Investing alongside you, fellow Foolish investors, here’s a selection of stocks that some of our contributors have been buying across the past month!
BP
What it does: BP is one of the largest oil and gas companies in the world. Based in the UK, it operates in 70 countries worldwide.
By Charlie Keough. I recently took the opportunity to increase my position in BP (LSE: BP.) with some investable cash I had.
I first bought some shares back in February before topping up my position in March. However, trading on a price-to-earnings ratio of 7.4, I think the stock still looks too cheap.
What’s more, I also like it as a passive income play. It yields 4.3%. That’s nowhere near the highest on the FTSE 100. Nevertheless, the firm is targeting $14bn in share buybacks by 2025, which shows its commitment to return to shareholders.
The biggest threat the company will face in the times to come is the green revolution. It has come under heightened scrutiny in recent years.
However, I think fossil fuels will be sticking around for a bit longer than what was anticipated. The original net zero target of 2050 now looks like it’ll be pushed back. Oil demand is expected to keep rising for the remainder of the decade and even beyond that.
Even so, BP has made solid strides in moving to a greener future. We saw this recently with its acquisition of Lightsource, a world-leading developer and operator of solar and battery storage.
Charlie Keough owns shares in BP.
Fresnillo
What it does: Fresnillo is the largest primary silver producer in the world, and Mexico’s largest gold producer.
By Andrew Mackie. Investing in precious metals stocks has been deeply frustrating over the past few years. It has quite simply been brutal with investor sentiment being so low and the industry being starved of capital.
However, one buyer that has been accumulating gold hand-over-fist has been foreign central banks. This has helped push the price of the yellow metal to an all-time high recently. But what really excites me about Fresnillo (LSE: FRES) is its play on silver.
In the last two months the price of silver is up 28% and is at its highest level since the Covid crash. The metal is known for acting very explosively. That is why I have been tracking its price very closely over the past few months. When I saw gold decisively break out beyond $2,000, I bought more shares in the miner.
Of course, there have been false dawns before. If this rally peters out, then its share price will undoubtedly fall back. On top of that, the company continues to suffer with production challenges. These problems have weighed on its share price for some time.
But ultimately, gold and silver are the perfect inflationary hedges. And I continue to believe that the inflation narrative is far from dead. That is why I like the stock so much.
Andrew Mackie owns shares in Fresnillo.
hVIVO
What it does: hVIVO is a world leader in designing and running human challenge clinical trials.
By Ben McPoland. I recently added to my holding in hVIVO (LSE: HVO) after the shares pulled back 10% to 26p.
This is a small contract research organisationspecialising in the area of human challenge trials. These involve exposing volunteers to pathogens in a controlled environment to study diseases and test vaccines.
This is a profitable niche, as evidenced by the firm’s record 2023. Revenue increased 16% to £56m while EBITDA surged 44% to £13m. And with a year-end cash position of £37m, the company was confident enough to declare an annual dividend moving forward.
For 2024, management expects revenue of £62m, with 90% of this already contracted. By 2028, it is forecasting revenue of £100m, and a new 50-quarantine-bedroom facility in Canary Wharf to support this growth has been built.
As I write, hVIVO has a market cap of just £181m, which means it’s still a small-cap stock. So a fair bit of volatility can be expected here.
However, with the shares trading at a reasonable forward price-to-earnings multiple of 19, I saw this as a great opportunity to increase my position.
Ben McPoland owns shares in hVIVO.
M&G
What it does: M&G is an asset manager with millions of customers in nearly 30 markets worldwide.
By Christopher Ruane. After going ex-dividend recently, M&G (LSE: MNG) shares moved down – and I bought.
When it comes to dividends, M&G is notable for its beefy payouts. With a yield of 9.7%, it is among the most rewarding FTSE 100 income shares at the moment.
The firm has raised its payout annually in recent years, in line with a stated policy of aiming to maintain or increase the per-share payout each year. Thanks to a share buyback, though, it now spends less in total on dividends than it did several years ago, despite offering a higher dividend per share.
With a strong brand, large customer base and ongoing demand for asset management, I think M&G is set to perform well in coming years.
Rocky stock markets might lead some customers to pull out funds, hurting profits. But as a long-term investor, I think M&G shares offer me value.
Christopher Ruane owns shares in M&G.
Marks & Spencer
What it does: M&S is a British multinational retailer specialising in clothing, beauty and food products.
By Mark David Hartley. Marks & Spencer Group (LSE:MKS) is finally getting its groove back, with JPMorgan upgrading its rating on the stock in early April. The food side of the business has begun performing well and consistently delivering strong sales. It’s also revamped the clothing division with a greater focus on quality and style.
That said, it’s not entirely without risk. Recent price performance has been disappointing, with the price down 10% this year. Profit margins haven’t exactly been stellar either and competition is fierce. With lingering Brexit complications threatening supply chains and rising food costs squeezing profits, M&S has some challenges ahead.
But considering its loyal customer base and a wealth of top locations on British high streets, I still think it’s a solid investment. If the UK economy can hold out, I see no reason to believe M&S won’t deliver decent returns in the long run.
Mark David Hartley owns shares in Marks & Spencer.
MercadoLibre
What it does: MercadoLibre is Latin American e-commerce platform covering marketplace, payment processing, and logistics.
By Stephen Wright. MercadoLibre (NASDAQ:MELI) was one of the hot growth stocks of the pandemic – and I thought it was badly overvalued. Since then, though, a lot has changed.
The underlying business has grown rapidly, while the share price is slightly lower than it was at the end of 2020. As a result, that lofty valuation doesn’t look so stretched at today’s prices.
MercadoPago – the company’s payment platform – is a good illustration of this. Over the last four years, total payment volumes have more than quadrupled.
It would be a mistake to overlook the risk coming from high inflation in Argentina. As the country tries to get rising prices under control, an economic slowdown seems almost inevitable.
That would be a real challenge for MercadoLibre, but I think the 7.5% decline over the last month has made the stock an attractive prospect for the long term. That’s why I’ve been buying it.
Stephen Wright owns shares in MercadoLibre.
Uber Technologies
What it does: Uber is a technology company that offers mobility and food delivery solutions globally.
By Edward Sheldon, CFA. Uber (NYSE: UBER) shares recently pulled back after Tesla mentioned ‘robotaxis’ and I took the opportunity to buy the dip.
One reason I’m bullish here is that the company’s profits are currently rising at a spectacular rate. This year, earnings per share are forecast to jump more than 50%.
Another is that the company is making some big moves in the digital advertising space. Looking ahead, advertising could be a whole new growth driver for the business (it aims to achieve $1bn in ad revenues this year).
Now, competition from Tesla in the robotaxi space is a key risk in the long run. However, Uber has a major head start here (it already has self-driving taxis on the road in some US cities), so I’m backing it to be successful on this front.
Overall, I think the global ride-sharing company has a lot of long-term investment potential today.
Edward Sheldon owns shares in Uber Technologies
