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21 June 2021
21:11 hour

1 FTSE 100 and 1 FTSE 250 stock I’d buy today

The Motley Fool UK

10/06/2021 - 18:53

Both the FTSE 100 and FTSE 250 companies reported results today. But their share prices reacted differently. The post 1 FTSE 100 and 1 FTSE 250 stock I’d buy today appeared first on The Motley Fool UK.


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  1. London Markets: FTSE 100 tops 7,000 for the first time in over a year after upbeat Chinese data (16/04/2021 - Market Watch)
    The FTSE 100 hasn't tapped the 7,000 mark since February 2020.
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  2. 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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  3. London Markets: FTSE 100 headed for best weekly return since January (09/04/2021 - Market Watch)
    The FTSE 100 has outperformed its European rivals this week, thanks to the pound. Among stocks, Babcock International shares slid, while PageGroup surged on.
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  4. London Markets: FTSE 100 nears pre-pandemic high, while data show strongest U.K. growth in almost a year (11/06/2021 - Market Watch)
    Resource stocks were driving the FTSE 100 to gains on Friday, lifting the index back toward levels not seen since before the COVID-19 pandemic.
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  5. London Markets: Pound boosted by better-than-expected U.K. growth data, but FTSE 100 is pressured (31/03/2021 - Market Watch)
    The FTSE 100 is set to underperform other European rivals on the quarter. Stocks were pressured as the pound gained and major oil companies fell.
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  6. London Markets: FTSE 100 wraps up a week of underperformance as home builders and miners struggle (12/03/2021 - Market Watch)
    The FTSE 100 managed to stick to the flat line on Friday, but was set to return just 1.6% for the week, against a gain of 3% for the Stoxx Europe 600 and a 2.5% gain for the S&P 500.
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  7. 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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  8. Why I’d buy FTSE 250 stocks now (13/05/2021 - The Motley Fool UK)
    Broad stock market weakness today is evident in the FTSE 250 index too. But I am not worried. Rather, I think it might be a buying opportunity.  Here is why. Why stock markets are weak The latest weakness is at least in part caused by recent data about the US economy. The jobs report last week was weak and the latest inflation numbers have gone through the roof.  As any investor knows, when the US sneezes, the world catches a cold. And this time is no different. After the US markets closed weak yesterday, FTSE opened weak today.  And not just because of a bearish mood. Many FTSE 100 companies are globalised. This means that high US inflation has an actual impact on both their costs in the US and in the country as a market.  Why the FTSE 250 index is in a sweet spot On the other hand, the FTSE 250 index adds in a lot of UK-focussed companies. While inflation in the US is an indicator of potential future trends in the UK’s inflation too, so far that number is relatively contained.  To put it another way, inflation is less of a concern for the UK right now. As a side note, I do not think we should rule out the possibility that it could become a big risk going forward.  But coming back to the main point, the prospects for the UK economy are looking great too. The Bank of England recently forecast that it will grow at 7.2% in 2021, the fastest rate since the Second World War.  The combination of controlled inflation and high growth is golden in my view. It remains to be seen if the UK will be able to sustain it, but for now I am hopeful. FTSE 250 stocks I’d buy Also, in this scenario, the pool of investable stocks can increase as there is growth across sectors. But there are some FTSE 250 stocks that could be in a particularly favourable position, even considering the likelihood of high inflation down the line. One of them is the wealth manager Brewin Dolphin, which is up today despite the FTSE 250 weakness. This is explained by its robust half-year results. For the six months ending 31 March 2021, its pre-tax profits are up a huge 44% compared to the corresponding half year in 2020.  Barring explosive wage growth in the UK, I think it is likely to be largely insulated from any inflationary pressures. Also, household savings in the country have risen sharply in the lockdown, which bodes well. With growth prospects strong, I reckon personal investments will rise too, keeping wealth managers in demand.  Another option is self-storage facilities provider Safestore Holdings, which too is up today after its trading update. The company, which operates in the UK and continental Europe, showed a robust rise in revenue. It also has a strong pipeline of new facilities. It also has a positive outlook. I am on the lookout for more companies like these 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 5 questions to ask before taking flexible pension payments 3 ways I’d invest £1k today The Beyond Meat share price is crashing this week. Should I buy it now? What is Dogecoin? One FTSE 100 reopening stock I’m avoiding 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 Why I’d buy FTSE 250 stocks now appeared first on The Motley Fool UK.
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  9. Would I buy these rising FTSE 100 and FTSE 250 penny stocks today? (12/04/2021 - The Motley Fool UK)
    The FTSE 100 and FTSE 250 indexes, which includes some of the biggest British and international companies, do not have too many penny stocks. Penny stocks are those with a share price of less than £1. But there are some.  Until recently there were three in the FTSE 100 index alone, but Rolls-Royce breached that level in February. And energy provider Centrica (LSE: CNA) rolled out of the FTSE 100 index to become part of the FTSE 250 in mid-2020.  Which leaves Lloyds Bank as the only penny stock among the FTSE 100 constituents.  Here I explore both Centrica and Lloyds Bank in greater detail.  Why penny stocks are attractive In principle, they are attractive because I can own a piece of these large companies at dirt-cheap prices. However, I am interested in knowing if the share price can continue to rise fast before deciding whether they meet the cut as an investment in my portfolio. If they cannot, I am better off investing in far fewer shares of a fast growing FTSE 100 stock than many more in penny stocks that are going nowhere.  And that is the key question I am looking to answer – can their share price continue to grow? If not, then they are best avoided.  Centrica makes big gains First, let us look at Centrica. The FTSE 250 energy provider’s share price has almost doubled in the past year. In today’s trading alone, its share price is up 2.6% as I write, making it one of the biggest index gainers today.  Centrica’s recent full-year results are far from the worst we have seen this year. Its operating profits are down by 31% in 2020 from the year before. But it still earned a decent £447m in absolute numbers. Its net debt too, is down by 13%, which is a notable figure at a time when many companies have racked up huge debts.  The company is in the process of restructuring, however, which will take its time to complete. It is also uncertain about the next year, and refrains from guidance.  While there is merit to the stock, I am just not sure if there is much more steam left in it for now. It is on my radar, but I am not buying it now.  Better times ahead for the Lloyds Bank share price Lloyds Bank has not seen the kind of share price increase that Centrica has. But it too has had good going so far in 2021. As I write, the Lloyds Bank share price is up 1.6% in today’s trading.  The bank’s business is closely linked to the economy, which is widely expected to come back with a bang this year. Its dividend can rise further too. But there are risks too, which among other things, include a share price that has run-up a fair bit already.  I am more positive on Lloyds Bank than Centrica with respect to share price rise potential, but I am watching both for now, not buying them.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The Centrica share price is up 20% this year. Should I buy more? 1 penny stock buy I’d pick for my Stocks and Shares ISA Are these the best FTSE 250 shares to buy before the ISA deadline? 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. The post Would I buy these rising FTSE 100 and FTSE 250 penny stocks today? appeared first on The Motley Fool UK.
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  10. 2 FTSE 100 investments for a Stocks and Shares ISA (07/05/2021 - The Motley Fool UK)
    The FTSE 100 has recently reached a post-pandemic high. However, despite this performance, I think it can head even higher. This is because many businesses in the lead index continue to look cheap compared to their potential.  With that in mind, here are two index champions I’d buy for my Stocks and Shares ISA today to capitalise on this trend.  FTSE 100 investments The first company I’d buy for my FTSE 100 ISA portfolio is Anglo American (LSE: AAL).  I believe this mining conglomerate is perfectly positioned to ride the global economic recovery over the next few years. According to the company’s latest trading update, production from its copper and iron ore mines increased 9% and 1% respectively for the third quarter of its financial year.  This is notable because the prices of both of these commodities have recently reached multi-year highs. Higher production and higher prices suggest Anglo could be on track to report a bumper trading performance this year.  Of course, the most considerable risk of investing in any commodity business is that prices can fall as fast as they rise. So, while the company might be profiting from rising prices today, that might not last. As such, there’s no guarantee Anglo will report bumper profits this year.  Still, I think this FTSE 100 blue-chip could be one of the best ways to invest in the global economic recovery, due to its exposure to crucial resources.  Stocks and Shares ISA buy  The second FTSE 100 stock I’d buy for my ISA right now is Informa (LSE: INF).  This company’s been hit hard by the pandemic. The business, which runs events including the China Beauty Expo and the Monaco Yacht Show, had to pull out all the stops last year when most large events were cancelled.  The largest exhibition group in the world has tried to shift events online, but this hasn’t stopped the bleeding. The FTSE 100 company swung to a £1.1bn pre-tax loss in 2020, compared to a profit of £318m the previous year. Most might shy away from investing in such a business at this time, but I’m optimistic. Management thinks the company will report sales of £1.7bn this year. Based on that projection, City analysts believe the group will earn a net income of £309m.  This is the baseline projection, and if the world’s post-coronavirus recovery accelerates, Informa could surpass this figure. I think it will. That’s why I’d buy the FTSE 100 stock today for my Stocks and Shares ISA.  Of course, there’s also a chance the company will have to revisit these figures if the pandemic drags on. In that case, I think earnings and sales would therefore disappoint, and the stock could fall in value. As such, Informa may not be suitable for all investors but, with a favourable tailwind, I think it could be a great FTSE 100 recovery play.  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 Anglo American shares: should I buy as copper prices rise? Should I buy Anglo American shares? Is this one of the FTSE 100’s best shares to buy in 2021? Will the Anglo American share price keep rising in 2021? These 2 FTSE 100 stocks have doubled in a year! I’d still buy them Rupert Hargreaves 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 2 FTSE 100 investments for a Stocks and Shares ISA appeared first on The Motley Fool UK.
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  11. Why is the FTSE 100 is rising? (12/05/2021 - The Motley Fool UK)
    In mid-April 2021, the FTSE 100 breached the 7,000-point mark for the first time since before the pandemic. Most recently, on Friday 7 May, the index surged to a 15-month high of over 7,100 points. But what exactly is behind the FTSE 100’s recent surge? We have the answers. [top_pitch] What has happened to the FTSE 100 in the last 12 months? Stock markets around the world went into steep decline in the first part of 2020. The FTSE 100 tracks the performance of the 100 biggest companies listed on the London Stock Exchange. It started the year at 7,542 points. The index plunged to below 5,000 points in mid-March as the scale of the Coronavirus pandemic became clear and fears about its impact on the global economy grew. The FTSE 100 made a recovery alongside the economy later in the year after the intervention of the government and the Bank of England. However, the FTSE 100 still managed to clock its worst year on record since the 2008 financial crisis. The FTSE’s total losses in 2020 came to 14.3%. This made it the worst performer among the world’s largest stock indexes. In 2021, though, things are looking up. The index has been rising steadily in the last couple of months. What is causing the FTSE 100 to rise? Various factors have contributed to the FTSE 100’s rise to more than 7,100 points. The biggest factor appears to be greater optimism about the UK’s economic recovery. Over the last few weeks, several financial institutions and economists have expressed that the UK economy is set for its biggest boom since the post-war period. This is on the back of a hugely successful rollout of the Covid-19 vaccine and the anticipated reopening of the country. Indeed, growing optimism about the recovery of the UK economy has prompted British businesses to increase hiring and offer higher pay to new employees, according to Reuters. The impact of a positive economic outlook is an increase in investor confidence. This, in turn, is driving the FTSE 100 higher. As investors become more confident about the prospects of the economy, they are increasingly willing to put their money into riskier assets like stocks and shares. This includes the stocks and shares of FTSE 100 companies, which investors expect to profit from in 2021 as pent-up demand is unleashed into the market once the country reopens fully. [middle_pitch] How high could the FTSE 100 go? That is the big question. The FTSE 100’s all-time high is 7,903.50. It achieved this feat in 2018. We have already seen other stock indexes from around the world, including the S&P 500 and the Nasdaq Composite, recover their pandemic losses to reach new highs in the last few weeks. Could the FTSE also hit a new all-time high in 2021? We’ll have to wait and see on that one. The UK’s economy is not expected to recover to pre-pandemic levels until at least the second quarter of 2022. But if the current recovery trend is sustained, and if there are no major setbacks in regards to the fight against the pandemic, there is no reason why the FTSE 100 should not continue to rise. This is certainly good news for investors. “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 FTSE 100 stocks I’d buy as the UK economy powers ahead The Glencore share price is up 10% already this week. What’s going on? The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! Should I buy Airbnb shares now? 3 UK shares to buy today The post Why is the FTSE 100 is rising? appeared first on The Motley Fool UK.
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  12. 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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  13. FTSE 100: I think these are the best shares to buy today with £5k (01/03/2021 - The Motley Fool UK)
    I think there are currently lots of great investments in the FTSE 100. The blue-chip index contains the UK’s largest listed corporations and I believe these companies could benefit from rising sales and profits if the economy recovers over the next few months. With that in mind, I think these are the best FTSE 100 shares to buy today with an investment of £5,000.  Best shares to buy today  While the outlook for the economy has improved markedly over the past few months, it’s still highly uncertain. As such, I want to own shares in companies that have either performed well throughout the pandemic or those which may be insulated from further uncertainty. Unfortunately, just because a company has performed well over the past 12 months doesn’t mean it will continue to do so. However, by focusing on these FTSE 100 businesses, I reckon I can swing the odds of success in my favour, rather than trying to guess which organisations may succeed going forward.  Therefore, I believe one of the best shares to buy today is Bunzl (LSE: BNZL).  Despite the unprecedented challenges this company has faced over the past 12 months, it reported a robust trading update for the year ended 31 December 2020. Revenue increased by 9.4% at constant exchange rates. Adjusted earnings per share jumped nearly 27% of the back of this growth. Bunzl benefitted from what management called “larger Covid-19 related orders” in 2020. But it doesn’t expect these orders to be repeated in 2021.  However, Bunzl’s increase in profitability has provided the company with more capital to reinvest in growth. This is why I believe the corporation is one of the best shares to buy today. Last year, the group invested £445m in acquisitions. It has already announced a handful of deals this year as well.  So, while the company is unlikely to see a repeat of 2020’s performance, I think it’s well-positioned to grow in the years ahead.  That said, the FTSE 100 company isn’t without its risks. Acquiring businesses can be challenging, especially when it comes to integration. A poor strategy can lead to subpar returns for investors and impact worker relations. Bunzl has also historically relied on debt to boost its firepower for deals. Therefore, a significant increase in interest rates could have a substantial negative impact on the business.  Despite these risks and challenges, I’d buy the stock for my portfolio today.  FTSE 100 utility  The other FTSE 100 company that features in my basket of the best shares to buy now is utility provider Pennon Group (LSE: PNN).  The water business operates in an incredibly defensive industry. As such, no matter what happens to the UK economy over the next few years, I think Pennon could produce predictable returns for investors.  Unfortunately, the corporation isn’t without its risks. The water industry is highly regulated, and regulators limit the profit companies like Pennon can generate. This could constrict the firm’s growth in the long term. The business also has a lot of borrowing. So, rising interest rates could also become a headache.  I think it’s worth taking these challenges into account when considering the business. But I’m comfortable with the risks Pennon faces. That’s why I’d buy the FTSE 100 stock 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 2 FTSE 100 shares I’d buy now and hold for 10 years Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Pennon Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post FTSE 100: I think these are the best shares to buy today with £5k appeared first on The Motley Fool UK.
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  14. 2 FTSE 100 shares to buy right now (10/03/2021 - The Motley Fool UK)
    Considering the improving outlook for the economy, I’ve been searching for FTSE 100 shares to buy right now. I believe a couple of companies have recently fallen on hard times but could generate outstanding returns for investors in the long run.  FTSE 100 bargain The first company I’d buy for my portfolio of blue-chip stocks today is AstraZeneca (LSE: AZN). Since the middle of last year, shares in this pharmaceutical giant have declined in value by around 23%, excluding dividends.  I think this is a great opportunity to take advantage. After these declines, shares in the FTSE 100 business are changing hands at just 15 times 2020 projected earnings. That’s compared to the pharmaceutical sector average of around 18.  Having said that, these are only projections at this stage. There’s no guarantee the company will manage to hit the earnings forecasts analysts have currently laid out. Indeed, analysts expect the group’s net income to increase to 200% over the next two years. While Astra will benefit from the booming demand for its coronavirus jab, this projected growth seems a tad optimistic. There’s also the risk that income could decline as the pandemic recedes and the need for the jab falls.  Still, there’s more to this FTSE 100 group that its coronavirus vaccine. It is a leader in the development and production of oncology treatments, and several of these are expected to yield significant profits for the organisation in the next few years.  This potential, coupled with the group’s discounted valuation, leads me to conclude this is one of the best shares to buy now. That’s why I’d buy the stock for my portfolio today.  Best shares to buy right now Late last week, shares in the London Stock Exchange (LSE: LSEG) plunged after the company warned that rising costs would hit its bottom line in the next few years. But while other investors have been selling, I think this could be an excellent opportunity to snap up shares in this exchange operator at a discounted valuation. Right now, the stock is changing hands at a forward price-to-earnings (P/E) multiple of 27, compared to its long-term average of around 30.  The London Stock Exchange has a huge competitive advantage over most financial services firms in the UK. It operates the at plumb end of the stock market. That means market participants almost have no choice but to use its services.  This has led to growing profitability over the past five years. Net income at the FTSE 100 firm has expanded at a compound annual rate of 5% over the period. As we advance, I think the group should be able to build on its existing position in the financial markets to drive growth. That said, it does face some significant risks. These include antitrust investigations, increased regulations, and rising costs. And just because the London Stock Exchange is the largest market operator today doesn’t mean it will continue to be so indefinitely. Competitors are emerging, and these could eat away at its market share over the long term.  Looking past these risks, I’d buy this stock for my portfolio as I believe it’s one of the best shares to buy right 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 Hit, hold or fold? Unilever, GlaxoSmithKline, AstraZeneca shares The London Stock Exchange share price slides, is this stock a good investment? AstraZeneca share price: back to sub-£70 levels. Should I buy now? FTSE 100 today: 2 stocks I’d buy on the latest stock market news 2 UK growth stocks that would have doubled my money if I’d invested 2 years ago Rupert Hargreaves 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 2 FTSE 100 shares to buy right now appeared first on The Motley Fool UK.
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  15. London Markets: Blowout U.K. retail sales data lift pound and keep a lid on FTSE 100 (21/05/2021 - Market Watch)
    A strong bounce in U.K. retail sales data has pushed the pound higher. But that has been less positive for the FTSE 100.
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  16. Two FTSE 100 dividend stocks I’d buy in March (04/03/2021 - The Motley Fool UK)
    FTSE 100 dividend stocks play a key role in my investment portfolio. Not only do they provide me with regular passive income, but they also provide my portfolio with a degree of stability. Here, I’m going to highlight two FTSE 100 dividend stocks I’d be happy to buy for my portfolio today. Both stocks are reliable dividend payers and currently offer attractive yields. A top FTSE 100 dividend stock One FTSE 100 dividend stock that strikes as a buy right now is Unilever (LSE: ULVR). It’s a leading consumer goods company that owns a wide range of well-known brands such as Dove, Persil, and Ben & Jerry’s. Analysts expect a dividend payout of €1.70 per share for FY2021 here. That equates to a yield of a very healthy 3.8% at the current share price.  There are a number of things I like about Unilever from a dividend investing perspective. Firstly, the company is relatively recession-proof. This is illustrated by the fact that last year, earnings only fell 2.4%. Companies that are recession-proof tend to be reliable dividend payers. Secondly, it has an outstanding dividend track record – it has compounded its dividends by around 8% per year since the early 1950s. Of course, Unilever is not perfect. One concern I have is that growth has slowed recently. Over the last three years, sales have declined. If growth does not pick up soon, the dividend payout could be reduced. The stock could also be at risk from the shift into more cyclical ‘reopening’ stocks we are seeing right now. Overall however, I think this FTSE 100 dividend stock looks attractive at present. I think Unilever’s forward-looking P/E ratio of 17.5 is quite reasonable given the company’s track record. A 4.9% dividend yield Another FTSE 100 dividend stock I’d snap up today is BAE Systems (LSE: BA). It’s a leading defence, aerospace, and security company. Analysts expect a dividend payout of 24.7p per share for FY21. That equates to a very attractive yield of 4.9% at the current share price. BAE Systems, like Unilever, is quite a ‘defensive’ stock. Because the company’s revenues are largely government-backed, it doesn’t tend to suffer from sudden sharp earnings contractions. Last year, the company held up pretty well, bar some supply-chain difficulties in the first half of the year. Overall, earnings per share were up 2% for the year, which is an impressive performance, all things considered. BAE is another company with a solid dividend track record. It’s worth noting that it did postpone its final dividend for 2019 last year due to Covid-19 uncertainty. However, it recently announced that it would pay this dividend (13.8p per share) in the near future, along with a final dividend of 14.3p for 2020. Before last year’s dividend postponement, the company had registered 15 consecutive dividend increases. One risk here is that US defence budgets could be cut. This could impact BAE’s revenues and earnings. Debt has also increased significantly recently after the group made two key acquisitions last year. However, with the stock currently trading on a rock-bottom P/E ratio of just 10, I feel that these risks are priced-in. I’d buy this FTSE 100 dividend stock 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 FTSE 100 watch: 2 UK shares I’d buy before the ISA deadline A UK dividend stock I’d buy today for passive income Why I’d ignore the Lloyds share price and buy this UK share from the FTSE 100 The FTSE 100 index: the best shares to buy now Was I wrong about these quality stocks or is this a buying opportunity? Edward Sheldon owns shares in Unilever and Diageo. The Motley Fool UK has recommended 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 Two FTSE 100 dividend stocks I’d buy in March appeared first on The Motley Fool UK.
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  17. I’d avoid the BT share price and buy this FTSE 100 stock instead (14/03/2021 - The Motley Fool UK)
    In my opinion, the BT (LSE: BT-A) share price could be one of the most attractive investments in the FTSE 100 today. That’s if the company gets everything right over the next few years. I think there’s a 50/50 chance of this happening. BT share price headwinds  Historically, the company has been a pretty poor investment because the business has underinvested in its operations. Rather than deploying money to improve its telecommunications network across the UK, the organisation has spent billions of pounds on its pay-TV business, dividing the organisation. By taking on larger competitors such as Sky and Amazon, BT has had to split its resources. This has allowed its competitors in the telecoms sector to take market share. Therefore, rather than being really good at one thing, BT has become average at two. That’s not produced the best outcome for investors. Over the past five years, shares in the company have fallen nearly 70%, excluding dividends.  However, BT now seems to have realised its past mistakes. The company has been investing in its network over the past two years, and investors seem to be noticing. The BT share price has increased in value by nearly a third over the past 12 months.  If the company can continue on this track, I think the FTSE 100 stock could be a good investment. But that’s far from guaranteed. BT has an unrivalled telecoms network across the UK, which is a substantial competitive advantage. It’s also a household name. I think this gives the firm an edge over its competitors. By doubling down on these advantages, BT could have a bright future. Nevertheless, I wouldn’t buy the stock today because I want to see more business progress first.  Therefore, I have been considering adding Burberry (LSE: BRBY) to my portfolio instead. FTSE 100 growth  Unlike BT which, in my opinion, has been trying to do too much, Burberry knows what it does best, and the business has not deviated from its strengths. By looking at the profitability of these two businesses, we can see how the different approaches have worked. Between 2015 and 2019, BT’s profit fell 22%. Burberry’s profit, on the other hand, increased by 1%.  Granted, that doesn’t make Burberry the world’s fastest-growing business. It faces many of its own challenges. Fashion is a viciously competitive industry, and Burberry has paid the price by not staying on the top (although this is now starting to change). The group is also subject to economic conditions. Over the past year, its sales and profits have plunged as most of its stores have been forced to close.  Still, compared to the BT share price, I think Burberry has a much brighter long-term outlook. By concentrating on what it does best, I think the FTSE 100 business can build on its existing strengths and ride the economic recovery over the next few years. 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 BT share price today This FTSE 100 share price is flying! Should I buy it for my ISA? 2 high-performing UK shares I’d buy now The BT share price is rising fast. Here is what I would do now FTSE 100 bargains: the best stocks to buy right now Rupert Hargreaves owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Burberry and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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 avoid the BT share price and buy this FTSE 100 stock instead appeared first on The Motley Fool UK.
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  18. FTSE 100 investing: 2 bargain buys I’d consider today (25/02/2021 - The Motley Fool UK)
    A slew of FTSE 100 companies have released their results today, but investors are not impressed with all of them. Curiously enough, this is despite their posting decent results or their long-term prospects. I think this makes it a good time to consider buying these shares at a bargain. Here are two of them.  #1. Hikma Pharmaceuticals: defensives drop The FTSE 100 drug manufacturer Hikma Pharmaceuticals (LSE:HIK) turned in a broadly robust set of numbers for 2020 today.  Its revenue is up 6% and operating profit has risen by 17%. It has also increased its dividend amount by 15%. Its earnings per share are down, but I would be more worried if this was reflected in the dividends, which it is not. Hikma is also optimistic in its outlook for 2021. Yet, its share price is down almost 6% as I write. I reckon this is for two reasons. One, defensives are out of favour. AstraZeneca, for example, is down 25% from the highs seen in July last year. Hikma too, has witnessed a broad share price softening since the market rally started.  Two, in my observation it sometimes takes a day or two before the results’ impact shows up on the share price. I think that might be the case with Hikma, though other explanations are possible too. For instance, its operating profit is below analysts’ forecasts. We will know more soon.  In the meantime, I think it is a good stock to buy. Actually, going by its financials, any time is a good time to buy it, but more so now when its share price is down. There is, of course, the risk that defensives will remain out of favour as stock markets stay elevated. That would mean that its share price could continue to remain weak.  But I see little chance of that happening.  Hikma shares have a price-to-earnings (P/E) ratio of around 10 times right now. As other stocks start looking expensive, I reckon investors will circle back around to the likes of bargain buys like HIK. #2. Mondi: FTSE 100 long-term play The FTSE 100 packaging and paper provider Mondi (LSE: MNDI) released its results too, resulting in a small share price drop. Both its revenues and profits have been impacted in 2020, but I think of Mondi as a long-term play. Its fortunes are tied to the online sales market, which is really the way we will shop in the future. Digital sales have boomed in 2020, acclerating the process. This has positively impacted companies from e-grocers like Ocado to warehousers like Segro. MNDI is no different, which could otherwise have suffered far more in a lockdown.  I think over time it will benefit even more. Investors clearly think so too, going by the fact that its share price recently touched multi-year highs. Moreover, its P/E is still at 11 times right now, indicating that it is a bargain buy compared to many other peers. I think it will start rising again.  The risk I see here is that MNDI is that it may take a while to get its financial act back together. Till then its share price could really languish.  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 Should I buy these two FTSE 100 UK shares on merger rumours? UK stock investing: the best FTSE 100 growth share to buy now 3 UK shares I’d buy right now in my ISA Manika Premsingh owns shares of AstraZeneca and Ocado Group. The Motley Fool UK has recommended Hikma Pharmaceuticals. 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 investing: 2 bargain buys I’d consider today appeared first on The Motley Fool UK.
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  19. UK shares to buy now: my top 2 FTSE 100 stocks (09/05/2021 - The Motley Fool UK)
    Recent data continues to support the conclusion that the UK economic recovery is gaining pace. As such, I’ve been looking for UK shares to buy now for my portfolio that may profit from this recovery. Here are my two favourite FTSE 100 companies I’d buy for this purpose today. UK shares to buy now The first on my list is Segro (LSE: SGRO). The pandemic has given a shot in the arm to the e-commerce sector. And as companies’ online sales have increased, managers have rushed to find warehouse capacity to meet demand.  As one of the largest publicly-listed real estate investment trusts focusing on warehouses, I’d buy Segro to play this theme. I think its latest trading update shows the strength of the market. It saw £18m of new headline rent signed during the first quarter, up from £14.3m a year earlier. On top of this, the company has £87m of potential new headline rent from 1.3m sqm of space under construction.  I think these numbers show just how much potential the company has over the next few months and years. However, the enterprise may face some challenges along the way. It could end up over expanding, which would saddle the business with large debts and unfilled properties. The rush to develop new facilities by competitors may also impact demand for the group’s warehouses.  Despite these risks and challenges, I’d buy this FTSE 100 stock today for its income and growth potential. As the online retail market continues to expand, I think this is one of the best UK shares to buy now.  FTSE 100 stock Sticking with companies I believe will benefit from the changes that have come about due to the pandemic, I’d also buy Avast (LSE: AVST) for my portfolio.  I think this FTSE 100 cybersecurity company is one of the best UK shares to buy now because cybersecurity is one of the world’s fastest-growing sectors. Throughout the pandemic, technology has become an invaluable lifeline for many. Unfortunately, scammers have rushed to take advantage of this. Avast helps consumers protect their systems, which helped drive revenues higher by 10% year-on-year in the first quarter.  As technology plays an ever-increasing role in the world, I expect this to continue. This is the primary reason why I believe Avast is one of the best UK shares to buy now.  That’s not to say the company won’t face risks as we advance. Reputation is everything in the cybersecurity market. If Avast suffers a cyberattack, or customers start to lose confidence in the group’s software, sales could quickly go into reverse. The firm also needs to maintain research and development spending to stay ahead of attackers.  Even after taking these risks and challenges into account, I’d buy the FTSE 100 stock for my portfolio today, considering its growth potential.  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 If I could only buy one tech share, this would be it Why I’d forget the Deliveroo share price and buy these FTSE 100 shares instead Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Avast Plc. 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 UK shares to buy now: my top 2 FTSE 100 stocks appeared first on The Motley Fool UK.
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  20. FTSE 100: these 5 shares are falling fast. Which would I buy today? (03/03/2021 - The Motley Fool UK)
    So far in 2021, the UK FTSE 100 index has actually beaten the US S&P 500 index. As I write, the Footsie trades around 6,646, up 185 points (2.9%) in 2021. The S&P 500 is up around 90 points in 2021, only 2.4% ahead. Given the huge outperformance of the S&P over the Footsie for the past decade, perhaps the tide is turning in favour of UK shares? The FTSE 100’s biggest fallers over one month Of course, not all FTSE 100 shares have risen in 2021. As well as some big gainers, there have been some huge howlers. For example, take these five sliding stocks, the worst performers in the Footsie over one month: FTSE 100 member 1W 1M 3M 6M Unilever (Consumer staples) -2.8% –10.1% -13.3% -15.6% SSE (Energy) -3.3% –10.2% -2.5% 8.3% GlaxoSmithKline (Pharma) -0.5% –10.9% -13.3% -17.8% Just Eat Takeaway.com (Food delivery) -1.7% –17.4% -13.9% -15.0% Ocado Group (Grocery tech) -6.5% –21.4% -0.1% -8.0% Which stocks wouldn’t I buy today? As you can see, the FTSE 100’s worst performer over the past month is online grocer Ocado. Its shares have crashed more than a fifth (21.4%) in a month. Then again, Ocado stock is up 95% over one year, 303.2% over three years, and 770.1% over five years. This makes it the FTSE 100’s best performer over five years, so it’s hardly surprising its shares are taking a breather after such magnificent gains. The second-worst FTSE 100 stock over the past month is Just Eat Takeaway (JET). This food-delivery firm is known for its Just Eat UK brand. Although JET shares have dived by more than a sixth (17.4%), they are up 1.9% over the past 12 months. JET is a fast-growing company, booming in the pandemic and popular with growth investors. But it keeps making large losses as it scales up. Hence, as a value investor, JET is not for me. I’d buy these two value shares Third on my list of laggards is global pharma giant GlaxoSmithKline (GSK). The GSK share price has declined by more than a tenth (10.9%) over one month. It’s also been one of the FTSE 100’s worst performers over six and 12 months. GSK is the largest individual holding in my family portfolio, so its recent weakness — down a quarter (25%) in a year — has cost us plenty. At the current share price of 1,206p, GSK has a price-to-earnings ratio of 10.6 and an earnings yield of 9.5%. At over 6.6%, GSK’s yearly dividend yield is more than double that of the wider Footsie. These fundamentals look cheap to me, so I will keep buying more GSK stock. Second, I also like the look of consumer-goods colossus Unilever, which sells more than 400 brands worldwide. Every day, more than 2.5bn people use Unilever products. That’s almost a third of the global population. Yet the Unilever share price is down a tenth (10.1%) over a month and almost a sixth (15.6%) over six months. At the current share price of 3,805p, Unilever trades on a price-to-earnings ratio of 20.8% and an earnings yield of 4.8%. The dividend yield of 3.9% is useful and, as an income-hungry investor, I’d welcome it in my family portfolio. Hence, Unilever is the second stock I’d buy from these five FTSE 100 fallers. In summary, as a FTSE 100 value investor and income-seeker, I’m not put off by falling share prices. However, what works for me might not work for you. Thus, please take great care when selecting your shares! 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 Investing in renewables: 5 UK shares I expect to rally in 2021 What is a ‘stonk’ tip? How I’d invest £1,000 in UK shares right now 5 UK shares I’d buy after Budget 2021 2 shares to buy today for my Stocks and Shares ISA Cliffdarcy owns shares in GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline, Just Eat Takeaway.com N.V., 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 FTSE 100: these 5 shares are falling fast. Which would I buy today? appeared first on The Motley Fool UK.
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  21. Best shares to buy now: 2 FTSE 100 stocks I’m buying (30/05/2021 - The Motley Fool UK)
    I think some of the best shares to buy now are located in the FTSE 100. And I’m putting my money where my mouth is. Over the past few weeks, I have been buying three blue-chip stocks, which now form the foundations of my portfolio.  Best shares to buy now The first company on my list is Reckitt (LSE: RKT). This enterprise has reported strong sales growth during the pandemic. During the first quarter, revenue rose 4.1% on a like-for-like basis. A strong performance in the group’s hygiene division, which accounts for around 80% of revenue, helped drive overall sales higher. What’s more, thanks to increased investment in e-commerce over the past year, online sales were 24% higher. As a result, online sales now account for 13% of overall revenues.  Going forward, the company is planning to invest £2bn in research development to discover new products. I think that investment should help drive sales growth for years to come. The company is also looking for buyers for its underperforming Chinese infant child nutrition business, which has been a consistent underperformer. Based on these growth and restructuring initiatives, I have been buying the stock for my portfolio today.  One critical risk hanging over the stock is debt. At 2.4 times underlying cash profits, debt is a bit on the high side, I feel. A sudden increase in interest rates or increase in costs could impact debt affordability. This may cause problems across the company. Another risk is the possibility that the Chinese infant nutrition business does not find any buyers. That could leave the company with this struggling division.  Despite these risks and challenges, I think this FTSE 100 consumer goods business is one of the best shares to buy now. That’s why I have been adding it to my portfolio recently.  FTSE 100 growth Another stock I have been buying his FTSE 100 insurance group Admiral (LSE: ADM).  This is not the largest insurance company in the country, but it is the most efficient. It has been able to leverage technology and its understanding of customers to improve customer service and efficiency.  According to its employees, the business is also one of the best places to work in the UK.  As well as this accolade, the company is also incredibly well managed. It has recently been diversifying away from the mature UK insurance market. The group is expanding into loans and the car insurance market overseas.  Overall, I think this is one of the best shares to buy now, considering its potential. Admiral has conquered the UK insurance market. It’s now focusing its efforts overseas.  Of course, it’s unlikely to be plain sailing for the group as it tries to conquer new markets. For example, many UK businesses have struggled to enter America. Admiral may be no different. This could be the most considerable risk the company faces today. An overzealous expansion programme could lump the group with significant liabilities and costs, holding back growth.  Even after taking this risk into account, I have recently bought more of the FTSE 100 stock for my portfolio. I continue to believe this is one of the best shares to buy now, considering its growth potential.  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 shares I’d buy for large and growing dividends Will the Admiral share price reach £35? 3 of the best FTSE 100 stocks to buy today The FTSE 100 is falling: three 7% dividend yield shares I’d buy now 3 of the best cheap UK stocks to buy in an ISA! Rupert Hargreaves owns shares in Admiral Group and Reckitt. The Motley Fool UK has recommended Admiral Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Best shares to buy now: 2 FTSE 100 stocks I’m buying appeared first on The Motley Fool UK.
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  22. These are the 5 top FTSE 100 shares over 5 years. I like 3 today (12/06/2021 - The Motley Fool UK)
    The FTSE 100, the UK’s main stock market index, has ridden a rocky road over the past five years. In mid-June 2016, prior to the UK’s Brexit referendum, the blue-chip index hovered around 6,000 points. In both January and May 2018, it surged above 7,775 points, hitting an all-time closing high of 7,877.45 on 22 May 2018. So far, so good. The FTSE 100 crashes 35% The index then drifted up and down until 17 January 2020, when it closed at nearly 7,675 points. But then catastrophe arrived as the Covid-19 virus spread. As global infections rose, the Footsie crashed spectacularly, plunging to close at 4,993.89 on ‘Meltdown Monday’ (23 March 2020). The index lost over 2,680 points in two months, collapsing more than a third (34.9%). However, in the subsequent 16 months, the index recovered much of its losses and currently trades around 7,139.55 points. That’s a capital gain of almost a fifth (18.6%) over the past half-decade. These are the Footsie’s top five shares since 2016 As an index, the FTSE 100 tells you nothing about the performance of its individual constituents. As you’d expect, some Footsie shares have done extremely well, whereas others have performed terribly since mid-2016. For the record, these five shares are the top performers in the FTSE 100 over the five years to today: Ticker Company 1W 1M 3M 6M 1Y 2Y 3Y 5Y OCDO Ocado Group 3.9 -1.5 -10.0 -12.0 -8.7 63.0 90.0 634.9 AHT Ashtead Group -2.6 7.1 20.6 55.0 102.1 159.9 113.4 416.9 EVR Evraz -3.4 -8.7 8.4 38.2 105.3 -4.0 24.8 372.1 SMT Scottish Mortgage Investment Trust 1.6 13.1 5.1 8.9 64.5 135.4 132.5 371.2 AAL Anglo American -3.2 -8.7 3.7 23.9 65.9 54.2 67.6 365.4 As you can see, the #1 performer in the FTSE 100 over the past five years is online supermarket Ocado. Its shares have skyrocketed by nearly 635%, turning £1,000 into £7,349 since mid-2016. That is a fantastic return, easily eclipsing the 18.6% rise in the wider index. But it’s possible that Ocado stock has gone too far too fast and is now over-cooked. Hence, I’m not a fan of this superstar growth stock today, so I don’t own this share. Four five-star FTSE 100 stocks The second-best performer is Ashtead Group, which rents out industrial equipment and has had a cracking five years. Its share price is up over seven of the eight time periods shown, only to dip 2.6% this week. This consistent winner releases its latest quarterly results next Tuesday, 15 June. I’d like to see these before forming an opinion on the merits of this five-star FTSE 100 share. I don’t own this stock today. The third winner is Evraz, a FTSE 100 steelmaker and miner mainly operating in Russia, Ukraine, and North America. Its biggest shareholder is Roman Abramovich, owner of Premier League football team Chelsea. I like the look of this £9.1bn firm, not least for its 5.7% dividend yield, but have not yet pressed the buy button so far. Number four is SMT, a FTSE 100 investment trust with heavy exposure to US and Chinese tech stocks. I regard SMT as a bubble stock built on bubble stocks. Its shares have fallen from a peak of 1,415p four months ago to 1,241p today. As a value investor seeking high dividends, SMT just isn’t for me. Finally, in fifth place is Anglo American, which mines platinum, copper, nickel, iron ore, coal, and diamonds. Even though this stock is up 78% in the past 12 months, I have high hopes for global miners in any sustained post-Covid-19 boom. Hence, though I’d don’t own AAL, I would be a buyer at the current share price of 3,151p. The post These are the 5 top FTSE 100 shares over 5 years. I like 3 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 3 UK shares to buy 3 top high-yield British stocks Should I buy Lloyds shares? 3 winning FTSE 100 shares to buy today The UK economy is growing fast. I’d buy these 3 FTSE 100 stocks now Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Ocado 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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  23. The FTSE 100 index: the best shares to buy now (28/02/2021 - The Motley Fool UK)
    The FTSE 100 index is made up of the UK’s top blue-chip companies. I think some of the best shares to buy now can also be found in this flagship market.  With that in mind, here are a section of FTSE 100 stocks that I would buy for my portfolio right now.  Best shares to buy now Whenever I look for possible investments, I like to consider their past performance and future potential. While past performance should never be used as a guide to future potential, I think looking at a company’s past performance can tell us something about its strengths, weaknesses, opportunities and threats.  One FTSE 100 index company that has an outstanding growth record is Admiral. One of the country’s largest car insurers, this business has been relentlessly focused on customer service since its founding. I think this has helped the organisation capture a significant share of the UK car insurance market. And as long as this focus on customer service continues, I reckon the business will continue to attract customers.  Unfortunately, that won’t guarantee success. Insurance can be an unpredictable business. A large storm or pandemic can and has uprooted the financial plans of many insurance companies. Admiral will always face these threats. Nevertheless, I’m comfortable with the risk of investing here. That’s why I would buy the stock for my portfolio today.  FTSE 100 index income  I would also buy M&G. This wealth management group has struggled to attract investor attention over the past year. I think that could be an opportunity. The company’s brand is recognised the world over, which is a strong competitive advantage. It has also shown a willingness to return large amounts of cash to investors when times are good. Analysts believe the group could return as much as 17.4p per share in dividends this year. That suggests a dividend yield of nearly 9% on the current share price. This distribution is far from guaranteed, however, as it is only a prediction. The company faces plenty of risks to its growth as well. Challenges such as increasing costs and regulatory demands may hurt profit. That would limit M&G’s ability to meet these dividend targets.  Defence contractor BAE Systems is another corporation in the FTSE 100 index I’d add to my portfolio today. I think this defence contractor offers certainty in uncertain times. The company signs multi-year defence contracts with countries around the world. These contracts guarantee a revenue stream for years and, as they are backed by countries, it’s unlikely the buyer will become bankrupt. That said, this business isn’t without its risk. Some investors may not want to be part of the defence industry. BAE is also at risk from potential lawsuits because it operates in quite a legally sensitive sector. There are also limits on who it can and can’t sell products to, which could hit growth in the long term. The company has managed to navigate these challenges in the past, but that does not mean that it will continue to do so as we advance.  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 stocks: is Admiral Group a dividend stock I’d buy? My 2 favourite FTSE 100 stocks right now £2k to invest? I’d buy these 2 cheap FTSE 100 stocks ahead of the recovery My 3 favourite dividend shares right now FTSE 100: 2 cheap shares I’d add to my Stocks and Shares ISA today Rupert Hargreaves owns shares in Admiral Group. The Motley Fool UK has recommended Admiral Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The FTSE 100 index: the best shares to buy now appeared first on The Motley Fool UK.
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  24. Looking to do my First Investment, thinking of a Global Index Fund - do any not have monthly minimums? (15/04/2021 - Reddit Stocks)
    So I’m gonna start by saying i am a newbie when it comes to investing, I’m looking for something on the safe side that I can make investments in when I have a few hundred to spare every so often, looking for something long term. I’m starting university in September so when I looked at Vanguards FTSE Global All Cap Index Fund, the 500 starting ‘deposit’ is fine but the 100 monthly minimum worries me a little, what would happen if I wasn’t able to make the 100 minimum one month? Are they any alternatives to look at? I’m U.K. based if that helps. I’m not 100% set on the vanguard FTSE fund but from the reseach I’ve done it seems that investing in a global fund would be safer than s&p500 or FTSE 100, any advice or help would be appreciated! I’m going to be getting about £4k soon so I’m looking to invest a good chunk of that. What would I be looking at in 10 years or so if the market follows the current/previous trends? Many thanks!   submitted by   /u/kitaisaradish [link]   [comments]
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  25. Why this FTSE 100 stock is my contrarian pick (27/05/2021 - The Motley Fool UK)
    As large companies with mostly stable demand, FTSE 100 utilities are unlikely to qualify as contrarian stocks. But when I looked at water and wastewater services provider United Utilities (LSE: UU), it looked very much like a contrarian investment.  Here is why.  Underwhelming share price, weak results United Utilities’ share price increase over the past year is an underwhelming 13.7%. Considering that the stock markets were just coming out of a once-a-decade crash, most stocks’ prices were particularly low. And in line with that, their gains by now look significant. Not for United Utilities, however.  Additionally, its share price today, too, is slightly down after its results. For the year ending 31 March 2021, its revenue is down almost 2.8% and reported operating profit is down by 4.4%. Underlying operating profit is even more affected, down by 21%.  This is perplexing at best and disappointing at worst. To me it looked strange that a utility saw such a decline, even considering the lockdown and subsequent reduction in business demand.  There is an explanation The answer is there in the fine print. The United Utilities revenue declined not because of a fall in demand, but because of the start of a new pricing cycle. Every five years, the water regulator Ofwat sets new prices for consumers.  Because of the implementation of the new cycle from 2020 onwards, customer bills have reduced by 5.5%. This is reflected in the revenues. The fall in earnings is also explained by this as well as by increased capital spending, which is not a bad thing at all, in my view.  In the past years, United Utilities has consistently shown increased revenue, so I am not concerned because of a blip in one year. Its profits have been less consistent, but it has consistently been profitable.  It is probably this performance that explains why the stock market crash did not impact its share price for long either. While it did drop sharply in the stock market meltdown, it was already back to pre-crash levels as early as June last year. After some fluctuations for the rest of the year, it was recently back above 1,000p. These levels were last seen in February last year.    More reasons to like the FTSE 100 stock I also like that its valuation is reasonable. According to my estimates, its price-to-earnings ratio is around 18 times, lower than that of many other FTSE 100 shares.  There is more. It has a dividend yield of 4.2%, which is pretty decent according to me. It is also a good reason to buy a stock with a competitive earnings ratio, which has the potential to rise more.  There are other FTSE 100 utilities with higher dividend yields around as well, but I would consider this seeming contrarian pick too.  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 FTSE 100 dividend stocks to buy 3 UK income shares I’d buy 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 Why this FTSE 100 stock is my contrarian pick appeared first on The Motley Fool UK.
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  26. 3 FTSE 100 stocks I’d buy with £3,000 (13/06/2021 - The Motley Fool UK)
    I think there are some great bargains in the FTSE 100 right now. And with that in mind, here are three blue-chip stocks I’d buy with £3k today. FTSE 100 stocks to buy The first company on my list is mining giant Glencore (LSE: GLEN). In my opinion, this is one of the best corporations to own in the economic recovery. As well as having a significant global mining operation, the company’s also the world’s largest commodity trader. This gives it a considerable advantage because it can produce and sell commodities directly to clients. With the demand for essential commodities such as copper already outstripping supply, I reckon Glencore may see rapidly rising earnings as we advance. That’s why I’d buy this FTSE 100 company. The primary risk facing the business today is that the economic recovery doesn’t live up to expectations. This could send commodity prices plunging, which would be bad news for the group and its prospects. Market leader I like to buy FTSE 100 companies with substantial competitive advantages. These can come in many different forms. For example, Royal Mail‘s (LSE: RMG) advantage is size. The company’s been under pressure in recent years as smaller competitors have been able to pick and choose their markets in the UK. Meanwhile, Royal Mail must provide a postal service to the whole country. This weakness became a strength last year. The company’s profits boomed, and so did its share price. Thanks to this rally, the stock has recently been promoted to the FTSE 100. I think there’s a good chance Royal Mail’s growth will continue. That’s why I’d buy this stock today. By reinvesting pandemic profits back into the business to improve efficiency and profit margins, I think the enterprise may be able to steal a march on competitors. That said, there’s no guarantee the company’s growth will continue. Competitors also saw demand for their services expand in the pandemic. So they could be looking to expand operations as well. This could hold back growth at Royal Mail. Market expansion The final FTSE 100 share I’d buy with an investment of £3,000 today is homebuilder Taylor Wimpey (LSE: TW). UK housebuilders can’t build properties fast enough. Demand is far outstripping supply, and it looks as if this will last for many years. Property prices are increasing rapidly as a result. This is the perfect environment for Taylor. Demand is running red hot, and prices are also rising. As a result, the company is upping its output to meet higher demand. I think this could translate into rapidly increased profits and dividends. Unfortunately, the group is also having to deal with higher costs. Rising prices are offsetting these higher costs, but if prices start to cool, the group’s profit margins could come under pressure. In addition, a jump in interest rates may also deflate the property market. That’s another significant risk facing the business. Despite these risks and challenges, I’d buy the stock for my portfolio today. The post 3 FTSE 100 stocks I’d buy with £3,000 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 Why is the Royal Mail share price climbing? Where will the Taylor Wimpey share price go in June? Can the Royal Mail share price keep on delivering? The Royal Mail share price leapt 15% in May. Can RMG keep going? 2 cheap FTSE 100 shares to buy in June Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  27. Why I’d drip-feed £500 a month into cheap FTSE 250 shares in an ISA starting today (18/02/2021 - The Motley Fool UK)
    Buying FTSE 250 shares could prove to be a profitable long-term strategy. The index continues to trade lower than it did a year ago. This suggests there may be opportunities to buy undervalued shares in high-quality businesses. Furthermore, the index’s larger weighting towards the UK compared to the FTSE 100 could provide it with scope for a strong recovery. The vaccine rollout may prompt a return to improved operating conditions for many UK-focused businesses. That makes a regular investment in domestic businesses relatively profitable in the coming years. Buying FTSE 250 shares today FTSE 250 shares could offer good value for money because the index trades lower than it did prior to the 2020 stock market crash. In fact, it’s currently around 5% down on its price from a year ago. Some stocks within the index are trading at significantly larger discounts to their prices 12 months ago. This could mean that FTSE 250 stocks offer good value for money at the present time. Looking ahead, the UK economy is widely anticipated to return to strong growth over the long run. It declined by nearly 10% in 2020, and the 2021 lockdown is likely to weigh on its performance in the first part of the year. But its prospects as the coronavirus pandemic wanes could become increasingly positive. Since the FTSE 250 relies on the UK for around half of its income, versus less than a third for the FTSE 100, it could be a sound means of benefitting from a likely UK economic recovery. The track record of the stock market Buying FTSE 250 shares has been a relatively profitable move in the past. Clearly, this is no guarantee of future returns. The past is never repeated perfectly in future. However, the index has returned around 9% per annum on a total return basis over the last 20 years. This suggests that buying shares in mid-cap companies on a regular basis could prove to be a sound move over the long run. Even if an investor matches the stock market’s performance over a similar timeframe, they could turn a realistic monthly investment into a surprisingly large sum. This could make a positive impact on their financial situation over the long run. For example, investing £500 per month at an annual return of 9% would produce a portfolio valued at around £335,000 over a 20-year time period. As such, with many FTSE 250 shares trading at low prices versus their historic averages at the present time, now could be an opportune moment to start buying them. As ever, there’s no guarantee of any positive future returns from any company. However, with a solid track record of growth, low valuations and a likely recovery for the UK economy ahead, mid-cap shares could well offer impressive total returns in the coming years. 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 of the best UK and US shares I’d buy in an ISA today and hold for 10 years As the Unilever share price continues to fall, I’m still buying the stock Why I’d buy dividend shares now to capitalise on a stock market recovery The RDSB share price is down 29% over the last 12 months. Here’s what I’d do Why sterling is rising, and what it means for you 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’d drip-feed £500 a month into cheap FTSE 250 shares in an ISA starting today appeared first on The Motley Fool UK.
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  28. Why the FTSE 100 index is crashing today (11/05/2021 - The Motley Fool UK)
    The FTSE 100 is having a bad day today. As I write this, shortly after lunch, the index is down about 2.7%. That’s a significant fall. Many Footsie stocks are down much more than this.  Here, I’m going to look at why the FTSE 100 index is down today. I’ll also explain what I think will happen next and what I’m going to do now. Why is the FTSE 100 down today? The main reason the FTSE 100 is down today is that investors are concerned about inflation (rising prices of goods and services). Since the beginning of the Covid-19 pandemic, the world’s central banks have pumped unprecedented amounts of money into the global financial system. In the US, for example, President Joe Biden recently passed a $1.9trn stimulus package. With all this money sloshing around the system, inflation is now rising. With inflation rising, the US Federal Reserve (the Fed) – the most influential central bank in the world – is likely to increase interest rates at some stage in the not-too-distant future to slow things down. This is spooking stock market investors. That’s because when interest rates rise, company profits can take a hit (interest payments on debt are higher) pushing share prices down. Higher interest rates also make stocks less attractive relative to other assets such as cash savings products. Interest rate uncertainty I suspect that the main reason the FTSE 100 and other stock indexes are taking such a hit right now is actually the uncertainty over the timing of a rise in interest rates. Realistically, a small increase in interest rates would not be a bad thing. Right now, interest rates are at emergency-level lows. If rates were to rise, it would show that the global economy is back on track. That would almost certainly be a good thing. I think the reason stocks are falling is that the Fed is refusing to provide any guidance as to when it will lift interest rates or taper its stimulus. Investors hate this kind of uncertainty. If the Fed came out and said that it is going to lift interest rates tomorrow, I suspect stocks might continue rising. What I’m doing now As for the moves I am going to make now, I’m going to do what I always do when stocks are volatile. I’m going to a) stay calm and b) look for attractive buying opportunities. Staying calm is the most important thing to do when stocks are falling. If you panic, you can make irrational decisions that you regret later on. In terms of buying opportunities, right now I am seeing quite a few in the FTSE 100. Some stocks that look attractive to me at present include property website group Rightmove, athletic footwear retailer JD Sports Fashion, financial services group London Stock Exchange, consumer goods powerhouse Reckitt, and medical device specialist Smith & Nephew. All of these Footsie stocks could fall further in the short term, of course. However, in the long run, I believe they will be good investments for my 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 Best stocks to buy now – could this FTSE reopening stock boost my portfolio? Stock market crash: 3 of the best UK shares I’d buy for my ISA today The UK’s top cities for new businesses and entrepreneurs Why I’m buying this absurdly cheap FTSE 250 stock this month What I’d do about these 2 high-performing penny stocks now Edward Sheldon owns shares in Rightmove, JD Sports Fashion, London Stock Exchange, Reckitt, and Smith & Nephew. The Motley Fool UK has recommended Rightmove and Smith & Nephew. 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 the FTSE 100 index is crashing today appeared first on The Motley Fool UK.
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  29. I’d avoid the Barclays share price and buy this FTSE 250 growth stock (12/03/2021 - The Motley Fool UK)
    At first glance, I think the Barclays (LSE: BARC) share price looks cheap. It’s currently trading at a discount of more than 50% to its book value. This implies the business could be worth more if it was broken up and sold piece by piece. Of course, this is unlikely to happen, at least in the near term. As such, using book value to work out how much the bank could be worth is a bit misleading.  The business behind the Barclays share price  A better way to understand how much the business could be worth is to look at its profitability. Here, Barclays is struggling. The group has two main income streams, lending to customers and its investment bank. To a certain extent, the profitability of the lending business is determined by central bank policymakers, who set the country’s interest rates. Higher rates could mean larger profit margins for the lender. Low rates usually translate into lower margins.  Unfortunately, that’s just what’s happened over the past decade. Interest rates are currently at record low levels, and it doesn’t look as if they’re going up any time soon. I think this will impact Barclays’ profitability for years to come. While the group’s investment banking business has picked up some of the slack, this might not last.  Of course, this is only my assessment of the situation. There’s a chance interest rates could jump in the next few years. That would help widen the bank’s profit margins, leading to improved investor sentiment towards the Barclays share price. The group may also see a better-than-expected period of profits from its investment bank. This may also help improve investor sentiment. However, there’s a lot of uncertainty here. That’s why I’m going to avoid Barclays for the time being.  FTSE 250 growth stock Instead of throwing my weight behind the Barclays share price, I’d buy FTSE 250 growth stock IG Group (LSE: IGG) instead.  I think this company has two key advantages over Barclays. For a start, its main business is providing stock trading services for customers. While this is a highly competitive business, the critical difference between IG and Barclays is the former can set its own costs and charges. It’s not reliant on central banks to set interest rates. In my opinion, this means the group has more control over its future. Thanks to these advantages, the FTSE 250 growth stock already trades at a higher valuation than the Barclays share price. It’s trading at three times book value. As I mentioned above, this figure can be a bit misleading when used for valuations, but as a rough guide to gauge investor sentiment, the difference is revealing.  That’s not to say IG doesn’t face any risks of its own. It does. A few years ago, group profits plunged when regulators introduced new rules to cap the selling of leveraged derivates to clients. Additional regulatory constraints could emerge at any point. A sudden bout of market volatility, leading to large client losses, may also weigh heavily on the FTSE 250 organisation. Despite these risks, I think IG is a better investment than the Barclays share price. That’s why I’d buy the FTSE 250 growth business 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 How I’d invest £1,000 in a Stocks and Shares ISA today My best Stocks and Shares ISA investments for 2021 and beyond Top British stocks for March 2021 FTSE 100 banking stocks are reinstating dividends. Are they a wise investment? Stock market recovery: 3 UK shares to buy today Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. 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 avoid the Barclays share price and buy this FTSE 250 growth stock appeared first on The Motley Fool UK.
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  30. 3 FTSE 100 stocks I’d buy in my ISA (19/05/2021 - The Motley Fool UK)
    Here are three FTSE 100 shares I’m thinking of buying for my Stocks and Shares ISA today. Digital love I think that WPP’s (LSE: WPP) steps in the post-Martin Sorrell era to embrace digital media should pay off handsomely. Not only is this section of the advertising market booming, I believe this FTSE 100 share has the scale and the expertise to make the most of this vast opportunity. Magna Intelligence reckons ad spending on digital formats in the US will soar 13% in 2021 to $161bn. This means that digital will account for two-thirds of all advertising expenditure for the first time. I like WPP’s drive to improve its clout in this area through shrewd acquisitions like that of DTI in February. But remember that a thirst for M&A action is a risky business and can cause profits to miss targets if acquisitions don’t perform as expected. A top FTSE 100 cyclical stock I’m also thinking of adding building products supplier CRH (LSE: CRH) to my Stocks and Shares ISA today. Prices of this FTSE 100 firm just hit fresh all-time highs. And it’s not a secret as to why. It can expect demand for its products to boom as the US infrastructure stimulus programme cranks into gear. Conditions in some of its other markets (like housing) remain strong too and should improve as the public health emergency steadily recedes. Indeed, a shortage of building products in some of its key markets has allowed the company to continue to make pricing progress in recent months. Like-for-like sales moved 3% higher between January and March. CRH is an ultra-cyclical stock and demand for its wares could suddenly dive if the coronavirus crisis flares up again. Still, I think it is of the best value stocks to buy right now. The FTSE 100 firm changes hands on a forward price-to-earnings (PEG) ratio of 0.2. A reading below 1 suggests that a share could be undervalued. Another great ISA buy? I already own Coca-Cola HBC (LSE: CCH) shares in my investment portfolio. And I’m tempted to buy some more following last week’s upbeat trading statement. The beverages bottler said that like-for-like sales had improved 6.1% between January and March. Even as Covid-19 lockdowns continued to pressure its out-of-home channel, the unrivalled popularity of the Coca-Cola brand and other labels like Fanta and Schweppes, and the efforts it has made to boost ‘at home’ sales continued to pay off handsomely. I’m also encouraged by the FTSE 100 firm’s success in growth areas like energy drinks (volumes of these beverage rose by double-digits in the first quarter). I think Coca-Cola HBC is a great way to make delicious shareholder returns without drama. But I’m aware that the business operates in an ultra-competitive industry, which could have a significant impact on revenues and profit margins. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 2 top FTSE 100 ethical stocks Should I buy these FTSE 100 shares in my ISA in May? 3 reasons why this FTSE 100 stock is one of my top picks for 2021 The Coca-Cola HBC (LSE:CCH) share price steadily rises. Should I invest? Royston Wild owns shares of Coca-Cola HBC. 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 FTSE 100 stocks I’d buy in my ISA appeared first on The Motley Fool UK.
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  31. 1 FTSE 100 and 1 FTSE 250 stock I’d buy now (06/05/2021 - The Motley Fool UK)
    The UK property market boom continues. This is evident in the performance of real estate companies and two of them released trading updates today.  The first is FTSE 100 housebuilder Barratt Developments (LSE: BDEV). The second is FTSE 250 real estate investment trust Derwent London (LSE: DLN). Both stocks have run-up in today’s trading. While Barratt Developments is up by almost 2%, making it among the biggest FTSE 100 gainers, Derwent London is up by almost 1%.  Barratt Developments posts strong sales numbers Barratt Developments reported 4.7% higher forward sales volumes than at the same time last year. The number was even higher at 9.8% in terms of value.  I think this bodes well for the company, which had already shown a robust half-year performance. For the first half of its financial year, ending December 31, the company reported a 10% revenue increase and even a 1.7% increase in pre-tax profits compared to the year before.  With its share price still below pre-market crash levels of March last year, I think it could continue to rise further. Derwent london reports pre-tax profits Derwent London also posted a robust update today. Some 93% of its rents have been collected for March, some of the strongest levels since the start of the pandemic. And also positive, vacancy rates are at a low 2.3%. And it has reduced its net debt to £905m, while it has a strong liquidity position as well. This would be good news at all times, but at present, it’s even more so and these are prudent moves that can hold Derwent London in good stead. And it’s especially important as the company fell into losses last year, which gives it less wriggle room if a slowdown happened again. Policies drive real estate market A slowdown could still happen, of course, and it could hurt both companies. But I think that for now, the odds are in favour of property stocks. Just today, the Bank of England has said that the UK is set for its strongest growth since the Second World War. This should keep property markets buoyant.  Like Barratt Developments, Derwent London is yet to reach the share price highs of early 2020. But given the latest update and overall optimism, I think it could happen soon.  With the good though, comes the bad. In this case, for both firms, it would be the withdrawal of the stamp duty waiver and interest rates being likely to rise eventually. Supportive policies have played a big role in holding up real estate markets, so I reckon that some impact would be felt on the stocks as the situation changes.  My takeaway I think it’s quite likely that any impact would be short-term in nature, however. Despite the withdrawal of supportive policies, there could be a natural demand rise as the economy takes off. I feel that the property market may well have managed to stave off a slowdown that accompanies a weak economy. With that in mind, I’m bullish on both stocks at their current prices.   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 Should I buy these FTSE 100 shares in my ISA in May? Should I buy these 2 UK reopening shares for my Stocks and Shares ISA? 3 FTSE 100 stocks I’d buy with £3k 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 1 FTSE 100 and 1 FTSE 250 stock I’d buy now appeared first on The Motley Fool UK.
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  32. 5 FTSE 250 shares to buy today (09/05/2021 - The Motley Fool UK)
    As the UK economy rebuilds after the coronavirus crisis, I’ve been looking for FTSE 250 stocks to add to my portfolio. Here are five companies I’d buy right now.  FTSE 250 shares to buy The first stock on my list is drinks business Britvic. This company owns some of the most recognisable drinks brands in the UK. Therefore, I think its profits should return to growth as the UK economy reopens and consumer confidence improves. The one major challenge the group could face as we advance is higher costs. These may hurt its growth in the next few months, and possibly years. However, it should be able to raise prices to offset higher costs. As such, I would buy the company for my portfolio of FTSE 250 stocks. Another recovery play I would buy in the FTSE 250 is Cineworld. When cinemas are eventually allowed to reopen at full capacity, this company should experience a recovery in profits and sales. That said, this stock might not be suitable for all investors. The company has built up a tremendous amount of debt throughout the crisis, and it could be some time before profits return to 2019 levels. Nonetheless, I’d buy the stock for its recovery potential. I’d also buy shares in FTSE 250 airline easyJet for the same reason. The company is a high-risk, high-reward investment. It could be years before the airline returns to 2019 levels of profitability. During that time, there’s no telling what could happen to the business. Still, as a recovery play, I think easyJet’s well-known brand and reputation for low-cost, no-frills air travel will work in its favour. These are the primary reasons why I’d buy the stock for my portfolio today.  Growth investments  Domino’s Pizza is one company that seems to have prospered in the pandemic. Despite the economic lockdowns, the group’s underlying profit before tax rose to £101m last year, up from £99m in 2019. I’ve always been impressed by its business model, which has helped the firm expand revenues by 40% in the past five years. Past performance should never be used as a guide to future potential, but I think the group can maintain its growth trajectory. That’s why I’d buy the company for my portfolio of FTSE 250 stocks. However, Domino’s is facing more and more competition, making it harder for the business to grow. I think that’s the main challenge facing the company today.  The final company I’d buy is Morgan Sindall. I think this construction business should benefit from increased economic activity in the UK, as well as the government’s massive infrastructure spending plans. The main challenge it faces is the potential for higher costs, which could hit profit margins. Construction is also a low-margin business, so any slowdown in sales could have a big effect on the group’s bottom line. However, despite these risks, I think the company is one of the best FTSE 250 stocks to play the UK economic recovery. 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 How to get a loan from a bank Here’s why I think the BP share price can keep climbing UK shares to buy now: my top 2 FTSE 100 stocks 5 things to know about the Government Gateway Aston Martin shares fall 18% in 3 months. Should I buy now? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Britvic and Dominos Pizza. 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 5 FTSE 250 shares to buy today appeared first on The Motley Fool UK.
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  33. Stock market crash! Here’s what I’d do if the FTSE 100 falls 20% (21/06/2021 - The Motley Fool UK)
    Analysts are warning of a stock market crash (again). The FTSE 100 fell 100 points on Friday, and that brought out the doom mongers. Inflation is the main worry this time. As price growth hits 5% in the US, and 2.1% in the UK, many investors fear central bankers will be forced to reign in stimulus to stop the economy from overheating. That means higher borrowing cost, and less hot money flooding into assets such as shares. There’s a big debate over whether the inflation resurgence is temporary, or built to last. But right now, the answer is nobody knows. Even if it’s the former, investor nervousness could still trigger a stock market crash. So what would I do? Any investor who buys shares has to accept that the FTSE 100 could crash 20% at any time. That’s what stock markets do. They go up, mostly, but they crash pretty often too. Most people will remember the dotcom crash of 2000, the financial crisis crash of 2008 and last year’s Covid crash. There have been plenty more along the way, now largely forgotten.  Yes, the FTSE 100 could fall This volatility is the price equity investors pay for the superior long-term returns they generate from stocks and shares shares. Volatility isn’t a bad thing. Arguably, it’s a good thing.  I’ve trained myself to view a stock market crash as a great opportunity to buy shares at a reduced price. I don’t find it easy, buying when everybody is selling. I’m at the mercy of the herd instinct, just like everybody else. Yet I steel myself to take the opportunity when it arises. If the FTSE 100 does crash 20%, I’d aim to buy more of my favourite UK shares, at temporarily reduced prices. I’m not scared of a stock market crash I can take this ‘risk’ because I plan to keep my portfolio invested for the rest of my life. To retirement, and beyond. So any money I invest this year could be in the market for a further 30 years. That should give it plenty of time to climb in value. Another advantage of a stock market crash is that I invest a regular monthly sum into a pension. If share prices fall, I get more stock for my money. I also reinvest all my dividends. They pick up more stock, when share prices are down. When markets recover, I will own more shares than if they hadn’t crashed at all. Naturally, a stock market crash can be traumatic. Nobody likes to see the value of their savings plunge. Like everybody else, I’d feel better if the stock market shot up 20% instead. Not all shares are guaranteed to recover and any recovery might take some time. But history shows that, in the longer run, stock markets recover from a crash. It should happen next time too. And the next… The post Stock market crash! Here’s what I’d do if the FTSE 100 falls 20% 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 Vodafone vs BT share price rated Three FTSE 100 dividend shares for extra passive income in 2021 Here’s why I think the Vodafone share price is undervalued Is the Vodafone share price a bargain? 2 FTSE 100 stocks to consider buying this bank holiday weekend 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.
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  34. Is the FTSE 100 worth investing in? Here’s how I’d start answering the question. (17/06/2021 - The Motley Fool UK)
    The FTSE 100 is a market capitalisation weighted index of the UK’s largest 100 (ish) companies. To determine whether or not the FTSE 100 index is worth investing in, I might look at its average return. The FTSE 100 return reported in the media tells an investor what they might have earned from investing in all the stocks in the index in the correct proportions (as determined by their market caps) over whatever the period of interest is. I would not be happy making an investment decision based solely on a single return measure. Of course, past performance is not a guarantee of future performance. For example, a good return over the last three months should not be assumed to hold for the next three years. But also, the FTSE 100 index return on its own obscures a lot about what it is. FTSE 100 industries The FTSE 100 is made up of a hundred or so stocks. Each one can be categorised into a different industry. About 20% of those companies are financials. Consumer discretionary and industrials account for 19% each. So, almost 60% of the stocks in the index are from just three sectors. Consumer staples and basic materials companies make up another 10% each. Therefore, almost 80% of all FTSE 100 companies come from just five sectors.  Stocks in the FTSE 100 broken down into industry membership Industry Number of stocks Basic Materials 10 Construction and Materials 1 Consumer Discretionary 19 Consumer Staples 10 Energy 2 Financials 20 Health Care 4 Industrials 19 Real Estate 4 Technology 4 Telecommunications 2 Utilities 4 Source: London Stock Exchange I think I’m getting somewhere now. If I were to say that the FTSE 100 was worth investing in, as a whole, then I must be pretty confident about the prospects of companies in the basic materials, consumer discretionary, consumer staples, financials, and industrial sectors. Industry returns I find that looking at averages for the sectors’ return over various time periods and comparing them to the average for the index is illuminating. The FTSE 100 is a market capitalisation weighted index. Average returns in this article are found by taking a simple arithmetic average of individual returns. The returns approximate the results of buying one share in each company. Average returns of FTSE 100 sectors over various time periods – green shading represents better than average returns, red shading represents worsethan average returns. Source: London Stock Exchange Breaking down returns by industry reveals the energy industry has underperformed the index as a whole over the past three months, one year, and three and five years. In contrast, the construction and materials industry has consistently outperformed. But, it’s worth mentioning there are two energy stocks in the FTSE 100 and just one constructions and materials stock. All industries have positive average returns over the last three months, including the five industries that account for almost 80% of the stocks in the index. Now, I know that past returns do not guarantee future returns. But, I can consider whether the economic environment that produced those returns is likely to persist in the long term, particularly for the five big industries. That’s a better way to answer the question of whether the FTSE 100 is worth investing in, rather than looking at a single return measure. The post Is the FTSE 100 worth investing in? Here’s how I’d start answering the question. 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 3 FTSE 100 stocks to protect my portfolio from high inflation The UK economy is growing fast. I’d buy these 3 FTSE 100 stocks now 4 passive income mistakes I’m trying to avoid with UK dividend stocks Can the stock market rally continue? James J. McCombie 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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  35. UK shares to buy today: 2 FTSE 100 stocks I’d acquire right now (30/04/2021 - The Motley Fool UK)
    As the UK economy reopens, I’ve been searching for the best UK shares to buy today. I think there are many bargains to be had in the FTSE 100. With that in mind, here are two blue-chip stocks I’d buy for my portfolio right now.  UK shares to buy today Around 70% of the FTSE 100’s profits come from outside the UK. Therefore, finding UK-focused companies in the index isn’t straightforward. But there are a couple of businesses that have more exposure than most.  B&Q owner Kingfisher (LSE: KGF) earned around 70% of its retail profit from its UK retail premises in its financial year ended 31 January. The company reported strong growth across the business thanks, in part, to the booming DIY market. Sales across the group increased nearly 7% overall in the year. UK and Ireland sales rose 11%.  I think this trend could continue, which is why I’d buy the FTSE 100 stock today. The working-from-home trend, coupled with the roaring housing market, should continue to drive demand for DIY goods and equipment. As one of the largest related retailers in the country, Kingfisher’s flagship business, B&Q, should benefit substantially from this trend.  That said, before the pandemic, Kingfisher had been struggling to grow sales for years. It could go back to this state if the housing boom runs out of steam and workers are called back to offices. In my opinion, these are the primary challenges facing the business right now.  Still, at the moment, it doesn’t seem as if the market is going to slow in the near term. That’s why I believe this is one of the best UK shares to buy today and why I’d acquire the FTSE 100 stock for my portfolio.  FTSE 100 growth  I have to say Rightmove (LSE: RMV) is one of my favourite FTSE 100 stocks. The company’s property portal is one of the UK’s most recognisable property brands. It’s also one of the most visited websites in the country.  The organisation’s profit slumped 37% last year. According to management, this decline reflected “support offered to our customers” throughout the pandemic. However, the company is expected to experience a rapid turnaround in 2021. Current analyst projections are forecasting earnings growth of 62% for the year, which implies the firm is on track to earn a net profit of £176m. Net profit for 2019 was £173m.  These are just projections at this stage. There’s no guarantee the business will hit these targets. Another coronavirus wave, or an increase in interest rates, could destabilise the housing market, hurting both buyers, sellers and agents. Rightmove’s earnings would almost certainly suffer in this case.  Even after taking these risks into account, I believe Rightmove is one of the best UK shares to buy today. It’s also one of the few pure-play tech businesses in the FTSE 100. As a way to gain exposure to the fast-growing tech sector, Rightmove is one of my favourite options as well.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Where will the IAG share price go next? Why easyJet, BP and Rolls-Royce shares are among Q1’s most traded The Saga share price is up 69%! I still think the stock’s cheap 3 UK reopening stocks I’d buy and look to hold for 10 years ISA investing: this is what I’m doing about the Next share price right now! Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Rightmove. 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 UK shares to buy today: 2 FTSE 100 stocks I’d acquire right now appeared first on The Motley Fool UK.
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  36. 3 FTSE 100 shares to buy today (16/05/2021 - The Motley Fool UK)
    Recently, I’ve been looking for FTSE 100 shares to buy today to profit from the global economic recovery.  There are three companies I believe are well-positioned to earn handsome returns as growth accelerates. As such, I reckon these are some of the best shares to buy today and would add them to my portfolio. FTSE 100 shares The first company on my list is the financial data group Experian (LSE: EXPN). This company has carved out a niche for itself in the gathering and processing of consumer financial data. Its size and experience means it has a virtually unrivalled trove of consumer data, which gives it a substantial competitive advantage.  As the global economy recovers, I think there will be increased demand for consumer finance products. This could translate into a boon for Experian, which makes money when financial services firms request data. These are the primary reasons why I think this is one of the best shares to buy today. However, the firm also faces significant risks and challenges. The largest of which is the potential for a cyberattack, which would decimate the company’s reputation with consumers and institutions alike.  Despite this risk, I’d buy the FTSE 100 company for my portfolio.  Best shares to buy today Another company I’d buy for my portfolio of FTSE 100 stocks is DCC (LSE: DCC). This is another business that has a solid competitive advantage. In DCC’s case, it’s the firm’s size. Logistics can be a low margin business, but DCC can use its economies of scales to increase margins and profitability. Management has also been reinvesting profits into acquisitions to improve growth. The company’s latest acquisition was primary-care supplier Worner for €80m. This strategy has enabled the company to increase pre-tax profit from £248m for the financial year ending March 2017 to £311m for the fiscal period ending March 2020.  I’m confident management can continue with this strategy, which is why I’d buy the FTSE 100 business for my portfolio of growth stocks.  That said, it can be easy for companies to spend too much on acquisitions. Considering the low profit margins in the distribution industry, if DCC ends up overspending, it could quickly find itself in a precarious financial position. That’s the main risk facing the group.  Building back better Finally, I’d acquire steel group Evraz (LSE: EVR) for my portfolio. Booming demand for steel has sent the price of iron ore up to record levels recently. I reckon this suggests the outlook is bright for steel producers such as Evraz. The company owns every stage of the steel production process, from the iron ore mines to the steel foundries. Once again, this gives Evraz a competitive advantage and an edge over other groups. It has also shown a willingness to return lots of capital to investors when profits are high. Analysts are forecasting a dividend yield of 8.1% on the shares for the year ahead. However, this is just a projection at this stage. There’s no guarantee the stock will yield 8.1% this year. What’s more, commodity prices can fall just as fast as they rise. As such, Evraz’s high profits may not last for long.  Even after taking these risks and challenges into account, I’d buy the FTSE 100 stock today.  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 2 bargain FTSE 100 shares I’d buy now with £5k FTSE 100: 1 growth and 1 dividend stock I’d buy now 3 FTSE 100 stocks I’d buy for passive income 2 FTSE 100 growth stocks for 2021 and beyond Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Experian. 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 FTSE 100 shares to buy today appeared first on The Motley Fool UK.
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  37. FTSE 250 stocks: 1 I’d buy in 2021 (12/06/2021 - The Motley Fool UK)
    Many investors concentrate on the FTSE 100 when they’re looking for stocks to buy. However, I believe this is a mistake. Instead, I look in the FTSE 250 for investments. I favour this index over its blue-chip peer because smaller businesses, which make up the FTSE 250, tend to grow faster than their larger peers. Of course, there are many reasons why one business can grow faster than another, but one of the main reasons why smaller companies tend to grow more quickly is the law of large numbers. For example, a company that generates sales of £100bn would have to find an additional £20bn of revenues to grow 20%. By comparison, a corporation with sales of just £200m would only need to increase revenues by £40m to grow 20%.  That said, investing in small businesses might not be suitable for all investors. Smaller companies tend to be riskier than blue-chips. As such, some might feel more comfortable sticking to stocks located in the FTSE 100.  Nevertheless, I’m comfortable with the risks involved with buying FTSE 250 stocks, which is why I’d buy 4Imprint (LSE: FOUR).  FTSE 250 growth stock  4Imprint is a direct marketer of promotional products, such as bags and pens. Companies usually give these out at events, such as conferences or annual general meetings.  As these events have moved online over the past 12 months, 4Imprint’s sales have plunged, but a recovery is now starting to take shape.  According to its latest trading update, total order intake in January and February was running at 65% of 2019 levels. However, the figure increased to 80% of 2019 levels in April. And, in the first few weeks of May, sales rose to 85% of 2019 levels.  This seems to suggest the FTSE 250 group is on track to recover the sales it lost last year at some point in the next two or three months. From there, I believe the business will return to growth, compared to 2019 levels of trade.  4Imprint has a strong balance sheet to support this growth. At the end of April, the company reported a net cash balance of $44m. That was compared to $39.8m at the end of 2020. So not only are the company’s sales recovering, but it looks as if the business is also profitable and generating cash.  Unique opportunity Considering the company’s recovery and growth potential over the next six months, I’d buy the stock for my portfolio today. With its cash-rich solid balance sheet, 4Imprint has the financial headroom to invest in marketing to drive growth and expand into new markets. This could provide an additional tailwind to the group’s organic recovery.  That said, 4Imprint could encounter further turbulence in the months ahead. Another coronavirus wave may force governments to rethink reopening plans. This may reduce demand for its products. There’s also a chance inflation could eat away at the company’s profit margins if it can’t pass higher costs on to buyers.  Still, I’m confident in the FTSE 250 company’s potential. That’s why I’d buy the stock for my portfolio as a recovery play in 2021.  The post FTSE 250 stocks: 1 I’d buy in 2021 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 UK shares: I’m thinking like Warren Buffett to play the new bull market 3 UK dividend stocks yielding 6%+ to buy now 2 top dividend stocks I’d buy more of The FTSE 100 shares I’d buy today with £3,000 These are the 5 top FTSE 100 shares over 5 years. I like 3 today Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended 4imprint 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. FTSE 100: these were the best shares to buy in the market crash a year ago! (23/03/2021 - The Motley Fool UK)
    Remember life before lockdowns? Exactly a year ago today, on Monday, March 23, 2020, Boris Johnson said people must stay at home and various businesses would close. That was also the day when the FTSE 100 index crashed to its 2020 trough. On ‘Meltdown Monday’ (as I call it), the Footsie dived to an intraday low of 4,922.8 points. It then bounced to close at 4,993.9. Having ended 2019 at 7,587.1, the FTSE 100 had shed almost 2,600 points. That’s a collapse of more than a third (34.2%) in under three months. The FTSE 100 bounces back Famed banker Baron Rothschild once wisely remarked: “Buy when there’s blood in the streets, even if the blood is your own.” As it turned out, buying shares exactly a year ago today would have been an excellent decision. As I write, the FTSE 100 hovers around 6,706 points. That’s a gain of more than 1,700 points since Meltdown Monday’s closing low. If you’d bought the FTSE 100 at that day’s close, you would be up more than a third (34.3%) today. Not all FTSE 100 shares have recovered Of course, as a broad market index, the FTSE 100 tells us nothing about the performance of individual members. As you’d expect, some shares did spectacularly well, while others fell badly behind. Since Meltdown Monday, 93 of the 101 shares in the FTSE 100 index have gained in value. The average gain across all 93 risers is an impressive 60%. At the other end of the spectrum, eight stocks fell in value over one year. The average loss among these eight laggards is 6.2%, with losses ranging from 0.3% to 15%. Alas, unfortunately for me, my largest individual shareholding languishes at #100/101 in this list. Oops. These were the best shares to buy a year ago For the record, these five FTSE 100 shares have made the biggest gains since 23 March 2020: Entain (Betting & gambling) +329.3% Ashtead Group (Equipment rental) +195.5% Antofagasta (Mining) +163.5% Intermediate Capital Group (Asset management) +160.9% Flutter Entertainment (Betting & gambling) +158.6% As you can see, each of these five winners has absolutely thrashed the FTSE 100’s 34.3% gain since Meltdown Monday. Gains for these five champions range from almost 159% at Flutter to a whopping almost 330% at Entain. Interestingly, both of these index-beating stocks are active in the same market: betting and gambling. When the UK went into lockdown a year ago, high-street bookmakers were forced to close. As a result, sports betting and gambling migrated online, boosting returns for gaming companies. Of the remaining three gainers, Ashtead is a leader in renting out industrial equipment, largely in the US, UK and Canada. Its share price almost halved during the Covid-19 crisis, but has roared back to hit an all-time high, nearing £43. Antofagasta (known as ‘Fags’ in the City) is a leading copper miner, with huge operations in Chile. With the price of copper almost doubling over the past year (up 86.8%), Fags is riding high. Lastly, alternative-asset manager ICG provides funds to growing companies. Its services are growing fast as firms scramble to shore up their balance sheets. Would I buy any of these shares today? My honest answer is: I don’t know. As a veteran value investor, I prefer to hunt for unloved and overlooked shares with potential for future growth. Given that these five FTSE 100 stocks have all exploded over the past year, I suspect that none would make my watchlist 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 Passive income investing: my 4 steps to go from £0 to £500 a month 1 passive income stock I’d buy before the Stocks & Shares ISA deadline The Yu share price is up 400% in 1 year! Should I buy now? 1 stock I’d buy and 1 I’d avoid for my Stocks and Shares ISA FTSE 100: 3 of the best shares to buy today Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK owns shares of Flutter Entertainment. 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: these were the best shares to buy in the market crash a year ago! appeared first on The Motley Fool UK.
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  39. Shares to buy: 2 FTSE 250 stocks I’d snap up now (14/06/2021 - The Motley Fool UK)
    The FTSE 250 index can be a source of lucrative investment opportunities. This index – which contains the largest 250 stocks on the London Stock Exchange outside the FTSE 100 – is home to many great companies that are growing rapidly. Here, I’m going to highlight two FTSE 250 shares I’d buy today. Both have momentum at present and I think there’s a good chance they’ll generate strong returns for investors over the long term. A FTSE 250 stock for the digital revolution One of my top picks in the FTSE 250 right now is Kainos (LSE: KNOS). It’s an under-the-radar UK technology company that helps governments and businesses with digital transformation (cloud computing, data management, automation, etc). Currently, it serves customers in over 20 countries. Kainos’ most recent full-year results, for the 12 months ended 31 March, were very strong. Revenue was up 31% to £235m while adjusted pre-tax profit jumped 124% to £57.1m. Diluted earnings per share came in at 36.8p, up 122% year-on-year. These results represented the 11th consecutive year of growth. This strong growth isn’t the only thing I like about this company. Another is its level of profitability. Over the last five years, return on capital employed has averaged 43%, which is very impressive. Additionally, the company has a strong balance sheet. One risk to be aware of here is that the stock’s valuation is quite high. Currently, Kainos sports a forward-looking price-to-earnings (P/E) ratio of about 38. This valuation doesn’t leave much room for error. If growth stalls, the stock’s likely to fall. Overall however, I see a lot of appeal in this FTSE 250 stock. With the shares currently experiencing a bit of a pullback, I think it’s a good time to be building a position. Another top tech stock Another FTSE 250 stock I’d buy right now is Computacenter (LSE: CCC), which operates in a similar field to Kainos. It also provides technology solutions to businesses and government organisations. Its customers include the likes of Linklaters, UBS, Hays, and Costa Coffee. Computacenter has also posted strong results. Its full-year 2020 results, posted in March, showed a 8% increase in revenue, a 47% increase in profit before tax, and a 50% increase in diluted earnings per share. Meanwhile, in a Q1 trading update posted in late April, the company said it was seeing strong demand for its services and that it expects 2021 to be another good year for profits. Like Kainos, CCC is a high-quality company. It’s highly profitable (five-year average return on capital employed of 21%) and it has a strong balance sheet. The company is also a reliable dividend payer. A risk to note here is that demand for IT solutions could potentially stall in the short term, due to the fact that many businesses brought spending forward last year during the pandemic. However, I think the overall risk/reward proposition here is attractive. At its current valuation (the P/E is under 20), I see this FTSE 250 stock as a buy. The post Shares to buy: 2 FTSE 250 stocks I’d snap up 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 3 dividend stocks I’d buy in June 1 FTSE 250 stock I’d buy Edward Sheldon owns shares in London Stock Exchange. The Motley Fool UK has recommended Kainos. 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. The FTSE 100 has fallen over 1.5% today! Should I buy the dip? (18/06/2021 - The Motley Fool UK)
    The FTSE 100 index is down over 100 points today, trading at 7,032 as I write. It’s a volatile day, especially considering that it’s the end of the week and few major company earnings or announcements have been released. The main driver for the sudden slump is due to events in the United States. However, due to the correlation with global stock markets, it’s actually pulling the FTSE 100 index lower with it.  Why the FTSE 100 is falling today The main reason for the FTSE 100 slump today is due to comments from a member of the US Federal Reserve. Mr Bullard commented that the US will likely need to adjust monetary policy to achieve its inflation goals. He also commented about risk of inflation moving higher and the need for action.  To begin with, this might seem an odd catalyst for a sell-off in the UK stock market. However, I need to think about the chain reaction. The US and the UK are similar in being developed economies. Any action in the US likely will be mirrored here in the UK. So if there is concern about needing to increase interest rates in the US to combat inflation, this is likely to be the same in the UK. This shouldn’t surprise me, given the fact that inflation figures out earlier this week showed a rise in UK inflation to 2.1% in May. This is higher than the 2% target set by the Bank  of England. So I think investors are assuming potential interest rate hikes sooner rather than later. Higher interest rates are negative for stocks due to the levels of debt held. Typically, large FTSE 100 companies that exist today hold millions in debt. When this gets refinanced, or when new debt is issued, the interest charged is in line with the base rate. So the higher this rate is, the more expensive it is to service the repayments. Aside from the comments from Mr Bullard, oil prices are also falling today. This is dragging down companies that either directly or indirectly have exposure to oil. Should I buy the dip? Now that I’ve established why the market is falling, I can decide what to do. It’s true that inflation and interest rate concerns are valid. I personally think the Bank of England will raise interest rates next year. However, I don’t think this will be until next summer at the earliest. I also think that it will only be a hike of 0.25% or similar. The implications for my FTSE 100 stock portfolio in the long term shouldn’t be huge. In this regard, I would look to buy the dip in stocks today. I would be selective, and buy stocks that could benefit from higher rates. As I said here, I’d consider banking stocks. I’d also look at companies with low debt levels. In this way, I should be able to limit the impact (and even turn it into a positive) of future  changes in interest rates. The post The FTSE 100 has fallen over 1.5% today! Should I buy the dip? appeared first on The Motley Fool UK. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading 2 hot UK growth stocks I’d buy today Could Boohoo shares be star buys of the summer? No savings at 50? I’d invest in top UK shares The ITM Power share price is falling. Should I buy? 3 UK penny stocks I’d buy for my ISA Jonathasmith1 does not hold shares in any company mentioned. The Motley Fool UK has no position in any company 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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  41. The 2 best FTSE stocks to buy before the summer (25/03/2021 - The Motley Fool UK)
    There’s a saying on Wall Street — “sell in May and go away” — that relates to a belief that the sunny season is a bad time to buy stocks. Whether true or not, and although we’re only in March, I’ve got two companies in my crosshairs that I believe could be the best FTSE stocks to buy ahead of the summer months. And despite England just announcing £5,000 fines to all travellers in breach of Covid-19 regulations, vaccinations are proceeding as planned while the UK’s government leaders have also outlined a reopening plan. That’s why I want to talk about my two best FTSE stocks to buy right now, Ryanair (LSE: RYA) and Diageo (LSE: DGE). 1. Ryanair Not only a top airline share to buy, but a top FTSE stock too. I know what you’re thinking: “An airline stock? Now? Really?!?” But there is a reason behind my madness, especially when I see that Ryanair stock has risen 68% in the past year, as of market close on March 24. However, what makes this one of the best FTSE stocks to buy for me is its bullish sentiment towards a resurgence in airline travel to come this summer. This optimism was backed by chief executive Michael O’Leary, who announced a fresh batch of 26 destinations this week and plans to operate 2,000 weekly flights on 400 summer routes. When asked about travel bans, he reiterated that travellers should just book holidays: “If you’re fully vaccinated, I’d be very surprised if there was any legal basis for the UK government preventing people travelling on holidays to other European countries.” Although Ryanair is well poised for a return to travel, it is still highly unlikely that it will operate at full capacity any time soon. Should the worst happen and bans continue, Ryanair will continue to bleed millions of pounds, and will likely have to keep dipping into its €3.5 billion in cash-on-hand just to stay afloat, which would negatively impact its share price. 2. Diageo Diageo was always going to be one of the best FTSE stocks for me to buy ahead of 2021 following its impressive rally since last March. Yes, the beverage giant was hit hard by the closure of restaurants, pubs, and establishments around the globe, but its 19% rally in the past six months has not been without reason. At-home sales of alcohol have been carrying the flag for Diageo, with grocery sales in the UK surging 30% in January alone. These figures increase in the summer, but what I believe has not been factored into Diageo’s share price is the fact that massive friends and family reunions this summer will likely boost sales. What’s more, should vaccinations continue as planned, all restrictions across the UK will be lifted on June 21, marking a massive moment for Diageo. However, for Diageo to be one of my best FTSE stocks to buy before the summer, vaccine rollouts and restrictions need to go without a hitch. This is a big ask, and if lockdowns do continue throughout the summer, then Diageo stands the risk of losing millions worth in revenue for the second year in a row. 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 These are 4 of my favourite ‘reopening’ stocks The ISA deadline is coming. Here are some of the best FTSE 100 stocks I’d buy now Does this FTSE 100 company have potential for big share price growth and income? 2 ‘reopening’ stocks I’d buy today These FTSE 100 giants are on my best stocks to buy now list Jamie Adams owns shares in Diageo. The Motley Fool UK has recommended Diageo. 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 2 best FTSE stocks to buy before the summer appeared first on The Motley Fool UK.
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  42. 2 FTSE 100 reopening stocks to buy today (21/04/2021 - The Motley Fool UK)
    As the UK economy starts to recover from the pandemic, I’ve been looking for reopening stocks to add to my portfolio. With that in mind, here are two FTSE 100 companies that I would buy as recovery plays.  FTSE 100 champion The first company is retailer Next (LSE: NXT). At the beginning of the pandemic, shares in this retailer plunged after it shut all warehouses and stores to protect staff. However, the group soon decided to reopen its online business, and demand boomed. It had to stop taking orders because demand was so high.  This set the tone for the rest of the year. While the company’s bricks-and-mortar stores were closed, online sales surged. As a result, the FTSE 100 corporation has been able to navigate the pandemic exceptionally well. And now, as the economy begins to recover, I think it could be one of the best reopening stocks to buy. As Next’s stores reopen, they will only add to the company’s existing online growth. I think these twin tailwinds will help turbocharge the FTSE 100 organisation’s sales and profit expansion as we advance.  That being said, I’m well aware that the fashion industry is incredibly competitive. Next needs to invest heavily to remain at the forefront of consumers minds. If it stops, the company could go the way of Philip Green’s Arcadia. This is probably the biggest challenge facing the business. But it is also facing healthy competition from online retailers. These competitors could eat into Next’s bottom line.  Despite these risks and challenges, I believe this is one of the best reopening stocks. That’s why I’d buy FTSE 100 retailer Next today.  Reopening stocks  As mentioned above, the retail industry is incredibly competitive. JD Sports (LSE: JD) has tried to carve out a niche for itself in the industry by concentrating on sportswear and trainers.  This strategy has worked incredibly well. Profits have exploded over the past 10 years, and management has been using this income to expand the business.  I believe JD should benefit from the same tailwinds as Next. The company has performed relatively well throughout the pandemic thanks to its online business. Now the stores can reopen, these will provide another income stream to support profit growth. JD may also be able to capitalise on the failure of competitors by snapping up new premises at discounted rates. This could be an opportunity for the group, but it could also be a risk. Many companies have run into problems after over-expanding, and JD is not going to be immune. The business also need to ensure it maintains good relations with suppliers. Its main advantage over its peers is the fact that it stocks the latest products for customers. If management lets the company’s product range go stale, customers may go elsewhere.  Based on its track record of growth, I would buy this FTSE 100 company for my portfolio of stocks today.  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 A UK growth share I’d buy as the FTSE 100 overtakes 7,000 points! The FTSE 100 has hit 7,000 points. Here are 3 stocks I’d buy NOW Why I’m buying these 2 FTSE 100 shares for retirement The Next share price is rising. But I have one worry Why I’m ignoring the JD Sports share price Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Next. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 FTSE 100 reopening stocks to buy today appeared first on The Motley Fool UK.
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  43. Stock market rally: here’s why I’m buying FTSE 100 shares in an ISA (27/03/2021 - The Motley Fool UK)
    Last year’s dramatic stock market rally has fizzled out, but I still think now is a great time to buy FTSE 100 shares inside a tax-free ISA. The index is up by a third since falling below 5,000 in March last year, but has bags more recovery potential. At some point, I expect another leg of the stock market rally. The FTSE 100 has been in a holding position of around 6,700 for most of this year, but that won’t last forever. I think top shares should start growing strongly once we see a clear route out of the pandemic. It’s not guaranteed, of course and I don’t know when that rally will come. Nobody does. Predicting where the stock market will go from one month to the next is a mug’s game. However, history shows that in the longer run, the trajectory is upwards. I’m buying before the stock market rally There’s no question that the Millennium has been a disappointment. The FTSE 100 spiked at 6,930 on 31 December 1999, and trades just below that level today. Don’t let that fool you into thinking nobody has made money in that time, though. Even in the hugely unlikely event that investors bought every single stock they own on Millennium Eve, they will still have made a fat profit. If they’d reinvested all their dividends back into their portfolios for growth, they would have bought loads more stock at much cheaper valuations.  In practice, most people will have invested at much lower levels. For example, the FTSE 100 fell as low as 3,000 in March 2003, in the wake of the technology crash. That was a great buying opportunity. So was last year’s Covid crash, given the scale of the subsequent stock market rally. I buy FTSE 100 stocks for the long term I would still like to see the FTSE 100 power through 7,000, then 8,000, 9,000. Will that happen? Again, I don’t know. What I do know is that buying FTSE 100 shares is likely to make my money work much harder than if I stick to cash. I’m still 15 years away from retirement and over that time, I would hope the stock market would generate plenty of dividend income and capital growth, all of which would be tax-free inside an ISA. I like buying shares in a stock market crash as then I can buy my favourite companies at bargain prices. I don’t only buy in a crash though. I think the best time to invest in shares is whenever I money to spare. Then I simply leave it there, and wait for the next stock market rally to lift its value. That doesn’t always happen with every share I buy as individual companies can struggle or fail. But with a diversified portfolio, I aim to protect myself from having too much of a weighting to individual stocks. There are lots of exciting opportunities out there right now. At some point, lockdown has to ease, then people can go out and start spending again. I would rather buy shares before that happens, than afterwards. I always aim to buy and hold for the long term, so I can benefit from the next stock market rally, and the rally after that. “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 39% of global legal tender currencies are 100% male Dixons Carphone shares: here’s what I’m doing ISA investing: I plan to hold these UK shares I bought in 2020 for 10 years! I think the BP and Royal Dutch Shell share prices can rally now. Here’s why Will the Avacta share price keep climbing? 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 Stock market rally: here’s why I’m buying FTSE 100 shares in an ISA appeared first on The Motley Fool UK.
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  44. 2 FTSE 100 stocks I’d buy with £2k (11/06/2021 - The Motley Fool UK)
    If I had £2,000 to invest in FTSE 100 stocks, I’d concentrate on the market’s tech leaders. With that in mind, here are two blue-chip stocks I believe are uniquely positioned to profit from the rise of technology.  FTSE 100 tech stocks  The first company on my list is Next (LSE: NXT). Some investors may be surprised to learn that this fashion business, which is traditionally associated with bricks-and-mortar retail stores, is actually one of the largest online retailers in the UK. Over the past decade, the company has invested hundreds of millions of pounds building out its online operation. It has built new warehouses and introduced systems and processes to help it prepare for the future. This investment paid off last year. The FTSE 100 group’s sales before the coronavirus crisis were equally distributed between physical and online. However, last year online sales eclipsed brick-and-mortar sales. While online sales may not continue to grow at the rate they did in 2020 as we advance, it’s clear e-commerce is here to stay. Companies not investing to capitalise on this will be left behind.  Next’s management has also been making the most of the retail environment over the past 12 months to renegotiate rental contracts with landlords. This will push down the group’s overall cost base. Management’s forward-thinking is the primary reason why I’d include this FTSE 100 stock in my portfolio today.  However, retail is incredibly competitive. Next has performed relatively well over the past 12 months, but many of its peers haven’t. As a result, the company needs to make sure it stays on top of market trends. If management starts to take the corporation’s success for granted, growth could grind to a halt. This is the most considerable risk facing the stock today.  The future of retail Before the pandemic, many analysts didn’t know what to make of Ocado (LSE: OCDO). The FTSE 100 company was spending hundreds of millions developing its robotic warehouses to process grocery orders. But, unfortunately, take-up was low, and profits were non-existent. That all changed last year. Demand for the company’s services exploded. Demand was so high, at one point, the group had to stop taking on new customers.  I think the pandemic has shown how useful Ocado’s technology can be to other retailers. The company is also planning to expand its own operations in the UK using the customer goodwill built up over the past 12 months as a springboard.  Still, despite the company’s potential, it remains highly speculative. It could be some time before Ocado earns a consistent profit. In the meantime, it’s fighting a lawsuit over the patents it uses for its automated warehouses. Losing this fight could have a severe impact on the firm’s growth.  Even after taking these risks into account, I’d buy the FTSE 100 stock for my portfolio, considering the company’s growth potential.  The post 2 FTSE 100 stocks I’d buy with £2k 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 Ocado share price has crashed 36% in 4 months. Can it recover? 2 sliding FTSE 100 shares I’d buy 2 top FTSE 100 retail stocks I’d buy now 3 UK growth stocks I’d buy now Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended Ocado 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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  45. 2 FTSE 100 stocks to buy with £2k (11/04/2021 - The Motley Fool UK)
    I’m always on the lookout for blue-chip stocks that appear undervalued. Here are two FTSE 100 stocks I’d buy for my portfolio if I had £2k to invest today.  FTSE 100 stock investments  The first company is accounting software provider Sage (LSE: SGE). As a business owner, I know how stressful changing accounting software can be. Finding a product that works well is hard enough. Moving from one provider to another is a different challenge altogether. I think this is a solid competitive advantage for the firm. Users like me won’t leave a company overnight. A competitor has to provide something much better to justify the time and effort required.  To put it another way, I reckon the company can generate recurring, growing revenues year after year, which is the main reason I’d buy the FTSE 100 business for my portfolio today.  At the time of writing, shares in Sage also offer a dividend yield of 2.7%. This distribution is backed by the recurring revenue stream from subscriptions.  Of course, like all businesses, Sage does face risks and challenges. It might be difficult for customers to shift away from the platform, but it’s not impossible. If competitors offer better products with significant discounts, customers could start leaving in droves. What’s more, as a tech business, Sage is exposed to cybersecurity risks. A large hack could devastate the firm’s reputation with customers.  Global growth  Over the past six months, countries worldwide have lined up substantial economic stimulus plans to help recover from the pandemic. Infrastructure spending is going to be a cornerstone of these ambitious plans. I think that suggests demand for essential commodities such as iron ore and copper will surge over the next year. Glencore (LSE: GLEN) may be one of the biggest beneficiaries of this. The FTSE 100 firm is one of the world’s largest commodity traders. As well as producing commodities, the company also buys and sells them on behalf of clients. This can be a very lucrative business, but it also requires a considerable amount of capital. As such, large, well-established companies like Glencore dominate the industry.  When combined with the group’s mining operations, Glencore’s trading business means the organisation is a commodity powerhouse that’s well-placed to generate profit in all market environments.  However, this stock isn’t without its risks. Several years ago, the company ran into trouble because it borrowed too much. This is always going to be a risk with commodity trading. Management had to take evasive action to raise more cash, although this didn’t prevent the stock price from tumbling.  Despite this risk, and the fact that Glencore is exposed to highly volatile commodity prices, I’d buy the FTSE 100 stock for my portfolio today. I think it’s one of the best ways to invest in the global economic recovery. 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 Glencore share price is rising: should I buy the stock now? I think these FTSE 100 stocks are 2 of the best shares to buy for my ISA 2 side hustle ideas I would consider using – without the hustle Is Sage Group a dark horse or should it be cut loose? Sage shares have pulled back. Should I buy? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Sage Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 FTSE 100 stocks to buy with £2k appeared first on The Motley Fool UK.
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  46. The FTSE 250 index is beating the FTSE 100 hands down. Here’s why (26/04/2021 - The Motley Fool UK)
    As the stock market rally continued, the FTSE 250 index crossed 22,000 earlier this month. The past week was bumpy, but it has managed to hold on to these levels.  This in itself is encouraging to me. And there are more positives to the FTSE 250’s performance. In April so far, it has risen by 4.3% on average compared to March. By comparison, the FTSE 100 index rose by a smaller 2.9%.  The FTSE 250 index’s bounce back from last year’s stock market crash has also been sharper. It has increased by 42.5% from April 2020. The FTSE 100 index has shown less than half that improvement of 20.6%.  Why is the FTSE 250 index rallying? I think there are two reasons for this.  One, the FTSE 100 index includes some of the biggest global companies, but the FTSE 250 index adds UK-focused companies to the list. The UK economy’s prospects are looking quite good right now, making investors bullish about the index.  Two, it is also for this reason that the FTSE 250 was hit harder. This, however, has contributed to a base effect. Let me explain this in some detail. As the UK and EU struck a last minute Brexit deal, the stock markets saw a relief rally at the end of December 2019. But the euphoria was short-lived as the corona crisis led to the stock market crash. Already just out of a sustained time of uncertainty, the crisis also resulted in loss of investor confidence in UK’s companies. This showed up in continued weakness in FTSE 250 in April last year. In March last year, the index fell more than the FTSE 100.  Stock markets can be leading indicators for economic data, and at least in this case they did prove prescient. In the months that followed, it was revealed that in terms of economic contraction, the UK was indeed among the worst affected countries.  As a result, while the FTSE 100 index stabilised last April from the previous month’s stock market crash, the FTSE 250 index fell further by 2%. However, because of this, the base-effect works in favour of April numbers this year, making the index’s growth appear higher. The base-effect wears off from next month onwards. But I reckon that the FTSE 250 index will continue to strengthen as economic conditions improve. What I’d buy now Even though FTSE 250 stocks have run up a fair bit in anticipation of better times already, I think there are still a number of quality UK shares available at reasonable prices.  Three I like and wrote about last week are iron-ore miner Ferrexpo, movie theatre chain Cineworld, and UK Commercial Property Real Estate Investment Trust.  Ferrexpo is unique in how low its price-to-earnings (P/E) ratio is at around 5 times, even with good prospects for industrial commodities. It is vulnerable to commodity cycles, however.  I like Cineworld for its potential when cinemas reopen. It will be positively impacted by pent-up consumer demand, though it is highly indebted. The UK Commercial Property Real Estate Investment Trust has a promising strategy. I would wait for its next results update before buying the stock if I wanted to be doubly sure, though.  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 I would pick these reopening shares 3 reasons I can make a killing with FTSE 100 stocks in 2021 This FTSE 100 income stock has fallen nearly 15% in the past year! Should I buy? UK dividends fall “at slowest pace for a year”. Are UK shares now in recovery? Rolls-Royce share price: what’s in store in the coming months? 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 The FTSE 250 index is beating the FTSE 100 hands down. Here’s why appeared first on The Motley Fool UK.
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  47. This FTSE 100 stock is up 806% since 2016. Is it the best UK share to buy today? (24/02/2021 - The Motley Fool UK)
    As I explained on Monday, it might seem that it’s not been a great five years for the FTSE 100. The Footsie has gained 530 points since 2016 to trade around 6,618 at Tuesday’s close. That’s a return of 8% for half a decade — an average of 1.6% a year — for taking equity risk. But adding in yearly dividends of around 4% boosts this return to 5.6% a year. That’s a lot better than top savings accounts. However, it’s easily beaten by several foreign stock markets. The US S&P 500 has almost doubled over five years, before dividends. Today, it stands around 100 points below its record high, hit a week ago. FTSE 100: 66 winners and 31 losers since 2016 Then again, not all FTSE 100 shares have disappointed investors these past five years. Some shares have done extremely well, while others have crashed horribly. Of the 97 shares in the FTSE 100 for a full five years, 31 have fallen in value. These declines range from 2.5% to a spectacular crash of 71.8%. Across these 31 losers, the average price decline is almost a quarter (22.9%). This leaves 66 winners, whose share prices have climbed between a tiny 0.1% and a colossal 805.7%. These gainers include 26 shares that have at least doubled in value since 2016. Of these, 12 shares have tripled or more since 2016. The average gain across these FTSE 100 champions is a hefty 122%. Nice. The Footsie’s star performers over five years Using Tuesday’s closing prices, these are the FTSE 100’s five best performers since February 2016. As you can see, each has produced mouth-watering gains for patient investors. Ocado Group (Online grocer) +805.7% Evraz (Steelmaker and miner) +748.8% Anglo American (Global miner)+480.3% Scottish Mortgage Investment Trust (Tech fund) +410.9% Ashtead Group (Equipment rental) +349.5% Would I buy Ocado today? With its share price having risen more than nine-fold since 2016, Ocado is very highly prized today. Right now, this FTSE 100 share stands at 2,335p, down 66p (2.8%). At this level, the online grocer and seller of automated-warehouse technology is valued at £18bn. Tesco, the UK’s biggest and most profitable supermarket by far, is valued at £16.7bn. Why the bumper valuation for Ocado? It’s because Ocado is rated in line with US tech firms, while FTSE 100 rival Tesco is valued as an old-economy business. While Tesco has racked up tens of billions of pounds of profits over decades, Ocado has yet to make a penny. But it’s heading that way — and fast. Since launching in April 2000, Ocado has spent many billions investing in growth over 21 years. And growth stocks are very much favoured by investors nowadays, as we see with sky-high US tech valuations. Furthermore, Ocado kept growing strongly during the pandemic, with sales up more than a third (35%) in 2020. This growth surge shrank Ocado’s pre-tax losses to £44m in 2020, versus £215m in 2019. Likewise, Ocado is moving towards profitability and should be a winner in the inexorable drive towards online shopping. This could lead to a substantial surge in future earnings. But would I buy it? No. Without any historic profits, earnings per share or cash dividends, I can’t value Ocado shares on fundamentals. Indeed, I view Ocado as perhaps the UK’s #1 bubble stock. The shares have fallen 579p — a fifth (19.9%) — from their all-time high of 2,914p on 30 September 2020. Yet even now, I see them as too rich for my blood, so I won’t be buying this FTSE 100 share for my family 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 The Ocado share price is around 2,300p. Would I buy now? 3 reasons why the Ocado share price fell 7% last week 1 UK share I’d buy and hold for the next 10 years The Ocado share price has doubled in a year: should I buy on today’s dip? The Ocado share price slumps! Should I buy the stock today? Cliffdarcy 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 This FTSE 100 stock is up 806% since 2016. Is it the best UK share to buy today? appeared first on The Motley Fool UK.
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  48. Why is the FTSE 100 rising? (12/05/2021 - The Motley Fool UK)
    In mid-April 2021, the FTSE 100 breached the 7,000-point mark for the first time since before the pandemic. Most recently, on Friday 7 May, the index surged to a 15-month high of over 7,100 points. But what exactly is behind the FTSE 100’s recent surge? We have the answers. [top_pitch] What has happened to the FTSE 100 in the last 12 months? Stock markets around the world went into steep decline in the first part of 2020. The FTSE 100 tracks the performance of the 100 biggest companies listed on the London Stock Exchange. It started the year at 7,542 points. The index plunged to below 5,000 points in mid-March as the scale of the Coronavirus pandemic became clear and fears about its impact on the global economy grew. The FTSE 100 made a recovery alongside the economy later in the year after the intervention of the government and the Bank of England. However, the FTSE 100 still managed to clock its worst year on record since the 2008 financial crisis. The FTSE’s total losses in 2020 came to 14.3%. This made it the worst performer among the world’s largest stock indexes. In 2021, though, things are looking up. The index has been rising steadily in the last couple of months. What is causing the FTSE 100 to rise? Various factors have contributed to the FTSE 100’s rise to more than 7,100 points. The biggest factor appears to be greater optimism about the UK’s economic recovery. Over the last few weeks, several financial institutions and economists have expressed that the UK economy is set for its biggest boom since the post-war period. This is on the back of a hugely successful rollout of the Covid-19 vaccine and the anticipated reopening of the country. Indeed, growing optimism about the recovery of the UK economy has prompted British businesses to increase hiring and offer higher pay to new employees, according to Reuters. The impact of a positive economic outlook is an increase in investor confidence. This, in turn, is driving the FTSE 100 higher. As investors become more confident about the prospects of the economy, they are increasingly willing to put their money into riskier assets like stocks and shares. This includes the stocks and shares of FTSE 100 companies, which investors expect to profit from in 2021 as pent-up demand is unleashed into the market once the country reopens fully. [middle_pitch] How high could the FTSE 100 go? That is the big question. The FTSE 100’s all-time high is 7,903.50. It achieved this feat in 2018. We have already seen other stock indexes from around the world, including the S&P 500 and the Nasdaq Composite, recover their pandemic losses to reach new highs in the last few weeks. Could the FTSE also hit a new all-time high in 2021? We’ll have to wait and see on that one. The UK’s economy is not expected to recover to pre-pandemic levels until at least the second quarter of 2022. But if the current recovery trend is sustained, and if there are no major setbacks in regards to the fight against the pandemic, there is no reason why the FTSE 100 should not continue to rise. This is certainly good news for investors. “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 5 investing mistakes to avoid FTSE 100 stocks I’d buy as the UK economy powers ahead The Glencore share price is up 10% already this week. What’s going on? The FTSE 100’s Spirax-Sarco share price soars as it expects to beat guidance! Should I buy Airbnb shares now? The post Why is the FTSE 100 rising? appeared first on The Motley Fool UK.
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  49. 2 FTSE 250 shares to buy right now (20/03/2021 - The Motley Fool UK)
    When looking for investments, many investors focus on the FTSE 100. I think this is a mistake. There are just as many high-quality companies to be found in the FTSE 250. With that in mind, here are two secondary index shares to buy right now based on their long-term potential. FTSE 250 bargain The first FTSE 250 mid-cap stock I’d buy for my portfolio is Wizz Air (LSE: WIZZ). Like all airlines, this company has been significantly impacted by the coronavirus pandemic. However, unlike other airlines, Wizz entered the crisis with a robust balance sheet, which has helped it weather the storm.  According to the firm’s fiscal third-quarter trading update, which covered the three months to 31 December, group revenue fell 77% year-on-year. The statutory net loss for the period was €116m but, more importantly, the organisation ended the period with cash of €1.2bn. I think this gives the business a large cushion to use to ease through the crisis. It also provides funding for the group to launch itself back into the market when the pandemic’s over. Therefore, as a recovery play, I think this is one of the best FTSE 250 shares to buy right now. However, Wizz isn’t without its risks. The airline industry is notorious for having low-profit margins and volatile profitability. The pandemic is an excellent example of how a company that was flying high can become grounded very quickly.  Still, despite these headwinds and potential challenges, I’d buy the FTSE 250 stock for my portfolio today.  Shares to buy right now The other company that’s caught my eye recently is the shopping centre owner Hammerson (LSE: HMSO). This is a recovery play, and it’s not for the faint-hearted. As shopping centre values have plunged and rents have gone uncollected over the past 12 months, commercial property landlords such as Hammerson have struggled to stay alive. I don’t think this is going to change anytime soon. I believe retail property values will remain under pressure, and so will rent collections. This implies Hammerson will have its work cut out in the near term.  The most considerable risk facing the business is falling property values. If the property values continue to decline, the company may have trouble convincing lenders to maintain their support.  But I’d buy the stock for its long-term potential. If the business survives the current crisis, I think the shares could rise substantially from the current level. According to the group’s final results, which were published at the beginning of March, the company’s property portfolio was worth 82p per share at the end of 2020, almost double the current share price. To put it another way, there’s a chance this FTSE 250 could double investors’ money. This is why I’m willing to overlook the enterprise’s challenges and buy the stock for my portfolio today, based on its return potential. 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 Will the Hammerson share price recover in 2021? The Hammerson share price is up 75%+ in a month. Would I buy now? Stock market recovery: 3 FTSE 250 growth shares I’d buy A UK share I’d buy in my ISA in March for the new bull market Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Wizz Air Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 FTSE 250 shares to buy right now appeared first on The Motley Fool UK.
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