2 FTSE 100 shares to buy in September

The FTSE 100 index continues to make gains, which is an encouraging environment for investors to make lucrative choices. Here are two that Manika Premsingh is considering.

| More on:

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.

The FTSE 100 index has had a pretty good August. Barring any dramatic change in the index in later trading today that disproportionately impacts the index, it should end the month around 1.3% higher than in July. This would be the fastest increase seen in three months. 

This indicates continued investor optimism, and in the absence of any unmanageable risks, bodes well for it too. A number of stocks look good in this environment. But two of them have recently caught my attention as good potential buys. 

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

#1. Bunzl: robust financials

The FTSE 100 distribution services company released an encouraging half-year report for 2021 recently. It showed a 6.3% revenue increase and 12.3% pre-tax profit rise. Bunzl (LSE: BNZL) supplies disposable consumer products, including those used for catering and hygiene. This means that some of its business sagged during the pandemic. However, there was an uptick in demand for personal protection products. This second trend held it in good stead. 

In fact, it expects “enhanced hygiene trends” to be a growth driver during the remainder of the year too. It adds to the overall buoyancy expected from the economic recovery. Another positive for Bunzl is that it pays a dividend, with a yield of around 2%.

However, its share price has run up a fair bit. As per my estimates, its current price-to-earnings (P/E) ratio is north of 40 times. This makes it pricier than some other promising FTSE 100 stocks, suggesting that a bigger dip can be in store for it as investor attention is turned to cheaper stocks for now. In September, I will wait for its price to dip further and buy it then. 

#2. Just Eat Takeaway: share price dip

The share price for the food delivery app Just Eat Takeaway (LSE: JET) fell by 6% in the past week. Its share price has recovered slightly in today’s trading so far, but whether it sustains the improvement remains to be seen. 

A couple of developments could be weighing on the stock. One, it is expected to exit the FTSE 100 index soon as it is more of a Dutch than a British company. Two, the New York City Council just imposed caps on the commissions charged by such apps. The company recently acquired Grubhub which could be hit as a result, since it accounts for 37% of the city’s sales through food delivery apps. Growth in the US market is already slowing down. And the company is loss-making at present as well. Lack of pricing power adds to this mix of challenges.

Nevertheless, I think it is still growing quite well and the food delivery market has much potential that can be realised in the coming years. Moreover, its share price has crashed in the past year, down by 25%, making it a far more affordable stock now. Going by how rewarding it has been for me to hold the stock of its peer Deliveroo, so far, I am encouraged to buy Just Eat Takeaway in September. 

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Manika Premsingh owns shares of Deliveroo Holdings Plc. The Motley Fool UK has recommended Bunzl and Just Eat Takeaway.com N.V. 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.

More on Investing Articles

Social media and digital online concept, woman using smartphone
Investing Articles

Apple stock: Buffett is long, Burry is short. What should I do?

Our author thinks about whether following Warren Buffet into Apple stock might be a good addition to his portfolio –…

Read more »

Close-up of British bank notes
Investing Articles

5 ‘no-brainer’ dividend shares to buy today

Is there an easy way to narrow down the list of FTSE 100 dividend shares? I try one approach, with…

Read more »

Close-up of British bank notes
Investing Articles

£5,000 to invest? 2 dividend-paying penny stocks I’d hold to 2030

I think these high-yielding penny stocks could help cushion the impact of high inflation on my returns. Here's why I'd…

Read more »

Renewable energies concept collage
Investing Articles

2 green stocks that I think are no-brainer buys for the future

Jon Smith explains two of his favourite green stocks at the moment, one for growth and the other for income…

Read more »

An airplane on a runway
Investing Articles

The Rolls-Royce Share price may be set for take-off!

After an upbeat Civil Aerospace Investor Day, here's why I think the Rolls-Royce share price could be set for take-off…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

2 beaten-down growth stocks to buy as inflation rises

Despite inflationary pressures and recession concerns, I am looking at some top growth stocks to solidify my portfolio over the…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Is the IAG share price too good to miss at current levels?

Jabran Khan delves deeper into the current state of play with the IAG share price and decides if now is…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

5 of the highest-paying income stocks compared! Which one is best for my portfolio?

Income stocks are certainly in vogue right now amid sky-high inflation. But which of these big dividend payers is the…

Read more »