The FTSE 100 has had a strong start to the year, up around 5%. And as such, I’m on the lookout for FTSE 100 stocks I can buy this month.

Investors had a tough time in 2022 as the Russia-Ukraine conflict alongside red-hot inflation saw global markets take a hit. Yet despite this, the index flexed its strength, posting a slight gain for the year. In contrast, the S&P 500 saw a 20% fall.

Much of the same is expected in 2023. However, with the FTSE 100 posting a strong start, I have my eye on two stocks that I think would be solid additions to my portfolio. Let’s take a closer look.

Scottish Mortgage Investment Trust

The first on my list is Scottish Mortgage Investment Trust (LSE: SMT). Last year was a bleak time for growth stocks as investors shied away from these riskier investments. As a result, the Scottish Mortgage share price nosedived by 40%.

The trust has also got off to a slow start year to date, with its stock slightly down. However, I like the look of the Baillie Gifford fund as a long-term buy.

To start, as a retail investor, what I most like about Scottish Mortgage is the exposure I gain under one investment. The trust invests in over 100 companies, including unlisted firms, meaning I diversify my portfolio through owning it.

Scottish Mortgage is also currently trading at around a 15% discount to a net asset value of 835p per share, which signals that the fund is undervalued. This suggest that I can access its top holdings such as ASML and Tesla cheaper than their market rate. Clearly, this is a positive.

Despite this, it’s weighting to China has seen it underperform recently as the country has struggled with its ongoing battle with Covid-19. And on top of this, with interest rates set to be hiked further, the trust could take a hit given its focus on growth stocks.

However, with a long-term focus, and with the diversification it offers my portfolio, I like the look of Scottish Mortgage.

Next

Second on my list is retail giant Next (LSE: NXT). Unlike Scottish Mortgage, the stock has got off to a strong start in 2023, rising an impressive 15%.

One reason for this is that in January the business raised its pre-tax profit forecast by £20m to £860m. This was due to a rally in full-price sales in the nine weeks to the end of 2022.

The stock also looks cheap to me. It currently trades on a price-to-earnings ratio of 12. For a business of Next’s quality, I think this presents good value. Recently, it has also looked to expand, with its latest move being the acquisition of fashion company Joules.

The biggest threat for Next in the months ahead is rising costs and the potential for consumers to cut back on spending. However, as a strong brand with plenty of experience in the fashion retail industry, I’d be willing to snap up some Next shares.

The verdict

I don’t have the spare cash to buy these FTSE 100 stocks in March, otherwise, I’d be keen. Should this change in the near future, I’ll be looking to pick up both.

The post 2 cheap FTSE 100 stocks I’d be keen to snap up in March! appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended ASML and Tesla. 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.

2022 has been tough to navigate as a retail investor. The Russia-Ukraine conflict along with surging global inflation has seen many parts of the market depressed this year. However, I’m always keen to remain optimistic. Therefore, with 2023 around the corner, I’m on the hunt for some FTSE 100 stocks I can buy in the New Year and hold for the long run. Here are two I have my eye on today.

GSK

The first is pharmaceuticals giant GSK (LSE: GSK). The stock has struggled lately, down nearly 12% year to date.

However, I think the New Year could be a great time to add the stock to my portfolio. Firstly, GSK has posted strong results so far in 2022. In its most recent update, the business announced sales growth of 9%, up to nearly £8bn. And as a result, the firm raised its full-year outlook, with growth in sales now expected to come in between 8% and 10%. This comes on the back of it already raising its guidance in its half-year update, showing that the business is going from strength to strength.

Elsewhere, I also like the moves GSK has made this year to streamline. The most noticeable of these was the demerger of its consumer healthcare business Haleon. The split will allow GSK to reorganise its operations and place greater emphasis on the development of vaccines and medicines. It also managed to siphon off £7bn in debt as part of the move.

What’s also enticing about the stock is the meaty dividend yield it offers. With a yield of around 7%, this offers me some protection against inflation. As we enter 2023, the passive income stream generated from GSK shares seems to be a smart play.

In the short term, the business could face headwinds such as rising costs as inflation continues to rise. However, for a long-term buy, I like the look of GSK.

SMT

The second stock I like the look of is Scottish Mortgage Investment Trust (LSE: SMT). The trust has seen 40% shaved off its value in 2022 as investors have turned their back on growth stocks.

Despite this, I think Scottish Mortgage could be a solid buy at its current price. The diversity it offers my portfolio is attractive. With over 100 companies under its umbrella, including some unlisted businesses, I gain access to a variety of stocks under one investment.

What I also like is Scottish Mortgage’s investment style. By this, I mean that management buys for the long run. The managers measure performance over a more-than-five-year timeframe. And while past performance is no indication of future returns, the last five years have seen SMT return 77% to shareholders. Impressive.

Inflation will continue to weigh the stock down in the short term. And its heavy weighting in China could see it suffer in the months ahead. However, I believe in the long run that this weighting will bear fruit. I’d be happy to buy in the New Year and hold for a decade.

The verdict

Unfortunately, I won’t have the cash to buy both of these next month. I should have enough to buy one for now, so I’ll probably look to pick up GSK first.

The post I’d buy these 2 FTSE 100 stocks in 2023 and hold them for a decade appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Gsk Plc and Haleon Plc. 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.

Growth stocks have taken a battering this year. To me, that means I should be looking for bargains. Here are two growth stocks that I snapped up for my portfolio at what I think are relatively low prices.

Time for luxury

Luxury watch (and jewellery) retailer Watches of Switzerland (LSE:WOSG) is growing fast. It reported revenue of £1.24bn in 2022, up from £0.6bn in 2018. A chunk of the growth has come from the recently entered US market. European expansion is also underway — a store opened in Sweden this year, and five more are planned.

And the company expects the growth to continue. Its management expects the company’s sales in the US to match that of its biggest market, the UK, in the “medium term“. Given the size of the US market, that forecast seems achievable and then some. Profitability has also come by leaps and bounds. After breaking even from 2018 to 2020, net income doubled from £51m to £101m from 2021 to 2022.

Growth and profitability improvements have come despite a challenging retail environment. But that is perhaps to be expected. A person who happily spends thousands and thousands on a timepiece is usually insensitive to the rising price of food and electricity.

A weakening pound makes WOSG’s revenues from the US and Europe look more impressive expressed in Sterling. If that trend reverses, the reverse will be true. The larger the US and European operations get, the more the company will be exposed to exchange rate differences. The company plans to spend up to £80m next year on expansion. That’s a significant amount and makes the potential for failure more worrying. Still, given the company’s track record, I am happy to keep it in my Stocks and Shares ISA.

A thinking person’s growth stock

YouGov’s (LSE:YOU) mission statement is to understand “What the world thinks.” It specialises in online opinion polling and translates its findings into actionable market research for big brands and governments.

The company is doing well. In October, it released its full-year results for the year ended 31 July 2022. All three of its divisions registered double-digit revenue growth on an underlying basis, which excludes acquisitions and exchange rate movements:

• Data products up 23%
• Data services up 11%
• Custom research up 21%

That caps off an impressive five-year run in which revenues went from £117m in 2018 to £221m in 2022. Net income is also trending higher (£8m in 2018, £17m in 2022) but has been volatile. Margins were also up in 2022.

The company’s UK home market, where it built its reputation, is its slowest growing market. That’s okay because it is expanding rapidly overseas. Growth in the Americas, particularly in the US, mainland Europe, and the Asia-Pacific regions, is impressive.

YouGov is coming up against established competitors like Gartner in the US. There is a potential for a price war. It costs YouGov, in the form of rewards points for filling in surveys, to gather its data. In addition, the model is, in theory, simple to copy. Set up a website, gather users, and poll them for information. Trust is the company’s real asset, and it only takes a few lousy poll predictions to start to erode that trust. Still, I have no hesitation in investing in this growth stock.

The post 2 growth stocks I bought without any hesitation appeared first on The Motley Fool UK.

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James McCombie has positions in Watches of Switzerland Group PLC and YouGov. The Motley Fool UK has recommended YouGov. 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.

2022 hasn’t been a good year for stock investing returns. Since January, the S&P 500 is down 25%, putting it firmly in bear market territory. The FTSE 100, on the other hand, has only fallen by 8%. However, some shares have fallen a lot further than that.

One sector that has taken a battering recently is insurance. In particular, I’ve been tracking two stocks I believe are in serious bargain territory.

Prudential

When it comes to growth stocks, the insurance sector doesn’t spring to mind. However, Prudential (LSE: PRU) is undoubtedly a growth business.

The company has reinvented itself lately. Its business model is now aligned solely to the long-term structural growth opportunities in Asia and Africa.

It offers a diversified suite of insurance products, including health and protection, which accounts for over a third of all new business profits.

Despite fast-rising prosperity, people in Asia still have low levels of insurance cover, with 39% of health and protection spend met by individuals directly. A large unmet need has created a vast health protection gap estimated at $1.8trn.

In the next 10 years, the size of the industry revenue pool across its core markets is expected to grow by $900bn. Translated to its Asia business, gross written premiums are projected to more than double in that time to over $60bn.

Of course, these are just estimates and there are no guarantees. At present, shareholders are more concerned with short-term headwinds. Rolling Covid restrictions in India, Malaysia and Singapore have dented margins. In Hong Kong, the closure of the border with Mainland China has resulted in overall annual premium equivalent (APE) in its largest market slump 10%.

Prudential’s share price is down 33% year-to-date. Yes, it could fall further. Nevertheless, I intend to buy its shares.

Legal & General

My second insurance stock pick is a traditional income one. Like Prudential, Legal & General (LSE: LGEN) has seen its share price plummet recently. It’s now down 29% year-to-date. This has had the effect of pushing up its forward dividend yield to 8.9%.

Normally, yields approaching 10% ring alarm bells. As a likely recession looms, dividend cuts can never be ruled out. However, I’m less concerned about L&G’s.

In the first half of 2022, it achieved 22% growth in cash generation and 14% growth in capital generation. The company remains confident in its ability to grow cash and capital faster than its dividend commitment.

This confidence is backed up by a number of growth drivers, including ageing demographics. As populations live longer, so too must their pensions. Organisations are increasingly turning to L&G to help them find solutions to their ongoing pension commitments. At the same time, individuals need to ensure that their retirement funds and other assets can finance longer retirements.

The accelerating share price sell-off is a direct result of the recent turmoil in the bond market. However, despite volatile markets, the group issued a press release to the effect that it hasn’t been forced to sell any gilts or bonds to shore up its capital position.

When markets are in turmoil, I always remember one of Warren Buffett’s classic quotes: “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”. In L&G, I’m seeing such an opportunity and I’ll be buying.

The post As the FTSE 100 tanks, I’m hoovering up bargains appeared first on The Motley Fool UK.

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Andrew Mackie has positions in Legal & General Group. The Motley Fool UK has recommended Prudential. 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.

One growth stock I want to explore in more detail is Water Intelligence (LSE:WATR). Let’s take a look at whether I should buy or avoid the shares for my holdings, with a view to longer-term growth and returns.

Leak detection

The name Water Intelligence nearly fooled me into thinking the business produced smart drinking water. In fact, it is a leak detection business with plenty of years in the industry and international operations across the US, Canada, Australia, Spain, and Belgium.

So what’s the current state of play with Water shares? As I write, they trade for 565p. At this time last year, the stock traded for 1,145p. This is a 50% drop over a 12-month period.

The investment case

Let’s look at some bull aspects of Water Intelligence first. To start with, I’m buoyed by its international presence, which should help boost performance and growth. Drilling down into its specific territories, the piping infrastructure in many of these countries, such as the US and Canada, are ageing. This means that the likelihood of leaks is higher, raising demand for effective and efficient leak detection and repair services. This could serve Water Intelligence’s growth well in the coming years.

Moving onto Water’s performance historically and recently, there is a lot to like for me personally. I do understand that past performance is not a guarantee of the future. However, looking back, I can see it has grown revenue and profit for the past four years in a row. Coming up to date, last month it released a half-year report for the period ended 30 June 2022 that made for good reading. Revenue and sales increased by 44% and 12.5% respectively compared to the same period last year. Net cash also boosted its balance sheet as that increased too. From a growth perspective, this will boost initiatives, including the fact it hired more technicians as it looks to grow the business moving forward.

So to the bull case. Water Intelligence is still a relatively small fish in a large pond. Despite its international presence, there are larger, more established, and arguably better-equipped rivals out there that could dominate the market. This could negatively affect the performance and growth aspirations of Water Intelligence.

Furthermore, Water Intelligence is at the mercy of current macroeconomic headwinds. These include soaring inflation, the rising cost of materials, and recent international currency exchange volatility. Rising costs could put pressure on profit margins. For any growth stock, profit plays a key part in growing the business. In addition to this, Water’s international presence opens it up to unfavourable international currency exchange rates that could damage its balance sheet.

A growth stock I will continue to monitor

In conclusion, I have decided to keep Water Intelligence on my watch list for now. Current volatility, as well as falling investor sentiment help me come to my conclusion. There are some positives to note, including growth to date, as well as recent performance. For that reason I will keep a close eye on the wider economy in relation to its performance to see if I should change my stance down the line.

The post Should I buy this burgeoning growth stock for long-term returns? appeared first on The Motley Fool UK.

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Jabran Khan has no position in any of the shares mentioned. The Motley Fool UK has recommended Water Intelligence plc. 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.

There is a big focus on renewable energy sources currently as the world races to cut carbon emissions. One growth stock that could play a part is Ceres Power (LSE:CWR). I must admit I hadn’t heard of it until I began researching the sector for investment purposes some time ago. Should I buy Ceres shares?

Renewable energy technology

As an introduction, Ceres is a leading developer of fuel cell technology. These fuel cells help the production of clean, low-cost energy. It currently has one flagship product, known as Ceres SteelCell.

So what’s happening with Ceres shares currently? Well, as I write, they’re trading for 389p. At this time last year, the stock was trading for 998p. This is a 61% decline over a 12-month period.

The investment case

Let’s take a look at some bull and bear aspects of Ceres shares to help me make a decision on my position.

First of all, Ceres as a growth stock has lots of future potential ahead, in my opinion. There is lots of policy support from governments to find alternative, clean energy solutions. As well as policy support, there is a lot of money being thrown at this from the public and private sector. An example of this is Ceres’ partnerships to date. As a smaller firm, it may not have the financing and infrastructure in place yet to progress its product line. These partnerships will enable that, and could eventually translate into performance growth, and returns for shareholders.

It is worth noting that Ceres will make money from licensing fees from said partnerships. To date, it has some lucrative partnerships, including one with energy powerhouse Shell, another with Chinese firm Weichai, and South Korean firm Doosan Group.

Investor sentiment towards Ceres could certainly boost shares too as the rise of ethical investing (ESG) continues. Millennials for example are looking for businesses to invest in that are ethical and Ceres ticks this box.

Away from the positives, it is worth noting that despite Ceres’ share price fall, the shares do look expensive. I find this is common in a growth stock as the potential has not been realised yet, but there is some excitement around future potential. In addition to this, Ceres is yet to turn a profit. I do believe this could change imminently as some of its partnerships are set to yield licence fees in the coming fiscal year. I will keep a keen eye on future trading updates.

A growth stock I will continue to monitor

Taking everything into account, I’m going to keep Ceres Power shares on my watch list for now. Based on my research and due diligence, there is lots of potential ahead, and the market excitement and partnerships signed to date demonstrate this. For me personally, I want to see more meat on the bones from a financial and trading updates point of view, and for the business to become profitable for me to be able to truly understand how it could boost my holdings.

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Jabran Khan has no position in any of the shares mentioned. 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.

A core part of my investment strategy is to look for stocks that could grow and provide me consistent and lucrative returns in the long term. One growth stock I have my eye on is Safestore (LSE:SAFE). Should I buy or avoid the shares?

Self-storage and warehousing

Safestore is a self-storage business that provides units to consumers and companies for warehousing purposes. In fact, it is the largest operator of its kind in the UK, and has an international presence with sites in France, the Netherlands, and Spain.

At current levels, Safestore shares are trading for 919p. They are down 14% over a 12-month period as they were trading for 1,078p at this time last year.

Due to the explosion of e-commerce, which requires lots of warehousing space, as well as a burgeoning housing market, storage and warehousing businesses have done well in recent times. This trend is expected to continue, according to Statista.com, which is why I am considering Safestore as a major player and a potential growth stock.

Challenges ahead

One challenge that could have a detrimental impact on Safestore shares is the saturated market it operates in. Lots of firms are vying to leverage heightened demand for storage solutions into profit and growth. Furthermore, there are low barriers of entry into the storage market which could invite other players that may be able to eventually undercut and overtake Safestore and others.

I also noticed that Safestore experienced a lot of success in recent years due to the pandemic, as well as the growing housing market. This led to increased demand. The current economic outlook and the cost-of-living crisis could result in weaker demand in the shorter term. This could hurt investor sentiment, not to mention performance and returns.

The bull case and my verdict

So let’s take a look at some positive aspects of Safestore shares. I’ll start with its performance track record. I am aware that past performance is not a guarantee of the future. However, looking back, I can see that it has grown revenue and gross profit for the past four years in a row. With demand for storage space set to continue growing, it could continue this trend too.

Next, Safestore shares would boost my passive income stream through dividend payments. The current dividend yield on offer is 2.7%. This is higher than the FTSE 250 average of 1.9%. I am aware that dividends can be cancelled at any time, however.

Finally, the shares look dirt-cheap right now on a price-to-earnings of just over four. This tells me that if performance and returns were to increase, the share price could follow suit.

In conclusion, favourable market conditions, the belief that demand for self-storage is only set to increase, as well as the passive income opportunity help me make my decision. I would be willing to buy Safestore shares for my holdings.

The post Could this storage business be a great growth stock to buy? appeared first on The Motley Fool UK.

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Jabran Khan has no position in any of the shares mentioned. The Motley Fool UK has recommended Safestore Holdings. 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.

So far in 2022, there has been a major tech sell-off. This is because investors have rushed towards safer, more defensive stock options in light of macroeconomic issues as well as the geopolitical events in Ukraine. Despite the sell-off, I’m looking at one tech business that could be a great growth stock. Should I buy dotDigital (LSE:DOTD) shares for my holdings?

Customer engagement and marketing

As a quick introduction, dotDigital is a marketing and customer engagement business. It provides businesses with tech-based solutions to automate and run marketing campaigns as well as customer engagement solutions to help companies keep in touch with their customer base.

So what’s happening with dotDigital shares currently? Well, as I write, they’re trading for 83p, making it a penny share. At this time last year, the stock was trading for 272p, which is a 69% decline over a 12-month period.

The bull and bear case

So let’s take a look at the bull and bear aspects of dotDigital. I’ll start with some positives.

Firstly, dotDigital operates in a burgeoning market where demand for its services is only increasing. I believe this is due to the rise in e-commerce, online shopping, and digital adoption. As a growth stock option, it could leverage this increased demand into performance and higher returns.

Next, I’m buoyed by some of the strategic partnerships that dotDigital has in place. These include deals with names such as Microsoft, Shopify, Adobe, and a recent agreement signed with McAfee. These partnerships allow it to enhance its offering as well as conferring credibility to products in the tech world, which could boost investor sentiment and performance.

Finally, at the end of July, dotDigital released interim results for the year ended 30 June 2022. Full results are expected in November. The interim results made for good reading, in my opinion. Revenue and recurring revenue increased. Operating profit is set to be ahead of expectations and a dividend is to be announced in the final results too. At present, the dividend yield for dotDigital shares stands at just over 1%. I am aware that dividends can be cancelled, however.

So to the bear case then. I believe that dotDigital shares, performance, and returns could come under pressure due to macroeconomic headwinds. Soaring inflation has caused many businesses to consider cutting costs, and marketing budgets could be slashed.

Next, with the rise of e-commerce and online adoption, competition to provide digital marketing and customer engagement platforms has increased in recent years. All these firms are vying for market share. Any one of dotDigital’s competitors could gain a competitive edge that could hinder its performance and returns.

A growth stock I would buy

To summarise, there is lots to like about dotDigital. I am buoyed by the market it operates in, as well as its great partnerships. Recent trading shows a resilient business model and resilience in the face of headwinds. I am aware of the risks too, however. Overall, I’d happily add a small number of dotDigital shares to my holdings. I believe they will recover in the longer term and boost my portfolio.

The post Could this marketing firm be the perfect growth stock? appeared first on The Motley Fool UK.

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Jabran Khan has no position in any of the shares mentioned. The Motley Fool UK has recommended dotDigital Group. 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.

I believe Domino’s Pizza Group (LSE:DOM) could be a great growth stock to buy now. Let’s take a closer look at some fundamentals to help me build my investment case.

The world’s leading pizza delivery company

As a quick reminder, Domino’s is the UK’s leading pizza delivery brand, with a strong presence in the Republic of Ireland and throughout the world. It opened its first UK location in 1985 but has grown to over 1,200 stores in the UK and Republic of Ireland as I write. With its 35,000 employees, it sold over 105m pizzas last year!

So what’s happening with Domino’s shares currently? Well, as I write, they’re trading for 254p. At this time last year, the stock was trading for 399p, which is a 36% drop over a 12-month period. I’m not concerned by the share price drop, in fact, I view it as an opportunity to buy the dip in a quality business.

A growth stock with risks

Firstly, macroeconomic headwinds at the moment will be playing a part in the Domino’s share price decline. These include soaring inflation, rising costs, and a global supply chain crisis. Rising costs could take a bite out of profits and supply chain issues could affect operations and sales too. Many other UK shares are also suffering due to the issues noted above.

Next, due to the current issues noted, a cost-of-living crisis has emerged in the UK. This could have a material impact on Domino’s performance and level of returns, at least in the shorter term. Consumers may spend less on takeaways, and look for cheap alternatives as they tighten their belts. This is a development I will keep a close eye on.

The investment case

So to the positives then. For any growth stock I am interested in, I review a firm’s journey to date. I am buoyed by Domino’s growth story in recent years as well as its current position in its respective market. It has the experience and know-how to continually move with the times, increase its footprint, and boost its balance sheet. I do understand that the past is not a guarantee of the future, however.

Next, Domino’s shares would boost my passive income stream through dividend payments. At current levels, a dividend yield of close to 4% is enticing for me, although I am aware that dividends are never guaranteed.

Despite shorter-term challenges, I believe Domino’s could continue growing, based on recent trends. I am referring to the rise in takeaway options, as well as the rise in online delivery platforms that consumers use to order food straight to their door. With Domino’s presence, it can leverage this into sales and boost performance and returns, in my opinion.

Finally, Domino’s shares look decent value for money on a price-to-earnings ratio of 15. The recent price drop has made the shares look more attractive and I believe they could head upwards once more.

Overall, I like the look of Domino’s shares and would buy some for my holdings. Food is a staple after all, and based on recent trends like the increasing number of takeaways consumers order, coupled with its profile and presence, I believe Domino’s could be a great growth stock to buy and hold.

The post This well-known food retailer could be the perfect growth stock! appeared first on The Motley Fool UK.

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Jabran Khan has no position in any of the shares mentioned. The Motley Fool UK has recommended Dominos Pizza. 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.

Director dealings are essentially insider transactions for shares between directors and the companies they work for. These dealings are always made public, and are often considered a good indicator of a company’s future prospects. However, they don’t get nearly as much attention as other company news due to their complex nature. Nonetheless, here I’m breaking down this week’s biggest director dealings from three FTSE firms.

Vodafone

Vodafone (LSE:VOD) is a British multinational telecommunications company. It predominantly operates services in Asia, Africa, Europe, and Oceania. The company runs at least some form of operations in over 150 countries.

Following lacklustre numbers from its Q1 trading update, the share price dropped by 5%. It has stayed there since. Despite that though, it’s a sign of confidence when a high-ranking director purchases shares. And this week, Vodafone’s Chairman decided to reinvest his dividends into buying more Vodafone shares.

• Name: Jean-François van Boxmeer
• Position of director: Chairman
• Nature of transaction: Dividend shares
• Date of transaction: 10 August 2022
• Amount bought: 9,975 @ £1.21
• Total value: £12,069.75

Deliveroo

Deliveroo (LSE: ROO) is a British online food delivery company. It operates in over 200 locations across the UK, and is the second-biggest food delivery platform in the country. It also operates internationally with operations in France, Singapore, Australia, and many more.

In this week’s transaction, a director exercised his option to redeem stock compensation. Following this, he opted to sell approximately half of the shares received to cover tax liabilities. That being said, it’s worth noting that this is a monthly occurrence from the company’s CFO. As such, these actions shouldn’t impact investor sentiment surrounding the stock. It’s worth pointing out, however, that the sale of these shares dilute shareholders’ value. This is because there are now more Deliveroo shares floating on the market.

• Name: Adam Miller
• Position of director: Chief Financial Officer
• Nature of transaction: Award shares
• Date of transaction: 15 August 2022
• Amount vested: 83,400 @ £0.96
• Total value: £80,247.48

• Name: Adam Miller
• Position of director: Chief Financial Officer
• Nature of transaction: Sales of shares to cover tax liabilities
• Date of transaction: 15 August 2022
• Amount sold: 40,402 @ £0.95
• Total value: £38,381.90

FirstGroup

FirstGroup (LSE: FGP) is a British multi-national transport group. The FTSE 250 firm is the leading transport operator in the UK and North America. It is widely known for being a provider of public transport, especially buses in the UK.

Rather surprisingly, its shares have managed to outperform the wider UK market index this year. But after the share price took an 11% hit last week, a couple of large director dealings were carried out. The first involves a non-executive director purchasing a substantial number of shares. But what really caught my eye were the conditional share awards that could be awarded to FirstGroup’s CEO and CFO. This should shore up investors’ confidence in the stock, as the group’s management will have to perform and meet investors’ expectations in order for these award shares to vest.

• Name: Sally Cabrini
• Position of director: Non-Executive Director
• Nature of transaction: Purchase of shares
• Date of transaction: 17 August 2022
• Amount vested: 10,000 @ £1.15
• Total value: £11,482

• Name: Graham Sutherland
• Position of director: Chief Executive Officer
• Nature of transaction: Award shares
• Date of transaction: 18 August 2022
• Amount vested: 972,590 @ Nil
• Total value: N/A

• Name: Ryan Mangold
• Position of director: Chief Financial Officer
• Nature of transaction: Award shares
• Date of transaction: 18 August 2022
• Amount vested: 1,003,226 @ Nil
• Total value: N/A

Types of Shares

To provide context, there are a few types of shares that can be purchased by directors. Some directors opt to purchase shares via the open market. Having said that, directors also have the option to purchase and receive shares via a share incentive plan (SIP).

A SIP is an employee plan for companies within the UK to flexibly award shares to employees. Publicly listed companies normally exercise this option because it’s tax-efficient for both the employer and its employees.

In this week’s set of director dealings, a few types of SIPs were exercised. For starters, Vodafone’s Chairman opted to purchase more Vodafone shares from the dividends he received from his current shares.

On the other hand, Deliveroo’s CFO decided to exercise the option of redeeming his restricted stock units. These are a form of award shares which allow for directors to redeem shares at a later date, as either as part of their salary or based on meeting performance obligations.

FirstGroup’s CEO and CFO were awarded shares as well, but these will only be vested once performance targets are met. In this case, more than 1.5m shares are up for grabs between the two directors under the operator’s long-term incentive plan (LTIP). The LTIP award will normally vest on the third anniversary of the date of award, subject to satisfaction of performance conditions and continued employment. The award is also subject to an additional holding period of two years from the date on which the award vests.

The post Director dealings: Vodafone, Deliveroo, FirstGroup appeared first on The Motley Fool UK.

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John Choong has no position in any of the shares mentioned. The Motley Fool UK has recommended Deliveroo Holdings Plc and Vodafone. 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.