Meet the best (and worst) performers from my Stocks and Shares ISA in October

With investments up 14% and down 11% it’s been a volatile month for Stephen Wright’s Stocks and Shares ISA. But what should he do next?

| 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.

Little pumpkins and mandarines with painted faces for Halloween on wooden background

Image source: Getty Images

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.

It’s been a mixed month for my Stocks and Shares ISA. Most of my investments have been roughly in line with the FTSE 100 and the S&P 500, but a couple have stood out – good and bad. 

The top performer in my portfolio has been Rentokil (LSE:RTO) which climbed 14%, but the weakest was Chord Energy (NASDAQ:CHRD) which fell 11%. So what should I do about this?

Rentokil

The main catalyst for the big move in Rentokil shares was its Q3 trading update near the end of the month. Group revenues for Q3 were up 4.6% and organic sales increased 3.4%.

On the face of it, that’s not massively exciting. But both numbers are a big improvement on the 3.1% and 1.4% the firm reported at the end of Q2.

Rentokil made a huge acquisition in 2022 and the subsequent integration process seems to be taking forever. And I continue to see this as the biggest ongoing risk for the company.

On balance, though, I think there’s more growth to come from the business. And I still feel the stock looks cheap, though it’s not top of my list in November.

Chord Energy

There’s a very simple reason shares in Chord Energy fell in October. Oil prices fell below $60/bbl and that’s not a good sign for a company that produces and sells the stuff. 

The risk is that this continues. But I think the current downturn in oil prices might be a chance to add to my investment while the short-term outlook is less favourable. 

Chord has a clear decade’s worth of production ahead of it. And if – as I’m expecting – oil prices move higher over the long term, investors could stand to do very well. 

The firm has a big focus on returning cash to investors via dividends and share buybacks. This can exaggerate the natural cyclicality of oil stocks, but I see the downturn as an opportunity.

Next moves

Chord is one stock I’ve got an eye on in November, but it isn’t the only one. I’m looking at shares in the UK and the US that are high-quality companies at unusually cheap prices. 

In the UK, Judges Scentific is one name on my radar. The company is working through a difficult trading environment right now, but I like its long-term growth prospects. 

I’m also considering US tractor manufacturer CNH Industrial as an addition. I don’t know when crop prices that have caused sales to falter are going to recover, but I think the stock looks cheap at $10.50.

Those are two of the names I’m considering at the moment. But like any good investor, I’ll also be keeping an eye open for other opportunities that might present themselves. 

Long-term investing

It’s always good to pay attention to what’s going on in my Stocks and Shares ISA. But what happens in any given month ultimately doesn’t matter much for a long-term investor like me.

With Rentokil, it’s important that its integration keeps moving in the right direction. Progress might not be linear, but as long as it gets there sooner or later, I expect to do well.

Short-term oil fluctuations might make Chord’s share price go up one month and down the next. Over time, though, what matters most is the firm’s ability to keep producing.

Stephen Wright has positions in Chord Energy, Judges Scientific Plc, and Rentokil Initial Plc. The Motley Fool UK has recommended Judges Scientific 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

Finger clicking a button marked 'Buy' on a keyboard
Investing Articles

A once-in-a-decade opportunity to buy quality UK shares?

As some of the UK’s top shares of the last 10 years fall to record low multiples, is this the…

Read more »

Man smiling and working on laptop
Investing Articles

As the FTSE 100 hits record highs, these top shares are still dirt cheap!

The FTSE 100 remains packed with brilliant bargains despite moving to new peaks. Royston Wild picks out two great cheap…

Read more »

UK supporters with flag
Investing Articles

The red-hot FTSE 100 index just did this for the first time ever

The FTSE 100 index has risen in eight out of the past 10 years, and is off to a flying…

Read more »

Growth Shares

Is this FTSE 100 behemoth a no-brainer AI stock?

Some investors bemoan the lack of AI stocks on the FTSE 100. But one surprising Footsie giant is already making…

Read more »

Investing Articles

I asked ChatGPT to create the ultimate £20k Stocks and Shares ISA and it chose…

Harvey Jones wondered what he would put in a Stock and Shares ISA if he was starting to invest from…

Read more »

Portrait of pensive bearded senior looking on screen of laptop sitting at table with coffee cup.
Growth Shares

The Diageo share price looks seriously mispriced to me. Here’s why

Jon Smith's been watching the fall in the Diageo share price for some time, and explains why he feels now…

Read more »

piggy bank, searching with binoculars
Investing Articles

How much income would an ISA need to match the State Pension?

Ever wondered what size an ISA portfolio is required to add up to as much as the State Pension? This…

Read more »

Middle aged businesswoman using laptop while working from home
Dividend Shares

This REIT’s down 12% with a 9.58% dividend yield

Jon Smith highlights a REIT he thinks could be set for a long-term comeback as more people return to office…

Read more »