3 FTSE 100 stocks I’d buy in February 2022

These FTSE 100 stocks have just released important updates that convince Manika Premsingh that they are good buys right now.

| 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.

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.

New Year’s day feels like yesterday, but we are already one month into the year! For those of us who are just about beginning to wonder what stocks to buy now, there are a number of FTSE 100 stocks that look interesting to me in February. One big reason for this is the recent updates, which have increased their appeal. 

#1. Anglo American: positive production update

The first is the multi-commodity miner Anglo American, whose latest production update looks good. Its overall production is up 2% for the quarter ending 30 September 2021 compared to the same quarter last year. The company’s platinum metals and iron ore production rose appreciably, which is significant because they are the biggest contributors to its bottom line. 

Even otherwise, the stock’s financials are strong and its dividend yield is relatively high at 5.3%. I bought the stock on an expected dip last year, and I am glad because it has made gains since. I reckon it would continue to do so, though how much by remains to be seen considering the stock is already at multi-year highs. 

#2. Diageo: growth despite volatility

The next FTSE 100 stock I like is the alcohol manufacturer Diageo, which recently released a robust update. For the half-year ending 31 December 2021, the company saw sales growth of almost 16% compared to the same six months last year. Its reported operating profit rose by 23% as well. It is optimistic about the rest of the year too, what with greater business expected from commercial establishments this year. Besides this, I think a robust economy should also continue to give a boost to the stock. 

It does flag “near-term volatility” as a potential challenge. Think of supply chain disturbances, the continued impact of the pandemic, and of course, the problem of the season, high inflation. Still, I think Diageo is a resilient business, which would make a good buy for February. 

#3. Sage Group: FTSE 100 defensive to note

Finally, I like the FTSE 100 accounting software provider Sage Group. The stock looks interesting to me right now, because it just took a dip to levels not seen since (very briefly) in October last year, but basically since mid-2021. The decline coincides with the release of its trading update. On the face of it, there is really nothing not to like about it. Its revenue grew by 5% for the quarter ending 31 December 2021 compared to the same quarter last year. Importantly, its recurring revenue, which forms a bulk of the total, grew by 8% as well. 

The update does not provide much more detail, but does not give anything to justify the 28 times price-to-earnings (P/E) the stock is sitting at currently either. Also, while it is a good defensive stock, in a bullish market it can find itself out of favour. I think this is a good time for me to buy it, though, because in the long term it could offer solid gains. 

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.

Manika Premsingh owns Anglo American. The Motley Fool UK has recommended Diageo and Sage Group. 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.

More on Investing Articles

Investing Articles

Below 55p, are Lloyds shares a bargain going into 2025?

With the threat of potential liability concerning car loans hanging over the company, how should investors think about valuing Lloyds…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

If a 30-year-old puts £500 a month into a Stocks & Shares ISA, here’s what they could have by retirement

UK residents can leverage the incredible benefits of the Stocks and Shares ISA to create a retirement fund separate from…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing For Beginners

How to try and turn a small ISA into £200k, starting in 2025

Edward Sheldon highlights a simple three-step savings and investment plan that could help investors grow their ISA balances significantly.

Read more »

Investing Articles

If an investor puts £500 a month in an ISA, here’s how much passive income they could generate

Millions of us will start our hunt for passive income in 2025. Dr James Fox explains how investing today could…

Read more »

Investing Articles

Legal & General shares could help turn £20k of savings into £150 of monthly passive income

Legal & General’s dividend yield of 9.2% provides investors with an opportunity to consider creating a £150 monthly passive income…

Read more »

Investing Articles

Could Rolls-Royce shares smash £10 in the coming year?

After a stellar 2023, Rolls-Royce shares have again delivered in spades for investors in 2024. Our writer considers what might…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

This FTSE share has soared 41% in 2024 despite falling sales. Why?

This FTSE 100 share has seen earnings per share rise strongly in 2024. Its share price has rocketed too. Is…

Read more »

Investing For Beginners

3 steps to protect my ISA as inflation starts to move higher

Jon Smith explains several ways that he can help his ISA investments to ride out a potential second wave of…

Read more »