The Motley Fool

Forget spread betting and forex trading! I’d aim for a million with these 2 FTSE 100 stocks

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.

Image source: Getty Images.

While spread betting and forex trading may offer the potential for near-term gains, they also carry a significant amount of risk. Their volatility and unpredictability, as well as leverage, could cause losses for investors. As such, buying undervalued FTSE 100 shares and holding them for the long term could be a better strategy.

With that in mind, here are two large-cap shares that seem to be undervalued at the present time. They are forecast to post strong earnings growth in the current year that may improve your prospects of making a million in the long run.

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...


The rising gold price has had a positive impact on the prospects for precious metals mining company Polymetal (LSE: POLY). Its shares have risen by 43% in the past year as investors have become increasingly bullish about the outlook for the wider sector.

Looking ahead, the company is forecast to post a rise in its bottom line of 32% in the current year. Despite this, it trades on a price-to-earnings growth (PEG) ratio of just 0.4. This suggests that it could offer a wide margin of safety, and there may be further capital growth ahead for its investors.

The gold price could realistically move higher. Geopolitical risks in the Middle East have been heightened in recent weeks, while the global trade war may mean that investors focus on defensive assets.

With US interest rates unlikely to move higher at a rapid pace, now could be the right time to buy a slice of Polymetal. Although it could be a risky stock to own due to its dependence on the gold price, its low valuation suggests that its risk/reward ratio is favourable for long-term investors.

British American Tobacco

The recent trading update from British American Tobacco (LSE: BATS) highlighted the progress it is making at what is an uncertain period for the tobacco market. It is delivering good growth in new categories, such as e-cigarettes, despite regulatory changes in the US. They have caused investors to become cautious about the wider industry, but British American Tobacco believes that they could produce a stronger regulatory environment in which it is well placed to succeed.

Additionally, the company is making progress in deleveraging. This will help to reduce its overall risks, and could improve its financial performance. It is also making market share gains in combustibles and in new categories that may produce a more resilient profit performance in the coming years.

In the current year, British American Tobacco is forecast to post a rise in net profit of 6%. Its price-to-earnings (P/E) ratio of 10.3 suggests that it offers good value for money, while a dividend yield of 6.4% highlights its income investing potential. As such, now could be a good time to buy it for the long term.

“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!

Peter Stephens owns shares of British American Tobacco. 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

Renowned stock-picker Mark Rogers and his 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 click below to discover how you can take advantage of this.