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I FTSE 100Home to a variety of unique stocks. By building a balanced portfolio of diversified stocks, investors can balance risk and enjoy strong and stable returns over time.
Value stocks offer investors the opportunity to appreciate long-term capital, as well as margin for error. Growth stocks can outperform the market by increasing profits at a faster rate. And equity stocks can bring regular income and stability, even during market downturns.
Here are three Footsie stocks from each category worth considering today. I think each has the potential to bring significant long-term benefits.
Price
Vodafone Group (LSE:VOD) offers excellent value across various metrics. It trades at a forward price-to-earnings (P/E) ratio of 10.1 times, one of the lowest in the entire telecommunications sector.
The company also has a market-beating return of 7.2% this year, even after its pledge to cut dividends.
Finally, Vodafone shares trade at a price-to-book (P/B) ratio of around 0.4. Any reading below 1 indicates a stock is cheap relative to its asset value.
Vodafone has been under pressure recently due to changes in German telecommunications laws. But encouraging trading in its biggest single market suggests now may be the time to buy.
There is also a major shift to reduce capital and increase investment in areas such as Vodafone Business. This has the risk of being excluded, but it can also lead to significant income growth in the long run.
Growing up
Companies operating in Nigeria have been hit by a series of currency revisions recently. This has been the case Airtel Africa (LSE:AAF), a telecommunications operator offering mobile money and data services in 14 countries.
A further fall of the Nigerian naira is likely. However, City analysts still believe that Airtel's revenue will increase significantly from this year onwards.
It is expected to swing from a pre-tax loss of $63m last financial year to a profit of $805m this year. For the 2026 financial year, the bottom line is set to rise a further 71% again, to £1.4bn.
As wealth levels and population size increase in its markets, I think Airtel can deliver impressive profit growth over time. Telecoms industry body GSMA, for example, believes that 4G adoption in Sub-Saharan markets will double over the next five years.
The dividend
Bunzl (LSE:BNZL) doesn't have the biggest profit out there. In the next three years they range from 2.2-2.5%.
However, the support services provider's impressive record of revenue growth makes it a revenue champion, in my opinion. The annual awards have risen for 31 years at the time of the increase, reflecting the firm's unique approach to making money and the ability to weather economic downturns.
This increase has been very positive, at about 9% per year during that period.
Bunzl's highly successful, acquisition-based strategy has provided the basis for year-on-year growth in profits. An M&A-led strategy like this can be risky, but the company's excellent track record helps assuage any fears I might have.
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