I tried asking ChatGPT what the Chancellor’s announcement is likely to mean for UK stocks and it’s answers were fairly obvious. It described its view as “moderately negative” but there’s a lot more going on than this.

ChatGPT’s view

The main potential risk, according to ChatGPT, is the possibility of higher taxes, especially in oil and banking. Both of those industries are heavily represented in the FTSE 100. 

There’s also a broader risk, which comes from the bond market. If the government’s plan goes down badly, the UK’s borrowing costs could rise, creating a bigger black hole to fill.

One area where it suggested there might be room for optimism,though, is infrastructure spending. That includes rail networks, housebuilding, and net-zero energy investments. I already thought that myself.

Anyway,, this could be positive for a number of UK stocks. But there are a couple that I think are particularly interesting at the moment – one from the FTSE 100 and one from further afield.

LondonMetric Property

LondonMetric Property (LSE:LMP) is a FTSE 100 real estate investment trust (REIT). Despite its name, the vast majority of its assets are based outside the capital. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

One of the most important things for industrial distribution centres is being close to transport links. So I think the firm’s assets stand to benefit from potential road and rail investments.

The company’s balance sheet does make it sensitive to rising interest rates. So investors need to pay attention to how the bond market reacts and look to manage their risk accordingly.

Growth opportunities, though, are often harder to come by in the REIT sector than elsewhere. Given this, I think LondonMetric Property is one to keep an eye on going into the Budget.

Ashtead Technology

Ashtead Technology (LSE:AT.) is a name investors might not know so well. It’s a firm that leases subsea equipment for exploration and maintenance to companies in the energy sector. 

For the first time since 1964, there are to be no new oil wells drilled in the North Sea this year. That’s obviously not good for a business that owns the machinery used in this type of activity.

Around 85% of Ashtead Tech’s equipment, however, can be used either for oil and gas or for renewables. And it has particularly strong capabilities in the offshore wind sector. 

The stock has been one of the most heavily-shorted UK shares over the last couple of years. But it’s an obvious potential beneficiary of an increase in net-zero infrastructure spending. 

Budget buying

I’m taking the wait-and-see approach going into the Budget. There’s a lot of uncertainty – and I’m certainly not outsourcing my thinking about what might happen to ChatGPT.

Rather than hunting quick wins, I’m looking at the long-term implications. And I think both LondonMetric Property and Ashtead Technology are ones to back to when the dust settles.

The post I asked ChatGPT what the UK Budget means for the FTSE 100 and it said… appeared first on The Motley Fool UK.

When stocks are heavily shorted, investors can gain critical insights into what the professionals are thinking. A quick glance at the 12-month performance of Ashtead Technology (not to be confused with Ashtead Group) suggests a good reason to be pessimistic. But for J Sainsbury and Yellow Cake, these UK shares are seemingly proving to be more resilient, at least for now.

So, why are the experts betting against these businesses? And should investors be avoiding them like the plague?

What’s going on?

Each business operates in different industries and is facing its own unique challenges.

• Ashtead Technology has encountered numerous operational and geopolitical pressures that have culminated in a profit warning. And it seems hedge funds think the worst is far from over.
• J Sainsbury had been losing market share to Tesco and discount retailers but has been gaining it more recently. However, that situation could reverse should a full-blown pricing war erupt as inflationary pressures squeeze consumer spending.
• Yellow Cake is feeling the pinch of falling uranium prices, with concerns that rising operational costs may force management to sell some of its commodity reserves at weaker prices.

Given that these headwinds are proving to be quite persistent, it seems short sellers don’t believe the problems surrounding these businesses will be resolved quickly. And if that hunch is correct, then shareholders could be in for a rough ride.

Short sellers aren’t always right

Yet while hedge funds have access to expensive market research and data, not every bet they make is a success.

Sometimes, a large short position can present a lucrative opportunity for long-term investors. Why? Because if sentiment suddenly turns positive, the unwinding of a major short position can send a stock flying upward. And looking at these three stocks, there are some potential catalysts for a mood change.

Ashtead Technology still has a substantial order backlog, providing good revenue visibility. Management is already implementing efficiency initiatives to bring down costs in the short term. And if geopolitical tensions ease, market conditions could quickly and significantly recover.

Sainsbury’s latest trading update has also shown better-than-expected resilience, with like-for-like sales growth reaching 4.7% thanks to its Nectar loyalty programme. As for Yellow Cake, the rising level of investment into nuclear energy technology is expected to boost uranium prices significantly if global supply fails to keep up with demand.

The bottom line

Despite the weak sentiment from institutional investors, there are still some promising signs of potential with these businesses. And while I think it’s still too soon to determine whether these stocks can deliver a surprise comeback, I’m not writing off any of them just yet. That’s why investors may want to consider keeping a close eye on these UK shares as they continue navigating through short-term choppy waters.

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Here are three of them.

Ashtead Technology

The first is Ashtead Technology (LSE: AT.), which rents out subsea equipment to the global offshore energy sector. The stock has been a horror show this year, falling 40%.

One key problem is that global instability is negatively impacting large-scale energy projects and investment decisions. With tariff uncertainty persisting, these issues could drag on into next year.

For long-term investors though, I think there may be an opportunity here. The £266m market-cap firm is proactively reducing its exposure to low-margin equipment sales, which will cause a short-term revenue dip. But this strategic move should improve profitability in the long run.

Moreover, revenue is still expected to increase 23% to around £206m this year, which isn’t too shabby considering the challenging environment. Most of Ashtead Technology’s equipment can be used for either offshore oil and gas or renewable energy projects. This provides resilience, as does its global presence.

Following the fall, investors can pick up the shares for just 7.5 times forecast 2025 earnings. While trading is volatile now, I think there’s every chance this stock could bounce back when the smoke clears.

Windar

Sticking with the renewables theme, Windar Photonics (LSE:WPHO) looks interesting. The Danish company, which has a small £57m market cap, designs and sells sensors that help wind turbines detect wind direction and speed more accurately. This helps the blades adjust for maximum efficiency and power output.

This year, revenue is expected to jump around 109% to €9.5m, as the firm wins more contracts to retrofit its systems onto turbines. What I like here is that the company is also expected to turn profitable this year.

Based on forecasts for 2026, the forward-looking price-to-earnings multiple is 15.5. This translates into a price/earnings-to-growth (PEG) ratio of 0.2. For context, a PEG ratio between 0.5 and 1 is considered good value.

Of course, the lack of consistent profitability adds risk, as does Windar’s small size. And while the balance sheet looks fine now, the firm may need to tap shareholders for cash in future.

Warpaint

The final stock is Warpaint London (LSE:W7L). This an affordable cosmetics supplier behind brands like W7 and Technic.

The shares are down 40% year to date, giving the firm a £252m market cap.

Last year, group sales grew 13% to £102m, with earnings per share jumping 29% to 23.5p. However, management warned of a slowdown in its US business this year, largely due to higher tariffs. These are a risk in this industry because it could lead to higher prices, heaping even more pressure on inflation-weary consumers. 

However, Warpaint says that overall group sales are being achieved at a significantly higher margin than last year. And double-digit growth on both the top and bottom lines is still expected this year. Warpaint might even be able to take market share due to its value proposition.

After the share price slump, the stock looks attractively priced, with a forward P/E ratio of 10.7. There’s also a well-covered 3.5% dividend yield on offer.

Overall, I like the risk/reward set-up here.

The post 3 UK stocks to consider buying while they’re this cheap appeared first on The Motley Fool UK.

Sales crumble

To some extent, the hate for Domino’s Pizza (LSE: DOM) is understandable. Investors have lost their appetite for the FTSE 250 member in recent times as the cost-of-living crisis has changed consumer behaviour and, consequently, impacted earnings. Only this month, management warned that full-year profit would come in lower than previously expected, not helped by higher staffing costs.

If there’s a silver lining to this cloud, it’s that rivals like Pizza Hut are also feeling the pain and closing sites for good. This could work in Domino’s favour if/when the good times return.

The stock changes hands on a price-to-earnings (P/E) ratio of 11 as well — arguably cheap given the high operating margins posted year after year. The 5.6% dividend yield is similarly attractive and, while never guaranteed, should be covered by expected profit.

The sizzling UK weather is unlikely to have been good for sales. But the inevitable arrival of colder days might mean brave contrarians will want to consider this one.

Sinking share price

Also on the list of most shorted UK shares is AIM-listed Ashtead Technology Holdings (LSE: AT.). Again, this isn’t all that surprising. The value of the company — which provides subsea technology solutions to the global offshore energy sector — has fallen by a little over 40% in 2025 alone.

Ashtead has faced a number of issues, including geopolitical pressures and “significant disruption in the US market“. In July, it stated that full-year adjusted earnings would now come in “modestly below” its previous estimate. It looks like some traders believe the actual result could be even worse than feared.

Despite the awful recent form, this company has still more than doubled in value since 2021. A P/E of just eight for FY25 suggests a lot of bad news is factored in as well.

Half-year numbers are due on 26 August. An unexpected bit of good news could see the shares jump. Any worsening could easily leave even new holders under water. This is a bit too risky for me, as things stand.

But the ‘winner’ is…

Occupying top spot is Sainsbury (LSE: SBRY). Initially, I found this rather surprising. After all, the company’s share price, while lagging the FTSE 100 index slightly, is still up 10% year to date. That’s fairly impressive considering that the consumer economy is hardly firing on all cylinders. The yield of 6.1% is tempting too.

Dig a bit deeper, however, and I can see why some short sellers are salivating.

Sainsbury has already signalled that this year’s profits will be flat at best due to price wars. Margins could be trimmed further if costs keeps rising. Elsewhere, sales at Argos have been falling.

Most worrying for me though has been the significant selling by numerous directors, including CEO Simon Roberts. Executives clearly have the right to protect their wealth. But the fact that this happened en masse in April and May makes this Fool reluctant to ponder taking a position today.

The post Beware! Traders are betting these UK shares will fall appeared first on The Motley Fool UK.

You see, I bought this AIM-listed stock at 475p in late 2023, and by July 2024 it had jumped to 864p. Then it started falling, and falling. Now, it’s all the way down at 346p. By the time you read this, it could be even lower.

This stomach-churning rollercoaster is captured in the share price chart below.

Weak outlook

For those unfamiliar, Ashtead Technology provides rental equipment and expertise to the global offshore energy industry (both wind projects and oil and gas). It specialises in underwater technology, with a fleet of over 30,000 assets. 

The reasons for today’s crash was a half-year trading update. Revenue jumped 23% year on year to £99m, which sounds great, but it actually dropped 6% on a pro-forma basis. In other words, headline growth was boosted by acquisitions but there was underlying weakness. 

The company blamed a few things: “A combination of the challenging geopolitical environment, significant disruption in the US market and a small foreign exchange headwind, together with a focus on higher quality rental revenues and pro-actively reducing exposure to cross hire and low margin equipment sales, resulted in lower revenues than initially expected”.

It wasn’t all doom and gloom though. The adjusted earnings before interest, taxes, and amortisation (EBITA) margin held firm at around 27.3%, consistent with the group’s medium-term target of a high 20% figure. This was helped by operational synergies from two acquisitions (Seatronics and J2 Subsea), which were delivered faster and better than expected.

Meanwhile, cost control remains disciplined, even while investing for growth and cash generation met expectations. The net debt leverage is manageable at 1.6 times. 

Looking ahead to the second half however, revenue growth is expected to be in the high single digits, despite being the seasonally stronger half. And full-year adjusted EBITA is now anticipated to be “modestly below” previous forecasts.

Muddy waters

Ashtead Technology has a global presence, with bases in the North Sea, US Gulf, Middle East, and Asia. Tariff uncertainty clearly isn’t helping, as firms pause expansion plans until trade policy becomes clearer. This appears to be directly impacting demand for survey work and rental gear.

While Ashtead operates globally, the North Sea remains a key market, so the government’s flip-flopping on oil and gas licences isn’t ideal. Meanwhile, there’s a growing backlash against Net Zero policies (not great for offshore wind farms), though whether that will lead to more North Sea drilling is unclear. 

There’s a lot of uncertainty around, and that’s rippling down to equipment providers like Ashtead Technology. 

My (undecided) view

The firm says customer backlogs and contract wins remain strong, supporting a positive medium-term outlook. And it’s targeting a move to the London Stock Exchange’s main market, which may attract more investors. I’m not selling.

To double down, or not, that’s the question I’m wrestling with now. The stock looks cheap, even with earnings under pressure. As my position’s already under water, I’m undecided. But new investors might want to consider the dip.

The post Down 23% today! This one’s stinking out my Stocks and Shares ISA appeared first on The Motley Fool UK.

However, not all shares do, which can present lucrative opportunities if the market has mispriced them. Here are two that I think are worth considering in June.

Ashtead Technology

In my opinion, AIM-listed Ashtead Technology‘s (LSE: AT.) worth a look at 450p. The £363m company rents out specialist subsea equipment for both the offshore renewables and oil and gas sectors.

The share price has halved over the past year, leaving it looking very cheap. Based on current forecasts for 2026, the stock’s trading at just 8.5 times forward earnings. That’s very cheap for a quality growth stock.

Indeed, it’s the sort of valuation where I’d expect an imminent decline in revenue or earnings. But Ashtead Technology’s growth trajectory still looks attractive.

So what’s going on? Well, wind turbines is a growth market for the company, but investors have soured on renewables. Meanwhile, North Sea oil and gas producers are subject to a combined tax rate of up to 78%, including the Energy Profits Levy. This is crippling investment in the sector. So there are risks to consider here.

In reality though, there’s still a need for both types of energy, as well as nuclear. Ashtead Technology’s a global company and doesn’t rely solely on the UK for growth. As the firm points out: “We’re not tied to any one geography or end market”.

Ashtead Technology’s also a serial acquirer, which does mean it could overpay for a company. However, with much of the European renewables and oil and gas sectors currently in the doldrums, it’s possible the firm may be able to add to its equipment rental fleet at attractive valuations.

Alphabet

The second cheap growth stock is Alphabet (NASDAQ: GOOG). The tech giant owns Google search, Google Cloud, YouTube, and robotaxi firm Waymo.

Since February, the share price has dropped 18%, putting the forward P/E ratio at just 18.5. For a world-class technology company, that’s bordering on dirt cheap.

One worry hanging over the stock right now is the rise of chatbots like Claude and ChatGPT, which are challenging traditional internet search engines.

It’s worth pointing out though that Google says its AI Overviews now has over 1.5bn monthly views and is driving more engagement. Importantly, it recently confirmed that this feature’s generating advertising revenue at a rate comparable to traditional search results.

Another risk is the ongoing anti-monopoly case against Google, which could ultimately lead to a breakup of the tech giant. Of course, we don’t know how this will play out.

But consider that YouTube’s the world’s second-largest search engine (after Google), with over 2.7bn monthly active users. Both ad revenue and subscriptions (YouTube Premium) are growing at 10%-plus.

If YouTube commanded a similar market value to Netflix, it would alone be worth over $500bn. That leaves the rest — search, Gmail, cloud, Waymo robotaxis, Google DeepMind (AI), cybersecurity, quantum computing, and more — worth around $1.5trn. Seen from this angle, the $2trn group looks undervalued to me.

I think Alphabet shares are worth considering for long-term investors at $170.

The post 2 cheap growth stocks to consider for a Stocks and Shares ISA appeared first on The Motley Fool UK.

UK growth stock

First up is Ashtead Technology (LSE: AT.). This AIM-listed small-cap stock has had a rough time, slumping 49% over the past year. Yet, it’s still up 187% since listing in late 2021, which is testament to the company’s solid growth.

Ashtead Technology is a subsea equipment rental and solutions provider for the global offshore energy sector. Its business spans both oil and gas and renewables, with 85% of its equipment transferrable between the two.

This gives the firm flexibility and the chance to capitalise on trends in both areas. For example, the decommissioning of oil and gas infrastructure, or the building of wind turbines. A serial acquirer, the company has amassed a rental fleet of over 30,000 assets.

Revenue growth has been strong, rising from £42.4m in 2020 to an expected £228m this year. Profits have also motored higher and the £370m firm sports an attractive 25% operating margin.

The key risk here is that a global economic downturn could lead to less demand for Ashtead Technology’s services. There’s also weak sentiment for the renewables sector right now (an important growth market for the firm).

For instance, green energy giant Ørsted has pulled out of the UK’s massive Hornsea 4 offshore wind project in its current form due to high costs. Ørsted’s share price, by the way, is down 64% in five years! 

This is why Ashtead Technology’s flexibility and geographic diversification is an advantage. Its fate is not tied to North Sea oil and gas or UK renewable energy policy. It has facilities located in key offshore energy hubs in Europe, the Americas, the Middle East, and Asia Pacific.

After its fall, the stock is trading at 9.5 times forward earnings and has a P/E-to-growth (PEG) ratio of 0.5. These metrics look attractive, even if the company’s earnings won’t grow as quickly over the next couple of years as they have in the past.

US tech giant

The second cheap stock is Alphabet (NASDAQ: GOOGL). The Google owner’s share price is down 20% since the start of February.

Investors have been fretting about the changing landscape in internet search, with AI-powered chatbots rapidly gaining in popularity. This is obviously a key risk that Alphabet is attempting to navigate, as 56% of revenue came from Google’s search business in Q1.

However, it’s unlikely that traditional search engines are going to disappear overnight. Google has been incorporating AI summaries into search, which it says is boosting engagement. It also has its own AI chatbot, Gemini, and I expect it to monetise that with ads in future.

Meanwhile, YouTube is going from strength to strength, as is Google Cloud (it grew 28% in Q1, bringing in $12.3bn). And its Waymo robotaxi business is launching in more cities in 2025 and 2026. Google is also making progress in quantum computing research.

Right now, Alphabet shares can be picked up for 17.6 times forward earnings. I see a lot of value for long-term investors, despite the scary headlines predicting Google’s imminent demise.

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A potential one that stands out to me is Ashtead Technology (LSE: AT.). Now at 463p, the share price is down 46% inside a year.

Here’s why I think this AIM-listed stock now looks like a bargain to consider.

Impressive growth

Ashtead Technology is a leading subsea solutions provider to the global offshore energy sector. It rents out specialist equipment, including robots and mechanical solutions to enable the construction, inspection, maintenance, repair and decommissioning of offshore projects. Its equipment fleet now total more than 30,000 assets.

The £373m company is a serial acquirer, snapping up smaller firms to build out its specialist offerings. Growth has been very impressive, with profits more than quadrupling over the past five years. 

Last year, revenue surged 52% to a record £168m through a combination of organic growth and strategic acquisitions. Adjusted EBITA increased 39% to just over £50m.

In November, it carried out its largest acquisition to date (Seatronics and J2 Subsea, acquired from the same company). And despite what the weak share price might suggest, brokers have 35% top-line growth pencilled in for 2025.

Volatile backdrop

Given this strong growth, why on earth are Ashtead Technology shares down in the dumps recently?

Well, the company’s equipment spans both the oil and gas and renewables sectors, with a strong presence in the North Sea. But UK oil and gas companies operating in the North Sea have been under pressure from regulatory uncertainties, project delays, and massive taxes.

In offshore wind, several major European projects have been scaled back or cancelled due to rising costs. And there’s a growing backlash against net-zero policies in parts of Europe, so perhaps this is an overhang, as renewables is a key growth market for Ashtead Technology.

Meanwhile, a global recession is a risk because some offshore energy projects might get delayed or canned. It seems like the stock has been dragged down by all this, despite the firm recently saying that Q1 trading had been encouraging.

Global operations

If we look at the geographic mix, some 68% of revenue last year came from Europe. However, this is slightly misleading because reported revenue is from the location that the work is mobilised from. It’s not where the work takes place. That might actually be in West Africa, Brazil, or the Gulf of Mexico.

In other words, Ashtead Technology is more of a global company than it might seem at first glance. And 85% of its equipment is interchangeable between oil and gas and renewables, providing flexibility.

For example, the current UK government is pro-offshore wind, but not a fan of oil and gas. In the US and elsewhere, it’s the exact opposite. As the firm’s CEO said in March: “We’re highly flexible. We’re not tied to any one geography or end market.”

Attractive valuation

The stock is trading at 10 times adjusted earnings forecast for 2025, falling to 8.7 in 2026. The price-to-earnings-to-growth (PEG) ratio is 0.5 (any growth stock below 1 is often worth investigating).

Given the strong long-term growth prospects and low valuation, I’m going to buy more shares soon.

The post Now down 46%, this FTSE small-cap stock looks a steal to me at 463p appeared first on The Motley Fool UK.

Airtel Africa

What it does: Airtel Africa provides mobile telecommunication services to 14 countries across the African continent.

By Mark Hartley. I bought Airtel Africa (LSE: AAF) shares a few months ago after the price dipped near a three-year low. This came after underwhelming Q2 2025 results, with earnings per share (EPS) missing expectations by 80%. Despite the drop, I have felt confident in the group’s long-term potential for some time so the low price seemed like a good opportunity. It has since recovered 51%, making it one of the best-performing stocks in my portfolio.

However, it still faces significant risks from currency devaluation in Nigeria, one of its core markets. Rising fuel prices pose another risk as the company uses generators to power its remote cell towers. To mitigate the losses, the company is working to reduce its exposure to foreign exchange, having paid down $809m in forex debt exposure. Despite the rising price, the stock still appears undervalued with a forward price-to-earnings (P/E) ratio of only 7.

Mark David Hartley owns shares in Airtel Africa.

Ashtead Technology

What it does: Ashtead Technology is a leading subsea equipment rental and solutions provider for the global offshore energy industry.

By Ben McPoland. I recently bought more shares of Ashtead Technology (LSE: AT.). The specialist rental firm continues to advance, fueled by its acquisition-driven growth strategy.

For 2024, it expects revenue to reach £168m, a 52% year-on-year increase, with underlying operating profit exceeding the consensus forecast of £46.6m.

In the full-year trading update, CEO Allan Pirie commented: “With one of the largest and most technologically advanced rental fleets in the industry and a continued focus on operational excellence, we remain confident in the Group’s ability to generate substantial long-term value for shareholders.”

I agree with that, though the company’s growth is dependent on offshore oil, gas, and renewables markets. Economic downturns or declining energy prices could reduce exploration and capital expenditure, leading to lower demand for rented equipment.

At present though, Ashtead Technology is in a strong position. Ongoing market demand and record customer backlogs give it confidence that growth will continue through 2025.

A final attraction for me here is the valuation. At 528p (as I write), the stock is trading at just 10 times forecast earnings for 2026.

Ben McPoland owns shares in Ashtead Technology Holdings.

Bakkavor

What it does: Bakkavor is a fresh prepared food group, supplying supermarkets with products such as bread, pizza, ready meals and salad.

By Roland Head. FTSE 250 firm Bakkavor (LSE: BAKK) is not a household name, but its products are found on the shelves of all the UK’s major supermarkets.

I recently added this business to my portfolio. I see it as a steady grower and was encouraged by 2025 forecast earnings growth of 10%. That prices the stock on just 12 times forecast earnings, with a tempting dividend yield of 5.9%.

I’m also reassured by the continued influence of the company’s founders, Agust and Lydur Gudmundsson. They control almost 50% of the shares and sit on the board.

Outside the UK, Bakkavor also operates in the US and China. China looks like the main risk to me, for investors. In addition to geopolitical risks, the China business is currently relatively small and loss making.

However, I don’t see this as a reason to avoid Bakkavor, which looks decent value to me at current levels.

Roland Head owns shares in Bakkavor.

Games Workshop

What it does: Games Workshop manufactures tabletop gaming products including models, paints and manuals.

By Royston Wild. Fantasy wargaming giant Games Workshop (LSE:GAW) enjoyed another barnstorming year in 2024, rising 35% in value since 1 January.

Yet it fell sharply from record closing peaks of £142.70 per share in December, and dropped further following half-year financials last month. I used this as an opportunity to increase my holdings.

There’s been no spooky news coming from the Warhammer maker in recent weeks. Indeed, January’s update showed sales up 14% in the six months to 1 December, helped by licensing revenues soaring 149% in the period.

Games Workshop may endure some near-term turbulence if consumer spending remains weak. Yet this hasn’t proved an obstacle to its breakneck growth story just yet. This reflects in large part its niche product lines and loyal customer base.

I remain supremely confident in the FTSE 100 firm’s long-term outlook. The tabletop gaming segment has scope for further significant growth. And Games Workshop’s film and TV deal with Amazon could supercharge royalty revenues in the years ahead.

Royston Wild owns shares in Games Workshop.

Glencore

What it does: Glencore is one of the world’s largest natural resource companies with operations across 35 countries.

By Andrew Mackie. As a die-hard value investor, I spend a lot of my spare time searching for stocks that I believe are undervalued relative to their long-term prospects. Trading at levels not seen since early 2022, Glencore (LSE: GLEN) is near the top of that list.

In the years ahead, I envisage a mismatch in the supply-demand dynamics for many of its commodities, in particular copper.

It’s no great secret that demand for copper is rising across the globe. Electricity grids are creaking at the seams as demand for electricity from the likes of data centres and EVs continue to grow. And now with a US administration keen to rebuild its country’s manufacturing prowess, I can’t see anything other than demand increasing.

Set this against a global investor community more interested in chasing tech stocks higher, and what has been the result? An industry starved of capital, risk averse and with little incentive for exploration.

Sustained low commodities prices (mainly because of weak Chinese demand) continues to weigh down on its share price. This remains one of the most important short-term risks. But looking a decade out, I remain bullish.

Andrew Mackie owns shares in Glencore.

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Here, I’ll highlight three that might be worth considering for long-term investors.

Something Nu

First up is Nu Holdings (NYSE: NU). This is the largest digital bank in Latin America, which means it operates no costly physical branches.

The fast-growing fintech company (known as Nubank) added 4.5m customers in Q4 alone. This brought its total customer base to a whopping 114.2m, despite only operating in three countries (Brazil, Mexico, and Colombia).

Yet the share price has dipped 27% since November, leaving the stock looking very cheap on a price-to-earnings (P/E) basis. Right now, the forward-looking earnings multiple is around 20, dropping to just 15.5 by 2026.

Now, nearly all the company’s customers today are in Brazil. To be precise, 101.8m, or roughly 58% of Brazil’s adult population. Therefore, if Brazil suffered any political or economic problems, the company’s growth and earnings could take a hit. This is a risk.

Longer term though, I’m bullish on the growth story. As well as expanding into new geographies, Nu has launched various other services. These include NuPay, NuTravel, and a mobile phone service (NuCel). Clearly, it likes to stick with the Nu theme!

Offshore energy markets

Next up, I think Ashtead Technology (LSE: AT.) is worth considering. The AIM-listed company is a leading provider of subsea equipment rental and solutions, serving the global offshore energy sector. That includes both renewables (wind turbines) and oil and gas.

Ashtead Technology has fuelled its growth through multiple bolt-on acquisitions. This has seen revenue and profits grow strongly. The firm expects last year’s revenue to have grown 52% to around £168m, with full-year adjusted EBITA (earnings before interest, tax, and appreciation) ahead of the consensus for £46.6m.

A key risk here is a prolonged slump in global energy prices, which could reduce offshore exploration and production spending, impacting demand for Ashtead’s equipment.

However, the £420m-capitalised company is forecast to grow its revenue by 35% this year, with earnings growing strongly too. It puts the stock on a cheap-looking forward P/E ratio of 11.5.

Finally, it’s worth noting that the average analyst price target here is 831p — around 62% higher than the current share price of 511p. While there is no guarantee it will reach this target, it shows that the small-cap stock might be significantly undervalued.

A moonshot stock

Finally, I want to highlight Intuitive Machines (NASDAQ: LUNR), which is a lunar exploration and space infrastructure business.

Roughly a year ago, it became the first commercial company ever to put a lander on the moon. And it’s just successfully launched its second on a SpaceX Falcon 9 rocket, with the lander expected to touch down on the moon on 6 March.

This is the riskiest stock because its mission or technology could fail, while it is also unprofitable. However, its revenue is expected to surge 188% to $229m this year, then 52% to $350m next year. It has won multiple contracts with NASA and could bag more.

Intuitive Machines has a small market cap of $2.5bn and zero debt. This gives the stock a reasonably cheap price-to-sales ratio of 3.5.

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