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Forget gold and Bitcoin! I’d invest £1k in these 2 FTSE 100 stocks to make a million

The prices of gold and Bitcoin surged 18% and 90% higher respectively in 2019. Both assets delivered a higher return than the FTSE 100, which recorded a total return of 16% in the same year.

However, with the FTSE 100 offering a wide range of shares that appear to be undervalued based on their growth prospects, now could be the right time to buy large-cap shares for the long run. They could offer a better chance of making a million than gold and Bitcoin based on their risk/reward ratios.

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With that in mind, here are two FTSE 100 stocks that could be worth buying today. Their strategies could enable them to deliver strong capital growth in the coming years.

Tesco

The recent half-year results from Tesco (LSE: TSCO) highlighted the progress being made by the supermarket. It has successfully rolled out its ‘Exclusively at Tesco’ brands at 550 stores, and they are gaining market share. It has also improved the quality of its products through an investment in areas such as fresh food. This has catalysed customer satisfaction levels, which could enable the business to enjoy an increasing degree of loyalty over the medium term.

Tesco’s cost savings have been ahead of its targets in recent years. They have helped to drive margins higher at a time when strong sales growth has proved to be challenging to achieve. Its plans to increase online capacity and boost its store opening programme could further improve its financial performance in the long run.

With the retailer currently trading on a price-to-earnings growth (PEG) ratio of 1.9, it seems to offer fair value for money given its long-term strategy. As such, now could be the right time to buy a slice of it.

Reckitt Benckiser

The recent quarterly update from global consumer goods company Reckitt Benckiser (LSE: RB) showed that its performance was relatively disappointing. Alongside this, sector peers that operate in similar markets to the company have recently reported challenging trading conditions in key regions. This could lead to further uncertainty for the wider sector in the near term.

As such, Reckitt Benckiser is focusing on improving its operational performance under a refreshed senior management team. This could help to strengthen its financial prospects in the short run, while the growth opportunities provided by countries such as China may sustain a rising share price in the long run.

With the stock trading on a price-to-earnings (P/E) ratio of 19, it could offer good value for money compared to its historic average rating. Therefore, it may not be the cheapest stock in the FTSE 100, and its near-term performance could disappoint, but for long-term investors, it could offer significant appeal. It has the potential to boost your chances of making a million in the coming years.

A top stock with enormous growth potential

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Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business.

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has been helping it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 alone it returned a whopping £151.1m to shareholders in dividends and buybacks!

And here’s the really exciting part…

We think now could be the perfect time for you to start building your own stake in this exceptional business—especially given the two potentially lucrative expansion opportunities on the horizon that our analyst has highlighted.

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Peter Stephens owns shares of Reckitt Benckiser and Tesco. The Motley Fool UK has recommended Tesco. 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.