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06 August 2021
04:19 hour

2 cheap FTSE 100 stocks to buy

The Motley Fool UK

21/07/2021 - 13:16

Rupert Hargreaves explains why he'd buy these two cheap FTSE 100 stocks that have been falling, despite improving fundamentals. The post 2 cheap FTSE 100 stocks to buy appeared first on The Motley Fool UK.


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  1. Cheap shares that might catch the eye of Warren Buffett - WPP is a dirt cheap FTSE 100 share (15/07/2021 - Reddit Stock Market)
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  2. What I’ve learned from buying “cheap” stocks (24/07/2021 - Reddit Stocks)
    I’m a relatively new investor who started buying stocks 6 months ago when the market was rallying. Everything seemed super expensive to me at the time, GOOGL was 1500, MSFT was 200, NVDA 600, COST 300, etc. I didn’t think I could afford them and the many others and so I turned my eye towards “cheaper” stocks that cost in the 10-100 range. Well disclaimer they did not do so hot over the next few months. To my frustration these “cheap” stocks always tanked hard on red days and barely budged on green days. The “expensive” stocks however did very well and continue to keep running, hitting ATHs almost every day. I now wish I wasn’t put off by seeing such large numbers, or someone have told me not to worry about price, but I guess thats just beginner lessons and it took me a while to grasp the concept of how the stock market works. FYI my background is in medicine so I came pretty unprepared and made a lot of mistakes as a beginner investor, most notably buying penny stocks and SPACS thinking I was picking them up for cheap. Anyways just wanted to share my experience! Not feeling FOMO at all ????   submitted by   /u/weddingphotosMIA [link]   [comments]
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  5. Best stocks to buy now: I think these 2 FTSE 100 shares are too cheap (29/03/2021 - The Motley Fool UK)
    In my opinion, the FTSE 100 contains some of the best stocks to buy now. Here are two companies I believe are too cheap, based on their long-term potential. FTSE 100 The first on my list is the life insurance and pension management group Phoenix (LSE: PHNX). This organisation provides a relatively complex but lucrative service. Managing pension funds can be capital-intensive, costly and fraught with regulatory risks. Even for other blue-chip companies, such as Marks & Spencer, it can be easier to outsource pension management or negotiate agreements to reduce liabilities.  Phoenix’s specialises in the acquisition and management of pension funds. By focusing on this one core area, the group can efficiently manage these assets and profit handsomely.  This business model is highly profitable, and Phoenix is committed to returning capital to investors. Analysts are predicting a 6.6% dividend yield for 2021, although this is just a forecast. At the same time, the stock is trading at a forward P/E of 8.8. Once again, these are just forecasts, but I think the company is far too cheap, considering its potential.  I’d buy the FTSE 100-listed group because I believe it has tremendous growth potential. Other blue-chips are queuing up to offload their pension obligations and this presents an enormous opportunity for the group. That said, this company isn’t without its risks. Additional layers of regulation could increase the group’s costs, pushing down profit margins. Phoenix’s large balance sheet is also complex to understand. This could mean the organisation is exposed to significant risks, which aren’t entirely visible to investors until it’s too late.  Best stocks to buy now I believe one of the best investments over the next few years will be resource companies. There are two reasons why. First of all, countries worldwide are planning to spend tens of billions of pounds over the next few years on infrastructure projects. Secondly, some economists expect inflation to increase dramatically over the next few years, and commodity prices tend to increase during periods of high inflation. So I think Anglo American (LSE: AAL) is one of the best shares to buy now in the FTSE 100 to play this theme. I’d buy the stock for my portfolio because it has a diversified collection of resource assets around the world. It produces commodities such as copper, iron ore, coal and platinum group metals.  Rising commodity prices are already having an impact on its bottom line. It’s expected to yield a total net income of $6.7bn for 2021, up from $3.6bn in 2019. Based on these estimates, the stock is trading at a forward P/E of less than 8. I think that’s far too cheap, considering its potential.  Of course, these are just projections at this stage. Commodity prices can be incredibly volatile. They can rise and fall dramatically over the space of a few weeks. As such, there’s no guarantee the company will hit this earnings target for the year. What’s more, the cost of producing commodities can increase in line with prices as suppliers try to take advantage of a booming market. These are the two most significant risks Anglo faces right now. Nevertheless, as a way to invest in the commodity boom, I think this is one of the best shares to buy now in the FTSE 100. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading I think these FTSE 100 stocks are 2 of the best shares to buy for my ISA 2 shares I’m adding to my Stocks and Shares ISA before the April deadline Why I’d buy top FTSE 100 stocks like this one to give me a passive income in retirement The post Best stocks to buy now: I think these 2 FTSE 100 shares are too cheap appeared first on The Motley Fool UK.
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  7. Why I’m buying cheap UK shares now to hold for a decade (27/07/2021 - The Motley Fool UK)
    The UK stock market has been choppy over the past couple of weeks. The FTSE 100 saw a drop from 7,100 points down to 6,850 points in just a few days, before rallying back sharply above the 7,000 level at the end of last week. Such short-term swings are becoming increasingly common. However, I think this gives me good opportunities to buy cheap UK shares that I can then hold for a decade. Here’s why. What’s a cheap UK share? I need to elaborate a little on what I mean when I speak of cheap UK shares. The simple part is UK shares. I primarily look for stocks within the FTSE 100 index, but can expand my search and include the FTSE 250 and even AIM-listed companies. Identifying a cheap share is slightly harder. It’s subjective, as something I think looks cheap won’t be the same for someone else. Yet there are some common denominators most can agree on. For example, a price-to-earnings ratio that’s below the index or sector average. Alternatively, a share price that is at long-term low levels when using a time frame spanning several years. Each investor will have their own specific points they look for on top of the above. The main point from this is that some UK shares look cheap to most investors, but other shares offer less of a consensus.  The long-term mindset Once I’m happy with the cheap UK shares I’m buying, my aim is to hold them for a decade. Why? If I truly believe the stock is a good buy, then the probability of me making a profit from holding a stock should increase over time.  For example, consider Company X that I think offers me good value going forward. One week after I buy the stock, a trading update comes out that’s worse than expectations and the share price falls. If I sold now, I would make a loss. Over the course of the next few years, results improve and the valuation comes back to a fairer (higher) value. This now puts me in profit. The point here is that short-term moves don’t always reflect the long-term trend. By having a mindset that I’m going to hold the cheap UK share for the foreseeable future, it helps me to be less stressed about swings in the short run. Thinking about which stocks I’m happy to hold for the future also helps me make more rational decisions. If I don’t think a business will still be going strong in a decade, why should I buy it now? This particularly applies for ‘meme stocks’ and other high-risk shares that I might be tempted to buy. They could offer great short-term returns, but I need to weigh up the risk and reward by looking beyond the next few months. With these points in mind, I can hopefully generate strong long-term gains from undervalued shares. The post Why I’m buying cheap UK shares now to hold for a decade appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading 3 top stocks to buy in August 1 tech stock I’d buy with £1,500 right now Fineco traders have been buying Royal Dutch Shell shares Should I buy Vodafone shares just for the 7% dividend yield? The FTSE 100 (INDEXFTSE: UKX) rose last week. Can it continue? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  8. FTSE 100 bargains: my list of the best stocks to buy right now (24/02/2021 - The Motley Fool UK)
    I think there are some terrific bargains to be found in the FTSE 100 right now. With that in mind, here’s my list of the best stocks to buy right now, that I’m considering adding to my own personal investment portfolio.  Best stocks to buy right now One of the easiest ways to establish whether or not a business is cheap to look at its ratio of earnings to the current share price. The so-called P/E ratio is one of the oldest financial ratios. It measures how long investors would have to wait to earn their money back if they owned the whole business. For example, a P/E of five implies that I’d earn my money back in five years if I bought the whole business. This can be an excellent guide to value because it can become a self-fulfilling prophecy. If a stock looks cheap, it can attract investors. That would push up the stock price and return the valuation to normal levels.  Of course, this is all just theory. In the real world, there’s no guarantee buying a low P/E stock will yield high returns. What’s more, a low P/E can be a sign that the business is struggling. So, this figure should never be used without considering other factors. Still, I believe that studying stocks with low P/E ratios can be a great place to start looking for dirt-cheap stocks.  With that in mind, I think some of the best FTSE 100 stocks to buy now are Imperial Brands, 3i, BT and Aviva. All four of these companies are currently selling in the market for less than seven times earnings. That’s compared to the FTSE 100 average of 14. I think that looks too cheap to pass up.  That being said, while these firms look cheap, they’re not without their issues.  FTSE 100 investments Imperial Brands is struggling with falling revenues and profits due to declining cigarette sales around the world. Meanwhile, BT has been grappling for some time with high debt levels and increased competition in the UK telecommunications market.  These companies are working to rectify these issues. Imperial has been slashing costs and is looking to divest more brands to increase its focus on core markets. BT is spending more on customer service and invested in infrastructure to try and rekindle customer growth.  Aviva and 3i also have their benefits and drawbacks. Aviva has been struggling for direction for some time. As a result, growth has stagnated. The company is now looking to turn things around with asset sales. This could yield results, although as of yet, it is too early to tell.  3i’s private equity and infrastructure businesses are quite tricky to understand, and that has held back the company’s valuation. Nevertheless, its portfolio of private equity assets and infrastructure investments have performed exceptionally well over the past 12 months, providing a safe haven for investors in stormy waters.  So, while each of these companies does face challenges, they have opportunities as well. I think their low valuations more than makeup for the uncertainty that dogs the shares in all cases. That’s why I would buy these dirt cheap FTSE 100 bargains for my portfolio today.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Kanabo shares: should I buy after the IPO? Why NIO’s share price has fallen Why are growth shares struggling? When will UK borders reopen? A US share I think could create tasty shareholder returns to 2030 Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Imperial Brands. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post FTSE 100 bargains: my list of the best stocks to buy right now appeared first on The Motley Fool UK.
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  9. The Tell: Value stocks are so in favor they’ve become momentum stocks (18/03/2021 - Market Watch)
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  10. 2 cheap FTSE 100 shares I’ll buy to boost my portfolio (09/02/2021 - The Motley Fool UK)
    There are mean Cheap FTSE 100 shares available on the back of the Covid-19-induced market slump. Despite a partial recovery, the FTSE 100 is still below its level of a year ago. That’s why I intend to pick up bargain shares now in the hope of drawing a passive income from the dividends for years to come. Cheap FTSE 100 shares I like Both the shares I’d pick to boost my portfolio are ‘defensive’. They’re BAE Systems (LSE: BA) and Tesco (LSE: TSCO). I think that can do well in the long term, given that their products or services (defence and groceries respectively) should always be in demand, no matter what’s happening in the economy. BAE Systems has a dividend yield approaching 5% and the shares trade on a price-to-earnings ratio (P/E) of 10. The P/E is the ratio of the share price to the company’s earnings per share. It can be used to assess whether companies are good value. BAE’s reading of 10 indicates good value to me. Looking at its financials, revenue has increased from £16.8bn in 2015 to £18.3bn in 2019. And operating profit went from £1.4bn to £1.7bn. So there’s steady growth at the defence company. It has high barriers to entry given its strong government relationships and the cost of capital to set up a defence manufacturing firm. This means I’m confident it can continue to be a steady performer, whatever happens to the UK and global economy. It looks to me to be cheap and able to provide a passive income for my portfolio. I’d be concerned though if ESG investing means institutional investors shun the shares. Another risk of course is the company’s reliance on a small number of countries’ defence budgets. A much improved business in recent years Under the previous CEO, Tesco became a much steadier and better business than it had been, in my opinion. It’s become more UK-focused and expanded here with the acquisition of wholesaler Booker in 2017. The shares are on a P/E of 13 I think they look cheap. On top of that, when it comes to the income the shares will generate, the dividend yield is just under 4%. And this month the grocer will also be paying a large special dividend to shareholders. There’s also a relatively new CEO at the helm, which could in itself provide a boost for the shares. It’s not entirely without risk, as that relatively low P/E indicates. I feel the biggest danger for investors remains the threat of margin-crushing price wars. There’s also the issue of discounters continuing to take market share from Tesco and preventing it from getting back to the kind of margins it enjoyed a decade or so ago. Be wary of value traps As always, when it comes to shares that appear cheap, I’m wary. They can be value traps, which means a share is cheap because the business is out of favour with investors as its future looks uncertain. Even an already cheap share price can continue to slide, so value investing isn’t without its risks. Value investing may not be everyone’s favoured strategy, but I intend to add these two cheap FTSE 100 shares to my portfolio and hope they steadily grow over the next few years. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Passive income stocks: should I buy Tesco shares right now? The Tesco share price is rising! Should I buy the stock now? Dividend stocks: 3 I’d buy from the FTSE 100 index 2 FTSE 100 shares I think Warren Buffett would buy FTSE 100 watch: why I’m not bowled over by the cheap Tesco share price! Andy Ross owns no share mentioned. The Motley Fool UK has recommended Tesco. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 cheap FTSE 100 shares I’ll buy to boost my portfolio appeared first on The Motley Fool UK.
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  11. Here’s why I’d buy cheap FTSE 100 stocks right now and hold them to 2025 (28/03/2021 - The Motley Fool UK)
    Recently, we’ve seen the tech-heavy NASDAQ fall, while the FTSE 100 has risen. Such a statement, of course, hides the fact that US markets have trounced UK markets over a longer period and especially in 2020. Nevertheless, I’d be very tempted as a UK private investor to buy cheap FTSE 100 stocks right now and hold them for at least the next four years. Inflation concerns have heightened One of the reasons why is that value shares tend to perform better during any period of inflation. Experts had been warning of inflation earlier in the year and it seems to be becoming a reality now. This has had an impact on US tech stocks in particular, hence the underperformance of the NASDAQ. I expect these inflationary concerns will continue throughout this year, which is why I’ll tweak my portfolio to take that into account. I’ll also look to buy shares at a reasonable cost and which can grow in the future. In other words, that means quality companies. Focus on price and quality How do I spot quality companies at a reasonable price? There are a few metrics that are key. The first is the return on capital employed. This is an important quality metric and I want to see it above 15. The second is operating margin, which I want to be either high or improving. And the third is the ability to grow revenues consistently. The rate of revenue growth depends on the industry and company size, but consistency is usually key and for the rate to be better than that achieved by competitors.  When it comes to price, I want to see a P/E ideally below 15, but for a very-high-quality company with strong earnings, a P/E of 20-25 may also be fine. That’s especially so if high earnings mean the P/E is forecast to come down.  Cheap FTSE 100 stocks I think Benjamin Graham, the inspiration for legendary investor Warren Buffett, was correct to say valuation and a margin of safety are very important. So I’ll focus on cheap FTSE 100 stocks to boost my investment portfolio. There’s the added bonus that many of these shares have the potential to be boosted by the Covid recovery given that some, such as the banks, are linked to the UK economy. The economy is expected to do well later this year. Which shares might fit the bill? I hold a few already that I think meet these criteria, such as Diageo, Reckitt Benckiser and Persimmon. There are plenty of other shares I need to research further too. Informa, Lloyds, BP and easyJet all have the potential to bounce back this year, I feel. These are potentially the type of cheap FTSE 100 stocks I’d add to my portfolio now that they’ve been knocked by Covid and can be bought at a lower price. I think they all have long-term potential and could be added to my portfolio to hold at least to 2025. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading 5 FTSE 100 index stocks to buy 5 micro-cap shares to buy right now 5.5% dividend yields! Should I buy this FTSE 100 reopening stock today? £400 to invest? Here’s how I’d look to make a 400% return investing in shares The Royal Mail share price is up 230%: what next? Andy Ross owns shares in Diageo, Reckitt Benckiser and Persimmon. The Motley Fool UK has recommended Diageo and Lloyds Banking Group. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s why I’d buy cheap FTSE 100 stocks right now and hold them to 2025 appeared first on The Motley Fool UK.
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  12. London Markets: FTSE 100 headed for best weekly return since January (09/04/2021 - Market Watch)
    The FTSE 100 has outperformed its European rivals this week, thanks to the pound. Among stocks, Babcock International shares slid, while PageGroup surged on.
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  13. London Markets: ‘Freedom day’ flop for FTSE 100 as U.K. stocks retreat (19/07/2021 - Market Watch)
    The FTSE 100 dropped 2.7% in late-afternoon trade, putting the benchmark index on track for the worst session since Sept. 21, when it sank 3.4%.
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  14. A ridiculously cheap FTSE 250 stock I’d buy today (19/04/2021 - The Motley Fool UK)
    Iron-ore miner Ferrexpo (LSE: FXPO) was my top stock for this month, and so far it looks like I made the right call. The FTSE 250 stock is up 4% since the start of the month. And compared to the same time last year, it is up a whole 185%! I think there are plenty of reasons why the Ferrexpo share price is up. If I take a top-down approach to understanding them, at the top is the stock market rally.  Stock market rally The FTSE 100 index zoomed past the 7,000 mark after over a year last week. The FTSE 250 index, of which Ferrexpo is a constituent, breached 22,000 even earlier in April. It has stayed above these levels through the month, making it FTSE 250’s best-ever month. Trends in the broad market reflect investor bullishness, which is driving share prices up as a whole. Ferrexpo is no exception.  Commodities find favour Next, sectorally speaking, commodities are in favour as public spending focuses on infrastructure creation. The commodity bull run has been underway since last year and according to leading forecasters, we are in for a commodity supercycle.  In line with this, miners’ share prices have risen across the board and that includes Ferrexpo.  But they have not just risen in anticipation of better times ahead. In the case of Ferrexpo, and others, improved commodity demand is showing up as healthy financials too.  Financially healthy In 2020, the company’s revenues grew by 13%, while its earnings grew by a huge 46%. Its net cash flows from operating activities grew by 45% and its dividends are up a massive 267% from 2019, boosted by its hefty interim dividend. Ferrexpo now has a 3.8% dividend yield, which is fairly healthy, especially for a growth stock.  Surprisingly dirt cheap But this is what takes the cake. The company’s price-to-earnings (P/E), which allows comparison with peers, is at sub-5 times. This is way below the price for any other miner that I have come across. What is next for the FTSE 250 stock Based on this reasoning for the Ferrexpo stock price rally, I reckon that it is quite likely to continue. As more investors look for cheap stocks, it should rally even higher. Even though it has run up quite a bit, the Ferrexpo stock is still below all-time highs. In other words, even by past standards, the share price has room to rise.  What I’d watch out for But there are two cases where I think things can go wrong.  One, if the pandemic decides to make a comeback. A fresh new Indian variant has just been found in the UK. These variants could be immune to vaccines. Two, just two months ago the stock market rally appeared to have stalled. It could happen again, leaving the Ferrexpo share price in limbo.  Takeaway for Ferrexpo Like many other investors, though, I am bullish that things will go right. Or at least they will go more right than wrong. And that is enough reason for me to buy this ridiculously cheap FTSE 250 stock. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Top British stocks for April 2 FTSE 250 shares with 6%+ yields I’d buy for my ISA now 3 dividend stocks to buy today Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post A ridiculously cheap FTSE 250 stock I’d buy today appeared first on The Motley Fool UK.
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  15. £2k to invest? I’d buy these 2 cheap FTSE 100 stocks ahead of the recovery (26/02/2021 - The Motley Fool UK)
    If I had £2k to invest right now, or any other sum, I’d be scouring the market for cheap FTSE 100 stocks to top up my portfolio. I’d look to buy them sooner rather than later, because I think shares look relatively attractive at today’s valuations. FTSE 100 stocks look cheap because the UK market has underperformed against international rivals since the 2016 Brexit referendum. After stealing a march on vaccinations, we have a chance to play catch up. Here are two shares with a global reach that could benefit. Defence manufacturer BAE Systems (LSE: BA) has been hit hard by the pandemic, its stock trading 21% lower than a year ago. Although it quickly restored its dividend after cutting it during the first lockdown, investors remain wary. Its civil aerospace division, which makes parts for Boeing, has been hammered by global flying bans. However, robust defence sales have compensated. This share yields more than 5% Yesterday, the BAE Systems share price enjoyed a lift after management posted a 4% rise in full-year profits to £20.9bn. It expects sales to grow 5-7% in the year ahead, with underlying profits on course to rise over 10%. The FTSE 100 stock is also paying dividends, and currently offers a juicy forecast yield of 5.3%, covered 1.9 times by earnings. The share price looks relatively cheap as well, trading at just 9.7 times forward earnings. Commercial aviation is still suffering though, with supply chain interruptions a further headwind. If lockdowns drag on, that could delay its recovery. Another worry is that net debt has increased, as management has paid down pension obligations and pursued acquisitions. However, I’m hoping acquisitions will more than pay for themselves by boosting long-term profits. I think this stock is a long-term buy-and-hold opportunity, given its cheap valuation and healthy growth prospects. Asia-focused insurer Prudential (LSE: PRU) is another FTSE 100 stock that looks cheap today, trading at 11.8 times forecast earnings. Unlike BAE Systems, its share price has proved fairly resilient during the pandemic. After crashing along with everything else last March, it’s rallied nicely, jumping 21% over six months. Over five years, it’s up 36%. Both FTSE 100 stocks look cheap to me Prudential’s exposure to Asia is serving it well, as the continent has weathered the pandemic better than Europe and the US. The group is now doubling down on this, by floating US annuities division Jackson for an estimated $5bn, and raising up to $3bn in new equity to attract Asian investors. The equity move has dismayed some investors but, again, I’m hoping that investing in growth will reap rewards. Asia has a large and fast-growing middle-class that will increasingly want the financial products Prudential specialises in, such as pensions and protection. I do not expect a rapid return, though. I will be patient, and wait for its Asian and Africa investments to pay off. My major concern is that it could get caught up in growing political tensions between China and the West, as has happened to HSBC Holdings. Retaining its London listing makes this more likely. Another big downside is that it has slashed its dividend to fund expansion plans. That means it now yields just 0.9%. Prudential isn’t much of an income stock nowadays, sadly, but I’m going for growth with this one and I still think this FTSE 100 stock is a good way for me to play emerging markets. This growth opportunity also excites me. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading My 3 favourite dividend shares right now FTSE 100: 2 cheap shares I’d add to my Stocks and Shares ISA today I’d avoid this 8.2% dividend share and buy this FTSE 100 stock instead! 2 cheap UK shares I’d buy during this stock market recovery 2 cheap FTSE 100 shares I’ll buy to boost my portfolio Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Prudential. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post £2k to invest? I’d buy these 2 cheap FTSE 100 stocks ahead of the recovery appeared first on The Motley Fool UK.
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  16. Why is Discovery cheap right now? (28/03/2021 - Reddit Stocks)
    Reading up, I’m seeing that a hedgie was margin called (with a short position...?) and that had lead to a number of stocks (like Discovery) being very cheap. (Related post: https://www.reddit.com/r/stocks/comments/meudiv/highly_leveraged_hedge_fund_rumored_to_have/?utm_source=share&utm_medium=ios_app&utm_name=iossmf). If this is actually what happened, why did the price go down and not up? I thought being margin called on a short position would drive the price of a stock sky high?!   submitted by   /u/CocoKinderShamu [link]   [comments]
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  17. Invest a Few Hundred Each In Various Stocks? (12/03/2021 - Reddit Stocks)
    Is it silly to just put a few hundred into certain stocks rather than taking those funds and putting it all into a handful of stocks? For instance, I have 10 stocks that I put ~$300 into each - most were relatively cheap, and a couple were in the $20 range. Since then, they've all gone up, and the $20 range ones are now in their $30s, but as you can imagine, the gains are nominal. FYI, I'm looking to invest for mid-long term. These stocks that I purchased were when I was first starting out, and I took "diversifying" very literally with the amount I had.   submitted by   /u/daybreaker17 [link]   [comments]
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  18. Question regarding airline and stocks. (23/05/2021 - Reddit Stocks)
    Hello, so I was just chatting with my father about investing in stock and he thought about flights/airline stocks. I was looking up a few and they had seemed to drop by a few dollars within the last year but they were also very cheap. When looking at airlines and stocks, is this an area that isn't really to good to invest in assuming you would be unlikely to make some return off them. If there are some airline/flight stocks worthy, what are some things that would be nice research?   submitted by   /u/yosark [link]   [comments]
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  19. How do people find these cheap stock companies? (10/02/2021 - Reddit Stocks)
    Is there a resource to find up and coming companies that start off super cheap? I feel like I hear about all these companies that moon but have never heard about them beforehand. Not asking for cheap ones that WILL moon, just where to find cheap companies so I can do my own research on them.   submitted by   /u/jaykaysian [link]   [comments]
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  20. Why I’m still buying FTSE 100 shares in this stock market rally (13/02/2021 - The Motley Fool UK)
    The stock market rally we’ve seen since March 2020 has lifted the market by 30%. But the FTSE 100 is still down by nearly 15% compared to 12 months ago. I reckon that many FTSE 100 shares are still historically cheap on a long-term view. Corporate profits suffered badly last year, and the speed of any recovery still isn’t clear. But I’m confident the world will gradually return to normal. By buying now, I hope to lock in some attractive gains over the coming years. These FTSE 100 shares look cheap to me Where’s the best value in the big-cap index? One stock I’ve topped up on is tobacco firm Imperial Brands. Newish CEO Stefan Bomhard has brought a stronger focus to the business. I believe Imperial’s 9% dividend yield is safe. Rival British American Tobacco also looks good value to me, with an 8% yield. Many big financial stocks also look cheap to me. The big banks would be the obvious choice, but I have concerns about their profitability in a world of record low interest rates. I’ve been investing in insurance stocks instead. Aviva and Direct Line Insurance both look cheap and are expected to provide 6%+ dividend yields this year. If I didn’t already own Aviva, I’d probably be buying rival Legal & General Group for its 7% dividend yield and solid track record. What else do I like? I’d be happy to buy supermarkets Tesco and Morrisons at current levels too. Both seem likely to emerge from the pandemic in decent shape, with a stable outlook and a reasonable valuation. However, I’d probably prefer to gain exposure to consumer shopping habits through Unilever. As I explained recently, I think this FTSE 100 share offers great long-term value under £40. For exposure to renewable energy, I’d probably choose utility SSE. However, chemicals group Johnson Matthey also interests me — this 203-year-old business is investing heavily in battery technology. Finally, I remain a buyer of big oil stocks. Although they face a challenging future, I expect a solid recovery in energy demand over the next 12 months. I think we’ll see profits recover strongly, supporting the evolution of these businesses. What could go wrong? The stock market is forward-looking. This means that when I buy a cheap FTSE 100 share, I know that it might be cheap for a good reason. For example, large insurers like Aviva and Direct Line have not delivered much growth in recent years. Aviva also cut its dividend last year. Tobacco stocks are expected to face a continued fall in smoking rates over the coming years. I expect profits growth to be limited. That may justify the low valuations of these FTSE 100 shares. Unilever has historically enjoyed above-average profit margins, thanks to the strength of popular brands like Dove and Magnum. But what if supermarkets’ cheaper own brands continue to take market share from Unilever, forcing prices down? Over and above all of this, I think there’s a risk that it could take much longer than anyone expects for the economy to recover from the impact of Covid-19. That would probably be reflected in lower corporate profits. The future is uncertain and there’s no guarantee of positive returns. But I’m convinced that FTSE 100 shares offer good value and am continuing to invest — selectively. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Why I’d buy these 2 FTSE 100 stocks after their big events I will continue to invest regularly in dividend stocks inside a Stocks and Shares ISA in 2021 3 FTSE 100 stocks I’d buy for the dividends Here’s how I’d invest £20k in 2021 to try and make a million Here’s why I think FTSE 100 shares are going higher in 2021 Roland Head owns shares of Aviva, Direct Line Insurance, and Imperial Brands. The Motley Fool UK has recommended Imperial Brands, Tesco, and Unilever. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I’m still buying FTSE 100 shares in this stock market rally appeared first on The Motley Fool UK.
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  21. 2 reasons why I think the FTSE 100 is a cheap buy today (02/07/2021 - The Motley Fool UK)
    The FTSE 100 (‘Footsie’) is the UK’s main stock market index. Its members are the 100 largest companies listed on the London Stock Exchange’s main market, reshuffled quarterly. I’ve been following this blue-chip index since its 1984 launch, when I was a mere youth. Over 37 years, I’ve seen the index soar and slump, surge and crash, again and again. But now I feel that this UK index — and the underlying shares it represents — may be too cheap. Here’s why. The FTSE 100 lags the S&P 500 Over the past five years, the FTSE 100 is up by 8.2% to stand at 7,130.47 as I write. In contrast, the US S&P 500 index has more than doubled since mid-2016, rising 103.3% to 4,330.09 points today. That’s a massive outperformance by US stocks. Indeed, it’s one of the largest in my long life of market-watching. Similar gaps emerge over shorter timescales. Over one year, the S&P 500 is ahead by 39.3%, while the FTSE 100 has gained 14.3%. Likewise, the S&P 500 has gained 15.3% in 2021, while the Footsie lags behind yet again with a 10.4% uplift. One possible reason for the supremacy of the S&P 500 over the FTSE 100 could be a ‘Brexit discount’. This theory suggests that, because of trading and political difficulties following the UK’s departure from the European Union, UK stocks deserve lower ratings. After all, our government has struggled with new border controls, trade deals, and so on. But I’m not terribly convinced by this argument, largely because around three-quarters (75%) of FTSE 100 earnings are generated overseas. My view is based on the simple observation that ‘money moves markets’. Investors seem more than willing to keep driving up the stock prices of go-go US growth stocks. This momentum-following has been very pronounced since the lows of March 2020. Conversely, the old-economy, value-orientated FTSE 100 is still seen as the poor cousin of its American counterpart. But this leaves the Footsie on a huge valuation differential to the S&P 500. This suggests that either UK shares are too cheap or US stocks are too expensive. I think it might be a bit of both, to be honest. The Footsie offers better value (or does it?) As a veteran value investor, I aim to make money from capital gains (selling shares for profit) and dividends (regular cash distributions from companies). Thus, if the FTSE 100 appears cheap and offers superior dividends to the S&P 500, then I’m better off buying the former, right? Maybe not. Right now, the S&P 500 trades on a forward price-to-earnings ratio (P/E) of 22.5 and an earnings yield (EY) of 4.4%. And the S&P 500’s current dividend yield is 1.35%, according to the Wall Street Journal. On the other hand, the FTSE 100 trades on a forward P/E of 14.6 and EY of 6.9%, plus it offers a forecast dividend yield of 3.7%. For me, as a value-seeker and income investor, there’s no question that the Footsie looks historically cheap compared to its US equivalent. But speaking of history, there’s one big flaw with my thinking. Historically, the US economy and company earnings have grown at much faster rates than here in the UK. Therefore, it might be worth paying more for faster-growing US company earnings, agreed? This argument also rings true for me. That’s why I continue to invest my family portfolio into both cheap UK shares and pricier US stocks. Hopefully, this cross-Atlantic diversification delivers the best of both worlds! The post 2 reasons why I think the FTSE 100 is a cheap buy today appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Cost of new cars is rapidly outpacing earnings Lloyds share price: 3 reasons I’d buy today Why the end of the stamp duty holiday is positive for first-time buyers Do I have to pay tax on my side hustle? What are green voucher codes? 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, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  22. 2 dirt-cheap FTSE 100 shares I’d buy now (12/07/2021 - The Motley Fool UK)
    While the FTSE 100 index has had a great run this year, there are still plenty of Footsie shares that have low valuations. Believe it or not, around a fifth of the shares within the index still have forward-looking price-to-earnings (P/E) ratios of less than 10. Here, I’m going to highlight two dirt-cheap FTSE 100 shares I’d buy today. I think these shares are bargains and I won’t be surprised if they move higher in the near future as the market realises how cheap they are. Analysts think this FTSE 100 stock has 40% upside One FTSE 100 stock that strikes me as very cheap right now is Legal & General Group (LSE: LGEN). It’s a diversified financial services company that provides investment management, insurance, and retirement solutions. Currently, it sports a forward-looking price-to-earnings ratio of just 8.5, which seems very low, to my mind. There are a couple of reasons I like Legal & General. Firstly, unlike many other cheap FTSE 100 stocks, this company has genuine growth prospects. One area of growth is pension risk transfers. Experts believe this market could be worth £60bn this year, up from around £20bn in 2018. Another area is investment management. As equity markets rise over time, Legal & General – which is a leader in the index fund space – should generate more income. A second reason I like LGEN is that it’s a cash cow. Currently, the stock has a prospective dividend yield of 6.9%. And analysts expect the dividend payout to rise in the years ahead. Dividends are never guaranteed though. I’ll point out that I’m not the only one who likes this FTSE 100 stock right now. Recently, analysts at Credit Suisse gave LGEN a ‘double upgrade’, moving it from ‘underperform’ to ‘outperform.’ They also raised their price target to 370p, which is about 40% above the current share price. There are risks to the investment case, of course. One is that, like many other financial shares, Legal & General is a relatively volatile stock. When markets are turbulent, its share price often takes a hit. Overall, however, I think LGEN has a lot of appeal right now. To my mind, the stock is very cheap. Too cheap Another FTSE 100 stock that I see as too cheap at present is BAE Systems (LSE: BA). It’s a leading defence, aerospace, and security company. Currently, the stock trades on a forward-looking P/E ratio of about 11.4 – well below the median FTSE 100 forward P/E ratio of 16.4. BAE appears to have plenty of momentum right now. In a trading update in May, the company advised that its Air, Maritime, Electronic Systems and Intelligence and Security divisions “continue to perform strongly”. It added that many of the countries it operates in have made plans to increase their spending to counter challenging threat environments, and that its pipeline of opportunities across all sectors remains strong. One thing I like about BAE is that recently, it has been moving into higher-growth areas such as cybersecurity and anti-money-laundering. This should help boost growth going forward. I also like the fact that it’s a reliable dividend payer. A risk to consider here is that defence budgets could be slashed. This could impact the company’s growth. However, looking at the valuation, I think this risk is priced in. Overall, I think the stock has a very attractive risk/reward profile. The post 2 dirt-cheap FTSE 100 shares I’d buy now appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 cheap shares I’d buy now for passive income If I had £1k to invest, I’d buy these FTSE 100 shares The BAE share price is gaining, but I’d still buy the stock Legal & General vs Aviva: share prices rated 2 cheap FTSE 100 shares to buy for July Edward Sheldon owns shares of Legal & General Group and BAE Systems. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  23. Questions about stocks. (20/07/2021 - Reddit Stocks)
    I want to start buying shares but I am new to this and have no idea where to start. Where should I buy stocks? All I know is that robin hood isn't that good. Also what are some good stocks to invest in for cheap to practice and learn how this works?   submitted by   /u/BlueThunder75 [link]   [comments]
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  24. I’d buy dirt-cheap shares in an ISA and hold them for 10 years (12/03/2021 - The Motley Fool UK)
    I like a bargain – who doesn’t? – and that’s why I’m keen to buy dirt-cheap shares for this year’s Stocks and Shares ISA allowance. Buying top UK companies when their shares are relatively depressed can be a winning strategy, provided I’m patient. By investing during the lows of the market cycle, I hope to benefit from the upswing when it comes. Of course, there’s no guarantee that will happen. Some shares are dirt-cheap for a reason. A company could be in trouble, and get even cheaper still. Nobody gets it right every time. I still think now is a good time to hit the sales. Despite last year’s recovery, the FTSE 100 has idled for a while. US tech stocks have been selling off. Investors got carried away with last year’s vaccine breakthroughs, but now have two worries. I’m looking for dirt-cheap shares The first concern is that the pandemic could drag on as many vaccination programmes prove sluggish. The second is that when people are set free they will go an an almighty splurge and the global economy will overheat. President Joe Biden’s stimulus plan has worsened inflation fears, as it will pump another $1.9trn into the US economy. Last year’s fiscal and monetary stimulus is already being followed by weird bubbles, such as the Reddit GameStop frenzy, and Bitcoin. Investors seem to be worrying about a recessionary slump and inflationary boom, at the same time. But I think second-guessing markets in this way is a fool’s game either way. I listen to ace investor Warren Buffett on that subject, who said: “I never have an opinion about the market because it wouldn’t be any good and it might interfere with the opinions we have that are good.”  With that in mind, all I can do is search the market for shares I think are dirt-cheap today, and then hold them until the market (hopefully) comes round to my way of thinking. I might use the P/E ratio to identify potential dirt-cheap stocks. The FTSE 100 is full of good companies trading at less than 10 times earnings right now. That would only be a starting point, though. I would then look at earning patterns both before and during the pandemic, and analyst projections for the future. The ISA season is here I would work through recent company results and reports, to see where management thinks opportunities lie, and whether I agree with them. I would look at how much cash companies generate, and how much debt they carry. My aim is to work out whether a particular dirt-cheap share is a bargain or value trap. I would favour companies with a strong competitive ‘moat’ that deters competitors. Then I would listen to Warren Buffett again. He said: “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” That’s my minimum time scale and should give my dirt-cheap shares plenty of time to swing back into form. This stock tempts me right now. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading FTSE 100: this is what I’d do about the cheap Tesco share price! Should I save for a 10% deposit if possible? Here’s why I’d buy Polymetal International shares for both income and growth Trainline shares are up 25%. Here’s what I’d do Warning! £103m ‘burglary bounce’ expected post-lockdown Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d buy dirt-cheap shares in an ISA and hold them for 10 years appeared first on The Motley Fool UK.
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  25. Should I wait until the next stock market crash to buy cheap UK shares? (17/02/2021 - The Motley Fool UK)
    The stock market’s recent rally means it may be more difficult to buy cheap UK shares today than it was a few months ago. After all, indexes such as the FTSE 350 have moved higher as investor sentiment has strengthened. As such, it could be argued that waiting for the next stock market crash before buying UK stocks is a sound move. Since no bull market has lasted in perpetuity, this could offer some appeal. However, with many FTSE 350 stocks still trading on low earnings multiples, there may be opportunities to unearth good value companies on a case-by-case basis. Buying cheap UK shares in a stock market crash The past performance of the stock market shows it’s been possible to buy cheap UK shares during a crash. March 2020 is a prime example of this, when even high-quality companies traded at low prices for a limited time. Other examples include the global financial crisis and dot com bubble, when investor fear caused many companies to have low prices for a short amount of time. Such events have always occurred after a bull market. In fact, no rise in the stock market’s price level has ever been permanent. This could mean a strategy of waiting for a lower stock market price level is a sound means of capitalising on the market cycle. Buying low and selling at higher prices could realistically be a means of earning a higher return than the wider stock market over the long run. Predicting a stock market crash However, the problem with this plan is predicting when a stock market crash will produce a wide range of cheap UK shares. That’s a very tough task. Last year’s market decline highlighted the difficulties in trying to second-guess market movements. Ultimately, the future is always a known unknown. Furthermore, many UK stocks continue to trade at cheap prices. Although the stock market has rallied since its March 2020 lows, indexes such as the FTSE 100 and FTSE 250 continue to trade at lower prices than they did a year ago. This could indicate there are good-value shares on offer that can be purchased now and held for the long term. In time, they could produce impressive returns in a likely stock market recovery and a period of improved economic growth. An uncertain future is always ahead Therefore, waiting for a stock market crash before buying cheap UK shares could be a difficult strategy to execute. Impatience from low returns of cash and the challenges in predicting the stock market’s movements may mean that identifying undervalued shares at the present time on a case-by-case basis is a more prudent approach. It could allow an investor to obtain favourable risk/reward opportunities on a long-term investment outlook. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading FTSE 100 stocks: a UK share I think will exit Covid-19 in terrific shape UK investing: I think these are the best shares to buy now The Rolls-Royce share price is under £1: should I buy today? 3 UK shares I’d buy right now in my ISA Unilever shares: should I buy? 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I wait until the next stock market crash to buy cheap UK shares? appeared first on The Motley Fool UK.
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  26. How I’d invest £250 a month in cheap UK shares to aim for a six-figure portfolio (01/06/2021 - The Motley Fool UK)
    Cheap UK shares are where I’m looking to allocate my money. The cheap element refers to stocks that I feel are undervalued at present. Further, I’d look to allocate my cash within the UK, mainly via the FTSE 100 and FTSE 250. I think UK stock markets are still lagging in terms of performance versus the US. So how can I put all this into practice? Investing regularly in smaller amounts There are a few stages in my life when I’ll find myself with a large lump of cash. An annual bonus from work could be one. Or if I sell my house and downsize, I could have a surplus of cash. In these cases, I’d be fortunate enough to be able to invest in a number of cheap UK shares in one go. Unfortunately, these events don’t come around each month. Therefore, I’m better off planning to invest a smaller amount (like £250), on a regular monthly basis. Yet while this approach this may be out of necessity, I think that investing a smaller amount regularly is actually a better way to go. I can still achieve my aim of reaching a six-figure portfolio full of cheap UK shares, but it comes with less stress. I can put the £250 away each month and let it (hopefully) grow in the background without draining my liquidity. Over time, compounding helps my pot to get bigger. For example, if I invested £250 a month in stocks that generated an average return of 8% a year, I’d have a pot worth over £100k by year 17. Given my age, this time frame suits me fine. I know there are no guarantees, of course and investing in stocks could also lose me money. Which cheap UK shares should I buy? That said, I’m happy with this investing process, so I need to look at which shares I should buy. Given that I’ll be investing each month, it’s a dynamic process. What I mean by this is that a stock that looks cheap today might not be cheap one year down the line. So I’ll need to stay active and spot opportunities as they present themselves. At the moment, I’m looking at the opportunities for June. As such, I’m researching UK shares within the travel and tourism sector that I think look cheap. Ahead of a potentially bumper UK summer of higher consumer spending, I’d look to allocate my funds here.  In a few months’ time, these stocks might not be cheap anymore. In that case, I’ll assess what’s going on at that time. For example, in the autumn, the Bank of England will comment on how the economy is performing since lockdown eased. If the outlook is positive, concerns over negative interest rates could fall. In this case, I’d look to buy UK banking stocks at this point in time. Overall, the main point regarding cheap UK shares is that I need to keep my finger on the pulse of what’s going on in the market and the broader economy. That way, I hope I’ll be on my way to building a six-figure portfolio. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Is the AMC Entertainment share price a bubble? Freetrade thinks these 3 ‘alternative’ dividend stocks are worth a second look Here’s a UK technology share I’d buy right now 1 AIM stock to avoid 4 tips to turn a staycation into a savecation jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post How I’d invest £250 a month in cheap UK shares to aim for a six-figure portfolio appeared first on The Motley Fool UK.
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  27. 'on sale's close to all time highs? (23/02/2021 - Reddit Stocks)
    I have been scrolling through this sub for a while and after a day like today where many stocks are in the red many are speaking of 'stocks on sale'. However, when looking at the bigger picture of 6M or 1Y, all the stocks spoken of a lot here are still close to their all time highs like AAPL, PLTR, NIO. I have trouble justifying this as cheap stocks, how do you guys see it?   submitted by   /u/Vic-- [link]   [comments]
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  28. What are some cheap, but promising stocks for someone who is just getting into investing? (01/06/2021 - Reddit Stocks)
    I have some disposable income from a job and I am a college student, so I don't have thousands of dollars to invest in high priced stocks. I am curious about what stocks that are currently valued at less than $25 per share that have promising growth that I can invest in. Thanks!   submitted by   /u/uncommonlyaverage [link]   [comments]
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  29. Here’s how I’d find cheap UK shares to buy now (31/05/2021 - The Motley Fool UK)
    It is great that stock markets have got some of their mojo back. But a downside is that cheap UK shares are getting harder to find.  Many shares’ prices are either back to pre-pandemic levels or well past them. Even in terms of valuations, as measured by the price-to-earnings (P/E) ratio, they are at high double digits.  But all is not lost as far as bargain hunting goes. I think there are still buying opportunities for me in three kinds of stocks. #1. Reopening stocks Not all reopening stocks have been lucky enough to reach pre-pandemic highs so far. An example is the FTSE 250 cinema chain Cineworld, which is still at half its pre-market crash levels.  The challenge with Cineworld and the like is that its financial health is now compromised. But I think that the stock still has good prospects as cinemas have reopened in both its key UK and US markets. Over time, as its performance improves, so can its share price.  The downside here is that it can take time to bounce back. In other words, these stocks are for the long-term investor in me.  #2. Under the radar stocks There is also a buying opportunity for me in smaller UK shares. Sometimes high-performing companies can remain under the radar for a while before investors catch up to their potential. I like to keep an eye out for these stocks.  One such for me is the FTSE 250 iron ore miner Ferrexpo. When I wrote about it in March, its P/E ratio was 3.6 times. It is at 6 times now, clearly because other investors too saw value in this commodity investment. I still think it is still a cheap UK share, though, with its P/E is still way below that of its FTSE 100 mining peers.   Sometimes there can be a catch to stocks that look good but that have a muted share price. I think is the case for tobacco stocks. Imperial Brands has a P/E of 5.5 times, despite being a profitable company because the future of tobacco is in question. So I consider low priced shares carefully.  #3. Out of favour stocks Investors tend to favour different stocks based on where we are in the business cycle. During times of economic growth, cyclical stocks like mining, retail, and restaurants tend to perform because consumption is on the rise. This makes them attractive to investors. Similarly, during slowdowns, safer stocks like utilities and healthcare with relatively stable demand make more attractive buys.  With a cyclical upturn underway, safe stocks are out of favour. As a result, they are now available at relatively lower prices. An example is the FTSE 100 healthcare giant AstraZeneca, which is still way below the all-time-highs touched last year. That its Covid-19 vaccination has also been mired in controversy has not helped, and neither has its acquisition of US-based Alexion. But its latest results clearly indicate that it is still a good buy for me for the long term.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Where will the Lloyds share price go in June? How I’d invest my first £1,000 in a Stocks and Shares ISA today The ‘secret’ Warren Buffett tip that could make investors a fortune 3 FTSE 100 stocks to buy in June 3 UK penny stocks I’d buy in June Manika Premsingh owns shares of AstraZeneca. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s how I’d find cheap UK shares to buy now appeared first on The Motley Fool UK.
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  30. Oasis Petrolum Inc. (23/04/2021 - Reddit Stock Market)
    Hello everyone, I bought in 2020 really cheap 80 stocks from Oasis Petrolum. The company was delisted and it looked like, there will be a bankrupcy, also I thought, that I lost my money and kinda forgot about the stocks. Around the 14th April 2021, I received an email, that I got dividends. Was kinda weird, but okay. Today I just checked from my curiosity how much is the Stock price and its around 70$ per share. Because I know my luck, also I kinda dont believe that I own around 5K$ of stocks. Do someone know, if the stocks were merged together or do I really own like 5K worth of stocks?   submitted by   /u/MisterJohn92 [link]   [comments]
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  31. If my stock earnings are enough to buy one more stock, should I sell them and then buy again with the initial investment + what I gained? (04/07/2021 - Reddit Stocks)
    I've got a couple stocks in FTSE All-World. Right now, each stock is around 100€. What I mean in my question is: if my total earnings on this FTSE reach the 100€ needed to buy more stocks, do I need to / should I sell them and then buy again using the initial investment + those 100€, to get 1 extra stock? Or does that happen automatically? Or I should simply not do it?   submitted by   /u/MPRF12345 [link]   [comments]
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  32. London Markets: FTSE 100 nears pre-pandemic high, while data show strongest U.K. growth in almost a year (11/06/2021 - Market Watch)
    Resource stocks were driving the FTSE 100 to gains on Friday, lifting the index back toward levels not seen since before the COVID-19 pandemic.
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  33. Cheap UK stocks: here’s where I’d invest to try to double my money (06/05/2021 - The Motley Fool UK)
    I think there’s a bit of a misconception that large FTSE 100 or FTSE 250 stocks cannot offer strong returns to an investor like myself. Sure, most won’t exhibit the wild day-by-day swings of some AIM penny stocks or Bitcoin, but this doesn’t mean I can’t necessarily double my money over the course of a year or more. For example, there were eight FTSE 100 stocks that I could have bought a year ago that would have delivered 100% returns. These cheap UK stocks at the time would have made for a good investment back then. But what about now? Learning from past examples If I’m trying to target cheap UK stocks now, then a good start is to look at the characteristics of stocks that were cheap and have now doubled in value. The eight stocks I mentioned actually sit in several different sectors. Anglo-American, Glencore and Antofagasta are examples from the mining and commodity space. This area has seen a large share price increase over the past year. This has been partly down to movements in commodity prices. However, there has also been significant volatility along the way. I think back to this time last year when oil briefly dipped into negative territory for the first time ever. Such volatility will always be in play when buying stocks in this area, and is a risk I need to remember. Another area that included cheap UK stocks a year ago but that rose in the subsequent 12 months was ‘stay-at-home’ companies. These included Kingfisher and Entain. Kingfisher operates DIY and hardware stores, and with lockdown, a lot of us took on such projects. Entain owns online gambling brands, which also performed well with us all stuck at home. Trying to find cheap UK stocks now What can I learn from the past performance of those companies? One lesson is that investors moved funds to reflect what was going on in the UK economy (such as lockdown). In the coming year, it looks like reopening stocks could outperform. Given that some have been ignored in the past year, I think this area offers cheap UK stocks right now. For example, I wrote a piece this week running through Grainger, a FTSE 250 stock. It’s a large UK residential landlord, reporting results next week. If the company is seeing increased rental demand, and has a positive outlook in this regard, I think that it could look to double in price as investors sell out of ‘stay-at-home’ stocks and move to reopening ones. Another lesson from the past year is that indirect factors such as commodity prices can have a large positive impact on the share price performance. I personally don’t think that commodities will see a big rally in 2021, and given the already strong moves seen in the stocks mentioned above, I wouldn’t invest. However, I think an external factor such as demand for Covid-19 vaccines is something that could act like a commodity. In this way, I think AstraZeneca could benefit. If GlaxoSmithKline also successfully markets a vaccine, I feel this could be a stock to buy that looks relatively cheap at the moment. Weighing all my options, I’m looking to buy Grainger shares after results next week as my next stock purchase. And I’m considering buying AstraZeneca as well. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Somero Enterprises share price rockets again on forecast upgrades 2 FTSE 100 recovery stocks to buy Should I buy Helium One shares for my portfolio? Can I buy shares in Dianomi? I was right about the Next share price! Here’s what I’d do now jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Cheap UK stocks: here’s where I’d invest to try to double my money appeared first on The Motley Fool UK.
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  34. 4 cheap UK dividend shares to buy now (03/08/2021 - The Motley Fool UK)
    As we head into a new month, I want to look at the opportunities that are available for me right now. As an income investor, I want to look for cheap UK dividend shares to add to my portfolio. Here are some that I think look appealing at the moment. Buying the dip One metric I look at when deciding what makes a UK dividend share cheap is recent share movement. So over the past month, have any stocks lost ground that could be a good buy? I can filter for stocks that have fallen over the past month. For example, both Aviva and AstraZeneca have fallen roughly 5% over this period. I could use a longer timeframe, but I want to capitalize on the cheap dividend shares right now.  I don’t think these short-term moves lower are anything to be overly concerned about. Aviva is a well-capitalized insurance company, with liquidity as of February of £4.1bn. AstraZeneca is also performing well, with H1 results showing revenue growth of 9%, excluding the Covid-19 vaccine.  With these numbers giving me confidence, I see the fall in the shares last month as a blip that makes both cheap dividend shares to buy now.  This is because with shares in both of these companies falling, it helps to increase the dividend yield. The yield calculation looks at the dividend per share relative to the current share price. With the dividend per share not changing that often, a move lower in the share price naturally increases the yield. A risk for both of these companies is that the short-term move lower could turn into a more serious slump. If we see another stock market crash, then even if the companies are sound, the share price could still fall due to broader risk sentiment. More cheap UK dividend shares Another measure of cheap UK dividend shares is the price-to-earnings ratio. In my opinion, the lower the ratio, the more undervalued the company is. This is because the price is a lower multiple of the earnings, which might reflect a mispriced share. In this regard, I’ve noted Legal & General and Imperial Brands. The stocks have a P/E ratio of 8.45 and 9.74 respectively. Anything below 10 is a low figure in my book, putting these cheap dividend shares in the lowest quartile of the FTSE 100 index. In a similar way to Aviva, Legal & General has good liquidity and a strong balance sheet. I think this will enable the company to continue to pay out dividends in a sustainable way. Imperial Brands is a higher risk stock to buy, given the consumer trend of moving away from traditional tobacco products. However, with a dividend yield in excess of 8%, it’s a risk I’m happy to take. Overall, by looking to buy cheaper dividend shares instead of more expensive ones, I can look to build a higher yield income portfolio. The post 4 cheap UK dividend shares to buy now appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading How to invest in hero stories 2 of the best cheap UK penny stocks for me to buy now Will the government U-turn on backdating the stamp duty holiday? A case for buyers who missed out 1 FTSE 100 stock I would buy with £1,000 3 of the best UK penny stocks for me to buy now jonathansmith1 has no position in any share mentioned. The Motley Fool UK has recommended Imperial Brands. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  35. 3 cheap FTSE 100 shares for my investment portfolio (29/05/2021 - The Motley Fool UK)
    For some weeks now, I have been coming up against the same problem when selecting stocks to buy. The problem is that stocks have become pricey as the stock markets have run up. But there are still ways to come by relatively cheap FTSE 100 shares.  The price-to-earnings (P/E) ratio is my quick and easy go-to method to assess how stocks compare to each other. Based on this, I have picked three cheap FTSE 100 shares that I think are still cheap and can grow my capital too.  #1. Aviva: rising share price Insurance biggie Aviva has a P/E of 5.6 times despite its pretty much consistent rise in share price over the past year. Investors gave its latest results a thumbs up too, with a share price increase of 2%.  Its general insurance premiums for the first quarter of 2021 increased by 4% and life insurance stayed steady. It is also in the process of streamlining its operations, with the sale of non-core businesses. It also has a good dividend yield of 5.1%. In other words, it is both a growth and an income stock for me.  #2. Segro: online sales’ boost The FTSE 100 real estate investment trust Segro has a P/E ratio of 8.4 times. It made gains last year because it specialises in warehouses, which saw particularly increased demand as lockdowns rapidly increased online sales. The company has also reported a good start to 2021, with “strong occupier demand” for the period from January to April 2021.  I am a believer in the long-term potential of the online sales industry. E-commerce is supported by an ecosystem that includes packaging providers and warehousers. It follows that growth in e-commerce will also give them a fillip.  #3. Rio Tinto: supported by the commodity supercycle Industrial metals miner Rio Tinto has a P/E of 14.2, so admittedly it is not among the cheapest. But it is far from being the priciest FTSE 100 share today either. I like it for a couple of reasons. One, the company has had a good past year, as commodity prices rose on increasing demand from China. In a year when many companies have suffered, Rio Tinto has actually done well. Two, industrial metals prices are expected to stay strong through this decade, at least according to one view. I think with economies on the rebound and high expected infrastructure spending underway, there can be some water to it. This means that Rio Tinto can continue to gain. Three, its dividend yield is strong at 5.4%. Which, like Aviva, makes it both a growth and an income stock.  The catch and takeaway for cheap FTSE 100 shares While all these stocks look good, the idea that their share prices can rise from here is based on the underlying assumption that they will continue to perform. That may not hold. Aviva’s share price trends were underwhelming before their recovery in 2020. Online sales could come off faster than expected as lockdowns end, which would impact Segro. Commodity prices too, could fall if spending slows down, affecting Rio Tinto.   All things considered, though, I like these cheap FTSE 100 shares for my portfolio. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The Aviva share price is up 50%! Yet it’s the 6.5% yield that really tempts me What’s going on with the BP share price? I’d listen to Warren Buffett to stay calm in today’s stock market rally Is the writing on the wall for the Royal Dutch Shell share price? How I aim to create a passive income of £5k a year Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 cheap FTSE 100 shares for my investment portfolio appeared first on The Motley Fool UK.
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  36. 2 FTSE dividend stocks to buy now (23/06/2021 - The Motley Fool UK)
    The appeal of dividend stocks for me is the prospect of a stream of passive income without having to lift a finger. Some of the largest and best-known FTSE 100 companies are generous dividend payers. Here are two FTSE dividend stocks to buy now for my portfolio. British American Tobacco The economics of tobacco are quite simple. As it is an addictive product, manufacturers are able to increase prices. Declines in smoking in some countries are reducing demand, but the total market remains huge. Input costs are low and there are limited growth opportunities in which a manufacturer can reinvest profits. That means that a company like British American Tobacco (LSE: BATS) is able to generate significant free cash flows. It can use them to fund large dividend payments. Last year, the company generated £2.6n of free cash flow even after paying dividends of £4.7bn. At the current share price, the BAT yield is 7.6%. With a yield like that, it is on my list of FTSE dividend stocks to buy now. Is the BAT dividend safe? Not only does BAT have one of the highest yields among FTSE shares, it also has a strong record of increasing its payout each year for more than two decades. This year the dividend grew by 2.5%. That isn’t a huge increase, but it’s not negligible either. Over time, such increases can compound substantially. But will BAT continue growing its dividend in future? Indeed, will it even pay a dividend at all? Risks such as regulatory compliance costs and falling demand for cigarettes could eat into free cash flow. The company also has to service substantial debt – last year’s £4.7bn of dividend costs was actually much less than BAT spent on debt. Not only did the company pay interest of £1.7bn, it also spent £10.6bn reducing and repaying borrowings. The company targets a dividend equivalent to 65% of adjusted diluted earnings per share. If adjusted diluted earnings fall, the dividend could thus fall. The company’s progressive dividend history provides no assurance of future dividend increases. Bearing these risks in mind, however, I still consider BAT as one of the best FTSE dividend stocks to buy now for my portfolio. Best FTSE dividend stocks to buy now: Legal & General On my list of FTSE dividend stocks to buy now for my portfolio, I would also include Legal & General. Its commitment to dividends was tested last year, when competitors such as Aviva suspended dividends. By contrast, Legal & General kept paying. While Aviva went on to cut its dividend, Legal & General has set out its plans for coming years, including a progressive dividend policy. Yielding 6.6%, the shares offer my portfolio more exposure to the financial services sector. That has risks. Any downturn in the economy could affect demand for financial services products, leading to falling revenue. Insurance pricing tends to be cyclical, which is a risk to Legal & General’s profits when the next downward phase in the cycle starts. But I like its well-known brand, its wide customer base, and a yield in excess of most FTSE 100 companies. That’s why Legal & General is on my list of FTSE dividend stocks to consider for my portfolio right now. The post 2 FTSE dividend stocks to buy now appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 2 cheap high dividend UK stocks I’d buy today My top FTSE 100 dividend stocks to buy now How I’d invest £5k in cheap UK dividend shares My 3 top FTSE 100 shares for extra dividend income! How I’d invest £500 in UK shares today Christopher Ruane owns shares in British American Tobacco. The Motley Fool UK has recommended British American Tobacco. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  37. 3 steps I’d follow to find cheap UK dividend shares to invest in (14/04/2021 - The Motley Fool UK)
    There are two components that are of interest to me when looking to find cheap UK dividend shares. The first element is the price, as I don’t want to be buying a stock that I know is overvalued. Second, I want to look at the dividend I’ll be receiving. I want to be happy with the dividend per share, along with the dividend yield. So on the basis of the above, three steps will help me along the way. Trying to find a cheap share The first step I could look at would be the price-to-earnings ratio, to try and find a cheap UK dividend share. Usually, a low figure could suggest the company is undervalued. This is because the size of earnings dwarfs the share price, which should be a good sign. If earnings attributable to shareholders are high, then it’s logical to think the dividend paid will be generous.  What makes a P/E ratio low enough to for me buy? That’s less easy to compute. Anything below the FTSE 100 average is a good starting point. However, P/E multiples also depend on the industry, so I would want to look at the ratio in comparison to competitors as well.  One point I do need to remember though is that a low P/E ratio doesn’t always mean a cheap UK dividend share. The stock’s history is important. For example, if the share price has been falling due to bad news, and the earnings figure used is stale, the ratio could be misleading. In fact, this could indicate the dividend might be cut, so I need to do my homework. Using yield and cover to find UK dividend shares Step two involves checking the dividend yield of different stocks within the market. This information is readily available, and gives me a good barometer regarding which UK dividend stocks offer the highest yield.  Just like the P/E ratio though, the figure has to be used carefully. Technically, I could just buy the stock with the highest yield. After all, this offers me the highest dividend relative to the price of the stock. But again, the share price may have been falling for valid reasons. If the last dividend was paid out several months ago, the dividend yield might not accurately reflect the current situation of the firm. It may see a dividend cut in the future, reducing the yield. So for UK dividend shares, I need to look at the sustainability of the dividend. This is my third and final step. I can use the dividend cover metric to help me in this regard. It shows how much the earnings cover the dividend. Logically, I want the figure to be above one, and a high number is beneficial. My thinking is that if the company has enough earnings to cover the dividend, then it ranks as a sustainable (and cheap) UK dividend share worth buying.  Although I need to be careful with financial equations, the above three steps involving ratios should help me when trying to pick out shares worth buying. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 3 stocks I’d buy for this raging bull market JD Wetherspoon’s share price is rising. Should I buy this reopening stock now? The Tesco share price is falling. Here’s why I’d buy Carnival’s share price is rising. Should I buy this ‘reopening’ stock now? Can I buy shares in Coinbase? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 steps I’d follow to find cheap UK dividend shares to invest in appeared first on The Motley Fool UK.
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  38. The US S&P 500 or the UK FTSE 100: which would I buy today and why? (10/02/2021 - The Motley Fool UK)
    Billionaire investor Warren Buffett has repeatedly warned, most recently in May 2020, “Never bet against America”. For much of history, this has certainly been good advice. But when I look at the US S&P 500 and the UK FTSE 100 today, I’m very tempted to back Britain, as well as betting on America. Here’s why. The S&P 500 hits a record high On Monday, the S&P 500 closed at a record high of nearly 3,916 points and currently hovers around 3,906. Since the 2008 meltdown, the index has gained in nine of the past 12 years, with just three modest down years. Over these 12 years, the index has more than quintupled, producing huge gains from the world’s biggest stock market. If only I could say the same for the FTSE 100, the S&P 500’s poor cousin. The FTSE 100 is at 1999 levels As I write, the FTSE 100 trades around 6,525 points, a level it first surpassed in late 1999. What’s more, the UK’s main index is over 1,350 points lower than — and more than a sixth (17.2%) below — its record high above 7,877, hit in May 2018. Ouch. To me, the S&P looks expensive and the Footsie cheap As a value investor, I aim to buy into good businesses at reasonable valuations. For me, the FTSE 100 looks the better bet today — on basic fundamentals, at least. Today, the S&P 500 trades on a forecast price-to-earnings ratio (PER) of 23 and an earnings yield of 4.3%. It was more expensive than this in 2000 and 2007, but spectacular crashes followed. However, with near-zero interest rates and subdued inflation, this ratings expansion might be justified. Conversely, the FTSE 100 trades on a PER of 14 and an earnings yield of 7.1%. Thus, buying 2021 earnings is much cheaper in the UK than the US. However, the American economy usually outperforms the UK’s, so this ratings gap might be rational. A similar gap is seen with dividend yields. The S&P 500 has a current dividend yield of just 1.57%, very close to the bottom end of its historical range. The FTSE 100 offers a forecast dividend yield of 3.8% — 2.42 times the US yield. I could easily be wrong Not for the first time, UK shares look cheap relative to US stocks and, on some measures, the difference is at a 50-year high. For income investors like me, rotating from US stocks into cheap UK shares looks tempting. But this switch has backfired many times before, as the S&P 500’s yearly returns have beaten the FTSE 100’s in almost every year since 2000. Also, the FTSE 100 is very short on highly rated tech stocks and is packed with old-economy businesses. These include large oil & gas, mining, and financial companies. Also, the repercussions of Brexit and the EU/UK trade deal are unclear, which creates economic uncertainty. Likewise, Covid-19 mutations could prove disastrous for UK business and FTSE 100 earnings growth. I’m into buying value, and UK shares look cheap on fundamentals to me. Even so, following Buffett’s wise advice, I’ll never bet against the US. Instead, I’m rebalancing my family portfolio by weighting it more to the FTSE 100. This should act as a counterweight to overpriced US stocks, some of which look very frothy. Finally, I don’t expect the FTSE 100 to shoot out the lights by massively outperforming the S&P 500. But a more value-orientated portfolio should help me to sleep better at night during market volatility! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading FTSE 100 shares to buy: why this one is near the top of my pick-list Is the London Stock Exchange IPO market hotting up in 2021? Where can I find low income support? 1 fintech stock that’s modernising moneylending How I would earn passive income with £50 a week 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, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors. The post The US S&P 500 or the UK FTSE 100: which would I buy today and why? appeared first on The Motley Fool UK.
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  39. London Markets: Pound boosted by better-than-expected U.K. growth data, but FTSE 100 is pressured (31/03/2021 - Market Watch)
    The FTSE 100 is set to underperform other European rivals on the quarter. Stocks were pressured as the pound gained and major oil companies fell.
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  40. 2 cheap FTSE 100 shares I’d buy in July (28/06/2021 - The Motley Fool UK)
    I think some of the best shares to buy in July could be cheap blue-chip stocks. And with that in mind, here are two cheap FTSE 100 shares I’d buy for my portfolio over the next four weeks. FTSE 100 shares The first company on my watch list is Barclays (LSE: BARC). There are a couple of reasons why I’d buy this FTSE 100 stock.  Not only is it one of the largest retail banks in the UK, but it also has a large international investment bank. This suggests to me the business will be able to ride the UK economic recovery. But, at the same time, its global investment arm should benefit from increasing market activity as the economy recovers. Indeed, the FTSE 100 group’s investment bank was invaluable last year. Fees generated from investment banking deals more than offset losses in other sections of the enterprise at the height of the pandemic. While it isn’t possible to say if the same will happen over the next few months, I think it’s likely Barclays’ diversified business model will help the group outperform in the recovery. In addition, the bank is currently trading at a high-single-digit price-to-earnings (P/E) multiple and a discount to book value of around 40%. While I’m optimistic about the FTSE 100 company’s outlook, I’m also aware it could face some challenges. These include ultra-low interest rates, which could weigh on profit margins for years. Regulatory constraints may also hold back the group’s dividend and growth potential. Despite these risks and challenges, I’d buy the FTSE 100 stock for my portfolio today. Industrial giant The other cheap FTSE 100 stock I’d buy for my portfolio today is Weir Group (LSE: WEIR). This company produces critical components for the mining, oil and gas and power sectors. Products include pipes, valves and ore processing machines. Over the past 12 months, prices for essential commodities such as iron ore and copper have jumped as demand has increased. Governments around the world are spending trillions on infrastructure projects to jumpstart their economies after the pandemic. To meet the increased demand, mining companies will have to invest in new equipment. That could translate into rapid earnings growth at equipment producers like Weir. As such, while the FTSE 100 stock doesn’t look particularly cheap, at the time of writing (it’s trading at a P/E of 24), I think the stock’s future growth may compensate for this high valuation. What’s more, due to the unique nature of Weir’s products, I reckon the company deserves a higher-than-average multiple. That said, there’s no guarantee booming commodity demand will translate into higher sales for Weir. The company could also suffer from additional lockdowns, which could inflict further pain on the economy. The post 2 cheap FTSE 100 shares I’d buy in July appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The Barclays share price is rising: should I buy now? The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Weir. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  41. 4 Cheap Semiconductor Stocks to Buy Right Now (27/04/2021 - Investing.com)

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  42. 2 cheap FTSE 100 shares to buy for July (16/06/2021 - The Motley Fool UK)
    We’re now in the second half of June and therefore I’m thinking about which UK shares to buy in July. I think that some of the best cheap stocks can be found on the FTSE 100 right now. So here are a couple I’m thinking of adding to my own portfolio in the days ahead. Riding the advertising market recovery Right now I think BAE Systems (LSE: BA) could be one of the best-valued FTSE 100 stocks to buy. Firstly the defence giant trades on a forward price-to-earnings (P/E) ratio of just 11 times. Secondly, its 4.6% corresponding dividend yield beats the broader average for UK shares by a large margin. I think BAE Systems is one of most secure defensive stocks out there. This isn’t just because global arms expenditure usually remains robust, irrespective of broader economic shocks. It’s because the tense geopolitical situation right now will likely lead to strong and sustained defence spending. For instance, NATO has taken the unprecedented step of addressing the perceived “systemic challenges” posed by China following the body’s latest summit this week. The long-term outlook for the BAE Systems share price is clouded by the rise of so-called ethical investing. Studies show how investors are shunning previous favourites like tobacco stocks, based on certain moral principles. While this trend is tipped by many to continue, I think the essential nature of this FTSE 100 firm’s market-leading products means its share price should still rise in the years ahead. A ‘safe as houses’ FTSE 100 share? I’d also buy shares in ITV (LSE: ITV) as conditions in the advertising market rapidly improve. It’s a phenomenon the broadcaster laid bare in its latest trading statement in May. Back then, the company reported a “rebounding” in ad revenues during the first quarter. I’m expecting another bright update when interim results are released on July 28, something which could give the ITV share price further momentum. It’s already up 66% during the past 12 months. I also like the excellent progress ITV has made in the fast-growing video on demand (or VOD) arena. Digital viewing is the future and the FTSE 100 company saw the number of accounts at its ITV Hub streaming platform rise by 1.6m in the three months to March, to 33.6m. ITV is investing heavily in the content and the functionality of the platform to keep people glued to the service too. However, a new problem has emerged that could derail the earnings recovery at ITV. Film and television studios are facing huge production equipment shortages that threaten to derail the creation of new content. Such problems at ITV Studios could have big implications for both production and advertising revenues at the FTSE 100 firm. Still, right now ITV trades on a low forward P/E ratio of 12 times while it boasts a chubby 3.5% dividend yield too. At these prices I still think it’s a highly attractive blue-chip stock to buy. The post 2 cheap FTSE 100 shares to buy for July appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Top dividend stocks for June 2021 3 top high-yield British stocks Now back in the FTSE 100, what’s next for the soaring ITV share price? 2 FTSE 100 shares I’d buy this June Top British stocks for June Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  43. 2 cheap shares I’d buy in July at deep discounts (29/06/2021 - The Motley Fool UK)
    In the year since 29 June 2020, the FTSE 100 index is up roughly 880 points. That’s a gain of a seventh (14.1%) over 12 months. Adding in another, say, 3.4% for dividends gives a 12-month return of around 17.5%. That’s not bad, but many Footsie shares have made far, far larger gains. Equally, some shares have lost significant value over the past year. I’ve been rooting around in the FTSE 100’s ‘bargain bin’ looking for unloved and underperforming cheap shares. Here are two (one of which I already own) that I would happily buy in July for their rebound potential and cash dividends. Cheap UK shares #1: Reckitt Of 101 shares in the FTSE 100 (one is listed twice), 85 have risen in value over the past 12 months. However, 16 stocks have fallen since late-June 2020. Down among these losers is Reckitt Benckiser Group (LSE: RKT), which lies 98/101 in the performance rankings. Over 12 months, Reckitt stock has lost more than a tenth (11.4%) of its value. Also, at today’s share price of 6,453p, Reckitt stock is almost a fifth (19.5%) below its 52-week high of 8,020p on 29 July 2020. For me, this steep drop has pushed Reckitt into the ‘cheap shares’ category. At the current share price, Reckitt is valued at £46bn, making it a FTSE 100 heavyweight. On a forecast price-to-earnings ratio of 16.1, the shares offer an earnings yield of 6.2%. The dividend yield of 2.7% is lower than the FTSE 100’s yield, but could rise over time. What I like about Reckitt lately is boss Laxman Narasimhan is restructuring the group (PDF), ditching ailing businesses to invest in growth markets. If he can pull this off, then Reckitt’s cheap shares might be worth snapping up. For me, I’d buy and hold at current price levels to await improved earnings. But if Reckitt’s latest turnaround fails, then its stock could turn out to be a value trap. Discount stock #2: GSK The cheap shares of pharmaceutical giant GlaxoSmithKline (LSE: GSK) have been in the doghouse for decades. Having briefly exceeded £23 in early 1999, they have never regained these former heights. Indeed, over the past year, GSK shares have declined by almost a seventh (13.7%), placing them at #100/101 in the FTSE 100 over 12 months. As a long-term shareholder in GSK, this ranking isn’t exactly what I want to see! At the current share price of 1,429.62p, FTSE 100 heavyweight GSK is valued at £71.5bn. But the shares trade at a discount of over a seventh (14.4%) to their 52-week high of 1,669.8p, set on 20 July 2020. At the current price, they trade on a price-to-earnings ratio of 13.6 and an earnings yield of 7.3%. What’s more, the 80p-a-share dividend produces a dividend yield of 5.6%, around 50% higher than the Footsie’s yield. But what makes me think these may be cheap shares is the potential for a share-price rebound following a huge shake-up of GSK. Next year, GSK will be split into two: New GSK and New Consumer Healthcare. To reinvigorate the group, CEO Dame Emma Walmsley has set demanding targets for sales and earnings growth. The cash dividend will also be cut to 55p a share in 2020, but might rise thereafter. If this major strategic overhaul pays off, then it could inject new life into GSK. But if the company continues on its recent path of declining sales, then these cheap shares could suffer. For now, I’ll keep reinvesting my dividends into yet more GSK shares. The post 2 cheap shares I’d buy in July at deep discounts appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading ESG investing: 3 UK shares I’d consider GSK shares face dividend cut: should I keep buying? Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? 2 Stocks and Shares ISA buys The GSK share price: 3 things that could give it a boost Cliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline. 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, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  44. Deep Dive: Small-cap value stocks still look cheap even after big rally, two fund managers say (30/03/2021 - Market Watch)
    Justin Tugman of Janus Henderson Investors and Christian Stadlinger of Columbia Threadneedle Investment highlight a handful of stocks that they say are still attractively priced.
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  45. 2 cheap shares I’d buy now for passive income (29/06/2021 - The Motley Fool UK)
    American billionaire businessman Larry Fink once remarked, “When you look at dividend returns on equities versus bond yields, to me it’s a pretty easy decision to be heavily in equities.” What Fink is saying is that, from an income-seeking perspective at least, shares look more attractive than bonds. When it comes to buying cheap UK shares, I absolutely agree with Fink’s opinion. For me, the FTSE 100 index is packed with cheap shares of good companies that pay market-beating cash dividends to their shareholders. Here are two UK shares that I’d happily buy now (but don’t yet own) for their valuable passive income. Cheap shares #1: Legal & General Legal & General Group (LSE: LGEN) is a leading UK provider of life assurance, savings, and investments. Founded in 1836, this household name is over 185 years old. With such a storied pedigree, L&G is a company I’ve admired for decades (even when I worked for rival insurers). These days, L&G manages over a trillion pounds of wealth, with over 10m customers relying on it for savings, pensions, and life insurance. Yet I see L&G’s stock as cheap shares, not least for their bumper dividend yield. As I write, these cheap shares trade at 263.9p, 11.8% below their 52-week high of 299.2p hit on 13 April. They have a price-to-earnings ratio of 12.4 and an earnings yield of 8%. Those are modest ratings, especially when compared with go-go growth stocks. Furthermore, this £15.6bn FTSE 100 stalwart pays a healthy dividend yield of 6.7% a year. That’s almost three percentage points higher than the wider FTSE 100’s yield. Of course, like all dividends, this pay-out isn’t guaranteed and could be cut, suspended, or cancelled at any time. But L&G paid an increased dividend of 17.57p a share for 2020, despite the Covid-19 crisis. Dividend shares #2: Rio Tinto Rio Tinto (LSE: RIO) — Spanish for ‘red river’ — is a vast Anglo-Australian mining group. It’s also one of the FTSE 100’s largest members and a global leader in its field. But perhaps its cheap shares have fallen in value lately because of the relentless rise of ESG (environmental, social, and governance) investing? After all, Rio does a dirty job: digging up and selling iron ore, copper, diamonds, gold, and uranium around the globe. Rio’s cheap shares currently trade at 6,054p, 10.8% below their 52-week high of 6,788p hit on 10 May. This values this mining monster at £100.4bn, making it a FTSE 100 super-heavyweight. Today, Rio stock trades on a price-to-earnings ratio of 13.9 and an earnings yield of 7.2%. It also offers an attractive dividend yield of 5.7%, roughly two percentage points above the Footsie’s yield. Even more impressively, Rio Tinto paid the UK’s largest dividend by size for 2020, making it the current king of UK dividends. In summary, when I buy cheap shares, I always remember that I’m placing a bet on a company’s future. I also know that share prices — and indeed dividends — can go up or down for many different reasons. That’s why I use company dividends to boost my passive income, but I don’t rely on them for all of my earnings. And if a company were to drastically cut its dividend, then I might sell its shares. That’s why I only invest in great businesses — and, ideally, only when their shares are cheap! The post 2 cheap shares I’d buy now for passive income appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading If I had £1k to invest, I’d buy these FTSE 100 shares Legal & General vs Aviva: share prices rated 2 UK shares to buy with £2k My 3 top FTSE 100 shares for extra dividend income! 2 top dividend stocks with 6% yields Cliffdarcy and The Motley Fool UK have 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, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  46. Best stocks to buy now: is this dirt-cheap FTSE stock a top pick for my ISA? (22/03/2021 - The Motley Fool UK)
    I have looked through my FTSE best stocks to buy now list and think HSS Hire (LSE:HSS) could be a penny stock opportunity for my Stocks & Shares ISA as the 5 April deadline looms. Penny stocks are companies whose shares cost less than £1 per share. This cheapness can result in volatility and higher risk that’s not to every investor’s taste. In my opinion, I believe there are some excellent businesses out there and HSS Hire is potentially one of them.  FTSE penny stock opportunity HSS Hire is a leading provider of tools and equipment to the construction industry and its business is split into two main divisions. It’s largest division is tool and equipment rental. This makes up nearly 70% of total revenue. The HSS model involves buying, maintaining, and leasing equipment to its customers. At the end of 2019, it was reported that the UK equipment rental market was worth over £4.5bn. HSS’s smaller division is customer services. This arm of the company is split into two roles. One is to find and recommend tools depending on the type of job a customer is completing. Secondly, it offers training courses around how to use specific equipment. I really like HSS’s business model and believe it has a unique offering and ability to expand further too. This is why it is on my best stocks to buy now list. It is also a very cheap FTSE stock. Between February and December last year, its price fell a staggering 65% to just 10.50p per share. It has begun to recover and, as I write, shares can be purchased for close to 17p per share. Cheap but risky Construction slowed down due to Covid-19. This impacted HSS’s business. Revenue and underlying profit fell 22% and 38% respectively for the first half of 2020. I understand the impact of Covid-19 and the role it played in HSS’s results. I believe the vaccine rollout and the fact construction firms will experience a boom to make up for lost time will benefit HSS. City analysts also seem to think the same. They have forecast performance to bounce back in the second half of the year. Of course, forecasts can change based on future developments. I mentioned the risk of penny stocks earlier. HSS has its own risks. There are low barriers to entry to the equipment rental industry, which means it is a competitive and fragmented market. HSS has the advantage of being one of the best known names in the industry, but if someone offered me the exact same tool at a cheaper price, I’d be tempted. Best stocks to buy now for my ISA There are risks with any stock but I believe HSS presents a unique opportunity. I’d be willing to risk a small part of my Stocks and Share ISA allowance on it. It is a well-known established brand name with an established customer base. It operates in an industry which will experience pent up demand as the vaccine continues to be rolled out and the country attempts to return to normal. Overall, I do think HSS is worth its place on my penny stocks section of my best stocks to buy now list. I do have other penny stocks on my list too and I think this FTSE stock is also an option worth considering too. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 reasons this penny stock can rally now. But would I buy? Penny shares: will these small-caps double my money in 2021? Is this penny stock on track for an explosive recovery in 2021? Jabran Khan 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Best stocks to buy now: is this dirt-cheap FTSE stock a top pick for my ISA? appeared first on The Motley Fool UK.
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  47. Promise of cheap money keeps stocks buoyant (24/02/2021 - Investing.com)

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  48. 3 of the best cheap UK stocks to buy today (22/05/2021 - The Motley Fool UK)
    I like to add cheap UK stocks to my portfolio. If I can avoid value traps – shares which keep on going down in value – then it can be a good way to find shares that are undervalued. Cheap stocks can have a lot of upside if bought at the right time, for a sensible price. As legendary investor Warren Buffett says: “Price is what you pay. Value is what you get”. A FTSE 100 warehouse group The FTSE 100-listed warehousing company Segro (LSE: SGRO) is my first cheap UK stock. The shares trade on a price-to-earnings multiple of around eight. This suggests the shares could be undervalued. The shares are cheap because of strong earnings growth relative to the share price, rather than poor performance. That’s why I think there could be a lot of upside. The increase in e-commerce and the potential for consumers’ behaviour to have permanently changed because of the pandemic mean demand for warehouses for retailers will keep on increasing. This should keep prices up, which is good for Segro and other warehouse companies. Segro is a great operator. It has consistently performed well in recent years and kept adding to its rent collection. The risks seem limited to me but include rents potentially not being collected if the economy suffers again. Earnings per share growth may also slow against a very strong 2020, which may hit the share price. Poised for global recovery  Iron ore pellet producer Ferrexpo (LSE: FXPO) is a company well aligned to the reopening of the global economy. Demand for iron ore will pick up rapidly as the world recovers from the pandemic. Construction and other industries that use steel will push up demand for iron ore, which should in theory push up prices for Ferrexpo. Despite its share rising, the P/E is only around six, which makes the shares seem very cheap. I think that valuation is attractive, but there are risks. As with any miner, there is a risk that prices fall, which would hit the company’s profits. The company has in the past had governance issues and its mines are in Ukraine, putting it at risk potentially from any Russian geopolitical actions in that country. There are still skirmishes in the east of the country. I think this explains why the shares are cheap. Cheap UK stock The outsourcer Serco (LSE: SRP) might not be everyone’s cup of tea after past controversies over charging taxpayers for tagging criminals who in some cases were no longer alive. Nonetheless, today the company seems to have turned a corner under the excellent leadership of Rupert Soames. Serco is benefitting from increased defence spending. Acquisitions are also helping fuel growth and if well integrated could help boost the share price, in my opinion. The downside with outsourcers are that margins are often low, and contract discipline lessens in the good times meaning they can be quite cyclical investments. With a P/E of 13, the shares seem to be quite cheap. On top of that, the dividend yield is very low, indicating that there could be growth in the shareholder payout in future. That could add to the total return the company could provide to my portfolio, if I added it. Segro, Ferrexpo, and Serco then are cheap UK stocks I’d be interested in adding to my portfolio today.  5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading UK shares to buy now: my top 2 FTSE 100 stocks 3 top growth stocks for May Andy Ross owns no share mentioned. The Motley Fool UK 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 of the best cheap UK stocks to buy today appeared first on The Motley Fool UK.
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  49. These 3 FTSE 100 shares pay 8%+ a year in cash! (02/08/2021 - The Motley Fool UK)
    Having been investing in stocks and shares since 1986-87, my attitude to risk has changed considerably over time. In my early years, I took big, bold bets that often turned to trash. These days, and 35 years later, I aim to get rich slowly by buying quality stocks and holding them for years. Over the past 18 months, I’ve been bargain hunting in the FTSE 100 index, which I regard as among the world’s cheapest markets. Here are three cheap UK shares I’d happily buy today for their bumper earnings and generous cash dividends. 1. FTSE 100 share #1: Rio Tinto Global mining giant Rio Tinto (LSE: RIO) is making incredible profits this year, thanks to soaring metals prices. As a result, this FTSE 100 share has nearly doubled from its March 2020 low of 3,212p. As I write, Rio stock trades at 6,280p — more than £5 below its 52-week high of 6,788p hit on 10 May 2021. What I like about Rio are its huge cash flows, earnings, and dividends. At present, Rio shares trade on a price-to-earnings ratio of 7.4 and an earnings yield of 13.5%. This cheap UK share offers a dividend yield of 8.1% a year (excluding special dividends). I don’t own Rio stock, despite it being among the cheapest in the FTSE 100. Also, mining shares are notoriously volatile, plus this market may be near peaking. Hence, I would buy Rio today, but with caution. 2. Dividend share #2: BAT My next ‘smoking’ share is exactly that: British American Tobacco (LSE: BATS). For me, BAT shares are cheap because this business is unloved and unwanted in this age of socially and environmentally conscious investing. But, like Rio, this FTSE 100 firm generates huge profits, cash flows, and earnings to funnel back to shareholders. In the first half of 2021, BAT’s grew revenues by 8.1%, operating profit by 5.4% and its dividend by 4.1%. At the current share price of 2,699p, BAT is valued at £62bn, making it a Footsie heavyweight. Its shares trade on a price-to-earnings ratio of 10.1 and an earnings yield of 9.9%. The stock offers a dividend yield of 8.0% a year (more than double the FTSE 100’s forecast yield of 3.7%). As a smoker myself, I know smoking is a deadly habit that will eventually die out. However, as an income-seeking value investor, I’d happily buy BAT at current price levels. 3. Cheap share #3: M&G My final FTSE 100 company doesn’t damage the environment or smokers’ lungs. It is British investment firm M&G (LSE: MNG), once part of the mighty ‘Pru’ until its demerger in October 2019. Of these three income-generating stocks, M&G is probably the safest, most solid, and even boring business. On 1 June this year, M&G shares hit a 52-week high of 254.3p, but have since dropped to 231.2p as I write. This values the asset manager at £5.9bn, a mere minnow compared to its global rivals. Right now, M&G shares trade on a price-to-earnings ratio of 5.1 (among the lowest in the entire FTSE 100) and an earnings yield of 19.5%. These shares also pay a dividend yield of 8.1% a year, in line with BAT and Rio. I don’t own M&G shares, but I’d buy at the current price. And that’s even though I know the group faces intense, ongoing competition from bigger, fiercer challengers! The post These 3 FTSE 100 shares pay 8%+ a year in cash! appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading 3 dividend stocks to buy in August The BAT share price dips on solid results. I like its 8% dividend yield What’s going on with the Rio Tinto share price? 3 UK shares I’d buy with £1,000 The top FTSE 100 dividend stocks to buy now Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco. 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, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  50. 2 cheap UK shares to buy now (23/02/2021 - The Motley Fool UK)
    Between Brexit and the pandemic, UK shares still look cheap from a global perspective. The price-to-earnings ratio of the Dow Jones Index in the US is 32. That compares to around 23 for the FTSE All Share index. That is one reason I am looking for cheap UK shares to buy now. Here are two I’ve been buying this year. An out-of-favour engineering firm Looking at the chart for engineering conglomerate Babcock (LSE: BAB) can be demoralising. For many years the company’s shares have kept falling. Last month things took a turn for the worse, after the company announced that it may need to write down the value of some contracts. So, why is this among my list of cheap UK shares to buy now? I think the warning of the potential write-down was actually good news, not bad. It wasn’t signalling that the business value has dramatically deteriorated, in my interpretation. Instead, it showed that a new management team were taking a disciplined look at how best to account for the company’s performance. I see that as being like a dentist telling me I need a filling. The news may be hard to take, but it’s better for me than just saying nothing. Until we get a clearer sense of what Babcock’s future earnings are likely to be, it is hard to say whether the valuation is fair or not. However, the company’s shares now suggest a company valuation of just £1.3bn. That seems low for a company with long-term relationships with customers like the Royal Navy as well as a £16.8bn order book. Babcock could yet turn out to be a value trap. Past earnings aren’t indicative of future earnings, especially if the board decides that prior accounting methodology isn’t the best one for the company to use in future. Some analysts worry that to raise cash, the company could need a rights issue. I do think that is a possibility, but continue to see value in the company’s assets. Directors buying shares last month also boosted my confidence in my own purchase. Imperial Brands is among the cheap UK shares to buy now If there was a bank account offering a 10% interest rate, the Sunday papers would be full of it. But cigarette maker Imperial Brands (LSE: IMB) offers roughly a 10% yield and continues to see its share price in the doldrums. Now, a yield isn’t the same as an interest rate. There is no guarantee that it will be sustained, and indeed last year the company cut its dividend level. Added to that, the company’s focus on cigarettes worries some analysts given the structural shifts in cigarette usage in many markets. Despite all of that, I still have Imperial on my list of cheap UK shares to buy now. The company owns brands such as Rizla and John Player Special. While cigarettes are declining in developed markets, it continues to have pricing power. The company’s recent strategy session with investors indeed emphasised plans to offset volume declines by continuing to click prices up. Meanwhile, it continues to pay out a quarterly dividend which yields close to 10% at the current share price. For me it’s a cheap UK share hiding in plain sight. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 2 UK dividend stocks with 9% yields I’d buy today Top income stocks for February 2021 Stock investing: 3 of the best income shares I’d buy right now A dirt-cheap FTSE 100 share to buy today for passive income Top British stocks for February 2021 christopherruane owns shares of Babcock International Group and Imperial Brands. The Motley Fool UK has recommended Imperial Brands. 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, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 cheap UK shares to buy now appeared first on The Motley Fool UK.
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