My 5 favourite FTSE 100 stocks to buy now

Harvey Jones would love to buy all five of these FTSE 100 stocks. He thinks they offer bags of share price growth and dividend potential.

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I’ve been drawing up a watchlist of FTSE 100 stocks to buy in the autumn and there’s lots to choose from right now. I’ve boiled my choice down to five to buy when I have the cash. I’m particularly excited about number three.

My first pick is oil and gas giant BP. Frankly, I just can’t believe how cheap its shares are right now.

The falling oil price is the obvious reason. Brent crude is now down to $73 a barrel, as Chinese demand slips and US recession fears grow. After falling 15.76% in a year, the shares are trading at a dirt-cheap valuation of just 6.21 times earnings while yielding a juicy 5.41%.

Should you invest £1,000 in JD Sports right now?

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Created with Highcharts 11.4.3Bp P.l.c. PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The BP share price could slide further if the outlook worsens but with a long-term view, I think it looks like an unmissable buy today.

I’m backing JD Sports Fashion to climb higher

I hold consumer good giant Unilever but would happily buy more. It’s on the mend after a turbulent time, and should resume its former role as a solid defensive portfolio holding.

The Unilever share price is up 23.06% in a year so it’s not as cheap as it was, trading at 22.63 times earnings. The yield is so-so at 3%. But I think there’s plenty of scope for earnings growth, which should drive investor rewards.

Created with Highcharts 11.4.3Unilever PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Now to my third pick. The one I really like. I bought trainer and sportswear retailer JD Sports Fashion (LSE: JD) in January, after a shock profit warning triggered by disappointing Christmas sales sent the stock into a spiral.

The JD Sports Fasion share price soared 18% in a week after results published on 22 August showed a solid 2.4% rise in like-for-like sales. The board said it remained on course to hit its pre-tax profit guidance range of £955m to £1.035bn, while the recent acquisition of Alabama-based retailer Hibbett will deepen its US exposure.

On 25 August, I wrote that JD Sports Fasion shares may take a breather after their blistering recovery, and so it’s proved. They’re down 6.67% in the last week. As a benchmark, the stock is up a modest 7.29% over 12 months. I think this is a good moment to top up my stake at a fair price.

Created with Highcharts 11.4.3JD Sports Fashion PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The company is nicely set for the future but there are risks, as recession fears linger and consumers continue to struggle. Trading at exactly 11 times earnings, I still can’t resist it.

I like to buy out-of-favour stocks and would add spirits giant Diageo to my buy list. Its shares are down 22.98% over 12 months, following a shock drop in Latin American sales. I’m a little concerned the world is losing its taste for alcohol, but still think there’s an opportunity here.

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

Finally, I’d buy high street retailer Next. Its long-term performance in a troubled sector has been stellar, the shares are up 44.3% over one year and 70.12% over five.

They’re not super-cheap, trading at 15.26 times earnings while the yield is low at 1.46%. But it’s a brilliant company that deserves its place in my list of top five FTSE 100 shares to buy. I only wish I’d snapped it up years ago.

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

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Harvey Jones has positions in Diageo Plc, JD Sports Fashion, and Unilever. The Motley Fool UK has recommended Diageo Plc and Unilever. 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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