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I made a watchlist FTSE100 stocks to buy in the fall, and there are plenty to choose from right now. I’ve whittled my picks down to five that I’ll buy when I have the cash. I’m particularly excited about number three.
My first choice is an oil and gas giant BPHonestly, I just can’t believe how affordable its shares are now.
The falling price of oil is an obvious reason. Brent crude has fallen to $73 a barrel as demand from China falls and fears of a U.S. recession grow. After a 15.76% decline in a year, the stock is trading at a very low valuation of just 6.21 times earnings, for a juicy 5.41% gain.
BP’s share price could fall even further if the outlook worsens, but looking at the long term, I think it’s a good investment today.
I support JD Sports Fashion in its pursuit of further development
I own a consumer goods giant Unilever but I would gladly buy more. It is recovering from a turbulent period and should return to its previous role as a solid, defensive portfolio.
The Unilever share price is up 23.06% in a year, so it’s not as affordable as it was, trading at 22.63 times earnings. Yields are a meager 3%. But I think there’s plenty of room for earnings growth, which should drive rewards for investors.
Now my third choice. This one I really like. I bought a trainer and a sportswear retailer JD Sports Fashion (LSE:JD) saw its shares plunge into a downward spiral in January after a shock profit warning prompted by disappointing Christmas sales.
The JD Sports Fashion share price rose 18% in the week after the company published its results on 22 August, which showed a solid 2.4% rise in like-for-like sales. Management said the company remained on track to deliver its forecast pre-tax profit of between £955m and £1.035bn, while the recent acquisition of Alabama-based retailer Hibbett would deepen its exposure to the US market.
On August 25, I wrote that JD Sports Fashion shares could take a breather after a pointed rebound, and it has proven to be true. They are down 6.67% in the past week. As a point of reference, the shares are up a modest 7.29% in 12 months. I think it’s a good time to add to your stake at a fair price.
The company is well-positioned for the future, but there are risks as recession fears persist and consumers continue to struggle. Trading at exactly 11 times earnings, I still can’t resist.
I like to buy stocks that are not popular, and I would add the spirit giant to them Diageo to my shopping list. Its shares are down 22.98% in 12 months, following a shocking drop in sales in Latin America. I’m a little worried that the world is losing its taste for alcohol, but I still think there’s an opportunity here.
In the end I would buy a high street retailer NextIts long-term performance in a troubled sector has been outstanding, with the stock up 44.3% in a year and 70.12% in five years.
They’re not super affordable, trading at 15.26 times earnings, while the yield is a low 1.46%. But it’s a brilliant company that deserves a place in my list of the five best FTSE 100 stocks to buy. My only regret is that I didn’t buy it years ago.