I’m searching for the best FTSE 100 shares to buy for my portfolio today. Here are three brilliant blue-chips I think could be too good to miss.
Copper king
I reckon Antofagasta (LSE: ANTO) could end up being a top renewable energy stock for me to own. This is because the copper it produces is used in massive amounts to create wind and solar farms and in battery storage technology. The red metal is also used in vast quantities in electric vehicles and related infrastructure such as charging points.
The likes of Antofagasta could experience some profits weakness if China’s commodities-hungry economy sinks. But, over the long term, I think demand for copper and other energy-transition metals will be robust.
As analysts at ING Bank commented: “Copper and aluminium, among other materials, should continue to benefit from China’s government-led investment in renewable power projects”. The bank even suggested demand here could surprise to the upside.
One final thing. Commodities are often viewed as popular safe-haven assets when inflation is rocketing as it is currently. This could provide the prices of copper et al and, by extension, profits at Antofagasta, with an extra little kick.
Value hero
Speaking of which, I think rising pressure on shoppers’ wallets will likely benefit low-cost retailers like B&M European Value Retail (LSE: BME). Workers’ pay in Britain actually dropped in real terms in November because of soaring inflation. This was the first decline since summer 2020 and is a trend that could well continue in 2022.
I think B&M’s more than just a decent short-term pick though. The importance of value has been growing sharply over many years and is tipped to continue doing so regardless of broader economic conditions. This explains how the FTSE 100 business has grown the number of its branded stores to around 700, from 425 back in 2015.
I’d buy B&M even though it faces intense competition from other value retailers, from Poundland and The Works to Aldi and Lidl. I think a forward P/E ratio of 14 times looks pretty low, given the company’s ambitious expansion plan and the bright outlook for the low-cost retail industry.
A FTSE 100 stock in my portfolio
I also think buying stocks with immense brand power is a good idea as inflation rises. This is where Coca-Cola HBC (LSE: CCH) comes in, a FTSE 100 share that bottles and sells the world’s most popular soft drink. Shoppers will (at least broadly speaking) always find a way to stretch their grocery budgets to buy Coke over cheaper own-brand alternatives.
Coca-Cola HBC does face some near-term danger. Worsening Covid-19 cases and a return to lockdowns could hammer near-term sales to the hospitality industry once more. But all things considered, I think this is a top stock to buy.
It actually sits in my own investment portfolio because of the brand strength of its drinks and its long track record of successful product innovation to embrace lucrative consumer trends. These include rolling out its plant-based AdeZ drink and launching its Coca-Cola Energy beverage.
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Royston Wild owns Coca-Cola HBC. The Motley Fool UK has recommended B&M European Value and Coca-Cola HBC. 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.
