Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » Why I’m looking to buy FTSE 100 and FTSE 250 shares right now
    News

    Why I’m looking to buy FTSE 100 and FTSE 250 shares right now

    userBy userJanuary 8, 2025No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Image source: Getty Images

    On the face of it, right now doesn’t look like a good time to be buying UK shares. Higher taxes and National Insurance contributions have resulted in business confidence reaching its lowest level in years.

    Despite this, I’m setting my sights on the UK stock market. At times like this, I think there are some great opportunities for investors – with a couple of caveats.

    Survival of the fittest

    Higher taxes and National Insurance contributions are going to challenge UK firms. But I think the best businesses – those that have lower costs or the ability to increase prices – will cope better than others.

    As a result, I expect some companies to find themselves in a stronger competitive position a couple of years from now. And this could be a very good thing from a long-term perspective.

    I think investors might overlook this point in some cases. And this could create some outstanding investment opportunities.

    I’m therefore aiming to identify businesses that can weather the immediate storm and emerge in a stronger position for the long term. And there are a couple of stocks on my radar right now. 

    Howden Joinery Group

    Howden Joinery Group’s (LSE:HWDN) a business I think has a huge long-term advantage. The firm’s big strength is its ability to charge customers less while making more money itself – a win for all parties.

    The foundation of this is its trade-only sales strategy. This means it can operate out of warehouses and this brings down costs significantly, with no need to lease (or buy) expensive retail showrooms.

    The results show up in the company’s profitability. Howden consistently manages operating margins above 15%, which is significantly higher than the likes of Kingfisher (6%) or Wickes (5%).

    Howden Joinery Group vs Kingfisher vs Wickes Operating Margins 2015-24


    Created at TradingView

    This doesn’t make the firm immune to the effects of an economic downturn – and this is a key risk. But it should mean the business is more resilient in a difficult environment and emerges stronger as a result.

    AG Barr

    Another business I think could be unusually resilient is soft drinks producer AG Barr (LSE:BAG). In addition to higher costs, the firm’s also facing challenges from the rise of GLP-1 drugs that might threaten sales volumes. 

    This is a risk, but I think the company’s main brand puts it in a stronger position than its rivals. There aren’t many drinks that can compete with Coca-Cola, but Irn Bru has shown itself to be one of them. 

    AG Barr’s latest update offered investors a clear demonstration of this. Revenue grew 5.2% and a lot of this was the result of increasing prices without significant declines in sales volumes.

    Not every business can do this. So while short-term challenges might limit profit growth in the near future, I expect long-term shareholders should benefit from a stronger competitive position.

    Quality and value

    Howden’s and AG Barr are two UK stocks I’m looking at right now – but they aren’t the only ones. There are several businesses I think could emerge from a difficult trading environment in a stronger position.

    Investors looking to buy shares in quality companies at attractive prices should consider the UK stock market. Not everything looks good to me, but I think there could be some good opportunities.



    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleLifeway insists Danone investor agreement “invalid”
    Next Article Artificial Intelligence Energy Demand Is Driving Climate Tech Investing
    user
    • Website

    Related Posts

    £10,000 invested in Lloyds shares 12 months ago is now worth…

    June 8, 2025

    How many Phoenix shares must an investor hold to earn passive income of £10,000 a year?

    June 8, 2025

    In 1 year, the Phoenix share price could turn £1,000 into…

    June 8, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d