2 of the best performing FTSE 100 shares so far in 2024 look like no-brainer buys to me!

These FTSE 100 shares have been on good runs in 2024, and look like they might still be savvy buys for returns and growth, according to this Fool.

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I was recently reviewing the best FTSE 100 shares by share price performance in 2024 to date. A few familiar names stood out.

However, two picks I want to cover in more detail today are DS Smith (LSE: SMDS) and Beazley (LSE: BEZ).

Here’s why I’d love to buy some shares in both picks when I next have some funds to invest.

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

DS Smith

International packaging firm DS Smith has been around for a long time, approximately 70 years in fact. I must admit packaging isn’t the most riveting business. However, I’m more interested in shareholder value, and DS Smith ticks this box nicely.

The shares have been on a good run recently. Over a 12-month period, they’re up 64% from 286p at this time last year, to current levels of 470p. In 2024, they’re up 53% from 306p, to current levels.

DS Smith has a fantastic track record of performance, including churning out earnings and profit growth for many years. Although I do understand past performance isn’t a guarantee of the future, I can see this trend continuing. The changing habits of shopping and the e-commerce boom has led to huge demand for packaging.

From a returns view, the shares offer a dividend yield of 3.8%, which sweetens the investment case. However, I do understand that dividends are never guaranteed.

Finally, the business continues to adapt to future trends and appeals to ESG investors through the use of its environmentally friendly packaging alternatives. This could help future-proof earnings.

Two issues I’ll keep an eye on are DS Smith’s valuation, as well as inflationary pressures. The shares trade on a price-to-earnings ratio of 17, so any dent in earnings could send the shares tumbling. Inflation is a worry as a rise in cost of raw materials could dent profitability and returns.

Beazley

Lloyds of London insurance firm Beazley deals in speciality insurance risk and reinsurance. Like DS Smith, it’s hardly exciting, but nevertheless the business looks like a solid investment to me.

The shares have also done well, up 40% over a 12-month period, from 537p at this time last year, to current levels of 754p. In 2024 to date, they’re up 44% from 522p, to current levels.

Created with Highcharts 11.4.3Beazley Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I can see why the shares have been on a great run this year, and excellent interim results revealed earlier this month helped the ascent. The main takeaways for me were that profit before tax increased by a whopping 99% compared to the same period last year. Furthermore, insurance written premiums, and earnings per share also grew impressively.

From a fundamentals view, the shares look excellent value for money on a price-to-earnings ratio of just over four. Plus, a dividend yield of 1.9% helps my investment case.

Looking at the bear case, insurance firms like Beazley are at the mercy of disasters or catastrophes. These can dent earnings, when payouts are needed. A prime example of such an event is last month’s IT outage which impacted millions. Although unavoidable, it is something for me to bear in mind.

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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.

Sumayya Mansoor has no position in any of the shares mentioned. The Motley Fool UK has recommended DS Smith. 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.

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