Hargreaves Lansdown investors LOVE these FTSE 100 shares! Should I buy them?

These FTSE shares have attracted significant dip-buying interest in recent days. Should I follow the herd and pile in at current prices?

| 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.

Young Asian man drinking coffee at home and looking at his phone

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 building a list of beaten-down FTSE 100 shares to buy for my portfolio today. I’m searching for winning companies that have fallen sharply more recently, but which have the potential to rebound strongly in time.

These two Footsie stocks have attracted significant dip-buying interest from Hargreaves Lansdown customers of late. In fact they are among the 10 most popular UK and US shares in the seven days to 6 March.

But which — if any — should I add to my Stocks and Shares ISA today?

Should you invest £1,000 in Ashtead Group Plc 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 Ashtead Group Plc made the list?

See the 6 stocks

St James’ Place

Created with Highcharts 11.4.3St. James's Place Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Financial services firm St James’ Place (LSE:STJ) has struggled to grow business during this tough economic period. But the biggest headache right now relates to scrutiny over its service levels and high charges.

It has set aside a staggering £426m to compensate customers following “a significant increase in complaints” over servicing, the firm announced last week. As a consequence, it slashed the total dividend by 55% in 2023, and said it would limit shareholder payouts to 50% of the underlying full-year cash result for the next three years.

The share price unsurprisingly plunged on the news. And Hargreaves Lansdown investors have been busy dip-buying the company in response, perhaps in hope that the charge draws a line under the problem. The firm attracted 1.31% of all buy orders on Hargreaves’ platform in the last week.

But I find it hard to get enthusiastic about this brusied company today. On the plus side, revenues across the financial services sector could rise sharply in the years ahead as people take greater control of their finances.

However, I’m worried about the reputational damage that’s been inflicted on St James’ Place. This can be crushing for businesses that look after peoples’ money. With the business subsequently overhauling its fee structure and scrapping withdrawal charges, profits will also be signficantly impacted for the next few years if not longer.

Right now the risks of owning this FTSE share are too great, in my opinion.

Reckitt

Created with Highcharts 11.4.3Reckitt Benckiser Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

While I’m not tempted to buy St James’ Place shares today, I may consider opening a position in fast-moving consumer goods (FMCG) giant Reckitt (LSE:RKT).

This FTSE firm also collapsed last week following a disappointing trading update. However, it attracted 1.03% of all buy instructions from Hargreaves Lansdown clients in the past seven days.

Reckitt’s share price plunged on news of a hugely underwhelming end to 2023. While full-year like-for-like sales rose 3.5%, poor sales of cold and flu products meant that corresponding revenues slipped 1.2% year on year.

Broader sales grew weakly last year as price hikes prompted people to shop for cheaper brands. And it could remain an issue in 2024 too if interest rates fail to come down.

But as a long-term investor I’m still attracted by Reckitt’s shares. The company owns a huge stable of high-margin shopper favourites like Nurofen painkillers, Durex condoms, and Dettol disinfectants, demand for which should take off again when economic conditions normalise.

I also like the FTSE 100 firm’s broad geographic footprint that spans 68 countries. This provides solid exposure to fast-growing emerging markets that could give profits growth a significant boost.

I’ve been looking for an opportunity to buy Reckitt shares for some time. I’ll look carefully at adding it to my portfolio in the coming days.

But there may be an even bigger investment opportunity that’s caught my eye:

Investing in AI: 3 Stocks with Huge Potential!

🤖 Are you fascinated by the potential of AI? 🤖

Imagine investing in cutting-edge technology just once, then watching as it evolves and grows, transforming industries and potentially even yielding substantial returns.

If the idea of being part of the AI revolution excites you, along with the prospect of significant potential gains on your initial investment…

Then you won't want to miss this special report inside Motley Fool Share Advisor – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And today, we're giving you exclusive access to ONE of these top AI stock picks, absolutely free!

Get your free AI stock pick

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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown Plc and Reckitt Benckiser Group 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.

More on Investing Articles

Investing Articles

I asked ChatGPT how I should invest £1,000 in UK stocks. Here’s what it said!

Charlie Carman turns to artificial intelligence for ideas on how to invest a four-figure sum in UK stocks, with some…

Read more »

Close up view of Electric Car charging and field background
Investing Articles

£10,000 invested in NIO stock 1 year ago is now worth…

NIO stock was a favourite among growth-oriented investors in 2020 and 2021. But it didn’t deliver. Dr James Fox spies…

Read more »

Long-term vs short-term investing concept on a staircase
Investing Articles

Down 37% from May, does Glencore’s near-£3 share price look cheap to me?

Glencore’s share price has tumbled from its one-year traded high, which suggests there may be good value in it. I…

Read more »

Dividend Shares

How much would an investor need in dividend shares to make £1,000 a month?

Jon Smith talks through both the strategy and the numbers behind the investment aim of using dividend shares to make…

Read more »

A row of satellite radars
Investing Articles

Defence spending is on the rise and this UK growth stock could be set to cash in

With the UK ready to increase its defence spending, Stephen Wright thinks the stock likely to benefit the most isn’t…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

£11,000 in savings? Here’s how investors could use that to target an annual passive income of £12,892 over time!

Money put into high-dividend-paying shares with the returns used to buy more of them can generate potentially life-changing passive income.

Read more »

Investing Articles

Down 10% and 15% in a month! 2 cheap shares investors might consider buying with £2k today

It's always a good time to buy cheap shares! Harvey Jones picks out two FTSE 100 companies that have fallen…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

Here’s how £350 a month could put a stock market beginner on the road to wealth!

Interested in getting a foot on the stock market ladder? Our writer breaks down the facts and figures so aspiring…

Read more »