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I've been putting together a watch list of FTSE 100 Index There are plenty of stocks to buy in the fall, and right now there are plenty to choose from. I've narrowed my pick down to five to buy when I have the cash. I'm especially excited about number three.
My first pick is the oil and gas giant. blood pressure. Frankly, I can't believe how cheap their stock is right now.
The oil price crash is the obvious reason. Brent crude is now at $73 a barrel, as Chinese demand wanes and fears of a US recession grow. After falling 15.76% in a year, the stock is trading at a dirt-cheap valuation of just 6.21 times earnings, while offering a juicy 5.41%.
BP's share price could fall further if the outlook worsens, but taking a long-term view, I think it looks like a can't-miss buy today.
I'm rooting for JD Sports Fashion to climb higher
I am a consumer goods giant Unilever but I would happily buy more. It is recovering after a turbulent period and should resume its former role as a solid defensive investment in the portfolio.
Unilever's share price is up 23.06% in a year, so it's not as cheap as it once was, trading at 22.63 times earnings. The yield is mediocre at 3%. But I think there's plenty of room for earnings to grow, which should boost rewards for investors.
Now my third choice. The one I really like. I bought sneakers and sportswear from a retail store. JD Sportswear (LSE:JD) in January after a shock profit warning triggered by disappointing Christmas sales sent the stock into a spiral.
JD Sports Fashion’s share price has soared 18% in a week after results released on 22 August showed a solid 2.4% rise in like-for-like sales. The board said it remained on track to hit its pre-tax profit guidance range of £955m to £1.035bn, while the recent acquisition of Alabama-based retailer Hibbett will deepen its US exposure.
On August 25, I wrote that JD Sports Fashion shares could take a breather after their blistering rally, and so they have. They are down 6.67% in the past week. For reference, the stock is up a modest 7.29% in 12 months. I think it's a good time to add to my stake at a fair price.
The company is well prepared for the future, but there are risks as recession fears persist and consumers continue to struggle. Trading at exactly 11 times earnings, I still can't resist.
I like buying outdated stocks and I would add spirits giants. Diageo On my shopping list. Its shares are down 22.98% in 12 months, following an unexpected drop in sales in Latin America. I am a little worried that the world is losing its taste for alcohol, but I still think there is an opportunity here.
Lastly, I would shop at high street retailers. NextIts long-term performance in a troubled sector has been stellar: shares are up 44.3% in one year and 70.12% in five.
They are not very cheap, trading at 15.26 times earnings while the yield is low at 1.46%. But it is a brilliant company that deserves its place on my list of the five best FTSE 100 stocks to buy. I wish I had bought it years ago.