These 2 FTSE 100 stocks have been soaring! I’d buy them today

This Fool has his eye on these two FTSE 100 stocks. After a strong 2024 so far, he thinks they could continue to climb.

| 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.

The FTSE 100 has been in good form this year. Plenty of stocks on the index have posted healthy gains. However, I have my eye on two constituents in particular.

If I had the cash, I’d happily add both to my portfolio today. Here’s why.

Marks and Spencer

First on the list is retail giant Marks and Spencer (LSE: MKS). The stock has posted a strong performance in 2024, rising 35.1%. In the last five years, its shares are up a thumping 98.2%.

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

See the 6 stocks

Created with Highcharts 11.4.3Marks And Spencer Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

It has kicked into life in recent times. After years of the business falling behind its competition, its share price suffered. However, with a solid turnaround strategy now in place, M&S shares are now gaining momentum.

Even after their rise, I think they still look like good value for money. They’re trading on a price-to-earnings (P/E) ratio of 17.9 and a forward P/E of 14.4. While that’s slightly above the FTSE 100 average of 11, I’m happy paying a premium for quality.

With Marks and Spencer, I think I’m getting just that. In recent years, the business has modernised its stores, improved the quality and value of its clothing ranges, and upgraded its e-commerce operations. After years of failing, it seems CEO Stuart Machin and his predecessor Steve Rowe have implemented a strategy that will help the firm return to its former glory. Last year, profits jumped by 58%. I’m optimistic it can keep this up going forward.

That said, it’ll face challenges. Inflation remains a threat. A rise in interest rates would likely see consumers cut back on spending. A delay in future interest rate cuts would also have the same impact.

But with inflation moving closer to the government’s target. And with more rate cuts predicted in the coming months, I’m bullish on the FTSE 100 constituent.

Unilever

Next up is Unilever (LSE: ULVR). Like its Footsie peer, the stock has put up a brilliant performance in 2024. Year to date, it’s up 27.8%.

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

There are a couple of reasons why I’d buy Unilever today if I had the investable cash. The first is because it’s a defensive stock. The products it sells are essential. Every day, over 3.4bn people use its goods. That means there should be steady demand regardless of external factors such as the strength of the economy.

On top of that, I like the stock for the passive income it provides. It has a dividend yield of 3%. That’s slightly lower than the FTSE 100 average of 3.6%. However, Unilever is a Dividend Aristocrat and has an impressive track record of rewarding shareholders.

While the products it sells are essential, they are slightly-more-premium brands. That means they come at a more expensive price. One threat with that is cheaper competition stealing customers. That threat is heightened during a cost-of-living crisis, when people are shopping around for the best deals.

But despite that, the business has posted impressive growth in recent years, even with tough trading conditions. I’m also excited to see where Unilever goes in the times ahead with its streamlining mission.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

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.

Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended 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.

More on Investing Articles

Investing Articles

£20K invested in Tesla stock last April is now worth…

Despite all the bad headlines lately, Tesla stock has put in a storming performance over a 12-month timeframe. Is this…

Read more »

Investing Articles

If a 40 year old invests £600 a month in a SIPP, here’s what they could have by retirement

With no retirement savings at 40, an investor could put £600 a month into a SIPP and grow its value…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Why hasn’t its 9.9% yield boosted the Phoenix share price?

Phoenix Group has a dividend close to double digits, but saw a weak share price performance in recent years. Christopher…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

With average 10% yields, these mid-cap FTSE shares could supercharge a passive income portfolio

Some of the best passive income gems can be found on the UK's smaller indexes like the FTSE 250 and…

Read more »

A coin being dropped into a piggy bank
Investing Articles

As the Barclays share price tanks 19% in 2 days, is this a great buying opportunity?

As a trade war sends the Barclays share price into a tailspin, Andrew Mackie steps back to look at the…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

Is Fundsmith Equity still a good choice for a Stocks and Shares ISA in 2025?

Many Britons hold the Fundsmith Equity fund in their Stocks and Shares ISAs. Is this still a good move? Edward…

Read more »

Investing Articles

Nvidia stock is down 24% this year. Time to buy the dip?

Christopher Ruane has been eyeing Nvidia stock as a potential addition to his portfolio for a while. Is a recent…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Down 25% since January, this resilient dividend stock’s catching my eye

Maintaining the UK’s rail, water, and energy infrastructure isn’t the most exciting business. But it has made this a solid…

Read more »