Every month, we ask our freelance writers to share their top ideas for shares to buy with investors — here’s what they said ahead of August!
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Antofagasta
What it does: Antofagasta is a FTSE 100 mining stock that owns a string of copper projects in northern and central Chile.
By Royston Wild. I think copper prices could rise in the weeks and months ahead, pulling share prices across the mining complex higher. Antofagasta (LSE:ANTO) is a UK stock I’d buy to capitalise on this scenario.
Copper demand from major consumer China remains solid and should remain robust as the country’s central bank steps in to support the economy. Meanwhile, production of the bellwether commodity remains mixed and scrap markets are tight.
Copper stocks at the London Metal Exchange are already alarmingly low and dropped to levels not seen since late 2021. Such tightness bodes well for prices during the second half of the year.
I’d buy Antofagasta shares to benefit from any near-term boost to metal prices — and I’d aim to hold onto them for the long haul. I expect demand for its essential product to rise strongly as renewable energy investment heats up and electric vehicle sales steadily increase.
Royston Wild does not own shares in Antofagasta.
HSBC
What it does: HSBC is one of the world’s largest banks, with operations in over 60 countries.
By Charlie Keough. It’s been a strong year for the HSBC (LSE: HSBA) share price, up around 20% as I write. And I expect this to continue.
My main attraction to the bank is its global diversification. It operates in a host of regions, with a large proportion of its profits generated from Asia. This makes the business less prone to country-specific issues, such as inflationary pressures in the UK.
An additional attraction to HSBC is its dividend yield. The stock currently offers a yield of 4.8%, sitting above the FTSE 100 average. To add to this, it also looks cheap, with a price-to-earnings ratio of just 7.
Although a benefit, the bank’s global exposure could be cause for concern. And with nations such as China posing a threat with ongoing geopolitical tensions, this could hinder HSBC’s operations.
However, I think the opportunities that the firm’s emphasis on Asia offers in the long term outweigh any potential short-term concerns. As such, HSBC is my pick for August.
Charlie Keough does not own shares in HSBC.
MJ Gleeson
What it does: Sheffield-based MJ Gleeson builds homes and promotes land through the planning system for residential development
By Paul Summers: The best time to buy shares is often when most people won’t. As insultingly simple as that sounds, this is why I think MJ Gleeson (LSE: GLE) is worth a look.
A toxic combination of rising interest rates and the cost-of-living squeeze has sent the shares down nearly 20% in the last year.
Of course, there could be worse to come. However, the small-cap’s focus on affordable housing in the North of England and the Midlands could be its saving grace.
Since the need for new homes won’t disappear, MJ Gleeson might see more resilient demand than its more luxury-focused peers. In fact, any chinks of light could see the stock soar in value given that a recession appears priced-in.
Although the income can never be guaranteed, there’s also a secure-looking 3.3% dividend yield to keep investors patient until sentiment recovers.
Paul Summers does not own shares in MJ Gleeson.
Scottish Mortgage Investment Trust
What it does: Scottish Mortgage invests globally in high-growth companies across both public and private markets.
By Ben McPoland. I think the macroeconomic picture is starting to look better for Scottish Mortgage Investment Trust (LSE: SMT). Inflation is finally cooling and we might be nearing the end of the rate hiking cycle.
Indeed, interest rates might even start to come down next year, which would be a bullish development for the sort of high-growth stocks that the trust holds.
Not that any of this optimism is currently reflected in Scottish Mortgage shares. As I write, they’re still trading on a net asset value (NAV) discount of 19%. Clearly the market is yet to be convinced, which is a concern.
Yet I can’t help thinking this presents an opportunity for long-term investors. I mean, the trust’s portfolio is packed with companies at the forefront of artificial intelligence (AI). From Nvidia and ASML to Amazon and ByteDance (owner of TikTok).
Where else am I going to get discounted exposure to this revolutionary theme right now? Not many places, it seems, except with this trust.
If I didn’t already own so many shares, I’d buy more now.
Ben McPoland owns shares in ASML, Nvidia and Scottish Mortgage Investment Trust.
