Investing alongside you, fellow Foolish investors, here’s a selection of stocks that some of our contributors have been buying across the past month!
BBGI Global Infrastructure
What it does: BBGI is a social infrastructure investment company running 56 projects, including toll bridges, roads, schools and hospital facilities.
By Ben McPoland. BBGI Global Infrastructure (LSE: BBGI) shares were on my buy list for what seemed like an eternity. Finally, I’ve added them to my portfolio!
There are a number of things I like here. For starters, the firm’s projects are spread across the UK, Europe, North America and Australia. They’re entirely availability-based, which means that as long as BBGI ensures the assets are operational, it is paid.
The contracts are long-term and the revenue is government-backed and inflation-linked. This obviously makes the dividend income far more reliable than most.
The forward dividend yield starts at 6.2%, which I find attractive. Even without further acquisitions, BBGI estimates that its current portfolio could increase dividends for the next 15 years. I like the sound of that.
Lastly, at 135p per share, the fund is trading around 8% below the portfolio’s underlying net asset value of 147p (calculated at the end of 2023).
The risk, of course, is that interest rates stay higher for longer than anticipated. That could see the shares pull back. This doesn’t worry me though, as I intend to hold the stock for the long haul.
Ben McPoland owns shares in BBGI Global Infrastructure.
Fresnillo
What it does: Fresnillo is the largest primary silver producer in the world, and Mexico’s largest gold producer.
By Andrew Mackie. Over the past month, I have only bought shares in one company, Fresnillo (LSE: FRES). I first topped up my holdings in the middle of April, and then doubled down again in the past week.
In the last two months, its share price has risen an astonishing 45%, making it by far the best performing FTSE 100 stock. The reason is simple: sky-rocketing silver prices. Last week the metal closed at over $30. The first time this has happened in over 10 years.
However, despite its meteoric rise, it still remains very much under-the-radar. Investors continue to be sceptical about investing in precious metal miners. I believe this will change very soon.
Gold prices continue to make new highs, but silver has a lot of catching up to do. During the inflationary decade of the 1970s, silver hit $50. It repeated this in the wake of the global financial crisis. I don’t have a target price on the metal today, but I expect it to be way higher than $30.
Mining stocks are undoubtedly the most volatile asset class to hold. And Fresnillo itself has suffered many setbacks recently. This has included the revaluation of the Mexican peso relative to the US dollar, as well as ongoing production challenges.
Despite the undoubted risk, I continue to believe that we are still only in the early innings of a new gold and silver cycle. But the window of opportunity to generate outsized returns could be about to close soon.
Andrew Mackie owns shares in Fresnillo.
Games Workshop
What it does: Games Workshop is a manufacturer of miniature wargames. It’s best-known for its Warhammer franchise.
By Charlie Keough. At the time of writing, the FTSE 250 has rallied 6.4% in 2024. But constituent Games Workshop (LSE:GAW) seems to have missed out on this, rising just 0.4%. As such, I recently added to my position.
There are plenty of reasons I think the stock is one of the best the FTSE 250 has to offer. In the miniature wargames industry, it’s by far and clear the industry leader, providing it with a moat.
On top of that, the business has a healthy balance sheet with zero debt. Moving forward, I’m excited to see the moves it continues to make as it grows its licensing business.
Its 4.2% dividend yield is also enticing. Its payout has experienced major growth in the last decade, which is another positive sign.
At 23.3 times earnings, it could be argued that Games Workshop shares look expensive. A slowdown in sales would also harm the firm.
But as a long-term buy, I’m bullish on Games Workshop. With any spare cash, I’ll keep adding to my position.
Charlie Keough owns shares in Games Workshop.
Greggs
What it does: Greggs is a popular high-street bakery chain in the UK, selling pastries, pies and sandwiches.
By Mark David Hartley. I’ve been eyeing Greggs (LSE: GRG) shares for a while now, impressed by the company’s aggressive expansion and simple yet effective business strategy. Over the past decade, social and dietary changes have threatened Greggs’ business model but the baker has done well to address and overcome these. Shares are up 7% this year but using a discounted cash flow model, analysts estimate them to still be trading at 75% below fair value.
Lately, the baker has been forced to increase its prices as inflation causes higher ingredient costs. This has led to widespread criticism, as the chain is known for its low-cost food. With large supermarket chains able to offer lower priced alternatives, Greggs will need to innovate if it hopes to maintain its loyal customer base. I hope the elusive interest rates we’ve been promised this year materialise because I’m not only invested in Greggs’ shares but in its delicious pasties too.
Mark David Hartley owns shares in Greggs.
Novo Nordisk
What it does: Novo Nordisk is a Danish pharmaceutical company that specialises in diabetes and weight-loss drugs.
By Edward Sheldon, CFA. A few months ago, I started a position in pharma company Novo Nordisk (NYSE: NVO). Recently, I added to my holding after the stock pulled back a little.
Novo Nordisk’s results for Q1 were impressive. Thanks to high demand for its GLP-1 weight-loss drugs, sales were up 22% year on year while operating profit was up 27%.
Looking ahead, the company raised its full-year guidance. It now expects sales growth of between 19% and 27% at constant exchange rates versus its previous forecast of 18% to 26% growth.
Overall, I was very encouraged by the Q1 numbers.
One risk with this stock is new weight-loss drugs from rivals. Amgen is one company that is working on an obesity drug and it sounds like its product has a lot of potential.
I’m confident in the long-term growth story here though. Given that obesity affects more than a billion people worldwide, I think there’s room in the market for multiple players.
Edward Sheldon owns shares in Novo Nordisk
Reckitt
What it does: Reckitt is a UK-based multinational consumer goods company that produces products under brand names including Vanish.
By Christopher Ruane. An unfavourable US court judgment against Reckitt (LSE: RKT) knocked the share price for six in February. The share has fallen 17% since the start of the year.
I think that reaction was overdone, however. The judgment was for a single lawsuit and the company plans to keep appealing.
The business has other problems too. Its nutrition formula business continues to be a source of weakness, with first quarter sales falling year-on-year.
But Reckitt has a lot going for it. It owns a host of well-known brands, such as Dettol and Nurofen. Its global distribution network is well-established. The business also has proven profit potential. Last year it earned £1.6bn after tax.
Reckitt is around a quarter cheaper than it was five years ago. I think that price is attractive for what I see as a fundamentally strong business, so bought the company for my Stocks and Shares ISA recently.
Christopher Ruane owns shares in Reckitt.
Shopify
What it does: Shopify is the leading digital storefront provider for small-to-medium-sized businesses.
By Oliver Rodzianko. I recently bought a small position in Shopify (NYSE:SHOP). Previously, I’d been a little deterred because the firm was not yet reliably profitable. However, after reviewing CEO Tobi Lütke’s words about his intentions for the business lasting 100 years, I can see an opportunity here.
I think Shopify is structuring itself with a similar ethos to Amazon. The aim of the game here is to double down on customer satisfaction and market value. By sacrificing short-term profits, the company can develop a stronger brand through research and development.
However, Shopify’s revenue is from smaller businesses. Those companies are less likely to survive in major economic crises, and Shopify’s recurring revenue would be hit potentially quite severely as a result. Some investments are recession-resistant, but this one isn’t.
Nonetheless, I believe in the management and the philosophy of the company enough to allocate some of my hard-earned cash to it.
Oliver Rodzianko owns shares in Shopify and Amazon.
Xtrackers MSCI World Momentum UCITS ETF
What it does: Xtrackers MSCI World Momentum UCITS ETF tracks the share price performance of 345 global companies.
By Royston Wild. I’ve been seeking an effective way to track the performance of global indices as the stock market bull run picks up speed. Xtrackers MSCI World Momentum UCITS ETF (LSE:XDEM) is an exchange-traded fund (ETF) I think fits the bill.
As the name suggests, this UK-listed financial instrument tracks the MSCI World Momentum Index, a collection of hundreds of large- and mid-cap businesses that have high momentum scores.
The ETF gives me exposure to dozens of countries and multiple sectors, which in turn helps me to manage risk. But it also gives me significant access to the booming US tech sector. Its three largest holdings as of late April were Nvidia, Meta and Amazon.
The MSCI World Momentum Index has provided an annualised return of 12.04% over the past decade. While previous performance is not a reliable indicator of future results, and a fresh economic crisis could impact my returns, I still consider the fund to be an attractive buy.
Royston Wild holds the Xtrackers MSCI World Momentum UCITS ETF.
