Hargreaves Lansdown investors LOVE these FTSE 100 shares! Should I buy them?

These FTSE shares have attracted significant dip-buying interest in recent days. Should I follow the herd and pile in at current prices?

| More on:
Young Asian man drinking coffee at home and looking at his phone

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’m building a list of beaten-down FTSE 100 shares to buy for my portfolio today. I’m searching for winning companies that have fallen sharply more recently, but which have the potential to rebound strongly in time.

These two Footsie stocks have attracted significant dip-buying interest from Hargreaves Lansdown customers of late. In fact they are among the 10 most popular UK and US shares in the seven days to 6 March.

But which — if any — should I add to my Stocks and Shares ISA today?

St James’ Place

Financial services firm St James’ Place (LSE:STJ) has struggled to grow business during this tough economic period. But the biggest headache right now relates to scrutiny over its service levels and high charges.

It has set aside a staggering £426m to compensate customers following “a significant increase in complaints” over servicing, the firm announced last week. As a consequence, it slashed the total dividend by 55% in 2023, and said it would limit shareholder payouts to 50% of the underlying full-year cash result for the next three years.

The share price unsurprisingly plunged on the news. And Hargreaves Lansdown investors have been busy dip-buying the company in response, perhaps in hope that the charge draws a line under the problem. The firm attracted 1.31% of all buy orders on Hargreaves’ platform in the last week.

But I find it hard to get enthusiastic about this brusied company today. On the plus side, revenues across the financial services sector could rise sharply in the years ahead as people take greater control of their finances.

However, I’m worried about the reputational damage that’s been inflicted on St James’ Place. This can be crushing for businesses that look after peoples’ money. With the business subsequently overhauling its fee structure and scrapping withdrawal charges, profits will also be signficantly impacted for the next few years if not longer.

Right now the risks of owning this FTSE share are too great, in my opinion.


While I’m not tempted to buy St James’ Place shares today, I may consider opening a position in fast-moving consumer goods (FMCG) giant Reckitt (LSE:RKT).

This FTSE firm also collapsed last week following a disappointing trading update. However, it attracted 1.03% of all buy instructions from Hargreaves Lansdown clients in the past seven days.

Reckitt’s share price plunged on news of a hugely underwhelming end to 2023. While full-year like-for-like sales rose 3.5%, poor sales of cold and flu products meant that corresponding revenues slipped 1.2% year on year.

Broader sales grew weakly last year as price hikes prompted people to shop for cheaper brands. And it could remain an issue in 2024 too if interest rates fail to come down.

But as a long-term investor I’m still attracted by Reckitt’s shares. The company owns a huge stable of high-margin shopper favourites like Nurofen painkillers, Durex condoms, and Dettol disinfectants, demand for which should take off again when economic conditions normalise.

I also like the FTSE 100 firm’s broad geographic footprint that spans 68 countries. This provides solid exposure to fast-growing emerging markets that could give profits growth a significant boost.

I’ve been looking for an opportunity to buy Reckitt shares for some time. I’ll look carefully at adding it to my portfolio in the coming days.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown Plc and Reckitt Benckiser Group Plc. 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

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

Investing freedom — but inside a pension

Strapped consumers might be cutting back on investing, but they’re still keeping up their pension contributions. The only problem? A…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

Forget gold! I’d rather buy these 3 FTSE high-yielders in a Stocks and Shares ISA

Gold looks like a risky investment to me as the price hits an all-time high. I'm ignoring the fuss to…

Read more »

Young female business analyst looking at a graph chart while working from home
Growth Shares

This 55p UK stock could rise more than 300%, according to a City broker

This UK stock has fallen from above 800p to below 60p. But analysts at Citi believe it’s capable of a…

Read more »

Businesswoman analyses profitability of working company with digital virtual screen
Investing Articles

I think this FTSE 250 trust has all the right ingredients to lock in long-term profits

Today I'm examining the prospects of a private equity investment trust on the FTSE 250 that caught my attention recently…

Read more »

Young black man looking at phone while on the London Overground
Investing Articles

2 under-the-radar UK shares investors should consider snapping up

Two UK shares have caught the eye of our writer. She explains why investors should be taking a closer look…

Read more »

Investing Articles

Are these 2 ultra-high-yielding income stocks a good buy for me?

These two income stocks often split the debate amongst investors. So what does our writer think of them as potential…

Read more »

Senior woman potting plant in garden at home
Investing Articles

5% yield! This dividend stock could be great for my retirement

Our writer explains why this dividend stock appeals to her as she’s investing to build wealth to enjoy in the…

Read more »

A young Asian woman holding up her index finger
Investing Articles

I’d aim for a second income of £1,000 a month with this super-reliable dividend stock

I think a great way to build a second income stream is by investing in dividend stocks via a Stocks…

Read more »