I think these FTSE 100 shares could be brilliant buys for UK share investors to look at before next month. Here’s why.
Antofagasta
Now could be a good time to buy copper stocks as red metal prices rebound. Prices of the industrial metal are at one-year highs due to Chinese smelters curbing production on waning ore reserves. Prices could continue galloping too as the supply situation tightens.
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Rapidly-rising Antofagasta (LSE:ANTO) could be a great stock to buy to exploit this opportunity, in my opinion. It is the world’s 10th-biggest copper producer, and in 2023 produced 660,000 tonnes of the industrial metal.
The Chilean miner could prove more than just an excellent short-term buy too. Work to increase capacity is underway to give long-term earnings a significant kick.
Ongoing expansion work at its Los Pelambres mine helped drive last year’s output increase. And in January it approved a $4.4bn expansion of its Centinela mine, a move that should increase copper production by 170,000 tonnes per annum.
Analysts at Citi are certainly impressed by the work going on at the Footsie firm. They lifted their target price on the miner to £21 per share. It was recently changng hands at £19.20.
They commented that “the company is on track to increase its copper production 30% by 2027 while repositioning its portfolio lower on the global cost curve.”
Investors need to be wary of Antofagasta’s high valuation, however. It now trades on a forward price-to-earnings (P/E) ratio of 33 times. This sort of reading could prompt a sharp price correction if newsflow suddenly worsens.
JD Sports Fashion
Investors seeking firms with low earnings multiples might want to give JD Sports Fashion (LSE:JD.) a close look. At 8.9 times, this sits well below the forward average of 10.5 times for FTSE 100 shares.
On top of this, the retailer trades on a forward price-to-earnings growth (PEG) ratio of 0.9. Any reading below 1 indicates that a share is undervalued.
JD Sports’ share price has crashed at the start of 2024. Tough trading conditions (and especially in North America) have persisted, prompting the athleisure giant to issue a profit warning in January.
But the long-term outlook here remains robust. And I feel now could be a good time to open a position in the company.
City analysts think JD shares are on course to spring higher again. The 15 analysts with ratings on the stock has slapped a 12-month price target of 174.9p per share on it. That’s a large premium from current levels of 109p.
The sports casual fashion segment has exploded in popularity over the past decade. And it is tipped to resume its rapid growth as soon as current softness in consumer spending passes. JD is putting itself in pole position to exploit this opportunity through its ongoing store expansion programme, too.
Analysts at Berenberg also think the firm is well placed to grow sales. It notes that “JD is more than a retailer — it is a global brand dominating ‘mindshare’ of the generation-Z consumer.” I think it’s a top stock to consider at today’s prices.
