There are several stocks I’d like to buy right now.
A surge higher may be coming for the stock market, and for some good reasons.
Positive developments
For example, FTSE shares on the London market have been cheap in terms of valuation for some time.
And there’s a good chance we are near the end of the interest rate raising cycle. Indeed, inflation numbers have been falling.
There’s also some faint hope that the war in Ukraine is heading ever-nearer to its conclusion and the crisis may even begin to recede soon.
On top of all that, there’s no denying many investors are turning positive. And they’ve been buying FTSE shares like mad. That’s good, because improving sentiment is what it takes for a sustained bull market to gather pace.
But I think investor optimism is based on good foundations. Many businesses have been surprising the market with the strength of their trading and financial outcomes – not all, but many.
I’ve believed for a while that an enduring and sustainable bull market is coming for FTSE shares. And now I’m optimistic that we’ll see a meaningful rise in share prices as the summer ends and investors get down to business again.
But whether it comes this year, next, or even later, I’m not waiting. My portfolio is full and I’m looking to buy more cheap FTSE shares when new cash arrives.
FTSE stocks to consider now
For example, I like the look of international banking giant HSBC Holdings.
As with all listed banks, the valuation has appeared modest for some time. But HSBC looks like it’s on course to deliver impressive rises in the shareholder dividend ahead.
And if general economic recovery unfolds as seems likely, investors could see capital growth from a rising share price too.
But I’d also focus on fast-moving consumer goods business Unilever.
Growth looks set to become a feature of the business again in the years ahead. But the valuation is quite modest considering the stock’s expensive history. Right now, with the share price in the ballpark of 4,175p, the forward-looking dividend yield is around 3.8% for 2024.
And given the steady nature of the business and its consistent cash flow, I find that yield to be attractive.
However, I’m also watching energy and oil company BP.
With the stock near 474p, there’s a forward-looking dividend yield above 4% and a low-looking valuation.
And now that oil and gas prices have settled down, I think it’s a case of business as usual for the firm.
To me, that means ongoing cash flow and dividends from a business that looks set to be a big player in modern energy trends and the transition to net zero.
Of course, a surge in the stock market during 2023 isn’t guaranteed. And these stocks may not do as well as hoped.
All businesses can face specific challenges and setbacks from time to time. And all stocks carry risks as well as positive potential.
Nevertheless, when new cash arrives for me I’ll likely embrace the risks and buy some of these stocks to hold for the long haul, ahead of the next market surge.
