I don’t have limitless funds to invest with. But here are three top FTSE 100 shares I’d like to buy when I have some spare cash to make big profits over the next 10 years.
JD Sports Fashion
No UK retail share is totally safe as the cost-of-living crisis endures. Spending on all non-discretionary items is in danger as the prices of essentials balloon.
This poses a challenge for sportswear business JD Sports (LSE:JD). But it’s a threat I think is baked into the company’s rock-bottom share price. Today, it trades on a forward price-to-earnings (P/E) ratio of just 9.3 times.
Besides, I believe JD retains terrific long-term investment potential. It’s a market leader in athleisure with positions across Europe, North America and Asia. And this is a market which is tipped to keep growing rapidly.
Analysts at Market Research Future think the market for hoodies, track bottoms and other comfortable apparel will exceed $842bn by 2028. That represents a compound annual growth rate of 10.33% over seven years.
B&M European Value Retail
Investors worried about retail conditions in the short-to-medium term might prefer B&M (LSE:BME) to JD.
Weak consumer confidence and spending power usually plays into the hands of low-cost retailers. In fact, like-for-like revenues here rose 2% in the three months to September.
The trouble here is extreme margin pressure due to higher costs. B&M’s adjusted EBITDA margin crumbled 2.4% between April and September (to 10%).
However, I’m encouraged by the steps the firm is taking to overcome this problem. Better stock management and cost-cutting means margins could pick up again from recent months.
As a long-term investor, I’m attracted to B&M’s commitment to store expansion. Like athleisure, value retail is tipped for strong growth over the next decade. And the retailer is aiming to increase its store numbers by a third (to 950) to make the most of this opportunity.
Like JD, B&M shares look attractively cheap on paper. It trades on a forward P/E ratio of 11.2 times. The company provides a healthy 4.1% dividend yield as a bonus too.
SSE
I’m also excited by the investment potential of the green energy revolution. I own shares in electric car component manufacturer TI Fluid Systems and renewable energy investment firm The Renewables Infrastructure Group.
I think buying SSE (LSE:SSE) stock could be a great idea too. It’s supercharging investment in renewables to profit from the transition from fossil fuels and plans to double its green energy capacity to 8GW by 2026.
The company is building the world’s largest offshore wind farm at Dogger Bank. The site will be capable of powering 6m homes when completed in four years time. And SSE recently started work on the underground Aldbrough hydrogen storage facility, also one of the biggest on the planet.
SSE’s shares also look like excellent value for money today. The firm trades on a forward price-to-earnings growth (PEG) ratio of 0.4, way below the value benchmark of 1. It boasts a 5.5% dividend yield as well.
I’d buy the energy giant even though asset development problems would damage earnings forecasts.
