What I’ll do if the FTSE 100 crashes to 5,000 points

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images Alan Oscroft | Tuesday, 10th March, 2020 On Monday, the FTSE 100 crashed to a low of 5,891.6 points at one stage, and closed below 6,000 points for the first time since 2016. At the end of the day, London’s top index had fallen 7.7%.Past FTSE 100 crashesBut we’ve had one-day FTSE 100 crashes bigger than that plenty of times, and we’ve always got over them. According to data from Refinitiv, we’ve got to go back as far as 2008 for a worse fall. On 6 October that year, the FTSE 100 lost 7.9%. But since then, the index is up 40% — even after the coronavirus crash.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…As I write on Tuesday morning, the headlines are shouting “Global stocks rebound”, and the Footsie is up 3.8% at 6,195 points. Whenever there’s a panic sell-off of stocks, they always seem to rebound shortly after. It’s been that way for as long as I’ve been following UK shares, and I expect it to continue.Why then do investors do it? If the FTSE 100 has always come back from every fall throughout its history, why do people sell out and then buy back in again? Why not just keep hold of your shares and save two sets of transaction costs?Short-term fearI’ve been asking that question since before I bought my first share, and I still have no good answer. The obvious reason is that investors fear they’ll face further short-term losses unless they sell. But trying to time things so you get out before the bottom, and then buy back in again at a lower price, is almost impossible. So what should we do?For me, the answer is simple. As long as I’m still investing for the long term, I’ll be looking to buy more shares at lower prices. I’ll do my research by examining individual companies and, when I see great ones for sale at bargain prices, I’ll be a buyer.That was my approach before the latest crash, and I see no reason to change it now. We never know when the next stock market slump is going to come along, and it could very well be tomorrow.FTSE 100 crash tomorrow?So what if Tuesday’s gain is just a one-day respite before the FTSE plunges further? What if it crashes as far as 5,000 points and below? We’ve seen levels that low as recently as 2010, and the banking crisis sent the index plummeting below 4,000 at one point.At the time, I couldn’t believe my luck seeing so many shares at super bargain prices. I didn’t have a lot of spare cash at the time. But what I did have went into top dividend shares, and I’ve been enjoying elevated yields from them since. If it happens again I’ll be in a better position to benefit, with a decent chunk of pension cash waiting to be invested.A FTSE fall to 5,000 would be a drop of almost 20%. Just think how wonderful it would be to be able to buy today’s top FTSE 100 stocks in a ‘20% off’ sale. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Sharescenter_img Views expressed 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. 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. See all posts by Alan Oscroft Enter Your Email Address What I’ll do if the FTSE 100 crashes to 5,000 points “This Stock Could Be Like Buying Amazon in 1997”last_img read more

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This FTSE 100 share is down 60% since December. I’d be a brave, bold buyer today!

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. This FTSE 100 share is down 60% since December. I’d be a brave, bold buyer today! Cliff D’Arcy | Tuesday, 11th August, 2020 | More on: LLOY I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Cliffdarcy 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. Image source: Getty Images Simply click below to discover how you can take advantage of this.center_img 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! Our 6 ‘Best Buys Now’ Shares Enter Your Email Address These days, when scanning for bombed-out shares in the FTSE 100, there is no shortage of candidates. After all, with the Footsie down roughly 1,430 points (18.8%) this year, few shares have avoided steep falls.Warren Buffett’s business wisdomFurthermore, 33 years as an investor has taught me that falling share prices are good for buyers (but not sellers). However, before I’m tempted to buy any FTSE 100 faller, I ask myself this vital question: “Despite its plunging share price, is this still a sound business run by competent managers?”5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…This question was shaped by two wise comments from billionaire investor Warren Buffett. He remarked: “I try to invest in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will.” And: “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”This FTSE 100 share has taken a beatingIf a FTSE 100 company’s share price has crashed, but it remains a sound business, then I’m eager to buy its shares. This is true even at the point of maximum pessimism. Take, Lloyds Banking Group (LSE: LLOY), for example, whose shares have taken a beating worthy of a world heavyweight boxing champion.As I write, Lloyds shares trade at 29.36p, up 0.94p (3.3%) today. Over the past year, shares in the bank are down more than two-fifths (40.7%). Even worse, Lloyds shares peaked at 73.66p on 13 December last year, so they have collapsed 60.1% from their 52-week high.Then again, the stock recently bounced back from its lows. On 31 July, just 12 days ago, the Lloyds share price dived to close at 25.43p. For me, this was a real bargain-bucket price for Lloyds. And its share price has since climbed 15.5%.Is Lloyds a bad business run by bad managers?Before buying its shares, I must ask: Has the Lloyds share price crashed because it has become a bad business run by bad managers? If so, then perhaps its ultra-low share price reasonably reflects this FTSE 100 company’s future prospects.I can honestly say that, on balance, there is no reason to believe that Lloyds has become a ‘bad bank’. Unlike, say, in spring 2005, when I warned that Northern Rock and Bradford & Bingley had become rogue lenders selling ‘mad mortgages’ – and look what happened to both!This FTSE 100 share can’t be valued on fundamentalsOf course, being a huge lender during the UK’s steepest economic decline for 300 years exposes Lloyds to huge risks. Before the coronavirus crisis is over, Lloyds might have to put aside maybe £10bn to cover bad debts. It has already set aside £3.8bn in loan-loss provisions for the first six months of this year.But I’m absolutely sure that Lloyds will survive this downturn, because its balance sheet today is way, way stronger than during the global financial crisis of 2007–09. I happen to believe that, eventually, this FTSE 100 firm will return to profit and resume paying healthy dividends to its shareholders.Finally, despite being the UK’s largest financial-services group, Lloyds has a market value today of just £20.1bn. For me, that’s too small for a decent business and market leader. I’d be a big, bold, brave buyer of its shares today for the long run! See all posts by Cliff D’Arcylast_img read more

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Tesco just raised its dividend by more than 20%. Is it now one of the best UK shares to buy?

first_imgSimply click below to discover how you can take advantage of this. Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Kevin Godbold Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Tesco just raised its dividend by more than 20%. Is it now one of the best UK shares to buy? Enter Your Email Address Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! The standout figure for me in today’s half-year results report from Tesco (LSE: TSCO) is the almost 21% increase in the interim dividend. With the shareholder payment on the rise, is the stock now one of the best UK shares to buy?For context, the increase arose because Tesco aims to pay the interim dividend at the rate of 35% of the prior full-year dividend. And the last full-year dividend went up by almost 60%. At first glance, these robust increases in shareholder returns are encouraging to me. I reckon we can judge a lot about the health of a business by the directors’ decisions surrounding dividends.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why Tesco could be one of the best UK shares to buyThe firm’s policy is to maintain a full-year payout ratio of 50% going forward. And that means the total amount of dividends paid out to shareholders will be 50% of the company’s net income. As such, dividend decisions are automatic in some ways, because if earning slip, so will the dividend.But today’s increase in the shareholder payment is backed by some convincing figures. At constant currency rates, overall sales rose by almost 7% year on year. But within that figure there’s variation. More than 90% of sales came from operations in the UK and the Republic of Ireland (ROI). Sales rose by 8.5% in those combined regions. But in Central Europe, there was a decline of 1.5% and Tesco’s banking operation saw sales plummet by more than 31%.Meanwhile, Tesco has been retreating from its international operations. In the report, for example, the company tells us sales of businesses in Thailand, Malaysia and Poland are “progressing well.” Indeed, the core operations remain in the UK and the ROI and Tesco’s turnaround has been powered by refocusing on them.But the bank’s performance has been abysmal. The figures today reveal a £155m loss from the division. I reckon Tesco is best shot of it. After all, who wants to own a bank these days? They’re terrible, cyclical enterprises quick to get into trouble when economies turn down. And while Tesco is at it, why not get rid of all the other non-core operations abroad? My guess is we’ll see such further disposals in the fullness of time with Tesco becoming completely focused on the British Isles.I want a lower valuationI reckon an ongoing intense focus on core operations is what Tesco needs to hold its ground in the war with the big-discounting competition such as Aldi, Lidl and others. Meanwhile, looking ahead, chief executive Ken Murphy said in the report he expects a “broadly even balance” to the year in terms of retail profitability in the first and second halves. And retail operating profit in the current year will likely be “at least” the same level as 2019/20. But he reckons the bank will report a loss between £175m and £200m for the full year.With the share price near 219p, Tesco’s forward-looking dividend yield is just above 4.2% for the trading year to February 2022. So, is Tesco one of the best UK shares to buy now? Not for me. I want the yield to be at least 5% before buying and see no rush to buy the shares now. Kevin Godbold | Wednesday, 7th October, 2020 | More on: TSCO Our 6 ‘Best Buys Now’ Shares 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…last_img read more

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Investing in the global recovery: 5 FTSE 100 stocks I’d buy now

first_img 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. Our 6 ‘Best Buys Now’ Shares Manika Premsingh owns shares of Glencore. 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. “This Stock Could Be Like Buying Amazon in 1997” Manika Premsingh | Wednesday, 27th January, 2021 Image source: Getty Images Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Manika Premsinghcenter_img Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. There’s still a lot of investing uncertainty for FTSE 100 stocks today. But there’s no denying that the improved outlook for the global economy has helped steady the index.Global economy set to improveThe International Monetary Fund forecasts that the world economy will grow by 5.5% in 2021. Even though it has slightly reduced its forecast, this is a significant improvement over the decline in the gross domestic product (GDP) in 2020. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…An investing strategyI think this is a good time to invest in stocks of companies with significant global interests. The two biggest country economies – the US and China – are slated to see particularly robust growth. While the US is expected to grow by 5.1%, China’s growth is seen at 8.1%.The way I’d do it is this. Both economies are likely to splurge on public spends this year. I think two kinds of companies will see a turn of fortunes because of this – mining companies and construction firms. The reason is that physical infrastructure creation calls for both raw materials and expertise in building it. FTSE 100 miners to benefitThe good news is that a number of FTSE 100 companies fall under both these categories. There are at least three multi-commodity miners that I like. These are Anglo American, Glencore, and Rio Tinto. I think infrastructure spending alone could buoy their share prices and finances for the foreseeable future, but there are more reasons to like them. I believe environmentally friendly companies are the future, and these firms are taking steps in the right direction. Anglo American has made it one of its strategic priorities. Its acquisition of polyhalite miner Sirius Minerals last year may even be a step in this direction. Rio Tinto has reported finding lithium, which is used in electric vehicle cells, and Glencore is producing cobalt now.While their long-term future is heartening, the bigger risk in 2021, I think, is new coronavirus variants. No public spending can help, or even take place, if most economic activity is deemed hazardous to health, including construction.FTSE 100 construction companies with US interestsThere are two FTSE 100 construction companies that also have strong US interests. One is Ashtead and the other is CRH. It’s no surprise then, that both stocks’ prices are presently at all-time highs. This is despite the fact that their financials have suffered in 2020 because of the pandemic.I don’t think a choice is necessarily required, but if I have to make one, I’d put my bet on CRH for two reasons. One, its US interests are bigger than those of Ashtead’s in terms of revenue share. And its earnings ratio is less than half that of Ashtead’s, at around 12 times right now. For this reason, I think its share price can rise far more.Much like in the case of the miners, construction biggies also face the threat of prolonged lockdowns. Their financials have already suffered, and if 2021 doesn’t quite play out like we think it will, the result could be disappointing. For now though, I see more upside to them. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Investing in the global recovery: 5 FTSE 100 stocks I’d buy now Enter Your Email Addresslast_img read more

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The easyJet share price is surging. Should I buy the stock now?

first_img Edward Sheldon, CFA | Tuesday, 9th March, 2021 | More on: EZJ easyJet (LSE: EZJ) shares have had a spectacular run in recent months. Since 9 November – when Pfizer announced it had developed a Covid-19 vaccine – easyJet’s share price jumped from around 530p to 1,030p – a gain of almost 100%. Over a 12-month horizon, EZJ is now back in positive territory, up about 2%.Is easyJet a stock I should consider for my own portfolio? Let’s take a look at the investment case.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Should I buy easyJet shares?I can see why the airline’s shares are popular right now. In short, the stock is a ‘reopening’ play. After the UK laid out plans for international travel to resume in late February, easyJet said flight bookings jumped over 300% and holiday bookings surged by more than 600% week-on-week. Clearly, there’s a lot of pent-up demand to travel.It’s worth noting that City analysts expect easyJet’s revenues to more than double next financial year (its financial year ends 30 September) to £5.4bn, up from around £2.4bn this year. That’s certainly a big jump. However, £5.4bn would still be about 16% below 2019 revenues of £6.4bn.Analysts expect the company to return to profit next year too. Currently, the net profit estimate for FY2022 is £286m, compared to an expected loss of £592m this year.Is easyJet’s share price a bargain?However, what concerns me about easyJet shares is that they look fully valued right now. Currently, the consensus earnings per share forecast for FY2022 is 53.2p which puts easyJet shares on a forward-looking price-to-earnings (P/E) ratio of about 19. That valuation looks quite high, in my view, considering the risks.While easyJet’s share price is still around 33% lower than it was pre-Covid-19, it’s important to remember that a lot has changed over the last 12 months. For starters, it has more debt on its balance sheet than it did a year ago. Recently, the company raised another €1.2bn from a seven-year bond sale. This extra debt adds more risk to the investment case.Secondly, there’s a lot of uncertainty in relation to the prospects for the travel industry in the short term. The UK government has said the earliest date Britons will be able to travel abroad for a holiday is 17 May.However, it’s not just a matter of the UK lifting travel restrictions. Foreign governments also need to agree that Britons can visit without the need for quarantine. Currently, France and Spain have shut their borders to the UK due to the new variants of Covid-19. More variants, or new travel restrictions all pose a threat to easyJet.My view on EZJ sharesPutting this all together, I don’t see much investment appeal in easyJet shares at present. To my mind, there’s a lot of good news priced into the stock at the moment. Trading on a forward-looking P/E ratio of 19, EZJ shares look quite expensive, in my view.All things considered, I think there are better stocks I could buy for my portfolio today. The easyJet share price is surging. Should I buy the stock now? Image source: Getty Images. Like this one… Our 6 ‘Best Buys Now’ Shares Enter Your Email Address 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 £90,259Operating 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. Edward Sheldon has no position in any 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Edward Sheldon, CFA I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. Get the full details on this £5 stock now – while your report is free.last_img read more

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This FTSE 250 stock is rising. Should I buy?

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 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. “This Stock Could Be Like Buying Amazon in 1997” FTSE 250 stock Premier Foods (LSE: PFD) has been having a good run lately. It’s up over 15% in one month and has increased 140% during the last 12 months.So have I missed the boat with this business? I don’t think so. In fact, I think things are just getting started for Premier Foods, so I’d buy. Last week, the company released its full-year results, and let me say, they were impressive.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Premier Foods: an overviewPremier Foods makes brands most Britons will have heard of. These include Mr Kipling cakes, Ambrosia custard, and Angel Delight whipped dessert.The company has enjoyed a revival during the pandemic, especially after years of ballooning debt, falling sales and a problematic pension deficit. But a rise in dining at home during the coronavirus crisis seems to have saved the day.Total full-year revenue increased 10.3% to £934.2m. Operating profit also rose by 11.9% to £148.3m. These were large rises, which was good news for the company. It certainly helped that the business remained fully operational throughout Covid-19.But it wasn’t only boosted by the pandemic. The company really ramped up activity last year. It launched a series of new product ranges, including healthy options. It also increased marketing investment with six major brands receiving TV advertising. And the hard work seemed to pay off.Even net debt was reduced by 22.6%, from £429.6m down to £332.7m. I find it encouraging that Premier Foods has managed to reduce its leverage. Hopefully, the business can thrive from a stronger financial position.DividendBut I think the icing on the cake (no pun intended) has to be the the news about its dividend. It managed to reinstate its income payment after 13 years. I reckon this is a turning point for the FTSE 250 stock and the share price could rise further.To me, it highlights a few things. The first is that it can afford to pay a final dividend of 1p per share. The second is that now it’s paying income to shareholders, they will expect this to continue.Clearly, the board thinks that the company will be able to pay this in the future. If not, I assume it would have stated that it was only a special or one-off income payment. This makes me optimistic about the prospects for the firm.RisksOf course Premier Foods does carry investment risk. As it’s a food producer, it has to grapple with the cost of raw materials. A rise here could impact profitability.Although, the FTSE 250 company has been a winner during the pandemic, there’s no guarantee consumers will eat at home quite so often now they can once again eat out. This could hit revenue. And the company will also have to work hard to keep up with consumer tastes, which have been evolving in new directions.OutlookYet I think the future looks bright for Premier Foods. It goes into the new financial year in a stronger position, having gained a large consumer base during the past year. So far trading has been in line with expectations and I reckon more good things are still to come. Simply click below to discover how you can take advantage of this. Nadia Yaqub | Wednesday, 26th May, 2021 | More on: PFD I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Nadia Yaqub 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.center_img See all posts by Nadia Yaqub This FTSE 250 stock is rising. Should I buy? Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images Enter Your Email Addresslast_img read more

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2 FTSE 100 stocks to buy with £3k

first_img Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Standard Chartered. 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. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images 2 FTSE 100 stocks to buy with £3k There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Enter Your Email Address Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Rupert Hargreaves I think the best stocks to buy at the moment are companies that could see rapid growth as the global economy recovers from the pandemic. As such, here are two FTSE 100 stocks I’d buy today with a lump sum investment of £3,000. FTSE 100 stocks The first company on my list the Premier Inn owner Whitbread (LSE: WTB). This corporation has faced some severe challenges over the past year.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The scale of those challenges were laid out in its second-quarter results. Total UK accommodation sales were down 61% in the quarter, with food and beverage total sales plummeting 86%. But now that lockdown restrictions are starting to lift, the company’s outlook is improving. Indeed, it noted in its second-quarter update that the group has experienced “very strong forward booking trends in tourist locations throughout the summer.“I think this could be a sign of things to come. After more than a year of being stuck at home, consumers are splashing out on holidays and trips. As one of the largest hotel operators in the country, Whitbread is almost certain to scoop up some of this additional business, in my opinion. That said, the business continues to face challenges. Its central London and airport hotels are still reporting low levels of interest. That seems unlikely to change anytime soon.Also, hospitality businesses have reported that they are struggling to find staff, which may mean companies like Premier Inn have to raise prices. This could have a knock-on effect on profit margins, holding back the group’s recovery. Despite these risks and challenges, I’d buy the FTSE 100 stock for my recovery portfolio today.Banking giantThe other company earmarked for my FTSE 100 recovery portfolio is the emerging markets-focused bank Standard Chartered (LSE: STAN). Like Whitbread, the coronavirus outbreak slammed into the corporation last year, but the firm now seems to be on the mend. The company’s profit attributable to shareholders increased 30% in the first quarter of 2020. The return on tangible equity, a key measure of banking profitability, was 10.8% for the period. It was 8.6% for the first quarter of 2020. The company’s financial markets and wealth management business also reported its best-ever quarter off profitability. I think these trends can continue as the global economy rebuilds. As business and investor confidence improves, demand for loans and wealth management products should increase. The primary headwinds facing the enterprise are low-interest rates and competition in the wealth management sector. Both of these could hold back profit growth as the bank tries to compete with peers. Even after taking these risks into account, I’m still a buyer of the stock. I think it has tremendous potential over the next five to 10 years if growth in emerging markets picks back up to pre-crisis levels, although this isn’t guaranteed.  Rupert Hargreaves | Friday, 18th June, 2021 | More on: STAN WTB last_img read more

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