I think these FTSE 100 shares could rocket in November

Things could get tricky for some FTSE 100 stocks as we approach the budget. But Paul Summers thinks some might still manage to do very well next month.

| 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.

Abstract 3d arrows with rocket

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.

Taking into account any fallout from a ‘painful’ budget, November could turn out be an ‘interesting’ month for our biggest companies. But I reckon some FTSE 100 shares still have the potential to do very well.

The recovery’s on!

Housebuilder Persimmon (LSE: PSN) already takes up a position in my Stocks and Shares ISA portfolio. And, so far, it’s been very kind to me. The share price has climbed 65% in 12 months and 16% since January.

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

No doubt a lot of this momentum’s come as a result of inflation coming down. This has allowed the Bank of England (BoE) to begin cutting interest rates. Since then, property sales have climbed 29% year-on-year, according to Rightmove‘s house price index.

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

See the 6 stocks

With UK inflation falling to a lower-than-expected 1.7% in September, I suspect BoE governor Andrew Bailey and co will announce another cut next month. So there could be (a lot) more upside ahead for Persimmon.

Too far, too soon?

A positive trading update from the business on 6 November might also move the needle in the right direction. Any improvement to the expected number of full-year completions will probably go down well. Back in August, the firm said that it was looking at 10,500, or so. This was already at the top end of its previous guidance.

But what I want and what I get might be very different. Any sector-related announcements from chancellor Rachel Reeves on 30 October could reverse sentiment. There are rumours the increase in the stamp duty threshold — brought in by the previous government — will not be extended, for example. That would add thousands of pounds to the average home purchase.

However, I always intended to hold my shares for the long term. If other investors get nervy in November, I may buy more.

Turnaround titan

Also reporting next month is retailer Kingfisher (LSE: KGF). Based on the performance in 2024, the news should be pretty encouraging. The share price has jumped 30% so far, partly due to the company lifting the bottom end of its annual profit outlook. If the latter’s raised again in November, things could get even better.

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

While not the bargain it once was, I wouldn’t say the stock’s overpriced on a price-to-earnings (P/E) ratio of 15 either. The 4% dividend yield‘s attractive too.

So why aren’t I reaching for that Buy button?

A favourite with shorters

One concern is that trading can be very cyclical with home improvements easily postponed in tricky economic times. Even bad weather’s enough to put someone like me off visiting B&Q.

Out of interest, Kingfisher said in September that demand for big ticket items continued to be weak. Will this dramatically improve as we move into winter and following a nasty budget? I’m not convinced.

I’m also concerned by the ongoing interest from short sellers. Right now, I can see that a fair few traders believe some of the recent gains will be lost.

Those betting against a company can be wrong. If this proves to be the case, they’ll usually rush to close their positions, turbocharging the share price. Perhaps this will happen in November.

But this state of affairs all looks a bit too risky to me. I’ll be watching from the sidelines.

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.

Paul Summers owns shares in Persimmon Plc. The Motley Fool UK has recommended Rightmove 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

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Investing Articles

These FTSE 100 dividend shares just got cheaper, thanks to President Trump!

Investors buying dividend shares can lock in bigger long-term yields when share prices take a tumble. These two just did…

Read more »

Investing Articles

At a 52-week low but Taylor Wimpey shares are forecast to rise 35% in a year and yield almost 9%!

Taylor Wimpey shares have had a rough ride but Harvey Jones says analyst forecasts are upbeat, while there is also…

Read more »

Investing Articles

As copper prices surge, Glencore shares are a steal at 270p

Andrew Mackie believes the extraordinary dislocation occurring in copper markets will be very supportive for the Glencore share price.

Read more »

Investing Articles

2 cheap shares to consider as Trump shocks markets

Dr James Fox examines several cheap shares, on paper at least, as markets experience a broad sell-off in reaction to…

Read more »

Investing Articles

10% dividend yield! Here’s a FTSE 100 share to consider in April for passive income

This FTSE 100 stock just soared past the 10% yield mark, making it a potentially lucrative option for investors targeting…

Read more »

Young black woman using a mobile phone in a transport facility
Investing Articles

3 FTSE 100 safe haven stocks to consider as trade wars bite

I'm confident in the long-term outlook for the FTSE index of stocks. But these blue chips may protect investors from…

Read more »

Investing Articles

Here’s how Trump tariffs could hand us some top passive income bargains

As tariff terror grips the stock market, it's time for passive income investors to steel our nerves and look for…

Read more »