Several FTSE 100 companies release their results in August and I am looking forward to them. That is because they will help me in assessing their potential as top stocks to buy in August with fresh data. This in turn, can help me make better investing decisions about them.
Specifically, I have three stocks in mind.
#1. BP: Oil price gain
BP bounced back last quarter as oil prices rose. I reckon its next set of results could show that it has continued to make gains. This is because restrictions on movement have been relaxed since and oil prices have stayed elevated.
Passive income stocks: our picks
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!
There are two other reasons why BP is an interesting stock for me right now. As an investor in it, I want to know what it says next about dividends. It has historically been a generous dividend payer, and even now its dividend yield is 5.4%. If it increases its pay out, I reckon the stock can rally further.
I also want to know more about its pivot towards renewable energy. It has made strides in the direction, but a big picture perspective is essential to determine if it can transition well to clean energy as polluting fuels get phased out over time.
#2. Glencore: Better times ahead?
Unlike other industrial metal miners, the Switzerland-headquartered Glencore was unable to ride the commodities wave last year. Its revenues declined and it reported a loss. Earnings for the miner and marketer of commodities were hit last year because of the recession in the first half of the year. So, I really want to know how it has performed so far in 2021.
I expect that it could be better off. This is partly because 2021 has been a better year for the economy so far and commodity prices have been largely firm. Moreover, last year was probably exceptionally bad, so this year would look better in any case by comparison.
In the meantime, the Glencore share price has run up quite a bit. I bought it last year, and it is now among the best performing stocks in my portfolio. But for its share price to keep rising, it is essential that it performs. So far, the signs look encouraging and I am looking forward to its results.
#3. Mondi: Inflation’s effect
FTSE 100 packaging provider Mondi had a warning in its last update about inflation. And it is hardly the only company to talk about a build-up of cost pressures, suggesting the potential enormity of the problem. In its results update, I want to see how far (and if) Mondi has been impacted by it.
I am also interested in how post-lockdown demand looks for the firm. It has said that e-commerce growth was positive for it a few months ago, which is encouraging. I also want to see its detailed numbers, because despite these trends, it saw a fall in revenue and net profits last year.
I like the stock from a long-term perspective, given that it is part of the promising online sales’ supply chain. And if its number can improve, its share price can rise further.
