While having no savings at age 50 may naturally cause a degree of stress and worry, there is still time to build a retirement nest egg. The FTSE 100’s 16% total return of 2019 shows that investing in the stock market can be a profitable move. When compounding takes its effect over the long run, it can lead to significant returns.
With that in mind, now could be the right time to buy a range of FTSE 100 shares. Here are two large-cap stocks that appear to offer good value for money at the present time, as well as long-term growth potential that could improve your chances of retiring early.
FTSE 100 retailer Morrisons (LSE: MRW) has been able to successfully adapt its business model to a changing industry landscape over recent years. Central to this has been investment within its wholesale business that was evidenced by a number of new partnerships being announced in its most recent results.
They include an expansion of its online offering via Amazon, as well as an international export partner that is expected to aid the company in reaching its goal of generating £1bn in wholesale sales. This could complement its improving retail offering that has allowed the business to generate positive sales growth despite continued weak consumer confidence.
Looking ahead, Morrisons could experience further challenging trading conditions as a high level of competition suppresses margin and sales growth within the retail sector. However, its payment of special dividends and a reduced net debt level suggest that it is in an increasingly strong position to deliver growth. Over the long run, this could lead to an improving share price.
JD Sports Fashion
Another FTSE 100 retailer that seems to have a sound growth strategy is JD Sports Fashion (LSE: JD). The company is increasingly focused on expanding its international store estate, with it opening a variety of stores in numerous countries in recent quarters. This could help to diversify its sales, as well as enable it to access markets that are growing at a faster pace than the UK.
The company continues to report strong demand growth in the UK, however. For example, in its most recent half-year update, the company delivered a double-digit rise in like-for-like sales in the UK, which suggests that its strategy is appealing to its core customer market.
JD Sports Fashion is forecast to post a rise in earnings of 17% in the current year. This is significantly higher than many of its retail sector peers. Despite this, the stock trades on a relatively appealing price-to-earnings growth (PEG) ratio of just 1.6. As such, now could be the right time to buy a slice of the business as it continues to expand in international markets and delivers rising levels of profitability from its UK presence.
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Peter Stephens owns shares of Morrisons. 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.