Many AI applications are still in development, offering ground-floor buying opportunities in their stocks. Below are some established companies that five of Fool.co.uk’s contract writers like as investments to consider buying to capitalise on this transformational technology.

Alphabet

What it does: Alphabet is a global technology company best known for Google, YouTube, Android, and cloud services.

By Mark Hartley. When considering an AI investment for the long term, Google’s parent company Alphabet (NASDAQ: GOOG) stands out. It has emerged as a key player in the AI space, leveraging its vast data resources and computational power to dig deep roots into the industry. Through DeepMind and its Gemini AI models, Alphabet is at the forefront of generative AI development. Google Cloud offers scalable AI tools and infrastructure for businesses, while AI enhancements in products like Search, Gmail, and YouTube are well-positioned to benefit from advertising revenue. 

Alphabet’s expansive ecosystem gives it a strategic advantage in training and deploying AI models at scale.

A significant risk, however, lies in the potential disruption of its core search business. As AI chatbots and generative search become more prevalent, traditional search advertising could face margin pressure. Additionally, if faces increased regulatory scrutiny on data usage, antitrust concerns and competition from rivals like Microsoft and Amazon.

Mark Hartley doesn’t own shares in any of the stocks mentioned.

Cellebrite

What it does: Cellebrite is the global leader in decrypting mobile phones and other devices supporting digital forensic investigations.

By Zaven Boyrazian. Many AI stocks today are unproven. That’s why I prefer established players leveraging AI to improve their existing mission-critical products like Cellebrite (NASDAQ:CLBT).

Cellebrite specialises in extracting encrypted data from mobile phones and other devices aiding law enforcement and enterprises in criminal and cybersecurity investigations. Over 90% of crime commited today has a digital element. And when it comes to decrypting mobile phones, Cellebrite is the global gold standard.

The company is now leveraging AI to analyse encrypted data – drastically accelerating a task that’s historically been increadibly labour intensive identifying patterns, discovering connections, and establishing leads.

Most of Cellebrite’s revenue comes from law enforcement, exposing Cellebrite to the risk of budget cuts. In fact, fears of lower US federal spending is why the stock dropped sharply in early 2025. And with a premium valuation, investors can expect more volatility moving forward. But in the long run, Cellebrite has what it takes to be an AI winner in my mind. That’s why I’ve already bought shares.

Zaven Boyrazian owns shares in Cellebrite.

Dell Technologies

What it does: Dell Technologies provides a broad range of IT products and services and is an influential player in AI.

By Royston Wild. Dell Technologies (NYSE:DELL) isn’t one of the more fashionable names in the realm of artificial intelligence (AI). The good news is that this means it trades at a whopping discount to many of its peers.

For this financial year (to January 2026), City analysts think earnings will soar 41% year on year, leaving it on a price-to-earnings (P/E) multiple of 12.6 times. Such readings are as rare as hen’s teeth in the high-growth tech industry.

In addition, Dell shares also trade on a price-to-earnings growth (PEG) ratio of 0.3 for this year. Any reading below 1 implies a share is undervalued.

These modest readings fail to reflect the exceptional progress the company’s making in AI, in my opinion. Indeed, Dell last month raised guidance for the current quarter as it announced “unprecedented demand for our AI-optimised servers” during January-March.

It booked $12.1bn in AI orders in the last quarter alone, beating the entire total for the last financial year. Dell is a major supplier of server infrastructure that let Nvidia’s high-power chips do their thing.

Dell’s shares could sink if unfavourable developments in the ongoing tariff wars transpire. But the company’s low valuation could help limit the scale of any falls.

Royston Wild does not own shares in Dell or Nvidia.

Salesforce

What it does: Salesforce is a customer relationship management (CRM) software company that is developing AI agents. 

By Edward Sheldon, CFA. We’ve all seen the potential of artificial intelligence (AI) in recent years. Using apps like ChatGPT and Gemini, we can do a lot of amazing things today. These apps are just the start of the AI story, however. I expect the next chapter to be about AI agents – software programmes that can complete tasks autonomously and increase business productivity exponentially. 

One company that is active in this space is Salesforce (NYSE: CRM). It’s a CRM software company that has recently developed an agentic AI offering for businesses called ‘Agentforce’. It’s still early days here. But already the company is having a lot of success with this offering, having signed up 8,000 customers since the product’s launch last October. 

Now, Salesforce is not the only company developing AI agents. So, competition from rivals is a risk. I like the fact that the company’s software is already embedded in over 150,000 organisations worldwide though. This could potentially give it a major competitive advantage in the agentic AI race.  

Edward Sheldon has positions in Salesforce.

Salesforce

What it does: Salesforce is a cloud-based software company specialising in customer relationship management, helping businesses manage sales, marketing, support, and data.

By Ben McPoland. I think Salefsforce (NYSE: CRM) looks well set up to benefit in the age of AI. Specifically, its Agentforce platform, which lets businesses deploy AI agents to handle various tasks, could be the company’s next big growth engine. 

By the end of April, it had already closed over 8,000 deals, just six months after launching Agentforce. Half of those were paid deals, taking its combined data cloud and AI annual recurring revenue above $1bn.

Granted, that looks like small potatoes set against the $41.2bn in sales it’s expected to generate this fiscal year. But it’s still very early days, and management reckons the digital labour market opportunity could run into the trillions of dollars.

Of course, it’s always best to treat such mind-boggling projections with a healthy dose of scepticism. And the company does face stiff competition in the AI agent space, especially from Microsoft and ServiceNow.

Nevertheless, I’m bullish here. Salesforce is already deeply embedded in sales, service, and marketing. Its AI agents slot into existing workflows, which I think will prove to be a big advantage over unproven AI upstarts.

Ben McPoland owns shares of Salesforce. 

The post 5 AI stocks to consider buying and holding for the long term appeared first on The Motley Fool UK.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Alphabet, Amazon, Cellebrite, Microsoft, Nvidia, and Salesforce. 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.

As of the most recent estimates, there are approximately 41,000 to 45,000 publicly listed companies globally. It stands to reason that some of our free-site writers have been buying shares outside of the UK for their portfolios, too…

Cellebrite

What it does: Cellebrite is a software-as-a-service enterprise specialising in digital forensics and encrypted data extraction.

By Zaven Boyrazian. In the world of law enforcement and cybersecurity, digital evidence has become a critical. In fact, an estimated 90% of reported crime today has some form of digital element. And with most criminal devices being locked or encrypted, demand for Cellebrite’s (NASDAQ:CLBT) C2C platform has surged.

The platform offers solutions for digital forensics, case & evidence management, and AI-powered analytics. And it is the global standard for extracting evidence from encrypted mobile phones, combating terrorism, fraud, human trafficking, and organised crime.

Revenue has been expanding at a 20% annualised rate over the last five years, with operating profits surging by an average of 44% annually on the back of rapidly expanding margins thanks to the increasingly lucrative opportunities within the digital forensics market.

Of course, such explosive returns invite challenge. And fierce competition is forcing Cellebrite to allocate considerable funds to research & development. If it can’t out-innovate its rivals, the group’s leading position could become compromised.

Nevertheless, given the explosive opportunity and long track record of defying expectations, this is a risk I’m willing to take.

Zaven Boyrazian owns shares in Cellebrite.

Devon Energy

What it does: Devon Energy is an oil and gas producer in the U.S. with a diversified multi-basin portfolio, including in the Delaware Basin.

By Andrew Mackie. I have been looking for an opportunity to enter the pure-play exploration space for some time. With the recent tariff-induced sell-off I took the opportunity to buy my favoured pick Devon Energy (NYSE: DVN).

Unlike oil majors such as BP and Shell, earnings come purely from oil and gas production. The company is effectively a leveraged play on such prices. Unsurprisingly, as prices have fallen for some time, so too as the share price. However, I remain extremely bullish on prices over the next decade plus.

In the short to medium term, I expect natural gas demand to rise significantly off the back of data centre growth. The recent conversion of a decommissioned coal-fired to natural gas power plant in Homer, Pennsylvania, provides a good illustration of demand growth. Unlike nuclear, gas fired power stations can come online very quickly.

Should the US enter a recession in 2025, then oil prices will undoubtedly fall even more, impacting Devon’s profitability. However, with globalisation unwinding, defence spending increasing and the US boosting domestic manufacturing, I expect hydrocarbon demand to remain buoyant well into the future.

Andrew Mackie owns shares in Devon Energy, BP and Shell.

Nu Holdings

What it does: Nu Holdings owns Nubank, which is Latin America’s largest digital bank.

By Ben McPoland. I recently added to my position in Nu Holdings (NYSE: NU). The Brazil-based digital bank ended the first quarter with nearly 119m customers, 19% more than the year before.

Incredibly, 59% of Brazil’s adult population are now customers, while strong growth continued in Mexico (12% of the adult population) and Colombia (8%). Quarterly revenue jumped 40% to $3.2bn on a currency-neutral basis, while adjusted net income rose 37% to $606.5m.

There were some negative currency swings in the quarter, which could continue. Also, the bank’s risk-adjusted net interest margin fell to 8.2%, down from 9.5%. This was largely due to aggressive expansion in Mexico and Colombia, which involves offering higher deposit rates to attract users. So the quarter wasn’t totally flawless.

Nevertheless, I’m very impressed with the way Nu continues to grow at scale. The neobank is barely scratching the surface when it comes to monetising its vast – and growing – base of customers.

The stock isn’t cheap, but the company appears to have a long runway of growth ahead of it, with large swathes of Latin America still either unbanked or underbanked.

Ben McPoland owns shares of Nu Holdings.

RWE

What it does: RWE AG is a leading German energy company focused on renewables, power generation, and trading.

By Mark Hartley. I recently invested in RWE (FRA: RWE) due to its strong financial performance and strategic plans for 2025. Last year, it reported an adjusted EBITDA of €5.7bn and adjusted net income of €2.3bn, surpassing expectations. The energy supplier also announced a €1.5bn share buyback program, reflecting a commitment to shareholder returns.

However, it faces some uncertainties in the US offshore wind market following revised policies that could affect renewable energy. As a result, it recently reduced its five-year investment outlook by €10bn, indicating caution amid these market challenges. This could impact future growth and returns, so I hope the US sees the advantages in renewables and reconsiders its policies.

Despite these risks, I remain optimistic about RWE’s focus on renewables and look forward to seeing it drive innovation in the sector. It also has a decent 3.42% yield and a P/E ratio of 4.65.

Mark Hartley owns shares in RWE.

The post 4 international stocks that Fools have been buying! appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Cellebrite. 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.

History has shown that it’s most often well-run businesses with a smaller market cap that turn out to have long runways of growth and eventually provide early adopters of the stock with incredible wealth creation. Here are four that Fool.co.uk’s contract writers are bullish on!

Anglo Asian Mining

What it does: Anglo Asian Mining is a gold and copper producer that’s listed on the Alternative Investment Market (AIM).

By Royston Wild. Thanks to its suite of gold projects, Anglo Asian Mining’s(LSE:AAZ) share price is rising rapidly as bullion’s multi-year bull run continues.

The small cap — which owns the Gadir and Gedabek gold, silver and copper mines in Azerbaijan — has risen 103% in value over the last year.

With macroeconomic and geopolitical uncertainty growing, and fears of resurgent inflation back on the boil, I think gold prices could have much further to go after hitting multiple new record highs in 2025.

However, Anglo Asian Mining’s foothold in the gold industry isn’t the only reason why I think it could be a hot growth stock to consider. I’m also encouraged by its plans to supercharge copper production to capitalise on the fast-growing green economy.

It plans to open several new red metal mines over the next few years, which it hopes will take annual copper production to 36,000 tonnes by 2028 from 15,000-15,500 today.

Any setbacks at the mine development stages could hit Anglo Asian Mining’s share price hard. But I think this is reflected in the company’s cheapness (it trades on a price-to-earnings (P/E) ratio of 6.1 times).

Royston Wild does not own shares in Anglo Asian Mining.

Animalcare Group

What it does: Animalcare Group develops and markets veterinary pharmaceuticals and identification products.

By Mark Hartley. The AIM-listed veterinary pharmaceutical and identification group Animalcare (LSE: ANCR) looks like an intriguing small-cap investment to me. Earnings have exploded recently, leading to a six-fold increase in its net margin. This was driven by strategic divestments, including the sale of Identicare and a minority stake in STEM.

However, debt has also skyrocketed to £23.16m, almost double that of its available cash. For now, it’s sufficiently covered by equity — but could be at risk if profits slip. Being a small-cap, it may also experience higher volatility and lower liquidity compared to larger firms.

With the price slow to catch up with earnings, it has a forward price-to-earnings (P/E) ratio of only 16, which is well below the sector average of 40. This suggests it has more room for growth. It also boasts an attractive return on equity (ROE) of 36.62% — a reassuring sign of efficient management and profitability. 

Mark Hartley doesn’t own shares in Animalcare Group.

Central Asia Metals

What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia.

By Paul Summers. Small-cap stocks usually require even more due diligence than your typical FTSE juggernaut, especially when their share prices have been on a downward trajectory. Central Asia Metals (LSE: CAML) is a great example.

Sure, ongoing geopolitical concerns combined with lower demand for one of the metals it digs up doesn’t exactly paint a pretty picture. And the miner obviously has no control over either. 

But these feel like short-term headwinds. Demand for copper is expected to shoot up over the next decade as the world transitions to green energy at an increasing pace. This could eventually make the current valuation of seven times forecast FY25 earnings look like a steal.

In the meantime, the stock yields a monster 11.5% as I type. I’d prefer this to be covered to a greater extent by profit but at least the firm’s balance sheet looks solid for now. 

Paul Summers has no position in Central Asia Metals

International Personal Finance

What it does: This financial services company provides home and digital credit to over 1.7m customers in nine global markets.

By Charlie Carman. Many individuals struggle to access loans from mainstream banks. That’s where a firm like International Personal Finance (LSE:IPF) steps in.

The growth opportunity in lending to underserved credit customers is huge. The company eventually aims to claim 2.5m customers, representing a small fraction of the addressable market of more than 70m people across its target geographies.

Business is humming along nicely. In the first quarter, customer lending grew by 12%, driven by strong performances in Poland, Romania, Mexico, and Australia. Bolstering the investment case, a £15m share buyback programme is due to commence imminently, and shareholders also benefit from a mighty 7.4% dividend yield.

All lending businesses face risks. However, International Personal Finance has a riskier customer base than most, given its inability to access conventional credit. That shouldn’t be ignored, but a cheap valuation and plenty of room for expansion make the risks tolerable in my view.

Charlie Carman does not own shares in International Personal Finance.

The post 4 small-cap stocks Fools think have explosive growth potential appeared first on The Motley Fool UK.

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

Many speculate on which penny stocks might rapidly soar in price. But here at The Motley Fool, it’s worth reiterating that we follow Buffett’s famous investing maxim: “Our favourite holding period is forever.”

In other words, we’re not simply looking to cash out when a former penny stock hits the big time. Instead, as Fools, we’re looking for long-term investments in quality — but perhaps underappreciated — companies. Here are four of our contributors’ favourites for investors to consider buying right now!

Agronomics

What it does: This investment company focuses on cellular agriculture, precision fermentation, and biomanufacturing.

By Charlie Carman. From deforestation to greenhouse gas emissions to antibiotic use on livestock, there are many problems with conventional farming methods. Agronomics (LSE:ANIC) invests in companies offering innovative solutions to these issues.

The UN predicts that global food output needs to rise 60% by 2050. Novel agricultural developments will be required to meet exploding demand, and Agronomics is well-placed to benefit.

The group has exposure to over 20 companies that produce animal products from cell cultures, such as meat, leather, and dairy. This process removes the need for animal slaughter.

Granted, these nascent biotechnologies carry significant risks. Encouraging mainstream consumer adoption is a major challenge, since many people are reluctant to consume lab-grown meat. There are also regulatory hurdles and trade barriers to contend with.

Despite the risks, trading at 7p today, this penny stock offers a promising long-term investment opportunity to consider in an industry with massive growth potential. 

Charlie Carman does not own shares in Agronomics. 

DP Poland

What it does: DP Poland operates the Domino’s Pizza franchise in Poland and Croatia.

By Ben McPoland. I reckon DP Poland (LSE: DPP) has a lot of promise. As I write, it’s priced at 9p, giving the small enterprise a market cap of £89m.

Admittedly, this penny stock has been drifting in recent years. This is partly because small-cap stocks are out of favour with higher interest rates, but also because the firm is still loss-making. This lack of profitability is a key risk here.

Having said that, losses are narrowing and the market anticipates a first profit next year. The move towards a capital-light, franchise-led model should help things advance from there.

Meanwhile, growth remains decent, with like-for-like sales rising 2.9% and system sales up 6.5% in the first quarter. Revenue is expected to reach nearly £66m this year, which would be 47% higher than 2023.

The company recently acquired rival Pizzeria 105, expanding its footprint into 31 new Polish cities while bringing in 76 experienced franchisees. By 2027, the firm is aiming to operate 200 Domino’s stores across Poland, up from 113 last year, then eventually 500+.

Ben McPoland owns shares of DP Poland.

Premier Miton

What it does: Premier Miton is a UK-based investment firm offering a range of funds and trusts, as well as a portfolio management service.

By Paul Summers. The last few years have been tough for holders of shares in Premier Miton (LSE: PMI). Revenue and profit have tumbled due to volatile markets and low investor confidence, with more people throwing their money into cash accounts as interest rates have climbed. The threat of US tariffs impacting the global economy has only made things worse.

Still, there’s an argument that investors may now look to active managers for ways to outperform the market. Should this be the case, the current valuation of less than 11 times forecast earnings may already offer a good margin of safety.

For those seeking income, there’s also a monster dividend yield of 10%. To be clear, this is at risk of being cut if trading doesn’t improve. So, half-year numbers, due in late May, will be worth checking out. 

But risk-tolerant contrarian investors may find a lot to like here.

Paul Summers has no position in Premier Miton.

Ultimate Products

What it does: Ultimate Products owns a number of brands it uses to sell household goods primarily in its home UK market.

By Christopher Ruane. Ultimate Products (LSE: ULTP) does not strike me as a share for widows or orphans given its risk profile. This year’s interim results showed a year-on-year revenue decline, sharply higher net debt and a reduced interim dividend.

A business model based on manufacturing in the Far East and shipping to Europe has taken hits from higher shipping rates and longer journey times. That means more money needs to be tied up in inventory.

But as the owner of brands such as Salter, the company has a strong offering for retailers and their customers. Demand in such product areas is likely to be resilient over the long term. The British love of a cuppa means that, when most consumers’ kettle breaks, they immediately replace it.

Despite challenges, the company was free cash flow positive in its first half and trades on a price-to-earnings ratio of just 9.

Christopher Ruane does not own shares in Ultimate Products

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The post 4 penny stocks to consider buying while their prices are this cheap appeared first on The Motley Fool UK.

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

Investing alongside you, fellow Foolish investors, here’s a selection of stocks that some of our contributors have been buying across the past month!

aberdeen

What it does: aberdeen is an investment company whose clients range from Sovereign wealth funds through to individuals.

By Andrew Mackie. The recent sell-off in aberdeen (LSE: ABDN) pushed the dividend yield on the stock up to an astonishing 11.6%. With it on my watchlist, I simply could not let an opportunity like that go begging. Despite the share price trading at an all-time low when I bought, there were a number of encouraging signs during its FY24 results. Not least that it finally swung back to a profit.

The woes that have beset the company for years are well documented. Investors just couldn’t stop pulling cash out of its under-performing funds and moving into passive strategies, predominantly tracking the Magnificent 7.

Regardless of where tariffs go from here, the world order will continue to be upended. US equities, which have long dominated global capital flows, are likely to go into reverse in the future, not least because of the hefty multiples attached to them. We have already seen investors piling into European stocks. All this bodes well for an active asset manager like aberdeen.

Of course, there are plenty of risks here. One notable one is that if inflation continues to remain sticky interest rates may not come down much, resulting in individuals deciding to park their capital in a savings account rather than in its funds.

Andrew Mackie owns shares in aberdeen.

BlackRock World Mining Trust

What it does: BlackRock World Mining Trust invests in mining and metal assets worldwide.

By Ben McPoland. A FTSE 250 stock that I bought during the early April sell-off was BlackRock World Mining Trust (LSE: BRWM). The share price dropped around 20% inside three weeks!

To be sure, the potential for a global recession poses obvious risks to metals demand and pricing. A lot of uncertainty remains, which may weigh on the mining sector for some time. 

However, I remain bullish on the long-term global electrification theme. According to the International Energy Agency, clean technology demand for copper will make up nearly 40% of overall demand by 2030.

However, new copper mines aren’t coming online quickly enough to meet this growing need. Therefore, thetrust anticipates supply deficits, which should drive copper prices – and producers’ earnings – higher.

As such, copper has a significant overweight position in the portfolio. But the trust also has exposure to the soaring gold price through stocks like Agnico Eagle Mines, Barrick Gold, and Wheaton Precious Metals. As I type, Agnico and Wheaton are up 91% and 49%, respectively, over the past 12 months.

Finally, there is a near-5% dividend yield and 9% discount to net asset value. I think the trust provides solid all-round value.

Ben McPoland owns shares of BlackRock World Mining Trust.

Games Workshop

What it does: Games Workshop sets the industry standard in the fantasy wargaming hobby through its Warhammer universes.

By Royston Wild. I’ve used recent market volatility to top up my holdings in tabletop gaming giant Games Workshop (LSE:GAW). The FTSE 100 share is now the fifth-largest holding in my portfolio.

The company — like swathes of shares across the world — has dropped in value due to worries over the impact of ‘Trump Tariffs’ and reciprocal action from the US’ trading partners.

Import taxes could serve as a double-whammy to Games Workshop’s profits. North America represents around 40% of group revenues and is the firm’s single largest market. Fresh tariffs in this critical territory could therefore be significant.

Furthermore, broader sales for the Warhammer maker could suffer if trade wars cause a global downturn.

That said, I buy shares based on their long-term potential. And my enthusiasm for Games Workshop remains undimmed as the fantasy gaming market booms.

With its market-leading products, the Footsie firm’s in the box seat to capitalise on this opportunity. And fresh licencing deals (like the TV and film deal it recently inked with Amazon) could pump up sales away from its traditional operations.

Royston Wild owns shares in Games Workshop.

Jet2 

What it does: Jet2 is the UK’s no.1 tour operator and third largest airline with plans to grow further over the decade.

By Dr James Fox. I believe that Jet2 (LSE:JET2) is typically overlooked by investors. The company has a huge net cash position of £2.3bn, but its market cap is just £2.8bn. In other words, it’s trading at just 1.2 times expected net income for the year ahead when the net cash position is taken into account. That makes it one of the cheapest stocks I’ve come across, especially in this sector. 

Of course, there are risks. Jet2’s margins are a little thinner than the likes of IAG and this means it’s more susceptible to cost challenges. In fact, the autumn budget is expected to add an additional £25m to costs. That’s something it will need to pass on to customers or absorb. Neither is ideal. 

On a positive note, jet fuel prices have really pulled back since Trump’s tariff announcement. Fuel typically accounts for 25%-40% of operating costs, so a 9.1% weekly fall should have a positive impact.

James Fox owns shares in Jet2 plc.

Unilever

What it does: Unilever is a British multinational and one of the world’s largest producers of fast-moving consumer goods.

By Mark Hartley. I recently shifted more capital into Unilever (LSE: ULVR) shares as a defensive move against market turbulence. I find it to be one of the most stable and resilient businesses in the UK, so it’s an ideal safe-haven when things get volatile. The company operates across more than 190 countries, offering a diverse portfolio of over 400 brands, including Dove, Knorr, Hellmann’s and Magnum. Its product range includes food and beverages, cleaning agents, beauty and personal care products, as well as health and wellness items.

However, its return on invested capital (ROIC) has declined from 28.9% in 2018 to 16% in 2023. This is most likely due to stiff competition from rivals like Procter & Gamble, which recently streamlined operations to gain market share. Despite this risk, it reported revenues of €60.8bn in 2024, with 58% of sales generated from emerging markets. It remains a solid favourite of mine.

Mark Hartley owns shares in Unilever.

The post 5 British stocks Fools have been buying! appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Games Workshop Group 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.

A longer time horizon for building wealth allows more time for companies to work on your behalf as a shareholder. Here are a number of stocks that our free-site writers have bought and held for at least the past half-decade!

Barclays

What it does: Barclays offers both traditional private banking services as well as catering for international, institutional corporate clients.

By Andrew Mackie. I bought my first tranche of Barclays (LSE: BARC) in early 2020, during the Covid crash. For a couple of years the stock did absolutely nothing. But then, off the back of rising interest rates, net interest income began to surge and it has become one of the best performers in my portfolio. Patience really can be an investors best friend.

Of course, talk of tariffs and trade wars have reversed the positive momentum. Nevertheless I have remained invested. The main reason is because of the all-important structural hedge. Most private investors believe that a falling interest rate environment would be bad for net interest income. But that is simply not true.

During its FY24 results, it stated that £9.1bn of gross income over the next 2 years is already locked in, regardless of where interest rates go. Of course, should a recession ensue that won’t stop its share price falling, as delinquencies increase. But then again, back in 2023 many expected a recession, which never happened. If I had have sold out then, I would have lost out on the stock’s most explosive moves.

Andrew Mackie owns shares in Barclays.

IG Group

What it does: Financial trading platform IG Group offers trading products such as CFDs, spread betting and options.

By Roland Head. IG Group (LSE: IGG) is one of the largest and oldest holdings in my share portfolio. While the stock suffers periodic ups and downs, high profit margins and a reliable dividend mean I’ve always been happy to continue holding.

One aspect of this business I especially like is that when markets are volatile and uncertain, IG’s clients start trading more. This generates higher revenue (and profits) for the business.

IG is the market leader in CFDs, but one concern for me is that the group’s market share has weakened in recent years as competition has intensified.

However, higher interest rates have provided a big boost to profits and new management are taking steps to update and expand the group’s offering.

IG shares are close to all-time highs at the moment, but recent profit growth means I think the stock remains reasonably priced, on around 10 times forecast earnings. There’s also a useful 4.7% dividend yield.

Roland Head owns shares in IG Group.

MercadoLibre

What it does: MercadoLibre operates a leading e-commerce marketplace across 19 Latin American countries, as well as a digital payments platform.

By Ben McPoland. One stock that I’ve owned for more than five years is MercadoLibre (NASDAQ: MELI). The e-commerce powerhouse has grown its revenue from $2.3bn in 2019 to $20.8bn last year – an increase of 800%!

This has seen the share price rise by more than 200%, making MercadoLibre Latin America’s most valuable publicly listed company in the process.

While the firm now has over 100m e-commerce customers, it is targeting 300m over the long term (from a population of 600m+). But the opportunity in digital payments and banking could be even larger, as the region still has a huge unbanked/underbanked population.

This rapid foray into digital lending does present risks though, especially if key markets like Brazil and Mexico enter a recession. In this situation, the firm could experience rising default rates and credit losses.

Looking ahead though, shopping and payments on smartphones are both expected to continue rising in Latin America. MercadoLibre’s revenue is tipped to reach $38bn in 2027, up from $25bn this year, while earnings per share are forecast to almost double.

I have no plans to sell.

Ben McPoland owns shares of MercadoLibre.

Rightmove 

What it does: Rightmove is an internet business that operates a UK property search portal.

By Edward Sheldon, CFA. I bought Rightmove (LSE: RMV) shares in late 2018. And they’ve been a solid investment for me. 

I originally bought in at a share price of 439p. As I write this, however, the shares are trading for 697p – 59% higher. That translates to a return of about 8% per year. Add in dividends from the company and my return has been closer to 10% per year. 

Looking ahead, I remain optimistic about the stock’s potential. Rightmove is a very well known brand in the UK, so estate agents can’t afford to ignore its platform (meaning the company has pricing power). 

Meanwhile, the stock is attractively priced. Currently, the price-to-earnings (P/E) ratio is in the low 20s, which is not high for a highly-profitable internet company. 

It’s worth pointing out that new competitors are continually popping up. And there’s a chance that these companies could capture market share.

I remain optimistic that Rightmove will keep winning, however. When Britons want to search for a property, rightmove.co.uk is typically the first place they go. 

Edward Sheldon owns shares in Rightmove 

The post 4 stocks Fools bought over 5 years ago and still hold appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Barclays Plc, MercadoLibre, and 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.

An investor might choose to buy stocks for both capital appreciation and dividends for several reasons. Aiming to strike a balance between potential long-term growth and income, here are four companies our contract writers own in their portfolios…

Coca-Cola HBC

What it does: Coca-Cola HBC makes, bottles and distributes leading drinks labels like Coke, Sprite and Monster Energy.

By Royston Wild. Consumer staples shares like Coca-Cola HBC (LSE:CCH) can be brilliantly boring, as demand remains broadly stable at all points of the economic cycle.

This can in turn make them rock-solid dividend shares. This  has certainly proved the case at this particular FTSE 100 company. It’s raised annual dividends each year since 2014, including an 11% hike last year.

Yet I believe this makes Coca-Cola HBC’s more exciting than most other consumer goods products. This is thanks in part to huge exposure to fast-growing European and African economies.

Collectively, these emerging and developing markets now account for two-thirds of group revenues.

Coca-Cola HBC’s strong record of innovation also makes it highly attractive to me. Its successful launch of Monster Green Energy Zero Sugar in several markets in 2024, for instance, continued its success in developing no-sugar variants of its popular drinks.

This blend of winning products and geographical diversification has helped the firm’s earnings almost double over the past five years. I think it’s a top ‘all-rounder’ to consider, even though competition from other famous drinks brands remains an ever-present threat.

Royston Wild owns shares in Coca-Cola HBC.

Jet2 

What it does: Jet2 is the UK’s no.1 tour operator and third largest airline, flying from 13 airports across the country. 

By Dr James Fox. Jet2 (LSE:JET2) is a FTSE AIM-listed airline and tour operator that looks incredibly undervalued at the current price. The stock currently trades at 7.1 times forward earnings, representing a modest discount to global peers. However, unlike many other airline stocks, Jet2 has a lot of cash. In fact, Jet2 has a net cash position of £2.1bn, which is huge relative to its market cap of £2.8bn. As such, it’s currently trading at 1.1 times EV-to-EBITDA, and this is a huge discount to peers like International Consolidated Airlines Group at 3.3 times. This alone suggests potential for vast price appreciation. 

The risks? Well, rising costs, landing fees and wages hikes may have an outsized impact on Jet2 given its relatively narrow margins. However, this isn’t a dealbreaker for me. Travel demand has remained relatively resilient since the pandemic and there’s evidence that fuel prices could retreat further – jet fuel is a major expense for airlines. Dividends are modest at 1.2%, but are forecasted to rise. 

James Fox owns shares in International Consolidated Airlines Group and Jet2.

Prudential

What it does: Prudential is an insurance and asset management company operating solely in Asia and Africa.

By Andrew Mackie. When you can smell the fear, then more often than not it’s a great time to buy into a stock. This is the case with Prudential (LSE: PRU) whose share price chart over the past couple of years looks truly awful.

You want growth then they don’t come much better than operating in China, India, Indonesia and Malaysia where GDP continues to accelerate at a blistering pace. As the middle class continues to swell, provision of healthcare and savings have sky-rocketed up their agenda. The penetration rates of such products are in single digits today in some of its regions, and the vast majority of people pay for healthcare provision out of their own pockets.

Over the past two years, new business profits have grown at a compound rate of 21%. Little wonder, therefore, that the business hiked its dividend yield by 13% last year. That is on top of a $2bn buyback programme. This year dividend per share is expected to grow by 10%.

Of course, there are massive risks here. The recent collapse of the Chinese property market bubble continues to cause severe economic pain. And the medium term impact of 104% tariffs by the US is to a large extent unknown.

However, its depressed share price (which is still below its Covid lows) more than reflect the risks to me.

Andrew Mackie owns shares in Prudential.

Tesco

What it does: Tesco is the UK’s largest supermarket chain. It also has a presence in Ireland and central Europe.

By James Beard. Despite the threat from the so-called discounters, over the past five years, the Tesco (LSE:TSCO) share price has increased by an average of 9.5% a year. And by February 2027, analysts are expecting a 37% increase in earnings per share compared to 2024.

Its dividend is pretty good too. Based on amounts paid over the past 12 months, the stock’s yielding slightly more than the FTSE 100 average. Although payouts are never guaranteed, there’s plenty of headroom should earnings get squeezed.

I’m aware that a volatile bottom line could be an issue as the grocery sector is highly competitive with very thin margins. Even a small drop in market share can have a big impact on profit.

But Tesco has been the market leader for 30 years now. Even if it doesn’t grow as I anticipate, I’ll be content with the above average dividend currently on offer.

James Beard owns shares in Tesco.

The post 4 stocks Fools have bought for growth and dividends appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Prudential Plc and Tesco 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.

The shorter your investing time horizon, the more we think that you’re gambling with your investment money. A longer time horizon for building wealth allows more time for companies to work on your behalf as a shareholder. Here are a number of stocks that our free-site writers have bought and held for at least the past decade!

Amazon

What it does: Amazon is a global leader in online retail and marketplace for third party sellers. Its cloud computing platform Amazon Web Services provides data storage and AI services.

By Harshil Patel. I first bought Amazon (NASDAQ:AMZN) shares 12 years ago in 2013. And it’s one of my longest-serving holdings. Since then, it has risen by around 1200%.

I was inspired by Peter Lynch’s book One up on Wall Street. I used the concept of investing in what you know.

I was a subscriber to its Prime service and had learned that many more features were on the way. Its subscription service looked promising, and I was even prepared to pay a higher price.

Amazon was innovating and sales were growing. It was impossible to know how much of a success it would end up being. But it looked promising.

Today, it’s a more mature business. That said, it continues to grow sales and offer innovative solutions. But do I think it’s likely to rise by another 1200% over the coming 12 years? I doubt it.

With a market capitalisation of $1.8bn, it could struggle. That’s why I’m focussing on smaller companies today.

Harshil Patel owns shares in Amazon.

Diageo

What it does: Diageo manufactures some of the world’s most popular drinks brands like Smirnoff vodka and Captain Morgan rum.

By Royston Wild. Being a Diageo (LSE:DGE) shareholder has proved ‘a game of two halves’ for me, to use a well-worn football cliché.

A steadily growing dividend and rising share price gave me a solid return before 2020’s Covid emergency. Since then, Diageo shares have been up and down, and they’ve been locked in a sustained downturn since mid-2022. 

As a consequence, the drinks giant’s provided a sub-par average annual return of 4% over the past decade. This is below the 6.5% that the broader FTSE 100 has delivered over that time.

Yet I haven’t been tempted to cut and run, at least yet. I’m confident that Diageo’s share price will rebound strongly when consumer spending power recovers, driven by its packed portfolio of leading brands.

The rise of ‘teetotalism’ in the West poses a threat to long-term revenues. Yet Diageo’s huge emerging market exposure provides exceptional profits opportunities that may help to offset this.

I’m also encouraged by Diageo’s successful foray into the non-alcoholic market. European sales of its Guinness 0.0 variant doubled in the six months to December. I’m sure it has more tricks up its sleeve to capitalise on this fast-growing segment.

Royston Wild owns shares in Diageo.

Lloyds Banking Group

What it does: Lloyds Banking Group is a UK retail bank and one of the country’s biggest mortgage lenders

By Alan Oscroft. I’ve held Lloyds Banking Group (LSE: LLOY) shares for more than a decade. I’ve learned a lesson from that: it’s important to know when not to sell.

One of those times is after bad news has hit the share price, because it’s too late by then. Panic selling is almost never a winning strategy. I certainty wouldn’t sell just because Lloyds has fallen as a result of President Trump’s tariff war.

The biggest threat I see is the car loan mis-selling case, currently with the Supreme Court. Lloyds has set aside £1,150m to cover potential costs, bit it’s not clear if that will be enough.

The fear isn’t enough to make me want to sell, but I don’t want to buy more right now. On the bright side, I see forecasts that could drop the Lloyds price-to-earnings (P/E) ratio to only seven by 2027.

Will I hold Lloyds for another 10 years? Probably.

Alan Oscroft has positions in Lloyds Banking Group Plc.

The post 3 stocks Fools bought over 10 years ago and still hold appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Diageo 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.

We asked our freelance writers to share their top ideas for stocks listed on the Alternative Investment Market (AIM) for investors to consider buying!

Bioventix

What it does: Bioventix specialises in the supply of high-affinity monoclonal antibodies for applications in clinical diagnostics

By Paul Summers. There’s not an abundance of quality AIM-listed companies. One exception is arguably Bioventix (LSE: BVXP). The Farnham-based developer and commercial supplier of monoclonal antibodies consistently posts some of the highest operating margins in the entire UK stock market! 

All that said, investor confidence has been knocked after the company disclosed it had overstated revenues. Even though the miscalculation appears to be due to an error on the part of one of its customers, this has pushed the shares down significantly in value as a result of the company now failing to hit analyst expectations.

However, I reckon now is a great time to consider loading up. Bioventix remains a leader in its niche market. The current valuation is also significantly below the firm’s five-year average. While never guaranteed, the dividend yield currently stands at 5.8% and the balance sheet looks very healthy indeed. 

Paul Summers has no position in Bioventix.

dotDigital

What it does: A digital marketing enterprise helping businesse monetise their audiences and improve customer experience.

By Zaven Boyrazian. When it comes to digital marketing, dotDigital (LSE:DOTD) isn’t short on competition. Yet, as economic conditions have improved, the firm has continuously maintained double-digit revenue and profit growth that seems to have gone ignored by investors.

The small-cap enterprise now generates an average of £1,916 per month from each of its customers, almost double the amount compared to five years ago. And a big part of the rising spending trends is courtesy of management’s investments into its technology, including an AI prediction engine to maximise customer conversion through personalisation.

It’s a powerful tool that few of its competitors provide. And with new marketing channels like WhatsApp being added into the mix, dotDigital is slowly becoming a one-stop-shop for everything that is marketing.

Larger rivals like Hubspot remain a serious threat. However, with larger customers like Mountain Warehouse and British Airways joining the client list, this AIM-listed enterprise seems to be taking the right steps.

Zaven Boyrazian owns shares in dotDigital.

Serabi Gold

What it does: Serabi Gold owns a series of mining projects in Brazil, including the Palito and Coringa complexes.

By Royston Wild. Precious metal stocks like Serabi Gold (LSE:SRB) continue to go from strength to strength. This yellow metal miner is up a stunning 39% in the year to date, propelled by gold prices rising through the $3,000 per ounce marker for the first time.

With this key psychological and technical level taken out, metal values — and with them the prices of Serabi and its peers — could strengthen further.

The African miner’s low valuation certainly leaves room for further gains. Today it trades on a forward price-to-earnings (P/E) ratio of just 3.4 times.

I don’t just believe Serabi Gold is a great stock to consider buying for the current bull run, however. Through a blend of organic growth and acquisitions, the business has plans to turbocharge earnings by lifting production to 200,000 ounces a year over the next few years.

That’s up from the 60,000 ounces planned for 2026. Remember, though, that mining is risky business, and any setbacks at the exploration, production or mine development phases could prove disastrous for profits projections, and with it the share price.

Royston Wild does not own shares in Serabi Gold.

Tristel

What it does: Tristel makes and distributes chlorine dioxide wipes that are used for disinfecting hospital environments.

By Stephen Wright. Shares in Tristel (LSE:TSTL) have fallen almost 30% since the start of the year. I think that’s a lot for a company that still has a lot of potential. 

Tristel is in the process of expanding to start selling its (patented) chlorine dioxide wipes across the Atlantic. But getting into the US has proved challenging.

With a premium product, there’s always a danger of customers being unwilling to move away from established practices. And that’s the risk with the stock.

I think, however, the potential rewards are worth it. Tristel has been following up its ultrasound disinfectant system with a product for ophthalmic devices and this looks promising to me.

If the company can make a breakthrough on this front, I think there could be huge growth ahead. If not, there’s a dividend with a 4.6% yield to fall back on.

Stephen Wright owns shares in Tristel.

YouGov

What it does: YouGov is a market research and data analytics company.

By Alan Oscroft. In a first-half update on 31 March, YouGov (LSE: YOU) said it only “expects modest revenue growth for the rest of the financial year as trading conditions remain challenging reflecting the current macro-economic backdrop.“

The company is still searching for a new permanent CEO after Steve Hatch left by mutual agreement in February. And when interim CEO Stephan Shakespeare talks about a “resilient” performance, and he mentions “considerable change” and “execution challenges,” then we can tell things have been a bit tough.

But the company still says it should meet market expectations for the full year. And it expects operating profit to be balanced more equally between the two halves.

There are clearly risks here, and the share price could remain depressed for some time yet. But analysts expect positive earnings per share (EPS) this year, and then an 80% boost by 2027 that would take the price-to-earnings (P/E) ratio down to only about eight.

Alan Oscroft has no position in YouGov.

The post 5 AIM stocks to consider buying for the long term appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Bioventix Plc, Dotdigital Group Plc, HubSpot, and Tristel 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.

The market price might not always fully reflect the intrinsic value of the company. If misjudged, capital gains might be on offer to savvy investors. Here, four Fool UK contract writers highlight a stock they each think investors ought to consider buying.

Land Securities Group

What it does: Land Securities Group is a REIT that leases a portfolio of properties including offices and retail parks.

By Stephen Wright. A lot of real estate investment trusts (REITs) trade at discounts to their net asset values. But one that I like the look of very much is Land Securities Group (LSE:LAND). 

The firm hasn’t seen the growth that some other REITs have experienced recently, but investors need to be careful here. In a lot of cases, REITS have financed growth by issuing equity.

This reduces the value of existing shares, which can offset the growth in rental income. By contrast, Land Securities Group has been doing none of this.

Over the last decade, it has maintained a very stable share count. And I think adds some stability to a dividend that currently yields  7.5%. 

The biggest risk with the company is interest rates and investors should keep in mind the threat of higher borrowing costs. But I’m impressed with the business and I think it’s worth considering.

Stephen Wright does not own shares in Land Securities Group.

OSB Group

What it does: OSB is a specialist mortgage lender and savings bank trading under brands including Kent Reliance and Precise.

By Roland Head. Specialist lender OSB Group (LSE: OSB) is on my radar as a stock to consider buying thanks to its modest valuation, solid recent trading and 7%+ dividend yield.

OSB shares currently trade at discount of around 25% to the lender’s last reported book value of £6. I think that could be too cheap, especially as the dividend appears to be well supported by earnings.

Admittedly, the bank’s exposure to the UK property market could lead to loan losses in the event of a bad recession. However, OSB is an experienced lender and is currently trading with a comfortable safety buffer of surplus capital.

Guidance for the year ahead suggests the bank’s loan book will return to growth in 2025. Lending profits are expected to generate a “low teens” return on equity (book value).

If management can deliver on this guidance, my analysis suggests the shares could deliver attractive returns for shareholders.

Roland Head has no position in OSB Group.

Safestore Holdings

What it does: Safestore Holdings is the UK’s largest self-storage provider, serving individuals and businesses across Europe.

By Mark Hartley. The price-to-earnings (P/E) ratio is a popular way to measure value but it doesn’t tell the whole story. It also pays to check the price-to-book (P/B) ratio, debt-to-equity (D/E) ratio and return on equity (ROE). These metrics gauge a company’s stability and growth potential.

Combining these metrics, I see that the real estate investment trust (REIT) Safestore Holdings (LSE: SAFE) is trading well below book value. It has a P/E ratio of 3.53, and a P/B ratio of 0.59 – both significantly below the average for UK stocks. With a D/E ratio of 0.42 and an ROE of 17%, it looks stable with decent growth potential. 

However, rising interest rates are a risk as they can impact property valuations, leading to declines in the net asset value (NAV) or REITs. It also faces tough competition from rivals like Big Yellow and Lok’nStore.

Mark Hartley does not own shares in Safestore.

Vodafone

What it does: Vodafone is one of the world’s biggest telecommunications operators with operations spanning Europe and Africa.

By Royston Wild. Vodafone (LSE:VOD) looks dirt cheap across a variety of metrics. This includes its price-to-book (P/B) ratio, which — at 0.4 — is comfortably inside value territory of 1 and below.

The FTSE 100 firm also looks cheap relative to predicted earnings. City analyst think the bottom line will rise 17% in the financial year to March 2026, leaving Vodafone shares with a price-to-earnings (P/E) ratio of 9.3 times.

This also means the telecoms titan deals on a sub-1 price-to-earnings growth (PEG) ratio of 0.5.

Finally, Vodafone’s dividend yield for fiscal 2026 is a mighty 5.9%.

There are risks here for investors. The German marketplace remains troublesome following recent changes to bundling laws. The company also still has a lot of debt on its balance sheet (net debt was $31.8bn as of September).

However, I think Vodafone’s ultra-low valuation accounts for these dangers. I think it could be a great share to consider as restructuring efforts continue. I also like the excellent earnings opportunities created by its African operations.

Royston Wild does not own shares in Vodafone.

The post 4 UK stocks trading well below book value to consider buying appeared first on The Motley Fool UK.

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The Motley Fool UK has recommended Land Securities Group Plc, Safestore Plc, and Vodafone Group Public. 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.