 100 Index.

Babcock share price launched at 173p in 1993, rose to an all-time high of 1,454p in January of this year and is today at 1,064p.

On 13th May the company issued its’ FY26 post close trading update in this RNS stating profit increased from £140m to £293m, alongside higher free cash flow and reduced net debt reflecting improved financial strength. Operationally, growth was driven by strong performance in the Nuclear and Aviation divisions, while the group maintained a solid order backlog and completed a £200m share buyback programme. Looking ahead, management kept FY27 expectations unchanged.

In Stockomendation five analysts: Peel Hunt and Jefferies with BUY; Harvey Jones has WATCH; RBC Capital says OUTPERFORM and JP Morgan has OVERWEIGHT. One open UK fund manager short position, view that here.

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Disclaimer: The contents of this article should not be considered financial advice. Pricing data correct as at 22nd May 2026.