Investing on your side, fellow foolish investors, here are some of the stocks some of our contributors have been buying over the past month!
Amazon
What it does: Amazon is the world's largest online retail platform. It also has a significant cloud computing business.
Written by Stephen Wright. The stock market has been a bit volatile recently as a stronger Japanese yen has fueled a sell-off in US stocks. I used the opportunity to add to my investment Amazon (NASDAQ:AMZN).
I am impressed with the way things are going in the company right now. Weak consumer sentiment may weigh on earnings, but it's growing in all the right places.
In the second quarter of 2024, sales from online stores grew by 5% as shoppers looked to bargains. Since this is the largest category, a prolonged recession in the US is a real risk.
Elsewhere, however, revenue grew 19% from cloud computing and 20% from advertising. Over time, I expect these to be very profitable, so the growth there looks promising.
Ultimately, disrupting Amazon's competitive position will be a major undertaking for any business. That's why I always look forward to buying stocks when I see an opportunity.
Stephen Wright is an Amazon shareholder
Amazon
What it does: Amazon is a technology company that operates in the e-commerce space. It also expanded into artificial intelligence and cloud computing.
Written by Charlie Keough. I Amazon (NASDAQ: AMZN) stock has fallen 14% over the past five days (since August 8) after continued talk of a US recession prompted a sell-off. I used that as an opportunity to acquire shares of the tech giant.
Its price has also been hit hard after its recent earnings revision. Revenues missed expectations and in the event of a US recession it could cause further declines in spending. That is a threat to watch.
But I think the opportunity to buy its shares at $162.7 is rare. It means the stock is now trading at a price-earnings (P/E) ratio of 39 and a forward P/E ratio of 34.2. That's a historically cheap valuation for the business.
Despite its recent blip, Amazon remains a high-quality business with plenty of earnings potential.
Often associated with online shopping, it does more than that. I'm very interested in seeing what's moving in the artificial intelligence space. It also continues to grow through its cloud computing services platform Amazon Web Services and digital advertising market.
Charlie Keough is an Amazon shareholder.
British American cigars
What it does: British American Tobacco manufactures and markets tobacco products worldwide under brands such as Lucky Strike
Written by Christopher Ruane. Has the market opened up for tobacco stocks?
British American cigars (LSE: BATS) shares are down 9% in five years. But the price is up 19% so far in 2024.
Despite that increase, the dividend yield still looks sweet at 8.4%. The company has raised its dividend every year for decades, although that's no indication of what will happen in the future.
Risks are always important. Cigarette sales prices are falling in many markets and non-tobacco brands have yet to prove anywhere near as profitable. Shockingly, British American's first-quarter revenue fell 8.2% year-on-year. However, it generated more than £3bn in net income from operating activities and adjusted liabilities fell by 12.4%.
But even given the risk, I think the shares continue to offer value. British American has a strong stable of premium brands, an excellent distribution network and proven revenue generation capabilities. I have added a few more stocks to my portfolio recently.
Christopher Ruane is a shareholder British American cigars.
Card Industry
What it does: Card Factory is a value retailer with over 1,000 stores, selling a wide variety of greeting cards and festive essentials.
Written by Roland Head. Card Industry (LSE: CARD) is emerging from a difficult period with improved financials and strong sales growth. Revenue rose 10% to £511m last year, while pre-tax profit rose 25% to £65.6m.
The stock has bounced back from its decline but still looks very valuable to me. Brokerage forecasts price the stock at eight times earnings, with a dividend yield of 4.6%.
The business was in trouble before the pandemic, but has since been revived by chief executive Darcy Willson-Rymer. I think we still have a lot of room for growth, as Card Factory expands its product range and improves its online operations.
Of course, there are risks. After recovery, sales may again be low, especially if consumer spending remains under pressure.
However, analysts expect profits to rise by 10% this year and next year. I have hope too. I think the proven model of Card Factory should support more benefits for shareholders.
Roland Head is a shareholder of Card Factory.
Games Workshop Group
What it does: Games Workshop Group is a leading specialist in tabletop games with similar franchises Warhammer 40,000.
Written by Royston Wild. I always look for opportunities to buy good stocks when they go down in value. Games Workshop (LSE:GAW) is one such company that I recently bought after recent periods of price weakness.
Now i FTSE 250 Sharing is not cheap on paper. At £104.10 per share, it trades at a forward price-to-earnings (P/E) ratio of 22.1 times. This kind of conservative valuation can leave it open to new price cuts if the market turns bad or trading disappoints.
However, I believe that Games Workshop deserves its high rating. And I believe its shares – which are up 125% in value over the past five years alone – have plenty of room for further appreciation.
The business is the world's leading manufacturer and marketer of tabletop gaming miniatures. With its high quality Warhammer game systems, inspires a large and growing following that is growing rapidly as the world's interest in the fantasy genre grows.
It is also looking to increase its intellectual property potential with a blockbuster TV and movie deal as well Amazon. If successful, this could give profit growth a big shot in the arm.
Royston Wild is a shareholder in the Games Workshop Group.
Glencore
What it does: Glencore is one of the world's largest natural resources companies with operations in 35 countries.
Written by Andrew Mackie. I Glencore (LSE:GLEN) share price has been on a rollercoaster ride through 2024. Despite this, I consider market volatility to be an investor's friend. That's why I bought a lot of its shares during the recent sell-off.
The world is hungry for power. A recession will not change this fact. The need for energy comes from many sources. The electrification of travel is one important driver. It is estimated that there will be 500m electric vehicles in use by 2035. Demand is also driven by electrification of residential heating and industrial processes.
As the demand for electricity increases worldwide the investment in grid infrastructure will need to be increased significantly. The International Energy Agency predicts around $11trn will be needed to upgrade grids to make the net zero target a reality. This has improved dramatically for commodity businesses like Glencore.
One of the biggest risks of investing in miners is the ongoing challenges in obtaining permits and licenses. It could take up to 15 years for a new mine to become operational. However, in the long run this could lead to supply shortages, thereby increasing steel prices.
Andrew Mackie is a shareholder in Glencore.
Phoenix Group Holdings share price
What it does: Phoenix bills itself as the UK's largest long-term savings and retirement business, with 12m clients and £280bn of assets under management.
Written by Harvey Jones. I can't resist the blockbuster dividend yield that is being offered to me FTSE 100 insurance Phoenix Group Holdings share price (LSE: PHNX).
At the time of writing it is yielding a strong 9.9% per annum. At times, the yield can stray into double digits.
This is my third purchase this year. I bought Phoenix shares in January and March, too. Like Depeche Mode, I can't get enough.
So is the dividend safe? However, Phoenix has an excellent track record of increasing profits over the past decade. The balance sheet is strong and the business is generating a lot of cash.
The dividend per share may only be up a few percent year over year but given the high starting point, that's fine with me.
Phoenix's share price is a mystery, however. decreased by 0.89% this past year. Hopefully it will grow when interest rates come down and the economy picks up, but there is no guarantee. Ah, at least I'll get some money.
Phoenix shares pay dividends Ex 26 September. I can't resist buying more before then. Next pay date is 21st October and I am looking forward to receiving the funds in my account. I will reinvest it back into Phoenix shares.
Harvey Jones is a shareholder in Phoenix Group Holdings.
Uber Technologies
What it does: Uber is a technology company that provides transportation and food delivery solutions.
Written by Edward Sheldon, CFA. Uber (NYSE: UBER ) shares have been going up and up lately and I've been buying them on the dip.
There are several reasons why I have money in this company. One is that it is well placed to benefit from the growth of the tourism industry over the next decade. When people arrive at an international airport, they often take an Uber to their hotel.
Another is that the company has started rolling out digital ads on its apps. Digital advertising can be very profitable and exposure to this sector could drive Uber's revenue and earnings even higher in the coming years.
The one risk I am wary of with this stock is that Tesla'robo-taxi' systems. If Tesla were to successfully launch an autonomous taxi service, it would disrupt Uber's business model.
I expect Uber to give Tesla a run for its money in the robo-taxi space, however, given the popularity — and global reach — of its app. I'm excited about the talent here.
Edward Sheldon is a shareholder in Uber Technologies
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