3 stunning FTSE 100 shares I plan to buy in October 

Our writer identifies three stocks on the FTSE 100 he feels would add the variety of growth, income and stability to his own portfolio.

| 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.

Young woman holding up three fingers

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.

UK investors have a variety of shares to choose from on the FTSE 100. Growth shares promise high returns, dividend shares pay regular income and value shares appreciate over time. And don’t forget defensive shares, providing a buffer when the economy goes loopy!

By constructing a well-balanced portfolio of different shares, investors can reduce risk and aim for stable growth over time.

I’m always on the lookout for new and promising shares to spice up my portfolio. So here are three I plan to buy in October.

Should you invest £1,000 in Primary Health Properties 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 Primary Health Properties made the list?

See the 6 stocks

Growth

I considered buying JD Sports Fashion (LSE: JD.) shares earlier this year but decided against it. Soon after, the company issued a profit warning and the price spiralled! The warning was due to significantly lower spending in 2023 due to inflation.

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

Sports and fashion are both areas consumers tend to reduce spending on when money’s tight. Things are improving now but another upset could hurt the company’s profits again.

So with the price up by 50% since February, is now the time to buy? Goldman Sachs thinks so — the broker put in a Buy rating on the stock last month.

Its metrics look good too. The price-to-earnings (P/E) ratio’s 15.4 and the price-to-sales (P/S) ratio is 0.8. It’s also trading at 32% below fair value, based on future cash flow estimates.

That all suggests strong growth potential, in my opinion. 

Dividends

Rio Tinto‘s (LSE: RIO) a UK-based mining conglomerate with operations in Africa and Australia. It’s a 151-year-old company with an £80bn market-cap, so it’s fairly well-established. That makes it a more reliable choice for long-term dividends.

Created with Highcharts 11.4.3Rio Tinto Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

At 6.8%, it has the ninth highest yield on the FTSE 100. Dividends have increased at an average rate of 14.62% a year for the past 15 years.

But while the dividends look good, price growth could be at risk. With 60% of the company’s revenue coming from China, the stifled Asian economy there could hurt its profits. This has been noted by analysts, who forecast earnings per share (EPS) to decline at a rate of 0.8% a year.

If that gets worse it could threaten future dividends but, for now, it looks like a great earner to me.

Defensive

AstraZeneca‘s (LSE: AZN) the largest company on the Footsie with a market-cap of £185bn. The pharma giant has a very stable price with minimal volatility during economic crises. It also has comparatively slow growth, increasing at an annualised rate of 5% a year since 2014. Those are both common attributes of a defensive share.

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

Patent expiry’s a common risk with pharmaceutical companies and can lead to revenue loss. AstraZeneca has poured money into R&D to mitigate this risk but it’s ever-present. 

In July, it posted moderate Q2 results with a 13% increase in revenue and 6% earnings growth. Earnings-per-share (EPS) came in slightly below analyst expectations and profit margins fell by 1%. But as a defensive share, I don’t expect spectacular growth from AstraZeneca — only that its stable price allows me calm and restful sleep patterns.

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

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.

Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended AstraZeneca 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

Here’s the dividend forecast for Rolls-Royce shares as Trump rocks the markets

Rolls-Royce shares have joined in the volatility over the past week. However, with the direction being largely downwards, the dividend…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Dividend yields of up to 11%! Here are 3 UK passive income stocks to consider

Searching for ways to supercharge your passive income with UK dividend stocks? Here are three that have grabbed our writer's…

Read more »

Young Caucasian woman at the street withdrawing money at the ATM
Investing Articles

£10,000 invested in NatWest shares at the start of 2025 is now worth…

NatWest shares surged into 2025, but things have become a little more complicated in recent weeks. Dr James Fox explores.

Read more »

Investing For Beginners

Why the FTSE 250 could outperform the FTSE 100 for the rest of the year

Jon Smith explains why the FTSE 250 could do better than its big brother when factoring in domestic exposure and…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Tariff fears send the Lloyds share price tumbling, but the dividend yield is climbing

Just when the Lloyds Banking Group share price had been rising steadily, along comes a global upheaval to knock it…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

Here’s how a stock market crash could help an investor retire years early

A stock market crash can be alarming -- but for the well-prepared investor, it can also be an exceptional opportunity…

Read more »

Investing Articles

1 key fact to remember in this stock market correction

This writer takes a look at a FTSE 100 investment trust that is catching his eye after the recent massive…

Read more »

Investing Articles

I was wrong about the Tesla stock price!

Tesla stock's been affected more than most by ‘Liberation Day’. But our writer has other concerns about Elon Musk’s company.

Read more »