The Motley Fool

2 stocks I’d invest £1,000 in today

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

View of a gold mine from above
Image source: Getty Images.

Deciding which stocks to invest in is never easy. Doing so after the FTSE 100 has dropped by nearly 10% in a matter of weeks may make it even more difficult. However, there remains a number of sectors which could offer high growth potential at a reasonable price.

One example is mining. It’s been relatively unpopular in recent years, with commodity price falls causing profitability across the industry to come under pressure. However, with the prospects for a number of miners now improving, this could be a good opportunity to invest in these two related shares.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Improving outlook

Releasing an exploration update on Wednesday was gold miner SolGold (LSE: SOLG). The company reported that two diamond drill rigs are set to mobilise in March, with the target for drill testing being the Aguinaga prospect. It’s a highly prospective copper gold porphyry target that has required a detailed assessment since the discovery of the outcrop. However, progress has been made and five high-priority drill targets have been identified. In the company’s view, they are compelling due to the coincidence of diagnostic anomalies in key supporting datasets.

Clearly, SolGold is a relatively small business which is highly dependent upon the quality of news it releases. However, its shares could benefit from what may prove to be a purple patch for the gold price. With the risks from higher global inflation contributing to the fall in stock markets across the globe, investors may increase their demand for the precious metal portfolios. In such a situation, gold miners and explorers could rise in value, which may mean that now is the right time to buy for the long term.

Encouraging progress

Also offering upside potential within the mining sector is Anglo American (LSE: AAL). The company has experienced a challenging period, with its profitability coming under severe pressure. However, this provided it with the opportunity to make major changes to its business model. It has made several asset disposals as it has sought to become more efficient and streamlined. This is expected to lead to improved profitability over the long run.

Despite this, Anglo American continues to trade at what appears to be a discount to its intrinsic value. For example, it has a price-to-earnings (P/E) ratio of 9.8. This suggests that investors remain cautious about its future prospects. But with dividends having recommenced following a suspension, the company’s management team seems to be upbeat about its future profit potential.

Certainly, commodity price falls could hurt the stock’s performance. And while the outlook for the global economy remains upbeat, there is no guarantee that prices will rise. But with a wide margin of safety and an improving business model that seems to be more sustainable, the company’s shares could deliver capital growth in the long run. As such, now could be a perfect time to buy them.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Peter Stephens 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.

Our 6 'Best Buys Now' Shares

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.

Simply click below to discover how you can take advantage of this.