Five to buy
Diploma
The Telegraph Diploma’s shares have soared by 68% in 18 months, outperforming the FTSE 100. The supplier of specialist technical products such as gaskets, wiring and seals is growing strongly, justifying its high price/earnings (p/e) ratio. Diploma’s sound financial position allows it to buy high-quality firms. Given the group’s “sizeable competitive advantage and impressive long-term growth potential”, the shares are worth buying. 4,094p
Pets at Home
Pets at Home has lost a quarter
