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19 September 2021
12:52 hour

A ridiculously cheap FTSE 250 stock to buy now

The Motley Fool UK

14/09/2021 - 17:43

The FTSE 250 stock was impacted by the pandemic, but things are slowly turning around for it. The post A ridiculously cheap FTSE 250 stock to buy now appeared first on The Motley Fool UK.


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  1. 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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  2. 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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  3. 4 ridiculously cheap dividend stocks (07/07/2021 - The Motley Fool UK)
    It’s not everyday that I come across ridiculously cheap dividend stocks. But how do I define these? Well, I’m looking for UK shares with a current price-to-earnings (P/E) ratio of less than 10 times. And I’m also looking for a very high dividend yield of more than 5%. I’ve come across four FTSE 100 stocks that fit my criteria and that I’d snap up today. I’m an income-hungry investor and want to make my money generate passive earnings. #1: BATS I’ve commented on British American Tobacco before. It will raise ethical concerns for some investors, but I like it for consistently generating cash flows that it pays out as attractive income. The stock is trading on a cheap P/E ratio of 8 times and has a dividend yield of 7.5%. What’s more, income is covered by earnings 1.5 times. Of course, there’s no guarantee. But, I can’t complain when this dividend level is on offer. I like that that the company has upgraded its full-year revenue guidance from 3%–5% to over 5%. And it’s seeing stellar growth from its New Categories products. But there’s a lot of regulation in the tobacco sector and this isn’t going away. It may place pressure on this cheap dividend stock going forwards. #2: IMB I’m sticking with the tobacco sector, and would buy Imperial Brands. It’s BATS’ competitor, but I don’t see this as a problem. The stock is trading on a cheap P/E ratio of 6 times and generates a dividend yield of almost 9%. The dividend was cut by a third last year to prioritise debt reduction. So this highlights that there’s no guarantee for investors when its comes to income. But I reckon the worst is over for the company. Next Generation Products or NGPs offer future growth potential as it has primarily invested in vaping through its Blu brand. #3: Aviva Aviva isn’t the most exciting of businesses but it generates consistent cash flows. The stock trades on a P/E of 8 times and has a dividend yield of 6.5%, which is covered by earnings. The new CEO is turning things around and is disposing of non-core businesses. What’s great is that from the sale proceeds, Aviva has confirmed it will be making a capital return to shareholders. Activist investor Cevian Capital has recently built a 5% stake in the company. For now, both parties seem to be getting on. But this relationship could go sour especially when the investor wants rapid change and the board doesn’t agree. This could place pressure on this cheap dividend stock. #4: M&G I think M&G is an attractive stock right now from a valuation point of view. It’s trading on a P/E ratio of 5 times with a dividend yield of almost 8%. What’s more the income is covered by earnings. But investors need to be aware that M&G hasn’t got a long history of paying out dividends. So there’s no guarantee this level of income is sustainable. The asset manager suffered in 2020. But with markets now rising and the uncertainty of the pandemic diminishing, this should improve the company’s revenue prospects and profitability. It’s also focusing on sustainable investing, which should help drive long-term growth. Hence I’d buy this cheap high dividend stock. The post 4 ridiculously cheap dividend stocks appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Is robo-investing good? 2 top UK growth stocks to buy right now Why is Jeff Bezos stepping down as Amazon boss? I’d spend £1,000 on cheap UK shares in July for an economic boom Is this growth stock set for a new boom in 2021? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco and 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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  4. Can Jinkosolar #JKS quadruple again like in last October? (28/06/2021 - Reddit Stocks)
    Back then it almost quadrupled. Last friday we had first quarter earnings results which beat every analyst estimation + strong future growth. Forwarded P/E and P/S are ridiculously low, it is clean energy. In my opinion this stock has a lot of potential to make strong gains in the coming weeks and months. What do you guys think? I am invested in this stock.   submitted by   /u/Mirrodin1990 [link]   [comments]
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  5. 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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  6. 3 dirt-cheap FTSE 100 shares to buy (16/08/2021 - The Motley Fool UK)
    Cheap FTSE 100 shares are increasingly difficult to come by as the stock markets keep inching up. I know this may come as a surprise, but I think there are still some stocks available at low prices compared to their performance. Here are three that I like. High performing and dirt cheap One of them is Pershing Square Holdings, a fund with holdings in hospitality and real estate. With the pandemic hopefully under control now and the economy expected to grow fast, these sectors should benefit. This is especially true for the US, where many of the companies it has invested in are located.  The company’s share price is up 37% over the past year. Its recent results have been strong too. Yet, the company’s price-to-earnings (P/E) ratio is at a minuscule two times, which makes it dirt cheap. There is always a possibility that its future performance may not be quite like its past performance, if market conditions change or economic recovery slows down. But for now, it is a buy for me. Continued robust performance Another investment company I like is the FTSE 100 private equity firm 3i. It too has a low P/E ratio of seven times. This may not be quite as low as that for Pershing Square but it is not quite as high as the average FTSE 100 P/E of around 15 times. And this is despite the 43% increase in its share price in the past year.  The company performed well in both 2020 and reported good quarterly results more recently too. I also like that it pays a non-trivial dividend, with a current yield of 2.9%. I reckon that if it continues to perform, it can rise further. That said, last year was particularly good for 3i, which may or may not continue in the future. This is especially so given the concentration of its investments.   FTSE 100 e-commerce winner Another dirt cheap FTSE 100 stock is the warehousing real estate investment trust Segro, which has a P/E of 6 times. The company has had a particularly good past year. Demand for warehousing rose in line with increased shopping from e-tailers, while brick-and-mortar retailing was severely restricted.  It is possible that this year may see some slowing down in growth, now that the lockdowns have lifted. But so far it appears that online shopping is still strong. This in turn says to me that its share price can continue to rise. Even if it does soften in the short term, I reckon over time it will be a rewarding stock to hold given that online sales will only strengthen.  It has also shown a strong performance over the past decade, which is encouraging. If I had bought it 10 years ago, I would have made capital gains of over 400% by now. The post 3 dirt-cheap FTSE 100 shares to buy appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The S&P 500 has outperformed the FTSE 100, but I’m buying UK shares The FTSE 100 (INDEXFTSE: UKX) rose last week. Can it continue? 3 FTSE 100 dividend stocks I like FTSE 100: 3 dirt-cheap shares to buy now Is the volatile FTSE 100 Index a precursor to a market crash? 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.
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  7. Serious Question - If during a short squeeze the price of a stock goes ridiculously high, can anyone actually sell? (07/03/2021 - Reddit Stocks)
    Looking at the current GameStop situation, if the (possibly a little over zealous) predictions of some on r/wallstreetbets come true, and the price hits $100k+, can anyone actually afford to keep buying? At this price I would assume no one would be stupid enough to buy the stock, it would only be the short sellers buying because they are forced to. At these high prices I have no doubt they will run out of money quickly and be bankrupt. At that point I am curious about two things: Who will cover the remainder of the outstanding shorts? Will everyone else be stuck with stock that can’t be sold until the price crashes?   submitted by   /u/Whats-Upvote [link]   [comments]
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  8. How to select cheap UK shares to buy (30/08/2021 - The Motley Fool UK)
    There is nothing like buying shares at a discount. This allows me to buy a larger number of shares and hopefully make capital gains over time as their prices rise. But selecting cheap UK shares to buy is not always as simple as it appears. This is because there are various ways to define what a cheap UK share is, to start with.  Is a low absolute share price a good measure? It can appear that the lowest priced UK shares are also the cheapest. But that need not be so. A company can choose to issue as many shares as it likes. And if it issues a larger number of shares, then the price per share can be quite low. For instance, Lloyds Bank has a share price of around 44p as I write, which is way lower than that of its peer Barclays, which is at 179p.  Lloyds Bank may look cheaper, but that is because the number of shares held by investors is far larger than that for Barclays. If both banks had the same number of shares, then their share prices would not be very different from one another.  Consider relative prices Another way to look at the same example is by comparing the price-to-earnings (P/E) ratios for both shares. Lloyds’s P/E ratio is 6.7 times, similar to 6.8 times for Barclays. This means that in relative terms, they are similarly priced. If anything, both banking stocks are cheap compared to many other FTSE 100 stocks, including mining and healthcare ones.  Comparing with the past A third way to figure out if a share is cheap is by comparing it to its earlier price. Again, consider the example of Lloyds bank here. It is still way below the 60p levels it started 2020 with. Despite a pick up in the economy and its own financials, it is however trading at much lower levels. To me, it looks like a genuinely cheap share to buy for now, which is set to rise over time.  Not all cheap UK shares are made the same However, not all cheap UK shares may rise over time. Sometimes, there can be genuine reasons holding stocks back. Examples of these include travel stocks that still face some uncertainty. We are not completely out of the woods as far as the pandemic goes and their financials are still in a funk. The risk to buying them is reducing as travel increases, but it still persists. So I have to think carefully before buying these shares.  Also, stocks may suddenly start looking cheap for purely technical reasons like a stock split or a rights issue. But in actual fact, little may have changed. So I would be careful before making buying decisions based on any such sharp changes in share price without first finding out why it happened.  The post How to select cheap UK shares to buy appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy Scottish Mortgage Investment Trust shares today? 3 more FTSE 250 stocks to watch for in September 3 dirt-cheap AIM stocks. Should I buy? Which is the better investment now, the FTSE 100 or the FTSE 250? Should I buy Peloton stock? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays 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.
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  9. After crashing nearly 40%, this FTSE 100 share could be a steal (14/09/2021 - The Motley Fool UK)
    The past year has been positive for the FTSE 100 index, but not all of its members have shared the good fortune. Over the past 12 months, the Footsie has added almost 1,020 points to stand at 7,042.20 as I write. That’s a decent return of more than a sixth (16.9%). Adding in dividends takes this figure to 20%-ish — a very respectable return for UK stocks. But some Footsie shares have plunged in value since mid-September 2020. The FTSE 100’s losers The FTSE 100 index includes 101 stocks, as one is dual-listed. Of these 101 stocks, 85 have climbed in value over the past 12 months. These gains range from 118.0% to 0.4%. Across these 85 winners, the average gain is more than a third (+35.5%). As this figure includes no losers, it is slightly more than double the wider index’s capital return. At the other end of the scale, we have 16 losers. Losses from these FTSE 100 laggards range from 0.8% to almost two-fifths (37.6%). The average decline across these losers was roughly a seventh (-14.1%). That’s 31 percentage points below the wider index’s capital return. Ouch. Looking at the 16 losers, I spotted a few sectors that have underperformed the FTSE 100. For example, my list of laggards includes four pharmaceutical/healthcare companies, three financial firms, two consumer-goods giants, and two go-go growth/tech stocks. But the last two places — #100 and #101 — are both taken up by mining companies. This Footsie loser might be a steal As a veteran value investor, I often rummage in the FTSE 100’s bargain bin, hunting down cheap shares. After this exercise, I decided to take a closer look at the Footsie’s worst performer over 12 months. This unwanted award goes to Fresnillo (LSE: FRES), whose shares have crashed by almost two-fifths (37.6%) since mid-September 2020. Although Fresnillo is a London-listed company, it is also quoted on the Mexican Stock Exchange (Bolsa) and is headquartered in Mexico City. The group, established in 2008, is the world’s largest producer of primary silver (silver from ore) and Mexico’s second-largest gold miner. Incredibly, its flagship mine has been in operation for over 500 years. Currently, Fresnillo has seven operating mines, three development projects, and six exploration prospects. In 2020, this FTSE 100 precious-metals miner produced 53.1m ounces of silver and 769.6 thousand ounces of gold. Of course, Fresnillo’s future cash flow, profits, earnings per share, and cash dividends are strongly tied to the price of silver (and, to a lesser degree, gold). Hence, when the prices of silver and gold weaken, so too does this FTSE 100 firm’s earnings. Over the past 12 months, the Fresnillo share price has ranged from a 52-week high of 1,379.5p on 21 September 2020 to a low of 742.6p on 27 July 2021. Today, the share price of 839.4p is just over an eighth (+13.0%) above this low. To me, this suggests that this FTSE 100 stock might still be in bargain territory. At the current share price, Fresnillo is valued at £6.2bn. Its shares trade on a price-to-earnings ratio of 14.0 and an earnings yield of 7.1%. Also, they offer a dividend yield of 2.8% a year, roughly one percentage point below the FTSE 100’s 3.8% a year. To me, these fundamentals look fairly cheap. Though I don’t own FRES at present, I’d buy at these price levels. Then again, history has taught me that mining stocks can be very volatile and unpredictable. Hence, I’d expect owning this FTSE 100 stock to be a roller-coaster ride at times! The post After crashing nearly 40%, this FTSE 100 share could be a steal appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading 2 UK shares I’ll buy if stock markets crash! This bull market could prevent a stock market crash The ITV share price is falling. Should I buy now? A ridiculously cheap FTSE 250 stock to buy now How to apply for your National Insurance number Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo. 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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  10. 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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  11. $ATNF is just so ridiculously shorted... if only a group of people kept buying and holding... (09/04/2021 - Reddit Stock Market)
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  12. $COHN Why it is so cheap? (14/07/2021 - Reddit Stocks)
    I have just came through this company and it seems very cheap, 1.2 pe ratio with great revenue and earnings growth in the last two quarters. I made some DD myself about the company but could not find any explanation why the valuation looks cheap. The current stock price is 21$ but only looking at the fundamentals the fair price should be 150$ (being conservative). Anyone here have any idea about what's wrong here? I am thinking to jump in with considerable amount and trying to find a bear perspective to change my mind.   submitted by   /u/Rauf_KB [link]   [comments]
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  13. 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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  14. 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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  15. JOAN earnings 6/3 (02/06/2021 - Reddit Stocks)
    Joann fabrics is a fabrics company that recently went public again. They’ve done very well since and have equity of about 300M which is .6 book value. They have a PE of 2.6.. which is incredibly cheap.. What am I missing? Why is this stock so cheap?   submitted by   /u/HaMEZSmiff [link]   [comments]
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  16. 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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  17. 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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  18. Let us talk about JinkoSolar #JKS (17/03/2021 - Reddit Stocks)
    So here we have the worlds largest solar panel producer, growing like a beast, in a future-orientated market. The P/E ratio is at a ridiculously low 15 as of today (the P/S is at 0,5). And it gets barely any attention by the media or analysts. As a matter of fact last year the stock was only covered TWICE by two analysts. So my question is, what could be the reason why the biggest company in probably one of the most important future markets is being ignored like that? Disclosure: I am invested in #JKS   submitted by   /u/Mirrodin1990 [link]   [comments]
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  19. Why is $JD so cheap right now? (13/04/2021 - Reddit Stocks)
    Jd.com smashed last earnings, having a record quarter with 4x earnings as last year. With a pe Ratio of 16 (!!!) im just scratching my head why this stock is so cheap. The only reason i could think of was new competition from BABA now that they are kinda cleared of CCP concerns. Do you guys have any idea?   submitted by   /u/aloahnoah [link]   [comments]
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  20. What do you think of Adobe. Looks nice but is it really cheap? (30/07/2021 - Reddit Stocks)
    Adobe looks like an awesome growing stock, but is it that cheap? Was looking at https://marketdeepview.com/2021/07/30/adobe-inc-adbe-is-one-of-the-cheapest-growth-stocks/. Seems to have a promising future tho   submitted by   /u/kiriloman [link]   [comments]
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  21. £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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  22. 2 dirt cheap FTSE 250 shares to buy (18/08/2021 - The Motley Fool UK)
    This is turning out to be a good month for the FTSE 250 index. In August so far, its average value is up 3.6% from July. This is the fastest growth seen in four months and also the first time that the index average is over 23,000.  With this as the backdrop, it is hardly surprising that FTSE 250 stocks are pricier than usual. But if I look hard enough, I can still find stocks that are still trading at a price lower than their performance would suggest. These dirt-cheap stocks can be potentially good investments for me.  Here are two of them. #1: Plus500: A high-dividend-yield FTSE 250 share  The trading platform is presently trading at a price-to-earnings (P/E) ratio of 4.4 times. On the face of it, there appears to be some justification for it. One, its share price as of right now, is actually lower than it was last year on this date. Two, its latest results look discouraging too. In the first half of 2021, its revenue fell by 39% and its profits by 48% from the same time last year.  However, there is another side to its story too. Consider its share price. While it is true that on a point-to-point basis it has declined, if I compare the average of the past 12 months with the year before, there is still an increase. Also, its latest results look disappointing only because last year was exceptionally good for Plus500 (LSE: PLUS). As the company said in its results last year, the robust increase was “driven by heightened volatility in unprecedented market conditions”. Moreover, compared to 2019, the last normal year before the pandemic, its performance is still significantly improved. The company is also optimistic about its future, and last but not the least, it has  a significant dividend yield of 7.2% compared to 1.8% for the FTSE 250 index as a whole.  #2. CMC Markets: Dirt-cheap stock with good prospects  Another financial trading platform, this FTSE 250 stock has other parallels with Plus500 too. CMC Markets (LSE: CMCX) also has a relatively low P/E of 6.8 times. It also has a high dividend yield of 7.3%. And there are other positives to the stock too. Unlike Plus500, its numbers are more encouraging. For the year ending 31 March, 2021, its pre-tax profits increased by an impressive 127% and its revenues were substantially increased as well. In its latest trading update for the quarter ending 30 June, the company also reported client numbers at similar levels to those last year. However, it does appear that it too, can see some moderation in results for the first half of the year, based on client trading activity. Nevertheless, it also has a positive outlook. Its share price has increased by 38% over the past year. Even on average, these increases have been sustained for sometime now. If there is a consistent decline in trading activity, though, the stock increase may not continue. Based on the FTSE 250 index’s recent performance, though, I am more positive than not about it.  The post 2 dirt cheap FTSE 250 shares to buy 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 A market crash could be coming: 1 stock to buy if it happens 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.
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  23. 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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  24. 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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  25. Is financial advice worth the money? (19/04/2021 - The Motley Fool UK)
    Recent research suggests that most people don’t know whether financial advice is worth the money. A survey conducted by Opinium for Hargreaves Lansdown shows that most of the 2,000 respondents guessed they would need to invest around £117,000 to make it worth paying for advice. “It helps explain why so many people who could benefit from advice are reluctant to take it,” says Sarah Coles, personal finance analyst for Hargreaves Lansdown. Is financial advice worth it? For many people, the answer doesn’t seem to be clear. In fact, the survey found that 46% of people aren’t sure when to ask for help. When it comes to financial advice, 22% would rather turn to their parents than hire a financial adviser. Another 15% would instead talk to a partner. Is there a right time to search for professional help? There’s no hard and fast rule about when you should get advice, according to Coles. She explains, “People tend to turn to advisers when things get too complicated, when the amount of money at stake means they’re worried about making a mistake, or when they just don’t have the time or inclination to do things themselves.” According to Investopedia, it makes sense to seek financial advice any time that there’s a major financial change in your life. This could include getting married, going through a divorce, or having children. It makes sense to seek advice as you near retirement and want to make sure you’re financially ready to take that step. Coles says seeking financial advice is a good move if you inherit money. It’s also useful if you simply want a mid-life check-up to make sure you’re on the right track. What fees should I expect for financial advice? Some financial advisers charge a percentage of your assets as their fee. Others charge by the hour or have set fees based on the estimated amount of work.  “There’s no specific typical fee, but as a rough rule of thumb, you can expect to pay around £500-£2,500 for assets of up to around £100,000,” according to Coles. If your investment portfolio is very complex, you could be looking at a fee of £5,000 or more. Before you hire somebody to help you, make sure you understand what you’re paying for. Are you looking for one-off advice? Or do you want to establish something ongoing where you can consult on all of your financial decisions? Coles points out, “A good adviser will also be up-front with you if they think it’s not worth you paying for advice at any stage”. Do I really need a financial advisor or should I do It myself? There’s nothing wrong with taking care of your finances on your own, as long as you have the time and skills to handle it, according to Forbes. For people with busy lives, there might not be time left to learn all they need to know about finances. Making financial decisions can sometimes feel overwhelming or confusing. For those people, having an advisor can make a world of difference. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading A ridiculously cheap FTSE 250 stock I’d buy today The FTSE 100 is back above 7,000, but can it hit 8,000 in 2021? This FTSE 100 stock is up 170%: here’s what I’ll do now Stock market rally: is the FTSE 100 a bubble set to burst? The Manchester United share price soars 10%! Is now the time to buy? The post Is financial advice worth the money? appeared first on The Motley Fool UK.
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  26. Cheap automotive stock poised for take-off (KOA) (29/05/2021 - Reddit Stock Market)
    Kongsberg Automotive is in EXCELENT position for a good ol take-off! The KOA stock have had an absolute shitshow of a year in 2020 due to COVID. One might even say, that the stock got hit a too rough relative to other companies. However, now the stock simply trades DIRT FUCKING CHEAP: Numbers in NOK, also Udbytte = dividents Ontop of that KOA has cash to grow, new well-proven management. Additionally, the stock is an excelent hedge against USD AND EUR inflation, as NOK is set to strenghten relative to the two. Only a single institution that desperately claws onto it's position to fight against (the institution has holding down the price historically): Short information This is a great opportunity for people wanting to get in very well posied rebound. I'm certainly looking forward to the moon ride. Disclaimer: not a pro finiancial advisor, also hold a position in the company and plan on buying more.   submitted by   /u/Hazzix93 [link]   [comments]
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  27. FTSE 100: 3 dirt-cheap shares to buy now (22/07/2021 - The Motley Fool UK)
    After months of inching upwards, the FTSE 100 index is finally pulling back. It is at sub-7,000 levels, which indicates that share prices are likely to be more subdued right now for constituent companies than they would have otherwise been. To me, that is a good reason to buy some high-quality stocks now. Here are three such, that are also looking dirt-cheap to me now.  #1. 3i: continued growth The first one I like is the private equity and infrastructure investment firm 3i (LSE: III). The company had a fantastic year in 2020. And from its performance update for the first quarter of the current financial year ending 30 June, it appears to be on a roll this year too. The company’s earnings before interest, tax, depreciation, and amortisation, commonly known by its acronym EBITDA, more than doubled from last year. I reckon this can give fresh impetus to its share price. After showing impressive growth until recently, it has softened in recent weeks. And its price to earnings (P/E) ratio is still a low 6.5 times. Even though its continued reliance on its investments in the Dutch retail store Action is not ideal, all things considered it is a pretty cheap stock for me to buy. #2. Polymetal International: more than a gold price play Another one I like is the precious metals miner Polymetal International, which has a P/E of 9 times. Its share price has been sliding downwards since peaking in August last year. But I think going by its robust financial health, it is only a matter of time before it starts rising again. In the meantime, it makes for a good income stock, with a dividend yield at 6.2%. The only caution I have for this stock is that its performance could get hit this year because precious metal prices are not quite as much in demand as they were in last year’s bear market. But then again, it showed robust performance even before last year. I have already bought the stock and am considering buying more of it now. #3. Segro: a long-term FTSE 100 stock to hold FTSE 100 warehouser Segro is another stock I like with a sub-10 times P/E ratio. The company benefited significantly from the e-commerce boom last year, leading to an almost consistent rise in share price since last year’s market crash. But it was broadly rising even earlier.  Looking forward, I think e-commerce related companies will only continue to gain over time as online shopping becomes a norm. So, for me the likes of Segro are long-term investments. In the short-term though, I think there could be some pull back in performance from last year. But this is only because the past year was an outlier. And there is also a possibility that online sales may just not slow down. As such, I expect its overall story to remain intact. It is a buy for me. The post FTSE 100: 3 dirt-cheap shares to 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 Is the volatile FTSE 100 Index a precursor to a market crash? The FTSE 100 is rising again, but is the market about to crash? Is the FTSE 100 set for another slump in 2021? Why has the FTSE 100 index fallen below 7,000? Manika Premsingh owns shares of Polymetal International. 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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  28. 9%+ dividend yields! Should I buy these ‘cheap’ FTSE 100 stocks? (12/09/2021 - The Motley Fool UK)
    There are very few FTSE 100 stocks that have dividend yields of 9%. Occasionally, for those that do have yields this high, it = implies that the stock is too cheap and is likely to rise over the next few years. On the other hand, it can also signal low or negative growth, and a lack of investment in the company. So, what do I think about the following 9% yielding UK shares? A new FTSE 100 stock In October 2019, Prudential demerged M&G (LSE: MNG), giving it a premium listing on the London Stock Exchange. Accordingly, this fund manager has a limited track record as a listed business. And its first two years on the index have not been overly successful with it down over 10% since it joined the Footsie. But there are many reasons why MNG looks like a bargain FTSE 100 stock to me. The dividend is the main factor. This year’s dividend totalled 18.33p per share, equivalent to a yield of 9.2% at current prices. For the time being, it also looks sustainable. This is because the company has cash and liquid assets of £1.7bn, despite the dividend only costing around £500m per year. The company’s profits are also able to cover the dividend. This makes the dividend seem very appealing and is a reason why I’m tempted to buy. M&G also trades at a very low price-to-earnings ratio of around 8 times expected 2021 earnings, indicating an extremely cheap valuation. But I feel that the shares are currently being held back by a few problems. For example, although assets under management have been able to grow to £370bn, it said in its recent trading update, this was lower than expectations. Net outflows were also £3.4bn in the retail asset management sector, signalling negative growth in this area. Despite this, recent fund launches such as the Planet+ range, which aims to be environmentally conscious, will hopefully attract new customers. This means that, alongside the appeal of the 9% dividend, I’m seriously considering buying M&G shares. A tobacco giant The other FTSE 100 stock offering a 9%+ dividend yield is Imperial Brands (LSE: IMB). The last five years for this tobacco giant have not been pretty, with the shares down over 60%. This is mainly due to the regulatory pressure that has faced the company. But it has still managed to deliver strong financial results, as demonstrated in the recent trading update. For the first half of 2021, Imperial reported adjusted profits of nearly £1.6bn, a rise of 8.6% from last year. The dividend was also raised 1%, which if maintained, would give the shares a current yield of 10.5%. This makes it the current highest payer in the FTSE 100. But although such a high yield is difficult to resist, I’m staying away from Imperial shares. This is because of the risks that it faces. They include the chance that profits could be hit by further anti-smoking regulations and that its “next-generation products”, such as e-cigarettes, don’t deliver as much growth as hoped. The company remains heavily reliant on traditional tobacco products, which I view as a negative growth industry. Therefore, even the incredibly high dividend yield, and the low P/E ratio of 7, doesn’t tempt me to buy this stock. The post 9%+ dividend yields! Should I buy these ‘cheap’ FTSE 100 stocks? 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 The best FTSE 100 shares to buy as the market slides My favourite FTSE 100 shares to buy 3 of the best stocks to buy in September 9.2% dividend yields! Should I buy these FTSE 100 shares? 3 FTSE 100 bargain shares I’d buy in September Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands and 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.
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  29. What’s the idea behind buying tech stocks at high PE ratios? (11/06/2021 - Reddit Stocks)
    I just saw a comment on a post that said that AMZN is currently undervalued. I’ve had AMZN on my watchlist for a while and I’ve been trying to find a decent entry point for some time. So, I had a look at AMZN’s valuation and I saw a P/S ratio of 4.03 and a P/E ratio of 63.7, both of which would usually indicate that a stock is very overvalued. I’m still of the opinion that AMZN might actually still be overvalued, and that we’re still going to have to wait sometime until we see some growth there. The situation with AAPL is quite bad too; P/S is 6.49 and P/E is 28.43. GOOGL, V, MA, MSFT and pretty much any kind of large cap tech stock has ridiculously high valuation figures. So my question is, why do people continue to think that tech stocks are a great buy with these kinds of figures? To me personally, it appears that a lot of the anticipated growth is already heavily priced in, and that growth in the stock itself will take a long time (that is until the company’s intrinsic value catches up with it’s valuation).   submitted by   /u/maximalsimplicity [link]   [comments]
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  30. Why Qingling Motors is a great stock (05/05/2021 - Reddit Stocks)
    The company produces trucks and autos mostly for Isuzu. The interesting part though, is that it produces hydrogen fuel cells, which might blow up in the future. It started a corporation with the german company Bosch. It is dirt cheap valued. It currently trades at 1.83 HKD but if you do a DCF-analysis the intrinisic value is up to 5HKD with conservative growth. It has almost no debt and 40% is held by insiders. The price to book ratio is 0.59 so very cheap. If somehow the stock doesnt go up, you still recieve 7% dividends. This is not financial advise and I am not invested in this.   submitted by   /u/AWILDMADARA [link]   [comments]
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  31. 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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  32. 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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  33. 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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  34. 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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  35. Why do people bash penny stocks? (29/03/2021 - Reddit Stocks)
    As the title states, why do penny stocks get such stick for the very fact that the stock is seemingly cheap? There's a particular stock that I'm looking at that I guess would be considered a penny stock ($MN) and I've seen people on this sub reddit and others use the fact that because a particular stock was or is a penny stock as one if its disadvantages. Do you personally believe it matters if a stock is a penny stock? Does that put you off even if the fundamentals of the company look solid? Thx   submitted by   /u/Dimedogg11 [link]   [comments]
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  36. FB - every time I mention it as a (23/07/2021 - Reddit Stocks)
    stock to buy, when someone is asking which stocks are good investments, I get negged to death. I don’t understand why. Is it just that people despise the brand? Simple dd will show this stock is (was, and has been) cheap comparatively speaking. I could go on and on, but I guess if you don’t like the stock, you don’t like it..   submitted by   /u/CheckYrHead [link]   [comments]
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  37. FTSE 100: 1 cheap UK share to buy now (27/07/2021 - The Motley Fool UK)
    Segro (LSE: SGRO) has seen a 30% increase in share price in the past year. Over the past three years, it has almost doubled. The share price is now at around £12, which is not the most expensive but certainly not among the cheapest FTSE 100 stocks either.  But I still think the warehouse developer is a cheap UK share to buy for my portfolio. And that is because despite the increase in share price, its price relative to its financial performance is moderate. A look at this relative price is important for me as an investor, because it helps me benchmark it against other FTSE 100 shares.  Low relative price for the FTSE 100 stock If its relative price, measured most commonly by the price-to-earnings (P/E) ratio, is lower than the average for FTSE 100 shares, I am tempted to take a closer look at it. This can happen for a number of reasons. For instance, the outlook for the company maybe weak, so investors do not buy the stock. Or maybe, it has more potential than is perceived at present.  I think Segro is one such stock with somewhat unrecognised potential. The real estate investment trust (REIT), which develops and manages warehousing properties, has a P/E of 9.8 times only. Compared to it, a stock like Lloyds Bank, which has underperformed in recent years, has a P/E of 39 times.   Strong long-term prospects And its prospects look good too. The company is an important part of the e-commerce supply chain. And I think online sales are only going to grow over time, by the looks of it. Even though the pivot towards them was sharp during the pandemic, they are still strong after lockdown easing.  I think this can hold the likes of Segro in good stead over time. This will be particularly true in the near future, as the economy is expected to boom. Its first-quarter trading update is encouraging too. It grew its total rental value in the first quarter of the year and is also expanding its portfolio of properties.  In his comment on the update CEO David Sleath pointed to a positive outlook for the company “as well as our ability to drive further sustainable growth in rental income, earnings and dividends over the coming years.”  A cheap UK share to buy There is of course the possibility that the future may not look as good as the past does. Online sales could slow down, the economy may not pick up as expected and the party may be over for e-commerce a few months from now. It is unlikely that there will be a dramatic pullback, but I think we can realistically expect some softening.  I still think, though, that just in P/E terms and given its performance last year, there is potential for its share price to rise further. In fact, for me it is a cheap UK share to buy for the long term. The post FTSE 100: 1 cheap UK share to buy now appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The LGEN share price is falling after a good 2021 start. Is it a top August buy? 1,936% increase in UK credit card fraud over the last 16 years 5 of the best UK shares to buy in August 4 investing tips for beginners Should I buy Diageo shares at its current price? Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended 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.
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  38. Got £750 to invest? Here are my 2 best cheap shares to buy now! (22/03/2021 - The Motley Fool UK)
    I have an odd personality quirk: I prefer not to buy and own things. For instance, I don’t own a house (but my wife does). Also, I’ve never owned a car (but I’ve driven company cars). Most of my treasured possessions are ancient. For example, I keep patching up my 25-year-old walking boots to keep them going. Thus, when I receive any sudden windfalls, I rarely have any immediate use for them. Generally, I give any spare money to my wife to spend or save, or I invest into cheap shares for a passive income. I’ll invest £750 into cheap shares Last weekend, I had a modest windfall when I won $1,000 (over £720) in an online poker game. I decided to round this to £750 to buy cheap shares. As a veteran value investor, I scanned the FTSE 100 index over the past year, looking for laggards. Here are two stocks I like today. Cheap shares #1: GlaxoSmithKline I’ve owned a stake in pharma giant GlaxoSmithKline (LSE: GSK) for almost three decades. As my largest personal shareholding, GSK has been a big disappointment of late. Over the past 12 months, GSK has been among the Footsie’s worst performers. In fact, it’s ranked #96 out of 101 FTSE 100 shares since 19 March 2020 (just before the market bottomed on 23 March). GSK is down almost a tenth (9.7%) over 12 months, versus a 30.2% gain for the index. Nevertheless, as a buyer of cheap shares, I welcome the chance to invest after price falls. At last year’s peak, the GSK share price hit a high of 1,857p on 24 January 2020. On Friday, shares changed hands for 1,299p. That’s a collapse of three-tenths (30%) in 14 months. I know there are worries about GSK’s forthcoming separation into two separate listed companies. And GSK boss Dame Emma Walmsley has hinted that the group will cut its long-established cash dividend of 80p a share. Even so, I think anxiety about GSK’s future might be overdone. Right now, GSK stock trades on a price-to-earnings ratio of 11.4 and an earnings yield of 8.8%. The dividend yield of 6.2% a year is almost double that of the FTSE 100. With GSK looking undervalued on these fundamentals, I’ll keep buying these cheap shares for a juicy passive income. A great business at a 20% discount For the record, 92 of the 101 shares currently in the FTSE 100 index have gained since 19 March 2020. Still, it genuinely surprises me that Unilever (LSE: ULVR) stock is among the stragglers. Shares in the Anglo-Dutch Goliath are down 2.4% over 12 months. At its peak in 2020, the Unilever share price was riding high at 4,944p on 14 October. Today, the shares trade at 3,974p — down 970p in five months. That’s a slide of almost a fifth (19.6%), which indicates to me that Unilever stock may have been dumped in the ‘cheap shares’ bargain bin. Globally, 2.5bn people use Unilever products each day. And because Unilever is a powerhouse in FMCG (fast-moving consumer goods), its stock generally commands a premium rating. But, like Warren Buffett, I don’t mind paying a fair price to buy into a great business. On Friday, ULVR stock traded on a price-to-earnings ratio of 22 and an earnings yield of 4.5%. The current dividend yield of 3.7% is ahead of the wider FTSE 100. Hence, as a value investor, I’d be happy to buy these discounted shares today! 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 UK shares I’d consider buying and holding my whole life Does this FTSE 100 company have potential for big share price growth and income? The GSK share price has been rising. Here’s what I’m doing now Scottish Mortgage Investment Trust: 2 peers paying bigger dividends The Unilever share price slumps, but I’m still buying the stock Cliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline 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 Got £750 to invest? Here are my 2 best cheap shares to buy now! appeared first on The Motley Fool UK.
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  39. An absurdly cheap FTSE 250 stock I’d buy now (08/07/2021 - The Motley Fool UK)
    I cannot think of another phrase for a profitable FTSE 250 stock that has a price-to-earnings (P/E) of around only 5.5 times than ‘absurdly cheap’. The stock I am talking of is the iron ore miner Ferrexpo (LSE: FXPO).  Not only is it cheap, the miner’s share price has actually declined in recent months. After touching all-time highs in May this year, it has tumbled by some 13%. Considering both this trend and its low P/E, the question I now face is which of these two facts should I give more weight to? How do Ferrexpo’s fundamentals look? To answer this, I took a closer look at its fundamentals, which appear quite good.  It released a healthy production update for the second quarter of 2021 yesterday, with a 5% increase in iron pellet production from the quarter before.  Recently, its board also approved of early repayment of its debt facility, which was signed in 2018 and was due to be paid every quarter between 2020 and 2022. Ferrexpo says it has been able to do this because of its performance as well as supportive market conditions.  All of this is in addition to the already strong financials it has shown in the recent past. Both the company’s revenues and its net income have been rising consistently for the past two years. Moreover, if iron ore prices remain strong, I reckon that Ferrexpo can continue to perform well. Supportive macro environment for the FTSE 250 stock  I think Ferrexpo can continue to perform well. The impact of the pandemic has started easing as people get vaccinated, which bodes well for the economy. Industrial metal prices are correlated with the economy, so it follows that they should stay elevated too. Also, governments in the US and in China have given a fillip to commodities with their infrastructure programmes. This too, should keep miners in a strong place.  The flipside here, of course, is that as and when these supportive policies are withdrawn, commodities can slump. In any case, it is a cyclical business, which fluctuates with where we are in the business cycle. So when buying a stock like Ferrexpo, I always run the risk of a crash in price over time.  My takeaway At present, though, I am positive on the stock. I do not think any government will withdraw public spending in a hurry. The economy is expected to bounce back later in the year and into next year. And commodities stocks right now, are a protection against inflation. As long as commodity prices rise, their margins are unlikely to be impacted as much by an overall price rise. This is in stark contrast to say, a fast fashion retailer that competes on price.  So, I think it is only a matter of time before its share price trend reverses and Ferrexpo starts rising again. Until then, I like the idea to buying it on dips.  The post An absurdly cheap FTSE 250 stock I’d buy now appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading ISA investing: 3 UK shares I’d buy today I’d buy these high-ROCE UK shares 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.
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  40. 2 cheap UK shares I’d buy in my ISA (including a FTSE 100 bargain) (07/09/2021 - The Motley Fool UK)
    I’m on the hunt for the best cheap UK shares to buy for my Stocks and Shares ISA. Here are two top British stocks — including one from the FTSE 100 — that I have my eye on today. A cheap UK share on my radar I bought drinks bottler Coca-Cola HBC for my ISA last year. And I’m considering buying Britvic (LSE: BVIC) for my investment portfolio too. Like my FTSE 100 stock, UK beverages share Britvic also makes huge profits on the back of the monster brands it supplies (in this case products such as Pepsi Max, J2O and Robinsons juices). Popular labels like these help deliver strong and sustained long-term earnings growth. And I think they make these stocks top buys despite the rise of significant threats in the immediate future. Rising Covid-19 cases that raise the prospect of new lockdowns pose a threat to the beverages industry. The likes of Britvic also face soaring can production costs as aluminium prices go through the roof. Prices of the metal just hit 10-year peaks as unrest in Guinea exacerbated existing trader concerns over metal supplies. That being said, I think these risks are baked into this cheap UK share’s valuation. City brokers think Britvic’s annual earnings will soar 24% in the upcoming financial year (to September 2022). Thus the company trades on a forward price-to-earnings growth (PEG) ratio of 0.7. A reading below 1 suggests a stock could be undervalued by the market. A FTSE 100 bargain I’m also thinking of popping ad agency WPP (LSE: WPP) into my ISA alongside FTSE 100 counterpart Coca-Cola HBC. Marketing spend across the globe is recovering nicely as the economic recovery continues. And expenditure is particularly strong in the digital advertising arena, an area in which cheap UK share WPP is becoming increasingly focused. According to Statista, total worldwide spending on digital advertising will rise above $455bn in 2021, up from around $378bn last year. And they think it will rise between 10% and 15% each year over the following three years to top $646bn in 2024. Of course WPP could take a hit if rising Covid-19 infections impact the economic rebound. But at the moment things are looking very upbeat for the FTSE 100 share and earlier this month it upgraded its profits forecasts on recent strong trading. City analysts think WPP will flip from losses of 243.2p per share in 2020 to record earnings of 73.5p this year. This leaves the agency trading on a forward price-to-earnings (P/E) ratio of 13 times. It’s a reading I don’t think reflects the possibility of more near-term upgrades. And it’s also one I don’t think fully appreciates the progress WPP is making in expanding its significant global presence and exposure to digital marketing and e-commerce. Last month the firm snapped up AI technology business Satalia to boost its capabilities even further. The post 2 cheap UK shares I’d buy in my ISA (including a FTSE 100 bargain) 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 The best FTSE 100 dividend shares to buy for 2022 I think these 2 FTSE 100 stocks could be among the best shares to buy in September UK shares: how I’d spend £1,000 2 FTSE 100 shares to buy Royston Wild owns shares of Coca-Cola HBC. The Motley Fool UK has recommended Britvic. 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. 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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  42. 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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  43. 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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  44. Question about indexes. (13/05/2021 - Reddit Stocks)
    Hello, To keep things short - is it a good idea to half my investment in the FTSE 100 and buy into an index for the S&P 500 just for stability? I was also thinking of getting into an emerging markets index. ​ Also, what about world index trackers? Would it be better to sell my FTSE/S&P stock and buy all into that to keep the majority of my money in? ​ I've been stock picking a while but I don't have enough time to monitor and work with my account anymore so I figured it'd be better to dump it into an index and focus on school for now.   submitted by   /u/ColtAzayaka [link]   [comments]
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  45. After 30 years, the Nikkei Japan Stock Market is still recovering after their crash, What are the chances it could happen to the US? (23/04/2021 - Reddit Stocks)
    From my understanding, Japan seems like an incredibly growing country, especially during that time, with all the tech, car companies, Nintendo, video games, food, culture, and everything innovative that was coming out of there. Supposedly, the reason the Japan Nikkei stock market crashed in the early 90s was because everything was ridiculously overvalued, at high PE Ratios. Here in the US, we're now the country with lots of innovation, but we also saw multiple stocks rally up several folds last year, several with PE Ratios in the couple 100 to even over 1,000 range, like Tesla, Zoom, SQ, the 1st of which is inside many major index funds. Is there a difference between what we're going through and what Japan went through that time? I'm actually genuinely wondering and asking, and I know with any post related to something more bearish, someone might get sensitive about it, so hopefully someone can openly explain it from the other side, thanks!   submitted by   /u/LifeInAction [link]   [comments]
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  46. 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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  47. 3 FTSE 100 bargains I’d buy now (25/08/2021 - The Motley Fool UK)
    There are several FTSE 100 stocks that stand out to me as being terrifically undervalued. Considering their potential, as well as market-beating dividend yields, I would buy all of them for my portfolio.  Tobacco giant The first company is tobacco group Imperial Brands (LSE: IMB). Due to the ethical considerations surrounding the tobacco business, this stock might not be suitable for all investors.  However, from a financial perspective, I think the FTSE 100 company looks attractive. It is currently trading at a price-to-earnings (P/E) ratio of just six. The stock also offers a prospective dividend yield of nearly 9%.  I am attracted to this business because it is a cash cow. To put it another way, the firm has wide profit margins and throws off lots of cash, which management has been returning to investors. Even though the number of smokers worldwide is declining, I think this trend will continue as the company can offset falling volumes with higher prices.  Still, while I would buy the stock today, I will be keeping a close eye on its sales and profits. If these figures start to slide, it could indicate that high prices are putting off consumers. This could put pressure on the FTSE 100 firm’s dividend.  FTSE 100 asset manager As well as Imperial, I would also buy asset management group M&G (LSE: MNG). At the time of writing, shares in this company support a dividend yield of 8.7%. The stock is trading at a P/E ratio of just under 5.  I think the stock is so cheap because investors do not really understand the enterprise. It is a mix between an asset management and pensions/life insurance business. Management is trying to expand the group’s presence in the UK wealth management market, both organically and through acquisitions.  I think this strategy makes a lot of sense and will help reduce the company’s dependence on the volatile asset management and pensions business. As the strategy starts to yield results, I think the stock’s valuation will increase.  That being said, the UK wealth management market is incredibly competitive. There is no guarantee M&G will be able to take market share in the market, so its spending may be for nothing. This is something I will be keeping an eye on as we advance.  Recovery investment The final stock I would buy for my portfolio of bargain FTSE 100 stocks is the cruise operator Carnival (LSE: CCL).  The company came to a standstill in the pandemic, and it is still losing money. This makes it harder for me to place a value on the business. One metric I can use to evaluate stock is its book value. Carnival is trading at a price-to-book (P/B) value of 1.5 today, which compares to its long-term average of around 2. The gap suggests to me that the company is undervalued at current levels.  This is a high-risk investment. It may take years for the group to recover from the pandemic. Further, it could be years before the company reinstates its dividend. As such, this stock might not be suitable for all investors.  Nevertheless, I would buy shares in this FTSE 100 bargain today as a recovery play, considering its potential.  The post 3 FTSE 100 bargains I’d buy now 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 Would I buy these 2 dirt-cheap UK shares? 3 cheap UK dividend shares to buy The best FTSE 100 dividends for a Stocks & Shares ISA right now Hold my cigarette! 2 UK tobacco shares I’d choose with strong dividend yields I’d buy this FTSE 100 share to try and double my money in 9 years Rupert Hargreaves has no position in any of the shares 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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  48. I’d buy these 5 shares in a stock market crash (14/09/2021 - The Motley Fool UK)
    Whether or not a market crash comes soon, I find it helpful to know what I would do in such an event. Here are five shares I’d consider buying for my portfolio should the market crash. A market crash could put growth shares on sale Selling building products might not be glamorous, but it can be lucrative. There is always some demand, not just for new build projects but also maintenance. Timber merchant Howdens Joinery has a strong branch network, well-established professional relationships, and a history of growth. That is why it often trades expensively. Currently, for example, the price-to-earnings valuation is 39, which I think is steep. But in last March’s market crash, shares fell to less than half their current price. If they tumble again, I would consider buying. One risk is supply problems making it hard to meet customer demand, which could dent profits. I continue to be bullish on S4 Capital. Its interim results yesterday showed continued strong growth. The digital ad group upgraded — for the third time — its like-for-like gross profit growth target for the full year. That now stands at 40%. With its acquisition firepower and deal appetite, the company should also benefit from bolt-on growth. The shares are increasingly priced like a tech group rather than a marketing network. If a stock market crash leads to a tech sell off, I think that could spill over to hit the S4 Capital share price. Indeed, one risk I see with the company is that its heavy dependence on tech sector clients means that any belt tightening by tech firms could damage revenues. But if S4 gets marked down in a market crash, I’d be happy to add to my position. UK dividend stocks I’d buy in a crash Insurer and financial services company Legal & General is now 78% higher than its low last March. Despite that, it still yields 6.3%. If I had been able to get into the name at its low point, I’d currently be earning a double-digit yield. A market crash often accompanies broader financial turmoil – or fears of it. So I wouldn’t be surprised to see the Legal & General share price marked down in the next stock market crash. I would see that as a buying opportunity for my portfolio. There are risks here – a recession could force customers to cut back on some discretionary financial services spending, hurting revenues. Another high yielder I like is British American Tobacco. The owner of Lucky Strikes dipped during last year’s market crash, and is only 3% higher today than it was then. With a 7.9% yield, I consider the tobacco company to be attractive at today’s share price. Tobacco stocks are often seen as defensive, so they don’t necessarily move downwards in a market crash. But if BAT does lose altitude in a correction, I’ll continue to be a buyer. Buying the market in a crash In a market crash it can sometimes be hard to spot winners and losers immediately. So I’d also consider buying a FTSE 100 index tracker such as Vanguard FTSE 100 Index Unit Trust. That would offer me exposure to a broad basket of blue chip shares. But one risk is that a market crash could be a harbinger of further falls, which would negatively impact the FTSE 100 price. The post I’d buy these 5 shares in a stock market crash 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 After crashing nearly 40%, this FTSE 100 share could be a steal 2 UK shares I’ll buy if stock markets crash! This bull market could prevent a stock market crash The ITV share price is falling. Should I buy now? A ridiculously cheap FTSE 250 stock to buy now Christopher Ruane owns shares in British American Tobacco and S4 Capital. The Motley Fool UK has recommended British American Tobacco and Howden Joinery 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.
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  49. 4 cheap FTSE 100 and FTSE 250 shares to buy in August (31/07/2021 - The Motley Fool UK)
    Could these FTSE 100 and FTSE 250 be too cheap to miss? A FTSE 100 bargain Self-storage giant Safestore Holdings is a dirt-cheap UK share high on my shopping list right now. City analysts think annual earnings will rise by around a third in this fiscal year, leaving the FTSE 250 firm trading on a forward price-to-earnings growth (PEG) multiple of just 0.9. It’s true that competition in Safestore’s market is growing sharply as its rivals rapidly expand. However, the rate at which the self-storage industry is growing convinces me that this British stock could still deliver meaty shareholder profits. Mordor Intelligence thinks the global market will be worth $64.7bn by 2026, up from $48bn last year. Digging for victory I think that Rio Tinto could be one of the best cheap stocks to buy in August too. Today, the FTSE 100 mining stock trades on a forward price-to-earnings (P/E) ratio of below six times. It’s a reading I don’t think reflects the bright earnings outlook for this major copper miner. I expect demand for the bellwether metal to soar as the economic recovery kicks in and investment in green technology soars. And in the near-term, labour problems at Codelco and BHP’s operations in Chile could give copper prices an extra shot in the arm. I’d buy Rio Tinto at current prices despite the uncertain outlook for iron ore prices, caused by a raft of new capacity entering the market. Parcels power I also think the cheap Royal Mail share price makes this FTSE 100 stock worthy of serious attention. Britain’s oldest courier changes hands on a forward PEG ratio of 0.4. A lot of UK share investors don’t fancy the company because it faces immense competition in the parcels market from the likes of DPD and Hermes to name just a couple. But I think Royal Mail still has plenty to offer as it invests to improve its operations on this front, and e-commerce should keep growing strongly. As the Footsie firm commented last week: “We are starting to see evidence that the domestic parcel market is re-basing to a higher level than pre-pandemic.” Another top FTSE 250 share Not even the closure of its stores during the pandemic could derail Watches of Switzerland Group over the past year or so. This is remarkable given that buyers of luxury items prefer to browse and see their items in the flesh instead of spending online. Revenues at the business soared 12% in the 12 months to April as its online channel picked up the baton. It’s true that Watches of Switzerland could take a sales hit if severe supply chain issues develop. Still, I reckon there’s a lot to get excited about here, from the resilience of its markets in tough times and its expansion into the US, to the terrific brand power of the pieces it sells like Omega, Rolex and TAG Heuer. Today this FTSE 250 share trades on a forward PEG ratio of just 0.9. The post 4 cheap FTSE 100 and FTSE 250 shares to buy in August 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 Is the current Deliveroo share price an opportunity? How I’d invest to earn £1k a month in passive income Why the IAG share price can fly now Economic growth set to be faster than expected in UK Where will the Royal Mail share price go in August? Royston Wild 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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