Investing on your side, fellow foolish investors, here are some of the stocks some of our contributors have been buying over the past month!
Barclays
What it does: Barclays moves, lends, invests and secures money for customers and clients in more than 40 countries.
Written by James Beard. Barclays (LSE:BARC) is not the UK's best performing bank at the moment but I think it is the one with the most potential. That's why I bought some of its shares last month.
With a price-to-book ratio of 0.45, and a trailing 12-month price-to-earnings ratio of 7.1, the stock appears to offer good value. In 2026, analysts expect earnings per share to grow by about 60%, compared to their expected level of 2024. This is because the bank wants to improve its negative return on its backlog FTSE 100 peers.
However, there are risks. There is no guarantee that the swap plan will work and bank stocks can be volatile. Bad debts can also be a problem if the global economic recovery is stable.
But I have faith in the bank's chief executive who plans to cut costs by £2bn – and return at least £10bn to shareholders – over the next three years.
James Beard owns shares in Barclays.
First Solar
What it does: First Solar is one of America's leading solar energy companies, known for its thin-film solar panels.
Written by Oliver Rodianko. I bought it First Solar (NASDAQ:FSLR) recently after an improvement in its valuation.
Management is expanding its production capacity through two new facilities that will be operational by the end of 2025. This is essential to meet the ever-growing demand for solar energy. It also positions it as a significant competitor against Chinese solar companies.
Analysts expect the company to experience annual revenue growth of 35.5% in 2024 and 26% in 2025. If its valuation also expands, then gains over the next two years could be quite substantial.
However, China controls more than 80% of the solar global supply chain. These businesses could put pricing pressure on First Solar, preventing share price growth.
That being said, I'm a bullish Western green power guy. First Solar is one of the strongest US solar funds I know of.
Oliver Rodianko owns shares in First Solar.
Five Below
What it does: Five Below operates a network of boutiques that sell the best items for teenagers that are priced (mostly) at $5 or less.
Written by Stephen Wright. Shares in a US dealer Five Below (NASDAQ: FIVE ) is down 57% over the past 12 months. And they've gotten to the point where I think they look like a great deal.
This company is highly exposed to households with incomes below $50,000 per year. That makes the risk of a recession significant for business.
Despite this, Five Below has impressive growth prospects. It is looking to increase the number of its stores by an average of 12% per year over the next few years.
Often, this can include taking on debt. But with new stores breaking ground at the end of the year, the company may not need to expose its balance sheet to risk in order to achieve its goals.
As the stock fell to a price-to-earnings (P/E) ratio of 15, I saw my opportunity and took it. It's starting to come together, though, so I'm looking for another chance.
Stephen Wright is a shareholder in Five Below.
Taylor Wimpey
What it does: One of the UK's biggest housebuilders, building everything from houses to six-bedroom houses.
Written by Mark David Hartley. With the new Labor government about to come in, I have seen a renewed interest in building affordable housing. Affordable housing accounts for 21% of construction by Taylor Wimpey (LSE: TW.) in 2022, so it is good to profit from this operation.
Lower interest rates would also help but at the moment, the outlook for the UK economy remains unclear. Housing is very sensitive to this, so that presents a risk to the stock. Delays and unexpected costs are another concern, as conflict in the Middle East threatens the delivery of goods through the Suez Canal.
As the revenue forecast will increase, the stock's price-to-earnings (P/E) ratio could drop from 24 to 18 over the next 12 months. But that's still above the industry average, so growth may slow this year. Fortunately, it has an attractive yield of 5.8%, so it makes a good addition to my equity portfolio either way.
Mark David Hartley is a shareholder in Taylor Wimpey.
Xtrackers MSCI World Value UCITS ETF
What it does: The Xtrackers MSCI World Value UCITS ETF invests in hundreds of global stocks using a value strategy.
Written by Royston Wild. Buying a stock can have significant benefits for investors. I chose to increase my exposure to this category by opening a position in Xtrackers MSCI World Value UCITS ETF (LSE:XDEV).
Value stocks can deliver cash appreciation that outperforms the market over time as investors wake up from their cheapness. These stocks may also be more stable during recessions as their already low valuations indicate potential risks to profits.
This particular ETF tracks the performance of the MSCI World Enhanced Value Index, which includes 400 large and mid-cap companies across 23 developed markets. Big holdings include US technology stocks Cisco Systems, Qualcomm again IBM.
With a price-to-earnings (P/E) ratio of 9.6 times and a dividend yield of 5.19%, the fund offers excellent value for money.
On the other hand, this Xtrackers product may not perform well during a sustained bull market. During these times, investors tend to favor growth stocks over value stocks. But in the long run I hope it will prove valuable.
Royston Wild owns the Xtrackers MSCI World Value UCITS ETF.
Source link
