3 FTSE 100 stocks to buy

Rupert Hargreaves highlights three FTSE 100 growth stocks he’d buy today based on their expansion prospects over the next few years.

| More on:

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.

man in shirt using computer and smiling while working in the office

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I think some of the best investments to buy right now can be found in the FTSE 100. And with that in mind, here are three blue-chip stocks I’d buy for my portfolio. 

FTSE 100 green tech

The first company is Johnson Matthey (LSE: JMAT). Not only is this one of the most established businesses in the lead index, but it’s also one of the most forward-thinking as well. 

The chemicals and speciality materials company is now bringing its decades of experience to the renewable energy sector. It’s developing technology to help energy storage and transmission. I think this could be one of the best progressive FTSE 100 stocks to own right now. 

Not only does the business have an established portfolio and presence in speciality chemical markets, but it’s also thinking about the future. This should help underpin the group’s growth in the years to come. 

Unfortunately, this is a highly competitive market. Therefore, Johnson may struggle to compete effectively with larger US peers. So its growth isn’t guaranteed. Nevertheless, I’d buy the stock for both its existing portfolio of unique technologies and the potential it offers. 

Diversification

I like to own companies with diversified operations. I think these businesses can be better investments in the long run because diversification can provide an opportunity to profit in all market environments. 

With that in mind, I’d also buy Associated British Foods (LSE: ABF) for my portfolio of FTSE 100 stocks. This company has two main divisions, food and retail. The retail division includes Primark, which has suffered from enforced store closures over the past 12 months.

However, the food business has grown rapidly, with revenue at the grocery arm increasing 9% year-on-year at actual exchange rates in the first half of the company’s 2021 financial year. 

While the Primark business suffered last year, management has reported strong demand in the retailer’s stores as they’ve reopened. This reflects the appeal of its “value-for-money offering,” according to the group. The group is also expanding its international store count at an impressive rate.

I think this diversification will help the group capitalise on economic recovery over the next few years. That’s why I’d buy the FTSE 100 stock for my portfolio today.

Key risks to watch out for include rising costs, which could dent profit margins at both divisions. This may hurt overall group profit. Growing competition in the fashion sector and the brand’s lack of an e-commerce platform may also impact Primark’s growth. 

Red metal

The final company I’d buy for my portfolio of FTSE 100 stocks is Antofagasta (LSE: ANTO). The demand for copper may rise steadily over the next few years as the green energy revolution gains pace. One forecast suggests between 2020 and 2030, global demand for refined copper will increase 31%.

Antofagasta is the largest copper-focused miner listed on the London market. In Q1, the company produced 183,000 tonnes of copper and 59,100 oz of gold. Forecasts suggest production will increase into the second half of the year. The miner is also spending billions of dollars on increasing output over the next few years. 

This spending will yield results if copper prices continued to increase. But that’s not guaranteed. Commodity prices can just as easily fall. This is the most considerable risk facing Antofagasta right now. 

Despite this headwind, I’d buy the stock for my portfolio of FTSE 100 shares. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods. 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.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »