New Year’s day feels like yesterday, but we are already one month into the year! For those of us who are just about beginning to wonder what stocks to buy now, there are a number of FTSE 100 stocks that look interesting to me in February. One big reason for this is the recent updates, which have increased their appeal.
#1. Anglo American: positive production update
The first is the multi-commodity miner Anglo American, whose latest production update looks good. Its overall production is up 2% for the quarter ending 30 September 2021 compared to the same quarter last year. The company’s platinum metals and iron ore production rose appreciably, which is significant because they are the biggest contributors to its bottom line.
Even otherwise, the stock’s financials are strong and its dividend yield is relatively high at 5.3%. I bought the stock on an expected dip last year, and I am glad because it has made gains since. I reckon it would continue to do so, though how much by remains to be seen considering the stock is already at multi-year highs.
#2. Diageo: growth despite volatility
The next FTSE 100 stock I like is the alcohol manufacturer Diageo, which recently released a robust update. For the half-year ending 31 December 2021, the company saw sales growth of almost 16% compared to the same six months last year. Its reported operating profit rose by 23% as well. It is optimistic about the rest of the year too, what with greater business expected from commercial establishments this year. Besides this, I think a robust economy should also continue to give a boost to the stock.
It does flag “near-term volatility” as a potential challenge. Think of supply chain disturbances, the continued impact of the pandemic, and of course, the problem of the season, high inflation. Still, I think Diageo is a resilient business, which would make a good buy for February.
#3. Sage Group: FTSE 100 defensive to note
Finally, I like the FTSE 100 accounting software provider Sage Group. The stock looks interesting to me right now, because it just took a dip to levels not seen since (very briefly) in October last year, but basically since mid-2021. The decline coincides with the release of its trading update. On the face of it, there is really nothing not to like about it. Its revenue grew by 5% for the quarter ending 31 December 2021 compared to the same quarter last year. Importantly, its recurring revenue, which forms a bulk of the total, grew by 8% as well.
The update does not provide much more detail, but does not give anything to justify the 28 times price-to-earnings (P/E) the stock is sitting at currently either. Also, while it is a good defensive stock, in a bullish market it can find itself out of favour. I think this is a good time for me to buy it, though, because in the long term it could offer solid gains.
Manika Premsingh owns Anglo American. The Motley Fool UK has recommended Diageo and Sage Group. 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.
