The Motley Fool

These FTSE 100 stocks surged in Q1! Is it now time to buy or sell?

Image source: Getty Images.

Next (LSE: NXT) is a blue-chip whose price ascent since the start of 2019 I find somewhat hard to fathom; it’s up 37% since the bells rang in New Year’s Day.

The obvious drivers in the retailer’s revival have been frantic dip buying following the shocking falls of 2018’s second half, a period in which its market value slumped by more than a third, mixed with Next’s low valuation (it still deals on a forward P/E multiple of 12.2 times despite this year’s gains).

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Investors have been minded to pile back in on a roughly-mixed set of retail sales data which have prompted some to consider that “things aren’t as bad as all that,” and that the FTSE 100 firm’s cheap rating bakes in the worst case scenario.

While it’s simple to recognise these drivers, it’s much harder to understand them. Sure, some health checks on the UK retail sector have come in better than expected, but largely speaking, they remain quite concerning as per the latest Confederation of British Industry study released in recent days. This showed retail sales slumping at their steepest rate for 17 months in March.

With Brexit casting a dark pall over the high street and Next also battling a backcloth of increased competition, the profits outlook for the business remains pretty scary and is likely to stay that way beyond 2019. I wouldn’t be surprised to see its share price ascent unravel in the coming weeks and months, and so given its recent strength, I would sell if I owned the shares.

A better buy?

So should investors also consider selling out of Taylor Wimpey (LSE: TW) as well? The housebuilder has gained 31% in value so far in 2019, also putting it on the Footsie’s Top Three podium for the first quarter’s biggest risers.

I would consider it to be on much safer footing to continue rising than Next and in a great position to keep rising too, as latest data from UK Finance showed. Despite the economic uncertainty that Brexit is prolonging, this isn’t causing homebuyer demand to fall off a cliff as many had expected and mortgage approvals for home purchase rose 1.5% in February to 33,621.

It’s simple: the support of the Help To Buy programme and attractive lending conditions are combining to help property sales stay on the boil, and I see little reason for new-build sales in particular to grind to a halt given the country’s formidable homes shortfall that’ll take many, many years to soothe.

Despite its first-quarter gains, Taylor Wimpey still carries a rock-bottom rating, a forward P/E ratio of 8.6 times. This provides a solid platform for the builder’s share price to keep swelling, in my opinion, and particularly — as I fully expect — the firm continues to pepper the market with terrific trading updates. In February’s finals it advised “a very positive start to 2019” and “continued strong demand for our homes.”

So I consider Taylor Wimpey to be an exceptional buy right now. And the clincher is the company’s gigantic 10% forward dividend yield.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild owns shares of Taylor Wimpey. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.