Up 18% and 12% in a month, but I think these stunning FTSE 100 shares can keep climbing!

Harvey thinks these two fast-growing FTSE 100 shares aren’t done yet. He’d love to buy them both before the next growth spurt.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

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.

Two FTSE 100 shares smashed it in September but still look good value. Should I buy them today?

Shares in international sports betting and gambling company Entain (LSE: ENT) have jumped 18.38% over the last month. However, they’re still down 45.3% over one year.

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

This tells me two things. First, Entain has taken a real beating until very recently. Second, it has plenty of scope to make up lost ground.

Should you invest £1,000 in Bunzl Plc 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 Bunzl Plc made the list?

See the 6 stocks

Can Entain shares carry on growing at this speed?

The Entain share price got a real boost on 8 August, after the board upgraded full-year guidance following a strong second quarter. The Euros football tournament helped, as results went in Entain’s favour. First-half net gaming revenues jumping 8% to £2.6bn. Sadly for Entain, there isn’t a major football tournament every month. So there’s a risk that second-half earnings could disappoint.

The group is still recovering from former CEO Jette Nygaard-Andersen’s acquisition-fuelled dash for growth, which included its 50:50 BetMGM joint venture with MGM Resorts International.

Gaming industry veteran Gavin Isaacs, who took charge on 2 September, is expected to steady things. Entain needs to knuckle down to the hard work of squeezing out the revenues. But they seem to be heading in the right direction, as this chart shows.


Chart by TradingView

Entain doesn’t look expensive trading at 14.45 times earnings. The dividend yield of 2.82% has room to grow. With a huge US gaming market to aim for, I’m optimistic about its prospects. Yet I think the shares might idle following the recent spurt. Gambling is a controversial area, with the constant threat of tougher regulation. I’ll still buy Entain when I have the cash, though.

Bunzl offers me both dividends and growth

I’m a long-term fan of unsung FTSE hero Bunzl (LSE: BNZL). Most people have never heard of the company. Nor have many investors. Yet it has a terrific track record of delivering dividends and share price growth.

Bunzl supplies items to other firms, everything from disposable coffee cups to cleaning materials, bandages, and rubber gloves for hospitals. Boring, but profitable.

The Bunzl share price jumped 12.19% last month after publishing warmly received half-year results on 27 August. Revenues slipped 3.3% to £5.71bn but investors chose to focus on a 3.9% increase in adjusted operating profit to £455.5m.

Better still, the board upgraded full-year guidance and launched a £250m share buyback with another £200m to follow.

Bunzl’s shares are up 24.63% over one year and 72.51% over five. I’m kicking myself for failing to buy the stock when I took a shine to it yonks ago.

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

While the yield is small at 1.92%, the board has increased dividends for 31 consecutive years. It’s a true Dividend Aristocrat. Last week, the board hiked the interim payout by an impressive 10.4% to 20.1p per share.

Bunzl has grown through acquisitions and completed another seven in the year to August, with a total committed spend exceeding £650m.

It’s not that cheap, though, trading at 18.69 times earnings. Also, the business is exposed to cyclical sectors of the economy, which could struggle if the US falls into recession.

However, I expect Bunzl to carry on climbing over the long term and only wish I had the money to buy it right now. I will buy it, though.

Should you buy Bunzl Plc now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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.

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Bunzl 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

Investing Articles

Prediction: 12 months from now, £5,000 invested in Tesla stock could be worth…

Tesla stock has endured a miserable year so far, falling by 29%. Muhammad Cheema takes a look at how it…

Read more »

Investing Articles

See what £10,000 invested in Tesla shares at their mid-December peak is worth today 

As the world absorbs the full scale of Donald Trump's tariffs, Tesla shares are reeling. Investors who bought the stock…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Dividend Shares

2 ‘safe’ LSE dividend stocks to consider as global markets sell off

As global markets experience high levels of volatility due to economic uncertainty, investors are piling into these ‘safe-haven’ dividend stocks.

Read more »

Investing Articles

US stock market rout: an unmissable opportunity for investors?

His tech-heavy portfolio has been smashed by Trump’s tariffs. However, Dr James Fox believes there could be some opportunities in…

Read more »

Investing Articles

After a 13% ‘Trump tariff’ fall, is the Barclays share price too cheap to miss?

Does the Barclays share price fall mean we should all panic and run screaming from the stock market? Nah, of…

Read more »

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

2 investment trusts to consider for a Stocks and Shares ISA

These two investment trusts have a different focus -- but our writer sees both as worth considering, one more for…

Read more »

Investing Articles

Deutsche Bank reiterates Buy rating on 9.6% yielding FTSE 250 stock that was “most shorted in UK”

Our writer investigates why a major broker remains optimistic about a FTSE 250 stock that was once the most shorted…

Read more »

Investing Articles

2 things to remember when stock markets are turbulent

US trade policy has rattled the stock markets in New York, London and elsewhere. Our writer outlines a couple of…

Read more »