It seems as if FTSE shares can’t slow down. They’re soaring and I want to capitalise on it.
The UK stock market has underachieved in years gone by. From Brexit to the recent pandemic, we’ve faced severe challenges.
But could it be that we’re seeing light at the end of the tunnel with the recent rally? Hopefully.
Here are two Footsie stars I’ve got my sights firmly set on for this month. If I had the cash, I’d buy them today.
Marks & Spencer
After a cracking 2023, Marks & Spencer (LSE: MKS) has carried its fine form into this year. So far, it’s up 11.5%.
There are a few reasons I like the look of its shares this month. First, it seems we could be edging closer to interest rate cuts. When that does occur, that should lead to an uptick in spending. That’ll provide Marks & Spencer with a major boost.
Second, the business has been making impressive headway with its turnaround strategy and I’m keen to get in now while its shares still look like decent value trading on 14.8 times earnings.
Last year the company saw growth in sales, market share, and free cash flow and that turned investors even more bullish on the stock. Since taking over in 2022, CEO Stuart Machin has done an amazing job in reviving the business.
The cost-of-living remains an ongoing threat and while rate cuts are expected, if the economy takes a turn for the worse that could produce a slowdown in sales.
There’s also the income perspective to consider. While its yield clocks in at just below 1%, there’s growth potential with its payout. Analysts expect a payout of 5.6p per share for this year. That’s an 87% jump from last year.
London Stock Exchange Group
Shares in London Stock Exchange Group (LSE: LSEG) haven’t quite posted as strong a performance as their Footsie counterpart. Nevertheless, with them up 3.4% in 2024, they’re trending in the right direction.
I’m eyeing the stock for one main reason. It recently signed a 10-year partnership with Microsoft. The deal will see the firms “jointly develop new products and services for data and analytics” and enhance LSEG’s “position as a world-leading financial markets infrastructure and data provider”.
It’s no secret that the artificial intelligence (AI) sector will continue to grow and expand, so I think this is an exciting move. Some predict that generative AI will become a $1.3trn market by 2032, growing at a compound annual growth rate of 42% over the next decade. It’s expected that we’ll begin to see the first products from the partnership used in the coming months.
One downside is that the stock does look rather expensive. Another risk is weaker financial markets could see less trading activity. It also faces lots of competition in the financial data sector.
But over the long run, I’m excited to see what the business can keep doing. Hopefully, its deal with Microsoft is a sign of more of what’s to come. I think its shares could be a savvy buy today.
The post 2 magnificent FTSE shares I’m eyeing for June appeared first on The Motley Fool UK.
Pound coins for sale — 31 pence?
This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
See the full investment case
More reading
2 UK stocks that could benefit from the growth of AI
What could be in store for FTSE shares for the rest of 2024?
3 blue-chip dividend stocks to consider buying in June
My 3 picks for the best UK shares to buy in June
Up 81%, can this FTSE 100 turnaround share keep surging?
Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Microsoft. 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.
