Are these 3 of the best stocks to buy as markets fall?

Stock markets sagged last week and I’m wondering which are the best shares for me to buy to take advantage. These three stand out to me.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Concept of two young professional men looking at a screen in a technological data centre

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’m hunting for the best stocks to buy after last week’s stock market sell-off. I always enjoy going shopping for shares when equities fall, as I can buy more stock for the same total I’d have paid pre-plunge.

I’m not looking to turn a quick profit. That’s not our philosophy at The Motley Fool. My aim is to buy top-quality FTSE 100 shares at temporarily reduced prices, then give them time to recover their lost value. By which I mean at least a decade.

There were some big fallers last week. Rentokil Initial crashed 23.9% and St James’s Place plunged 23.41%, but these were due to company-specific problems. What I’m looking for are stocks that simply got caught up in the wider sell-off.

Should you invest £1,000 in BAE Systems right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BAE Systems made the list?

See the 6 stocks

Chile-based Antofagasta (LSE: ANTO), one of the largest copper producers in the world, seems to fit the bill. It fell 5.83% last week but is up 18.39% over the last year.

Created with Highcharts 11.4.3Antofagasta Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Copper is a play on economic sentiment as it’s in demand when countries are booming and building. Events in the Middle East have shattered confidence, and that’s hit Antofagasta. The ‘higher interest rates for longer’ narrative hasn’t helped, either. Nor has data showing China is slowing.

Antofagasta looks healthy enough having recently posted a 14% rise in first-half revenues to $2.89bn. Profits rose at a slightly slower 7.5% to $1.33bn, due to higher operating costs. It’s now ramping up copper production after a recent dip. Commodity stocks tend to move up and down with the weather and I’d rather buy on a dip than a spike.

Distribution and outsourcing group Bunzl (LSE: BNZL) has fallen off my radar lately, but now it’s back after dipping 4.77% last week. Over one year it’s up 5.81%.

Created with Highcharts 11.4.3Bunzl Plc PriceZoom1M3M6MYTD1Y5Y10YALL19 Mar 202017 Mar 2025Zoom ▾May '20Jan '21Sep '21May '22Jan '23Sep '23May '24Jan '25Jul '20Jul '20Jan '22Jan '22Jul '23Jul '23Jan '25Jan '251k2k3k4kwww.fool.co.uk

Bunzl supplies everyday, unbranded items such as food packaging and cleaning products to thousands of companies worldwide and has grown aggressively through acquiring smaller, similar businesses.

It’s never going to shoot the lights out but should give me steady share price and dividend growth, which I can now access at a lower entry price. The yield looks low at 2.18% but the group is a FTSE 100 dividend aristocrat having increased shareholder payouts for 23 consecutive years. Bunzl isn’t very glamorous and there’s a danger investors may overlook the stock as they chase bigger names or more exciting opportunities.

Compounding cash

Broker Shore Capital recently hailed Bunzl as a “quality cash compounding play”, and I need some of that in my portfolio.

Scottish Mortgage Investment Trust (LSE: SMT) fell 6.41% last week, continuing its recent poor performance. The fund, which targets “the world’s most exceptional growth companies, whether public or private”, has lost its grip on investor sympathies after crashing by half in 2022.

It has struggled to recover this year, falling 14.01% over 12 months, even though US tech stars Nvidia, Tesla and Amazon are all top 10 holdings.

Created with Highcharts 11.4.3Scottish Mortgage Investment Trust Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Scottish Mortgage is a risky recovery play as there’s a danger that manager Tom Slater has lost his way. However, I’ve noticed that when the stock market picks up, Scottish Mortgage picks up more. It’s another that could lead the charge when equities finally recover.

All three are now on my watch list. I’ll do some due diligence and see how they fare over the next few weeks before buying.

Should you buy BAE Systems now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Harvey Jones has positions in Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Bunzl 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.

Our best passive income stock ideas

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Here’s the Tesco share price forecast for the next 12 months!

Tesco's valuation has dropped to multi-year lows after recent share price weakness. Is now the time to consider buying the…

Read more »

Illustration of flames over a black background
Investing Articles

Just released: March’s higher-risk, high-reward stock recommendation [PREMIUM PICKS]

Fire ideas will tend to be more adventurous and are designed for investors who can stomach a bit more volatility.

Read more »

Investing Articles

I asked ChatGPT for the best FTSE 100 investment trust to buy… here’s what it said

There aren't many FTSE 100-listed investment trusts and according to ChatGPT there’s only one winner. Dr James Fox explores.

Read more »

Investing Articles

How much should investors put in an ISA to achieve the average UK wage in passive income?

Millions of Britons use the Stocks and Shares ISA as a vehicle to build wealth, but a successful investor can…

Read more »

Investing Articles

2 cheap FTSE dividend stocks to consider buying for an ISA

The deadline for using up the Stocks and Shares ISA allowance is almost upon us. Paul Summers has spotted two…

Read more »

Investing Articles

£20k in a Stocks and Shares ISA? Here’s how an investor could target £1,342 in passive income each month

Christopher Ruane explains how a long-term approach to investing a Stocks and Shares ISA could generate a four-figure monthly income.

Read more »

Shot of an young Indian businesswoman sitting alone in the office at night and using a digital tablet
Investing Articles

Millions are missing out on ISA account benefits! Here’s what I’m doing now

Swathes of people are missing the chance to supercharge their returns with a Stocks and Shares or Lifetime ISA account.…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Here’s my plan to survive and thrive in a stock market correction

A falling stock market can be an opportunity, but investors need a plan. Stephen Wright shares his strategy for taking…

Read more »