There are all kinds of opportunities in the FTSE 100 and the FTSE 250. So here are a few I think are worth investors following closely.

Rentokil Initial

I own shares in Rentokil Initial (LSE:RTO) in my ISA. And it’s fair to say the stock has done pretty well for me since I bought it. 

In an uncertain world. I think it’s one of the FTSE 100’s most predictable businesses. Demand for pest control isn’t going away any time soon.

The company’s balance sheet has been a concern recently. It acquired a big competitor in the US and took on a lot of debt in the process. Things, however, have been moving in the right direction recently. And if this continues, I think the stock could still do very well.

Boring businesses don’t always get the attention they deserve, which is fine. But Rentokil is definitely one investors should keep an eye on.

Target Healthcare REIT

Target Healthcare REIT (LSE:THRL) owns over 90 care homes across the UK. It makes money by leasing these to private operators. 

This is an industry where demand should be strong for some time. Put simply, people are living longer and that’s likely to increase the need for care.

The stock comes with a 6% dividend yield, which is pretty attractive. It means a £1,000 investment could return £60 in cash directly to investors.

Investors should note that regulation means the firm could be forced to incur costs if standards change over time. That’s one of the key risks. While this isn’t under Target’s direct control, it has been trying to prepare for this. And it’s done this by focusing on high-quality assets.

Attempting to stay ahead of any changes is the best thing the firm can do. So I think it’s an interesting business in a promising industry.

Compass Group

Compass Group (LSE:CPG) is a name a lot of investors won’t have heard of. It’s a FTSE 100 contract catering firm. 

While the name might not be familiar, it’s the industry leader. It’s bigger than both of its nearest two competitors combined. That size and scale gives Compass a big advantage. It means the firm has lower costs and can charge customers lower prices.

Despite being the leader, the firm only accounts for 15% of the global food services market. And that leaves plenty of scope for growth. 

Most of the firm’s sales come from the US (which is why its share price is listed in dollars). And that makes a recession over there a real risk.

Despite this, I think this is one for investors to take a closer look at. The more I find out about this business, the more I like it. 

Get it right

I think all three of the companies I’ve listed here are worth considering for a Stocks and Shares ISA. But investors don’t have to rush.

The important thing is to look at the businesses properly and build an informed view of them. That’s the key to investing well.

The post Getting started with investing? Here are 3 UK stocks to take a look at appeared first on The Motley Fool UK.

In an uncertain market (and world) the stable cash flows utilities companies can offer are attractive. But is this the right time to think about buying them?

Safety 

In the last few years, investors have used tech companies like Microsoft for protection from stock market volatility. But that hasn’t worked so far in 2026. 

The concern is what artificial intelligence (AI) means for the likes of Microsoft. It’s still not clear, which means the firm’s cash flows are less predictable than usual.

As a result, the stock is down 15% since the start of the year. That’s worse than the wider S&P 500, so it isn’t exactly offering investors protection from the wider volatility. 

From the FTSE 100, the likes of National Grid have been attracting a lot of attention. Reliable demand combined with a favourable regulatory environment has sent the stock up in 2026. 

Investors who are concerned about share prices in the next few weeks or months might want to take a look. But I’m not sure this is the best way to approach the stock market.

Anything can happen with just about any stock in the near term and that makes putting cash into equities risky over a short time horizon. But over the long term, things are quite different.

Long-term investing

Anything can happen over a period of weeks or months, but the best returns tend to come from the strongest businesses sooner or later. And that’s the advantage of long-term investing.

That means short-term safety is hard to find. But over a longer time period, owning shares in a company that’s performing well and going to keep doing so should provide reassurance.

From this perspective, Rentokil Initial (LSE:RTO) is a stock that I think is worth considering right now. It’s the leading company in a growing market and I like that combination a lot.

Does that mean the stock can’t go down? Absolutely not – the company’s debt is unusually high at the moment after a big acquisition and this has been weighing on the share price recently.

Over the long term, though, there are lots of reasons to be positive. One consequence of climate change is better breeding conditions for insects, which is what the firm deals with.

I doubt that people’s tolerance for infestations is going to go up in future, so this should mean strong demand. And with the largest scale, Rentokil has a key advantage over competitors.

Stock market safety

Investors should be very wary about having money in the stock market that they’re going to need in the next few weeks or months. Unpredictable share prices make this very risky.

For those who are willing to wait it out, though, things are very different. There are lots of businesses that have good long-term prospects and this tends to come to the fore eventually. 

Interestingly, I saw recently that Berkshire Hathaway has acquired a pest control firm. So I’m in good company with my view that this is an industry that’s worth checking out right now.

The post Where to look for safety in today’s stock market? appeared first on The Motley Fool UK.

Right now, the rise of artificial intelligence (AI) is making investors unsure about where to put their money. But while you can’t buy experience, you can benefit from it.

Chewing gum

One of the biggest technological developments of Buffett’s time was the emergence of the internet. That was a tech revolution and it had big effects on a number of businesses. 

There’s a story about Bill Gates telling Buffett about the internet. Buffett reportedly asked whether it would change the way people chew gum and Gates said that it wouldn’t.

In response, Buffett suggested that he should stick to the chewing gum business and let Gates focus on the computers. And the results – in both cases – have been spectacular. 

Microsoft was obviously a huge success, but when the stock market crashed in 2000, there were some big casualties. Buffett’s chewing gum business, though, wasn’t one of them.

Surviving and thriving

The point isn’t just that Buffett’s approach of sticking to predictable businesses kept him out of trouble. Staying out of the stock market entirely could have achieved that.

Importantly, Buffett’s approach generated some outstanding returns. Over time, this has been a far better strategy than trying to hide from falling share prices.

Fast-forward to today and there are concerns that the rise of AI might lead to another huge crash. But investors have already seen how to survive and thrive in this situation.

Just like in 2000, some industries are clearly likely to be more immune to disruption than others. And Buffett’s approach might again be the way to go.

AI immunity

AI isn’t going to change the way people chew gum. It’s also not going to change how willing people are to put up with rats, which is why I own shares in Rentokil Initial (LSE:RTO).

In fact, I think demand for pest control services in general is likely to go higher over time. Warmer summers and wetter winters make better breeding conditions for these creatures.

AI isn’t a risk, but regulation can be a challenge. This changes over time (often as a result of shifting political sentiment) and can create higher costs as companies have to adapt.

This is a potential issue for Rentokil. But the firm’s scale – especially in the US – means it has a natural cost advantage over its rivals, which is something I think is very valuable. 

Resiliency

The stock market is a bit wary of Rentokil at the moment. One reason is that it’s recently announced plans to pay off part of its debt early.

The firm had a lot of leverage on its balance sheet as a result of a big acquisition a couple of years ago. And that – along with integration challenges – have been holding it back.

Improvements on both fronts, however, are starting to emerge. As a result, I think it might be an interesting time to consider buying the stock. 

AI might be about to change a lot. But I don’t think it’s going to revolutionise the pest control industry and Rentokil is a firm I expect to do well even in a stock market crash.

The post Warren Buffett knows how to get ready for a stock market crash appeared first on The Motley Fool UK.

Despite strong gains from the FTSE 100 recently, I think some quality stocks have been discarded by the stock market. And that’s where I’m looking for potential buying opportunities. 

Compass Group

In general, I like businesses able to charge customers lower prices than their competitors while still making more money. That’s why Compass Group (LSE:CPG) stands out to me.

The contract catering firm’s size allows it to negotiate better prices from suppliers by ordering in bulk. And it uses this advantage to charge customers less and fend off competition. 

The stock’s down 14% since the start of the year as investors weigh a few risks. One is the threat of anti-obesity medication and another is US hospitals finding themselves under financial pressure.

Importantly though, the company’s competitive advantage is still firmly intact. Nobody’s likely to match its scale any time soon and that’s why I think it’s worth considering at today’s prices.

Rentokil

Rentokil (LSE:RTO) shares fell 7% on Thursday (12 February). The reason is that one of the main risks – the amount of debt on its balance sheet – has become more of an issue.

The firm has a lot of debt after a huge acquisition a couple of years ago. And while it’s actually bringing its debt level down, it’s doing this with cash already borrowed at a higher rate. 

Investors should watch the debt maturities, but I think the business is likely to be one of the most durable around. Pest control isn’t going to be disrupted by AI or anti-obesity drugs.

Rentokil’s big acquisition brought a lot of debt, but it also made it the market leader. That’s a very valuable long-term position to be in, which is why it’s a stock I’m watching closely at the moment.

Judges Scientific

By comparison, Judges Scientific (LSE:JDG) is a tiny operation. But the scientific instrument company is my number-one UK stock for investors to consider at the moment. 

The share price is down 32% in the last 12 months. That’s largely because of weak demand from the US, where funding for scientific research has been under a lot of pressure from the government.

This is entirely out of Judges Scientific’s hands and thus represents a risk. Congress however, recently rejected the administration’s proposals (and increased budgets instead of cutting them). 

That should be a huge boost for the business. And while it isn’t showing up in the share price yet, I think this could be a great time to buy shares in a company with some terrific long-term prospects. 

Beyond Rolls-Royce

Rolls-Royce has been a brilliant stock for investors over the last few years. And the reason’s simple — it’s a quality business, but its shares were trading at a discounted price.

The question for investors is where to find that combination in today’s stock market. And Compass Group, Rentokil, and Judgest Scientific all fit into that category.

I think investors would be wise to give any of them a closer look. While I’m favouring Judges Scientific right now, I see all three as worthy candidates for consideration

The post 3 UK stocks I like more than Rolls-Royce right now appeared first on The Motley Fool UK.

There’s a lot going on right now, but a good amount of it is just noise that can be safely ignored. In these situations, the best investors stay calm and take advantage of the situation.

Investing 101

Investing in the stock market is partly about buying shares in businesses for less than they’re worth. And when prices are moving, opportunities naturally present themselves. 

Shares in The London Stock Exchange Group are a good example. The stock fell 17% on Tuesday (3 February) before launching a 13% recovery on Wednesday.

I don’t actually have much of a view of the company’s intrinsic value. But I’m hugely sceptical of the idea that the underlying business was 17% worse on Tuesday and 13% better on Wednesday.

That means there’s been an opportunity for some long-term investors to buy on Tuesday, while some speculators or those seeking long-term opportunities elsewhere might sell on Wednesday. And this is all made possible by stock market volatility.

Long-term focus

The big theme this week has been the threat of artificial intelligence (AI) to software companies. And the market has shifted from thinking it’s huge to deciding it might not be that much of an issue.

I’m not convinced that anyone really knows that the next big shock to the stock market will be. It might be news about tariffs, a spike in oil prices, more AI developments, or something else.

The way to invest isn’t to try and forecast which stocks are going to be in or out of favour at what time. It’s to focus on the underlying businesses and what they’re worth. 

There’s always scope for something unexpected to happen, especially over the long term. But the best way to minimise this risk for investors is to stick to things they know very well. 

Durability

In my own portfolio, I try to focus on companies that I think have a long-term competitive edge. And one of these is Rentokil Initial (LSE:RTO). 

I don’t have strong views on AI, geopolitics, or macroeconomics. But whatever happens, I’m pretty sure there are going to be pests in the future and they’ll need dealing with.

That’s one reason I like Rentokil. Another is that its scale gives it a cost advantage over other operators – more business in a smaller area reduces travel time and saves on costs.

I bought the stock when the market was worrying about its acquisition of a major US rival. But it’s outperformed the FTSE 100 since then and I’m pleased to have had the chance to buy it when I did.

Risks and rewards

The main risk with Rentokil is regulatory. Laws around pest control can change and this can create additional expenses that come with meeting new standards. 

That’s something to keep an eye on. But my view is that Rentokil’s scale and cost structure is in a better position to deal with these than its competitors.

In today’s stock market, I think the shares are fairly valued. But I’m on the lookout for the next Rentokil opportunity and volatile share prices give me a better chance of finding it.

The post Why a volatile stock market is a huge opportunity for investors appeared first on The Motley Fool UK.

So I asked ChatGPT to eavesdrop on what stock market analysts are talking about, and that’s given me a headstart on some ideas to check further for myself.

Business services leader

Rentokil Initial (LSE: RTO) is getting a fair bit of love, as 12 out of 18 analysts recommend it as a Buy — with only one rating it a Sell. Interestingly, it doesn’t seem to be based on any obvious short-term undervaluation.

Analyst forecasts put the shares on a price-to-earnings (P/E) ratio of 38, which might look a bit steep. And there’s a forecast dividend yield of just 2% on the cards. But those same analysts expect Rentokil’s earnings to ramp up over the next few years — growing 60% between 2024 and 2027.

In just three years, that would be quite some performance. And it could drop that P/E to 24, which looks better value for a solid growth stock.

It comes on the back of a predicted surge in the pest control business. Some are predicting 5%-6% annual global market growth. It’s all about rising wealth and a growing need for urban hygiene. Rentokil also has its fingers in a number of business services pies around the globe.

So is it really one of the best stocks to buy now? Today’s valuation is the biggest drawback for me. But it’s possibly the best in its field, and I rate it a definite long-term consideration.

IT infrastructure demand

Computercenter (LSE: CCC) is also raising investor interest. Again, it’s not much of a dividend stock with a forward yield of 2.3%. But with AI advances driving increasing demand for computer and network-related infrastructure, is a P/E of 19 too high? And what if it drops to 16 by 2027 as analysts predict?

With earnings expected to grow close to 30% in the next three years, I could see that as cheap. Especially when we see the high growth stock valuations of tech companies closer to the leading edge of AI. There’s one thing I particularly like about a company like Computacenter… whoever wins the AI wars, everyone will need the equipment, the connections, and all the rest of the infrastructure.

It is however, a very competitive business. And if any AI bubble really does burst as some fear, the fallout could cause some pain. The company also cautioned us, at Q3 time, of “the ongoing uncertain geopolitical and macroeconomic backdrop“.

But the update also spoke of “strong momentum in North America driven by continued volume growth with both enterprise and hyperscale customers“. And that could be key to long-term growth.

The potential IT demand has to make this a stock to consider buying in 2026 too.

The post Which are the best UK stocks to buy right now? Here’s what the experts say… appeared first on The Motley Fool UK.

According to the Financial Conduct Authority (FCA) around 10% of adults have no savings at all. But even for someone in that position at 50, it’s not too late to do something meaningful.

What’s possible?

The point of investing in the stock market is to make money. More accurately, it’s to do better than you would have by buying bonds or keeping your money in savings. 

Last year the FTSE 100 generated a return of over 20%. That definitely ticks the making money box, but investors expecting that every year are likely to be disappointed.

There are years when share prices go down and an investment made in January is worth less in December. That doesn’t happen with cash and it’s something important to note.

Over the last 10 years, the average annual return from the FTSE 100 has been just above 8%. And this is more than enough to power someone to impressive returns over time.

No savings at 50?

Someone with no savings at 50 qualifies for the State Pension in 17 years. But that’s plenty of time to try and build investments that can generate a serious second income.

One of the best ways to invest is to put aside money from a regular salary. And even from a standing start, investing £100 a week can lead to something quite significant.

At 8% a year a £100 weekly investment turns into £182,306. And that could be enough to generate a £13,295 annual return, which an investor could use as a second income. 

The obvious question, then, is which stocks someone should consider buying to aim for this kind of return. Fortunately, I think a few potential names stand out right now. 

A FTSE 100 opportunity?

Rentokil Initial (LSE:RTO) is a stock that I hold in my portfolio. It’s not the most exciting, but I think the pest control industry is likely to be one of the most durable going forward.

The firm also has a strong competitive position. A merger from a few years ago has helped it achieve greater density than its rivals, which should result in higher margins over time.

No stock is entirely without risks. And Rentokil shareholders need to be wary of potential changes in legislation, which could make things more expensive or more difficult in future. 

It’s also worth noting, though, that the stock trades at a significant discount to its main rival. As a result, I think it’s a relatively attractive way to invest in an incredibly resilient industry.

The stock market

Investing in the stock market can be a great way of building wealth over the long term. And anyone looking for a second income can look to use this to their advantage.

Getting started doesn’t take huge amounts of cash. What matters far more is working out what to invest in. 

I think the key is figuring out which businesses will still be doing well 10 or 20 years from now. And Rentokil is one name I think should be on investor radars.

The post No savings at 50? How to target a £13,295 second income in retirement by investing £100 a week appeared first on The Motley Fool UK.

The benefits don’t seem like much, but they add up over time. And even for those who don’t think they have much to gain, I think an ISA is the closest thing investing has to a no-brainer.

Stock market returns

Investing always comes with risks. And buying shares through the stock market almost inevitably comes with more danger than buying bonds or other fixed income assets.

The reason investors consider stocks, though, is because of the potential rewards. But given this, it makes almost no sense to pay taxes on returns unnecessarily.

Investors who don’t use an ISA can find themselves paying taxes on capital gains and dividends. So they get the same risk for less reward, which isn’t the road to financial independence.

Anyone starting out with investing might think the difference won’t matter for a long time. But even for investors who are below the tax thresholds, an ISA can still be hugely important.

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. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Tax implications

One reason a Stocks and Shares ISA is important for investors starting out is that tax laws can change. Dividends up to £500 are currently tax-free, but that might not be the case in future.

Another is that share prices can move quickly. And this means investors can be eligible for taxes on capital gains sooner than they anticipate if things go better than they expect.

In both cases, it’s important to note that the ISA contribution limit resets each year. If you don’t use your £20,000 allocation in one year, you can’t use it in the following one.

As a result, investors who don’t use a Stocks and Shares ISA from the outset can end up paying taxes unnecessarily. And this can delay – or even derail – future retirement plans.

Long-term returns

Rentokil (LSE:RTO) is a stock I’m looking for strong returns from over the next few years. I think the firm’s scale gives it a strong competitive position as well as good growth prospects.

Whatever the world looks like when I retire, I’ve a strong feeling there are going to be pests. And I’m equally convinced the FTSE 100 company is going to be dealing with them.

The risk at the moment is that it’s been taking a long time to integrate a huge acquisition. And that’s resulted in higher debt and reduced financial flexibility.

With long-term debt coming down, I’m looking for margins to expand. But whether it’s in 2026 or 2056, I’m expecting Rentokil shares to worth a lot more than their current price.

Retiring early

The point of investing in the stock market is to participate in the growth of some great businesses. But paying tax on capital gains and dividends can cut into returns.

A Stocks and Shares ISA is an easy and effective way to minimise this. And that’s why I think it’s the closest thing to an investing no-brainer that UK investors are likely to find.

Rentokil is just one of a number of FTSE 100 stocks I’m looking at right now as I aim to retire early. But using an ISA to protect my returns is as important as buying the right shares.

The post Stop missing out! A Stocks and Shares ISA could help you retire early appeared first on The Motley Fool UK.

According to professional services firm BDO, the Chancellor’s considering ways to make UK equities more attractive. But I’m trying to work out whether this is good for me or not.

Stamp Duty

According to BDO, the Chancellor’s looking at removing stamp duty on shares bought in ISAs with a certain percentage of UK-listed shares. They rate the chance of this as medium.

Around two-thirds of my Stocks and Shares ISA is invested in UK equities, so this looks like it will be a good thing for me. It is, but there’s a potential downside.

I don’t enjoy paying stamp duty and I’d rather not do it. But what I want more is to keep buying UK shares in the future, so that means I should hope that prices stay low while I’m doing it.

What I don’t want is more investors buying UK stocks and making them too much more expensive. This seems to be what the Chancellor’s aiming for. That will make sellers happy, rather than buyers.

Investing

It’s natural for investors to want to see stocks they own go up if they intend to sell their shares. Anyone looking to buy should be hoping for price cuts.

One of the great insights about the stock market is that it’s one of the few places where people are less inclined to buy when prices go down. But in a lot of cases, they shouldn’t. 

In some respects, investors should feel better when prices go down. Buyers should want to get as many shares in their chosen company for their money as they can.

Of course, they shouldn’t hope an issue with the underlying business sends the stock lower – that could be bad.

UK value

I still think Rentokil Initial (LSE:RTO) is one of the most obviously ‘discounted’ UK stocks. Its free cash flows are 3% lower than Rollins – its US counterpart – but it trades at a 38% discount.

This isn’t entirely inexplicable – the FTSE 100 company’s in the process of integrating a big acquisition. That’s why its margins are currently lower and this brings risk.

If this normalises though, the company’s profits should increase significantly. It already generates significantly higher revenues than Rollins and I’m expecting cash flows to follow.

The business has what I look for in an investment, which is a strong position in a durable industry. That’s why I’m looking to keep buying – and I don’t want the price to go up (well, not yet anyway!)

Careful what you wish for

Removing stamp duty on UK shares might boost prices. But those of us looking to buy should be hoping stocks get cheaper, not more expensive.

The best-case scenario for investors looking to buy is that taxes come down but prices don’t go up. And if the tax cut comes on ISAs that meet certain conditions, this is a real possibility.

It could happen. But from a buying perspective, I’m hoping the discount UK shares trade at relative to their US counterparts persists for some time!

The post Could the UK Budget shake up Stocks and Shares ISAs? appeared first on The Motley Fool UK.

The top performer in my portfolio has been Rentokil (LSE:RTO) which climbed 14%, but the weakest was Chord Energy (NASDAQ:CHRD) which fell 11%. So what should I do about this?

Rentokil

The main catalyst for the big move in Rentokil shares was its Q3 trading update near the end of the month. Group revenues for Q3 were up 4.6% and organic sales increased 3.4%.

On the face of it, that’s not massively exciting. But both numbers are a big improvement on the 3.1% and 1.4% the firm reported at the end of Q2.

Rentokil made a huge acquisition in 2022 and the subsequent integration process seems to be taking forever. And I continue to see this as the biggest ongoing risk for the company.

On balance, though, I think there’s more growth to come from the business. And I still feel the stock looks cheap, though it’s not top of my list in November.

Chord Energy

There’s a very simple reason shares in Chord Energy fell in October. Oil prices fell below $60/bbl and that’s not a good sign for a company that produces and sells the stuff. 

The risk is that this continues. But I think the current downturn in oil prices might be a chance to add to my investment while the short-term outlook is less favourable. 

Chord has a clear decade’s worth of production ahead of it. And if – as I’m expecting – oil prices move higher over the long term, investors could stand to do very well. 

The firm has a big focus on returning cash to investors via dividends and share buybacks. This can exaggerate the natural cyclicality of oil stocks, but I see the downturn as an opportunity.

Next moves

Chord is one stock I’ve got an eye on in November, but it isn’t the only one. I’m looking at shares in the UK and the US that are high-quality companies at unusually cheap prices. 

In the UK, Judges Scentific is one name on my radar. The company is working through a difficult trading environment right now, but I like its long-term growth prospects. 

I’m also considering US tractor manufacturer CNH Industrial as an addition. I don’t know when crop prices that have caused sales to falter are going to recover, but I think the stock looks cheap at $10.50.

Those are two of the names I’m considering at the moment. But like any good investor, I’ll also be keeping an eye open for other opportunities that might present themselves. 

Long-term investing

It’s always good to pay attention to what’s going on in my Stocks and Shares ISA. But what happens in any given month ultimately doesn’t matter much for a long-term investor like me.

With Rentokil, it’s important that its integration keeps moving in the right direction. Progress might not be linear, but as long as it gets there sooner or later, I expect to do well.

Short-term oil fluctuations might make Chord’s share price go up one month and down the next. Over time, though, what matters most is the firm’s ability to keep producing.

The post Meet the best (and worst) performers from my Stocks and Shares ISA in October appeared first on The Motley Fool UK.