Stock Watch: FTSE 100 shares For February 2021

There isn’t a doubt that the Covid-19 pandemic has had a major impact on the FTSE 100 and its constituents. Some shares have gained over the past 12 months, whereas many others have seen their worth fall.

Taking a look at FTSE 100 shares, most are nonetheless buying and selling decrease than what they have been 12 months in the past, simply because the pandemic was starting to take maintain within the UK. Certainly, 59 of the businesses within the Footsie have seen their share costs lower throughout that interval, whereas the index itself is down round 13%.

There have been indicators of a restoration in the previous few months, nonetheless. The index has gained 26% because the onset of the disaster final March.

I believe there are some FTSE 100 shares that also symbolize respectable worth for buyers in the mean time, together with Barratt Developments (LSE:BDEV) and Unilever (LSE:ULVR)

Constructing restoration

One UK inventory that I’m a fan of in the mean time is housebuilder Barratt Developments. As with many FTSE 10o shares, its worth has slid previously 12 months. Nonetheless, it has recovered properly within the brief  time period and has a historical past of progress.

The share value has grown 24% over the past three years due to demand for homes hovering throughout the UK and additional afield.

After the preliminary lockdown in March final yr, additional lockdowns and restrictions have been loosened for the development sector. Barratt mentioned it accomplished 9% extra properties within the second half of the yr than it did within the corresponding interval of 2019. The corporate mentioned this was a report variety of completions, and helped it to see a 1.7% rise in income throughout the identical time.

To me that sounds just like the housing market stays robust. Barratt has constructed a strong status over time as one of many go-to housebuilding corporations.

That mentioned, we all know from very current historical past that the housing market, greater than most, could be topic to booms and busts. Some will say that current robust efficiency from the housebuilders is the onset of a bubble that can finally burst.

I don’t subscribe to that view, nonetheless. I might add Barratt shares to my portfolio or ISA, as beneficial rates of interest are probably right here to remain for the foreseeable future, given the broader financial uncertainty current within the UK.

Model power

With a historical past of working within the promoting trade, I’m an enormous fan of corporations which can be in a position to construct shopper manufacturers successfully. That’s why I like shopper items large Unilever – the corporate behind names similar to Hellmann’s and Ben and Jerry’s.

The Unilever share value dipped final week after it reported a drop in underlying working revenue of 5.8% for the yr. This was worse than analysts had predicted, and Unilever might want to return to revenue progress if its share value is to comply with swimsuit.

Wanting deeper on the figures, nonetheless, that drop in income was closely affected by unfavourable alternate charges. The corporate additionally introduced it was upping its dividend for This fall, so I didn’t see the buying and selling replace as negatively because the market did.

With a robust model portfolio and the actual fact Unilever is investing into areas of accelerating progress, similar to India, and China, I nonetheless see loads of upside for the corporate and would add it to my portfolio in the present day.

A High Share with Monumental Development Potential

Savvy buyers such as you gained’t need to miss out on this well timed alternative…

Right here’s your likelihood to find precisely what has obtained our Motley Idiot UK analyst all fired up about this ‘pure-play’ on-line enterprise (sure, regardless of the pandemic!).

Not solely does this firm get pleasure from a dominant market-leading place…

However its capital-light, extremely scalable enterprise mannequin has beforehand helped it ship constantly excessive gross sales, astounding near-70% margins, and rising shareholder returns … in reality, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And right here’s the actually thrilling half…

Whereas COVID-19 might have thrown the corporate a curveball, administration have acted swiftly to make sure this enterprise is as properly positioned as it may be to experience out the present interval of uncertainty… in reality, our analyst believes it ought to come roaring again to life, simply as quickly as regular financial exercise resumes.

That’s why we predict now could possibly be the proper time so that you can begin constructing your individual stake on this distinctive enterprise – particularly given the shares look to be buying and selling on a reasonably undemanding valuation for the yr to March 2021.

Nathan Nail
I'm a young entrepreneur and I go by the name Nathan, I do prefer Nate as my nickname, I would like to thank you all for giving me this opportunity to prove myself. Mail me at [email protected]