5 shares that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these shares in recent weeks.

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.

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.

Investing alongside you, fellow Foolish investors, here’s a selection of shares that some of our contributors have been buying across the past month!

Barclays

What it does: Barclays moves, lends, invests and protects money for customers and clients in over 40 countries.

By James Beard. Barclays (LSE:BARC) isn’t the best performing UK bank at the moment but I think it’s the one with the biggest potential. That’s why I bought some of its shares last month.

With a price-to-book ratio of 0.45, and a 12-month trailing price-to-earnings ratio of 7.1, the stock appears to offer good value. By 2026, analysts are expecting earnings per share to grow by nearly 60%, compared to their anticipated 2024 level. That’s because the bank’s seeking to improve its poor return on capital which lags behind that of its FTSE 100 peers.

However, there are risks. There’s no guarantee that the turnaround plan will work and banking stocks can be volatile. Bad debts could also be a problem if the global economic recovery stalls.

But I have confidence in the bank’s chief executive who plans to reduce costs by £2bn – and return at least £10bn to shareholders – over the next three years.

James Beard owns shares in Barclays.

First Solar

What it does: First Solar is one of America’s leading solar energy companies, known for thin-film solar panels.

By Oliver Rodzianko. I bought First Solar (NASDAQ:FSLR) recently after its valuation improved.

Management is expanding its manufacturing capacity through two new facilities set to be operational by late 2025. This is crucial to meeting the continued high demand for solar power. It also positions it as a key competitor against Chinese solar companies.

Analysts expect the company to achieve year-on-year revenue growth of 35.5% in 2024 and 26% in 2025. If its valuation also expands, then the returns over the next two years could be very large indeed.

However, China controls over 80% of the global solar supply chain. These businesses could put pricing pressure on First Solar, inhibiting its share price growth.

That being said, I’m bullish on Western green energy. First Solar is one of the strongest US solar investments I know.

Oliver Rodzianko owns shares in First Solar.

Five Below

What it does: Five Below runs a chain of retail outlets selling on-trend items to teenagers priced (mostly) at $5 or less.

By Stephen Wright. Shares in US retailer Five Below (NASDAQ:FIVE) have fallen 57% over the last 12 months. And they’ve reached a point where I think they look like terrific value. 

The company is heavily exposed to households with an income below $50,000 per year. That makes the risk of an economic downturn significant for the business. 

Despite this, Five Below has some impressive growth prospects. It’s looking to expand its store count at a rate of 12% per year for the next few years. 

Normally, this would involve taking on debt. But with new outlets breaking even by the end of the year, the company shouldn’t need to expose its balance sheet to danger in order to achieve its goals.

With the stock falling to a price-to-earnings (P/E) ratio of 15, I saw my chance and went for it. It’s started to rally already, though, so I’m on the lookout for another opportunity.

Stephen Wright owns shares in Five Below.

Taylor Wimpey

What it does: One of the UK’s largest home construction companies, building everything from apartments to six-bedroom homes. 

By Mark David Hartley. With the new Labour government coming into power, I’ve noticed renewed enthusiasm about building low-cost housing. Affordable housing accounted for 21% of builds performed by Taylor Wimpey (LSE: TW.) in 2022, so it’s in good stead to benefit from this surge. 

Falling interest rates could also help but for now, the UK’s economic outlook remains unclear. Housing is particularly sensitive to this, so that presents a risk to the stock. Delays and unexpected costs are another concern, as the Middle Eastern conflict threatens material deliveries via the Suez Canal.

With earnings forecast to grow, the stock’s price-to-earnings (P/E) ratio could drop from 24 to 18 in the next 12 months. But that’s still above the industry average, so growth may be slow this year. Fortunately,  it has an attractive 5.8% yield, so it makes a great addition to my dividend portfolio either way.

Mark David Hartley owns shares in Taylor Wimpey.

Xtrackers MSCI World Value UCITS ETF

What it does: Xtrackers MSCI World Value UCITS ETF invests in hundreds of global shares using a value strategy.

By Royston Wild. Buying value shares can have significant benefits for investors. I’ve chose to increase my own exposure to this category by recently opening a position in the Xtrackers MSCI World Value UCITS ETF (LSE:XDEV).

Value stocks can deliver market-beating capital appreciation over time as investors wake up to their cheapness. These shares can also be more stable during economic downturns as their low valuations already reflect potential profit risks.

This particular ETF tracks the performance of the MSCI World Enhanced Value Index, which comprises 400 large- and mid-cap companies across 23 developed markets. Major holdings include US tech stocks Cisco SystemsQualcomm and IBM.

With a price-to-earnings (P/E) ratio of 9.6 times and 5.19% dividend yield, the fund offers excellent all-round value for money.

On the downside, this Xtrackers product may underperform during a sustained bull market. During these periods, investors tend to favour growth shares over value stocks. But over the long term I’m confident it will prove a valuable addition.

Royston Wild owns Xtrackers MSCI World Value UCITS ETF.

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.

The Motley Fool UK has recommended Barclays Plc, International Business Machines, and Qualcomm. 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

Here are 2 of my favourite cheap shares to buy today

Harvey Jones is on the hunt for cheap shares and was surprised to discover these two big-name FTSE 100 stocks…

Read more »

Investing Articles

Where could the BT share price go in the next 12 months? Check out the latest forecasts

The BT share price has had a bumpy ride but has nevertheless attracted the attention of two famous billionaire investors.…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

This FTSE 250 share has surged 20% in a month. Its P/E is still just 3.3. So should I buy?

Our writer thinks this FTSE 250 stock remains enticing, with an ultra-low P/E ratio and an attractive yield. But why's…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

Should I buy Aviva for its 7.8% yield now the share price is at 483p?

Despite recent share price volatility, Aviva is still cracking on as a business and pumping out chunky shareholder dividends.

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

This FTSE 100 tech share jumped 19% this morning! Here’s why

One leading tech share came roaring off the blocks in morning trading today in London. Our writer digs into the…

Read more »

Investing Articles

Should I buy Sage Group as the share price jumps 20% on FY results?

The Sage Group share price had been going through a weak spell in 2024. But a results day surge has…

Read more »

Chalkboard representation of risk versus reward on a pair of scales
Growth Shares

10,000 or 6,000? Here’s where I think the stock market is heading in 2025

Jon Smith weighs up both sides of the argument as to where the stock market could head next year, along…

Read more »

Investing For Beginners

2 cheap shares that are at 52-week lows

Jon Smith reveals what he believes to be two cheap shares that have been oversold in the current market and…

Read more »