I’m thinking of buying these FTSE 100 stocks today. Here’s why I think they could make me plenty of cash by the end of the decade.
A FTSE 100 stock I plan to keep
It’s possible that Asia-focused stocks like Prudential (LSE: PRU) could take a hit if China’s economy continues to cool sharply. The latest news on this front wasn’t exactly reassuring. Chinese GDP skidded to 4% in the fourth quarter of 2021, versus 4.9% three months earlier. A continuation of this deterioration has the potential to deliver a considerable shockwave across all of its emerging markets.
I own Prudential stock. But as a shareholder, I’m not wringing my hands with concern. As a long-term investor I’m prepared to endure a little near-term turbulence as I think this FTSE 100 share will deliver mighty earnings growth in the years ahead. Prudential has one of the strongest names in the financial services business and I’m expecting it to thrive as personal wealth levels in Asia increase.
Researchers at Mordor Intelligence recently commented that “the Asia-Pacific region holds the key to the future of the insurance industry”. They cite the impact of fast economic growth, rising incomes, and the fact the region houses one-third of the global population, as reasons why demand for such financial services products could leap.
Prudential’s new business profit soared 25% in the first half of 2021, its most recent financial update showed. Low penetration in its life insurance markets — combined with those soaring income levels among its far-flung customers — makes me believe company earnings should rise strongly all the way through to 2030.
Another UK share set for big profits?
The amount we’re all spending on pets has ballooned over the past decade. And by all indications, the amount we fork out on our four-legged friends looks set to continue surging. This is why I’d buy Dechra Pharmaceuticals (LSE: DPH) today. This new FTSE 100 entrant manufactures the drugs that keep animals happy and healthy.
Sales at Dechra rose 10% in the six months to December, latest financials showed, beating City forecasts. The company’s strong performance reflects the rapidly-expanding market in which it operates as well as the effectiveness of its acquisition-based growth strategy.
Last week, Dechra bought the worldwide rights to canine cancer battler Laverdia to keep its programme going too. This follows the six acquisitions it made between July to December.
Drugs development is extremely risky business and problems can be common. This can result in significant lost revenues and a massive upsurge in cost. Still, it’s my opinion that Dechra’s immense sales opportunities more than offset this risk. Analysts at Global Market Insights think the worldwide animal drugs industry will be worth $46bn by 2027. That’s up considerably from the $32.2bn it was worth in 2020.
Dechra has around 5,700 registered products which it sells across the globe. And it’s a number that’s set to keep growing as additional acquisitions come down the pipe.
Royston Wild owns Prudential. The Motley Fool UK has recommended Prudential. 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.
