Looking for the best low-cost stocks to buy this month? Here are two great UK shares I think savvy investors should seriously consider.

Firing higher

European defence shares are soaring following recent developments in the tragic Ukraine War. Yet some, like London-listed Babcock International (LSE:BAB), still look extremely cheap on paper.

Amid wavering US support for Kyiv, other NATO members — which had been poised to hike defence spending regardless of recent events — are making plans to turbocharge their arms budgets. European Commission President Ursula von der Leyen on Monday (4 March) detailed plans to boost European Union defence spending by a whopping €800bn.

The UK has also pledged to raise defence spending to 2.5% of domestic gross domestic product (GDP) by 2027, three years earlier than planned. This bodes well for Babcock, which sources 60% of group revenues from the Ministry of Defence.

The FTSE 250 business also has strong links to other NATO members, including France and Canada (as well as Australia, a key partner of the bloc). This helped drive organic revenues 11% higher in the six months to October.

I believe Babcock shares trade at a tasty premium to the broader defence industry. Its price-to-earnings (P/E) ratio of 14.1 times is well below corresponding readings of, for example:

• 21.4 times for BAE Systems
• 20.4 times for Chemring
• 36.2 times for Rolls-Royce
• 16.6 times for Lockheed Martin
• 31.4 times for Safran

Supply chain issues remain an issue that could impact project delivery and push up costs. But on balance, I think Babcock shares deserve a very close look today.

Gold surge

Precious metal stocks are also rising rapidly due to tension over the geopolitical landscape. Since the beginning of 2025, they’ve been swept higher by robust safe-haven demand for gold and silver.

Since 1 January, gold has risen 11% in value.

I feel FTSE 100-listed Fresnillo (LSE:FRES) could be one of the best stocks to consider to capitalise on this theme. And as well being a significant gold producer, it’s the world’s largest silver miner, and last year dug up 56.3m ounces of the grey metal. Gold production came out at 631,000 ounces.

There’s no guarantee that the mining sector boom can continue. Commodity markets are famously volatile, and a cocktail of factors — from changing market confidence to supply-related news — can emerge to whack prices (and with them Fresnillo’s profits).

But on balance, I think there’s a good chance that gold and silver’s bull run will carry on, driven by:

• Fears of escalating conflict in Eastern Europe
• A stream of new trade tariffs that cool global economic growth
• Increasing inflation as a result of new trade taxes
• A weakening US dollar that makes buying dollar-denominated assets more cost effective

Fresnillo’s dual presence in silver and gold helps the company to spread risk. Furthermore, it may allow the business to benefit from an economic recovery that boosts industrial silver demand.

For 2025, the shares trade on a P/E ratio of 12.1 times. They also carry a price-to-earnings growth (PEG) ratio of 0.1. I think this represents solid value for money and makes the stock worth considering.

Tritax Big Box REIT (LSE: BBOX) is a FTSE 250 real estate investment trust (REIT) specialising in large-scale logistics properties, with clients like Amazon and Ocado.

REITs are attractive for income-focused investors because they usually have an excellent dividend track record. Why? Because in exchange for tax benefits, they’re required to return 90% of profits to shareholders.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Tritax is no exception, increasing its dividends for over 10 years with only one minor reduction. Since 2014, its final dividend has grown from 4.15p per share to 7.66p.

The share price has increased 50% in the same period, resulting in cumulative annualised returns above 10%.

Now, it could get even better.

AI ambitions

In an effort to corner a chunk of the AI market, the company plans to build a huge data centre near London Heathrow airport. It has acquired a 74-acre site in Slough, a prime location to serve Europe, the Middle East, and Africa. 

The plan details a triple story, 448,000 sq ft facility, potentially the largest in the UK, costing an estimated £365m.

According to reports, it’s working with an unnamed renewable and low-carbon energy company to power the project. It’ll use the existing grid to deliver an initial 107 MW and a potential second phase adding 40 MW.

The company anticipates a yield on cost of 9.3% for the first phase of the project, notably higher than the average 6% to 8% target for other projects.

Following the news, major broker Jefferies reiterated a Buy rating for the stock on Monday (3 March). This builds on another recent Buy rating from Bank of America in late February.

Any risks?

Tritax may be a leading UK REIT for now but it isn’t without risk. An industrial slow down could lead to declining demand and leave it with costly empty buildings. AI is all the rage today but it’s still a nascent industry with potential for huge losses – as the Deepseek saga demonstrated.

What’s more, real estate is a sensitive industry, prone to losses when the economy dips. Interest rate hikes can lead to higher borrowing costs, threatening profits. Navigating these risks will determine whether it remains ahead of the competition.

Thinking long term

Tritax’s new development builds on a wider strategy to benefit from the demand for data storage infrastructure, complementing its existing logistics portfolio.

But as exciting as it sounds, it may be a while before it enjoys the fruits of its labour. Construction of the data centre only starts in the first half of 2026, with completion targeted for the end of 2027. 

Still, if everything goes to plan, it stands to seriously benefit from the rapidly growing data centre market. The demand for cloud storage to support AI processing is only getting bigger and doesn’t look likely to slow down. Companies are throwing cash at AI so these data centres typically offer much higher rental yields.

It may be early stages but ultimately, the returns could be substantial.

I think long-term investors with an appetite for real-estate exposure would be smart to consider the stock. It’s been on my REIT list for some time — now I plan to buy as soon as I free up some capital.

The US stock market had a tough time last month, with the S&P 500 slipping 3%. But one embattled tech stock is bucking the trend.

Super Micro Computer (NASDQ: SMCI) is a server and data centre hardware company that designs, manufactures, and sells high-performance computing solutions. The company specialises in AI, cloud computing, and enterprise IT infrastructure.

Shares of the stock gained over 50% in February, making it the most successful stock on the index. The wider picture, however, tells a less impressive story — the stock is down 61% over the past year.

So does the recent growth suggest a recovery is on the cards — or is it a sucker’s rally?

Accounting and governance issues

Supermicro suffered significant losses in the second half of 2024 after facing allegations of accounting irregularities. This ultimately led to the resignation of its auditor, Ernst & Young. These issues raised concerns about the company’s financial integrity, contributing to the drop in its stock price.

In early February, shareholders anticipated better-than-expected results for the full year 2024. This helped lead to rapid growth in the first three weeks of the month.

But as the day got closer, fears spread that it might fail to meet the submission deadline. In the end, it successfully filed its delayed financial reports just before Nasdaq’s deadline last Tuesday (25 February 2025). Subsequently, it averted a potential delisting and restored investor confidence, which led to a brief price jump.

The results and the small recovery are promising, but is it enough to save the stock?

Risks to consider

The previous accounting issues and auditor resignation have cast a shadow over the company’s governance practices, which may continue to affect investor confidence. Any more delays – or missed expectations – could hurt the already sensitive share price.

What’s more, the server hardware and data warehousing market is highly competitive. Major players like Dell Technologies and Nvidia present tough competition. Supermicro certainly has its place, but there’s no guarantee it can maintain its market share.

Well-positioned with strong financials

Supermicro holds a dominant position in the server and data centre hardware industry, an in-demand sector with strong growth potential. The increasing demand for AI and cloud computing infrastructure doesn’t look likely to drop off any time soon.

As such, analysts anticipate revenue to increase over 100% in the next two years, nearing $33.2bn by 2026. Earnings per share (EPS) are expected to follow suit, more than doubling from $2.21 to $4.52 by 2027.

Share price forecasts are somewhat more subdued, averaging a moderate 14.2% gain in the coming 12 months. Yet, from a valuation perspective, the stock looks cheap. 

Based on future cash flow estimates, it could be undervalued by as much as 86%. Plus, it has a forward price-to-earnings (P/E) ratio of 14, well below the industry average of 21.8.

The company’s balance sheet looks good, with $6.24bn in equity and $1.91bn in debt. That gives it a debt-to-equity (D/E) ratio of only 0.3.

As a shareholder, the recent results and improved auditing practices are encouraging. But I’m not 100% sold on a full recovery just yet, so I may hold off a bit before buying more shares.

In 2024, FTSE 100 members announced £56.5bn of share buybacks. As this reduces the number of shares in issue, all other things being equal, this should increase earnings per share.

Not only does this help management teams achieve their performance bonuses but, supporters argue, it also increases the market-cap of a company.

However, critics claim that spending cash in this way simply leads to investors adjusting their valuations downwards. After all, the performance of the company hasn’t changed. They say — just like when a stock goes ex-dividend — its value should go down.

Ignoring the critics

But this hasn’t stopped Apple (NASDAQ:AAPL) spending $725bn on its own shares, since 2013. This has reduced the number in circulation by around 43%.

For the year ended 30 September 2024 (FY24), the tech giant reported earnings per share of $6.08. Without the share buybacks, it’d have been $3.47. So it could be argued that buying back its own shares has contributed 43% ($1.54trn) of its current market-cap.

A different approach

But instead of repurchasing stock, what would have been the impact of using the $725bn to expand through acquisition?

Based on their current market-caps, this would be enough to buy four of the FTSE 100’s biggest companies – AstraZeneca, HSBC, Shell and Rio Tinto. Imagine a transatlantic conglomerate selling iPhones, pharmaceuticals, banking services, oil and precious metals!

If Apple had bought these British companies, based on their latest results, they’d now be contributing $59.7bn to the group’s annual earnings. By coincidence, this is almost the same amount by which the tech giant’s profit increased between FY13 and FY24 ($56.7bn).

And based on a historical (FY24) price-to-earnings ratio of 38.8, this additional profit would have added $2.38trn to Apple’s market-cap!

This is over 50% more than the increase that’s apparently due to the share buybacks.

Stock	Market cap ($bn)	2024 earnings ($bn)
AstraZeneca	234.4	7.0
HSBC	213.1	25.0
Shell	204.1	16.1
Rio Tinto	77.6	11.6
Combined	729.2	59.7

Looking ahead

I wonder if Apple’s going to reduce the amount it spends on buybacks over the next few years.

All of the ‘Magnificent 7’ are investing heavily in the artificial intelligence (AI) revolution. In my opinion, over the long term, diverting funds towards developing this technology is likely to be more beneficial than buying its own stock.

But it’s still not clear who’s going to win the AI race. And the company faces some other potential problems. President Trump’s tariffs could present significant supply chain challenges. And the mobile phone market is fiercely competitive. In particular, sales in China are slowing.

However, I see no reason why Apple shouldn’t continue to do well. It has a huge customer base with many loyal followers. It’s also able to earn impressive margins on its products.

Yes, there are many cheaper alternatives out there but, based on my personal experience, their performance is inferior compared to the ‘real thing’. Having suffered a cheap Chinese alternative for the past year or so, I recently switched back to an iPhone.

In my opinion, investors looking for a quality stock — that’s consistently delivered growth for over two decades now — could consider adding Apple stock to their long-term portfolios.

Back in January I wrote: “I actually think Rolls-Royce (LSE: RR) shares could yet go higher from here, including potentially hitting the £8 mark.” Already, they are tantalisingly close. Yesterday (4 March), they came within just a couple of pence of £8.

Could they keep going — and get to £9?

A trio of price boosters

Despite a storming performance both last year and the year before, the Rolls-Royce share price is already up by a third so far this year – and we are only in the first week of March!

That is no coincidence. For one thing, the engineer recently unveiled strong results for last year, bringing back its dividend after a gap of some years.

It also increased its already aggressive medium-term targets, having hit some previous ones two years early. Meanwhile, an increased focus on defence in European governments has sent up multiple shares with exposure to the sector, including Rolls.

Things might get even better

What strikes me about those drivers for the recent surge to an all-time high in for Rolls-Royce shares is that each (or even all) of them could happen again in the coming year.

Rolls could deliver another set of excellent results for this year. In fact, I think it needs to. City expectations are now high and if Rolls does not deliver on them, I reckon the share price could crater.

Having twice now rolled out ambitious targets and seen investors rub their hands with glee (sending the shares up), current management will realise that at some point they could do the same again.

The thing about a medium-term target (let alone a long-term one) is that it can be announced before all of the details may have been figured out when it comes to delivering it.

As for defence spending, the sky is the limit. I could well foresee a situation where governments in Europe – and potentially elsewhere – ratchet up their spending exponentially. Not only could that lead to higher demand but it would also be a sellers’ market. If you are an airforce looking for specialist bits of kit, there are not that many suppliers you can call.

I’ve missed out massively: what should I do now?

I have to admit, the surging price of Rolls-Royce shares in the past couple of years has impressed me for a mature blue-chip industrial manufacturer.

It has also caught me somewhat off guard. Like I said above, I saw an argument for the price moving up to £8, just as I had consistently recognised a bull case for the share in the past several years. It has specialist expertise, a large installed customer base, legendary brand and lots of unique technology.

I think the share could hit £9 – or higher. But I know I could be wrong. And I am still hanging back, watching rather than adding Rolls to my portfolio. Why would I do that, given that I see further potential here? It is all about risk management.

Rolls trades on a price-to-earnings ratio of 26. That is not cheap in my book and arguably is expensive. It also offers me far too little margin of safety if demand for air engine sales and servicing suddenly falls off a cliff once more, for reasons outside its control. That happens.

So far, 2025 hasn’t been a good year for Nvidia (NASDAQ:NVDA) shares. The share price has fallen 16% since the start of January as the stock market’s sentiment has changed sharply from 2024.

Exchange rate fluctuations aside, that means a £10,000 investment is worth £8,386 today. I wrote back in December that I was wary about Nvidia heading into 2025, so did it hit the nail on the head with this one?

Was I right?

My view at the end of last year had nothing to do with DeepSeek. I just expected Nvidia to be unable to maintain its incredible growth rate and the stock price to come down as a result.

That’s definitely part of the story. In its most recent update, the company reported annual sales growth of 78% for the last quarter and its guidance was for 65% in the next three-month period.

As much as I’d like to, however, I’m not claiming full credit for this. There have been a lot of other issues contributing to a volatile stock, several of which are political. 

A number of these focus on China. The potential of increased export restrictions from the US, combined with reports of more cost-effective artificial intelligence products are all a concern. 

Is it that bad?

A look at the share price suggests investors are concerned. Nvidia shares are down and trading at a forward price-to-earnings (P/E) ratio of 20 – lower than Coca-Cola (23) or Starbucks (31). 

Despite this, the underlying business isn’t exactly doing badly. After all, Coke and Starbucks aren’t set to post 65% revenue growth at any point in the foreseeable future!

Investors, however, should probably apply a bit more context. The stock is still 36% higher than it was 12 months ago and that’s while other semiconductor stocks have been struggling. 

Two that I’ve been following – Onsemi and Microchip Technologies – have seen declines of 44% and 33%, respectively, in that time. So Nvidia has fared much better than some other chip stocks.

What are the risks?

In general, I’m wary of semiconductor investments. The decline of Intel has shown that even the companies with the biggest research and development budgets are risky investments.

Now, Nvidia doesn’t look like the next Intel. Even while it’s ramping up production of its latest Blackwell chip, it’s making progress with successors Blackwell Ultra, Vera Rubin, and beyond. 

This, however, makes me wary. Ultimately, the need to keep innovating and reinvesting to stay ahead in a highly competitive field cuts into the cash that can be used for shareholder returns.

I’m concerned semiconductor firms might not be able to get to a position where they can focus on shareholder returns without undermining their competitive position. And that worries me.

Should I buy the dip?

I don’t see the falling share price as a sign that anything is wrong with Nvidia. And the risks that have been there since the start of the year don’t seem any more real to me now.

The stock could potentially reach a level where I’m ready to consider buying it. But it hasn’t quite got there yet.

Back in 1994, Berkshire Hathaway bought 400m shares in Coca-Cola (NYSE:KO) for $1.3bn. But what if Warren Buffett‘s investment vehicle had decided to invest in FTSE 100 giant Unilever (LSE:ULVR) instead?

The answer is that the results would have been quite different for Berkshire shareholders. And there’s an important lesson in this for investors to consider today. 

The difference

Berkshire hasn’t reinvested any of its Coca-Cola dividends, preferring to use them elsewhere. But in 2024, the investment returned $776m (£617m) in cash (before taxes).

The market value of the investment’s also grown. Based on the current share price, it’s worth $28.5bn – over 20 times Berkshire’s initial investment. 

A similar investment in Unilever 31 years ago would have bought around 180m shares. And the (pre-tax) dividend from this in 2024 would have been around £266m.

At today’s prices, that would have a market value of £8.1bn. That’s not a bad result by any means, but it’s well short of what Buffett has achieved with Coca-Cola. 

Investment lessons

There are a couple of lessons investors can take from this. The first is that steady growth over a long period of time can achieve outstanding results. 

Coca-Cola isn’t known for its explosive growth prospects. But despite this, Berkshire’s stake has reached a point where it’s returning almost 60% of the initial investment each year. 

The other is that there’s a difference between great companies and outstanding ones. And – again – this matters more over the long term, rather than months or years.

Unilever isn’t a bad business at all. But it hasn’t been as strong as Coca-Cola and there’s a huge difference in the amount of cash an investment in each from 1994 would generate today.

Unilever

Over the last 30 years, Coca-Cola’s been relatively focused – while it has expanded its lines, it’s looked to concentrate on soft drinks. This has proven to be a winning strategy. By contrast, Unilever has opted for a much broader portfolio. Its products have ranged from shampoo and toilet cleaner to ice cream and mayonnaise.

That however, is changing. The firm has divested some of its weaker brands, is in the process of spinning off its ice cream division, and is reported to selling off some of its other lines.

There are no guarantees, but a more focused operation could have stronger growth prospects going forward. At least, that’s what investors should think about right now. 

Risks

Both Coca-Cola and Unilever are relatively steady companies. But even the most stable of businesses come with risks.  With Coca-Cola, there’s an obvious threat on the horizon in terms of GLP-1 drugs. This – and a general trend towards healthier choices – could limit demand for its products going forward.

As Unilever moves away from its food – especially ice cream – products, this risk subsides. But it will still have to contend with the threat of inflation cutting into its profit margins. 

Despite this, I think both stocks are worth a look. Growth might be more incremental than exponential, but that’s a formula that’s generated outstanding returns for Buffett.

Owning Greggs (LSE:GRG) shares is proving to be a painful experience of late. I know this all too well, as someone who opened a position in the company in late November.

Bad news often comes in threes, as they say, and Greggs’ share price has been pounded by a triple dose of alarming trading updates since the autumn. It toppled again on Tuesday (4 March) as investors digested the firm’s full-year trading statement.

Someone who invested £10,000 in Greggs shares a year ago would now have just £6,964 to show for their investment. So should existing investors cut and run? Or is now the time to consider loading up on the baked goods giant?

Forecasts topped

Full-year numbers from the FTSE 250 firm were actually a bit better than analysts had predicted. Yet Greggs shares still slumped another 8.6%.

At a shade over £2bn, revenues rose 11.3% in 2024 to new record highs. Underlying operating profit of £195.3m actually topped City expectations by £1m-£2m, and represented a 13.7% year on year increase.

Pre-tax profit rose 8.3% from 2023 levels, to £203.9m. Net cash and cash equivalents stood at £125.3m, down from £195.3m a year earlier.

Continued profitability and balance sheet resilience encouraged Greggs to hike the full-year dividend, to 69p per share from 62p previously.

Sales slowdown

Unfortunately Greggs’ statement also showed the trend of weakening sales growth has continue. Like-for-like sales growth in company-managed shops was just 1.7% in the first nine weeks of 2025.

To put that into context, corresponding sales growth across the whole of 2024 was 5.5%. By the fourth quarter it had dropped to 2.5%. Gone are the days the baker used to enjoy double-digit like-for-like revenues growth which, in turn, has led to an unsurprising re-rating of Greggs shares.

Today, they command a price-to-earnings (P/E) ratio of 13.3 times. That’s a far cry from a reading of 22-23 times they carried just six months ago, a premium that reflected the company’s bright growth outlook.

On the plus side…

With labour costs rising (though higher National Insurance contributions and the National Living Wage hike), and tough economic conditions impacting retail spending, Greggs has some significant challenges in the near term.

But I’d argue that Greggs isn’t quite the binfire that its share price drop suggests. In fact, I think there are still reasons for investors to feel optimistic.

Given the broader consumer environment, growth of 1.7% at the start of 2025 may be considered a robust result. Encouragingly, the company has said it had enjoyed “improved trading in February” following the weather-affected January too.

The company’s growth strategy also continues to produce tasty rewards. Increased investment in digital is paying off, driving delivery sales 30.9% higher in 2024.

Elsewhere, evening trading remains brisk, the business noting that “post-4pm trading [is again] the fastest growing daypart“. No wonder then, that Greggs is still extending trading hours across a growing number of shops.

Finally, the retailer is targeting 140-150 net shop openings in 2025 to help it grow earnings. These will be concentrated in potentially lucrative destinations like retail parks, rail stations and supermarkets too, as Greggs’ pivot from the moribund high street continues.

Following their price re-rating, I think Greggs shares are worth a close look from savvy investors.

Small or lesser-known companies can have significant growth potential. Buying shares in these UK-listed companies early on can yield high returns if they grow successfully. But which to consider? Read on…

What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia.

By Paul Summers. Holders of shares in Central Asia Metals (LSE: CAML) endured a volatile 2024. Starting the year at just over 150p a pop, the stock soared as high as 235p by May as the company benefited from strong prices and solid operational performance. However, this gain had all been lost by the end of December. As far as I can tell, this is due to general geopolitical concerns and lacklustre demand for lead. 

The shares now yield a monster 10% for FY25. Assuming analysts aren’t wrong, that would represent a good return on its own. On an optimistic note, profit is expected to cover this cash distribution and the balance sheet looks robust.

Although rising costs could prove problematic, a price-to-earnings (P/E) ratio of seven suggests quite a bit of negativity is already priced in. When sentiment for base metals improves, the stock could do very well.

Paul Summers has no position in Central Asia Metals.

Filtronic

What it does: Filtronic makes power amplifiers and transceivers that are used in the telecommunications, aerospace, and defence sectors.

By Ben McPoland. With a market cap of £232m as I write, Filtronic (LSE: FTC) is still a relatively under-the-radar UK stock. That said, it’s been a popular one recently, surging 172% over the past year.

This can be almost entirely put down to one word: SpaceX. That’s because Elon Musk’s reusable rocket company has been ordering components from Filtronic for ground stations that form part of its fast-growing Starlink satellite network.

In future, SpaceX intends to add tens of thousands more satellites to its mega-constellation. This could support years of rising sales at Filtronic, given its small size (less than £50m in revenue).

What could go wrong? Well, losing the SpaceX contract it signed last year would be extremely negative, as this key customer is now contributing around 50% of sales.

Also, the stock isn’t cheap, trading at a forward price-to-earnings multiple of 38.

Finally, the company doesn’t have a history of sustained revenue and earnings growth. That might be about to change, but there could be lumpiness as SpaceX orders ebb and flow in future.

Ben McPoland does not own shares in Filtronic.

OXB

What it does: OXB is a contractor that develops and manufactures gene cell therapies for biotech and pharmaceutical firms.

By Mark Hartley. OXB (LSE: OXB), previously Oxford Biomedica, is a UK-based contract development and manufacturing organisation (CDMO) specialising in cell and gene therapies. It was founded in 1995 as a spin-out from the University of Oxford and has evolved into a global leader in viral vector production, including lentivirus, adeno-associated virus (AAV) and adenovirus.

As a contractor, OXB relies on securing partnerships with biotech and pharmaceutical firms. If it loses out on contracts to competitors, its performance could be impacted. Although its net margin has improved recently, the company is not yet profitable. If full-year results for 2024 miss expectations, it could hurt the share price. 

But a recent trading update outlined expectations of 78% organic revenue growth for FY2024, based on increasing demand for their CDMO services. Plus, its order book nearly doubled since August 2024, indicating strong commercial demand. 

I expect it will become a global leader in its field.

Mark David Hartley owns shares in Oxford Biomedica.

TBC Bank

What it does: TBC Bank is listed on the FTSE 250 and provides financial services in Georgia and Uzbekistan.

By Royston Wild. TBC Bank (LSE:TBCG) doesn’t attract anywhere near the same degree of attention as FTSE 100 firms like Lloyds, Barclays and NatWest.

Yet this is a bank which — thanks to its focus on fast-growing Georgian and Uzbekistani markets — could provide far better shareholder gains.

Past performance isn’t a reliable guide to future returns. But TBC Bank’s 208% share price explosion over the last five years underlines its incredible investment potential.

By comparison, Lloyds’ share price has risen just 21% over the same period.

Given the  varying economic outlook for the UK and Georgia, I expect this outperformance to keep rolling on. While the IMF thinks Britain’s economy will grow 1.1% in 2025, Georgian GDP is tipped to expand a whopping 6%, continuing the trend of recent decades.

If accurate, earnings at TBC could soar as financial services demand rises. Pre-tax profit here leapt 15.8% over the course of 2024.

A deterioration in Georgia’s fragile political landscape could impact future growth. However, I believe this potential hazard is baked into the bank’s low price-to-earnings (P/E) ratio of 5.2 times.

Royston Wild does not own shares in any of the shares mentioned above.

Yu Group

What it does: Yu supplies gas and electricity to UK business customers and installs and operates smart meters.

By Roland Head. Yu Group (LSE: YU.) has delivered strong growth through a volatile period for energy markets.

Revenue has risen fivefold to £578m since 2019. Profitability has also improved, with operating profit rising from £3.5m in 2021 to £47m over the 12 months to 30 June 2024.

Yu is still run by its founder and 51% shareholder Bobby Kalar. I believe Kalar’s twin role as CEO and major shareholder means he’s likely to maintain tight financial discipline.

This is a key risk for energy suppliers. Yu is exposed to big swings in commodity prices, customer bad debt and the financial hazards of fixed price contracts.

Growing usage of smart meters, a new energy trading deal with Shell and falling bad debt levels suggest to me that Mr Kalar is managing this £252m business well.

If he can continue to do so, the reward for shareholders could be higher profits and generous dividends.

Roland Head owns shares in Yu Group.

The FTSE 100 index of leading companies contains some of the top names in British business, like Shell and Unilever.

That might not seem like a ticket for growth. After all, mature companies often find it harder to grow their business than smaller, nimbler upstarts.

In fact, though, it has been an excellent 12 months for the index.

Strong price growth

It has repeatedly hit a new all-time high in recent months – including a new peak yesterday (3 March).

So, what would an investor now be sitting on if they had invested £10k into the FTSE 100 a year ago?

It has moved up 14.9% during that period. So, a £10k investment should now be worth around £11,490. Not bad!

3.4% dividend yield from leading blue-chip shares

The index also yields roughly 3.4% at the moment.

If someone had bought a year ago at the lower price, the yield would be accordingly higher. So, they would now be yielding somewhere in the region of 3.9%.

So over the past year that would have added up to close to £400 of dividends on a £10k investment.

Taken together, £10k invested a year ago would now be worth almost £11,900.

Here’s one way to invest in the FTSE 100

Buying shares in 100 different companies could be time-consuming as well as requiring significant capital, let alone incurring lots of trading fees.

That explains why a lot of investors buy shares in funds that track the FTSE 100 index.

There are lots of options available and some have more attractive cost structures than others, so it can pay to do some research and compare the choices.

Here’s why I’m not buying a FTSE 100 tracker right now

Personally, I do not own such shares and currently have no plans to.

What works for different investors varies based on their own circumstances, objectives, and approach. Rather than investing in a tracker fund, I prefer to buy individual shares.    

For example, one FTSE 100 share I have been buying is JD Sports (LSE: JD).

Over the past year, £10k invested in the retailer would have shrunk to under £6,700 even including dividends – a far cry from the overall FTSE 100 performance, alas.

But I have seen that share price tumble as a buying opportunity for my portfolio.

I prefer buying individual shares to an index as it means I can put my money into what I think are great businesses not just whatever ones make it into the index. JD Sports has issued a few profit warnings over the past year, but I still see it as a great business.

Why?

It has a large customer base that has proven willing to shell out on costly sportswear. The company understands its target customers well, it has a strong brand, and an expansion plan that means not only does it have global reach, but that is set to keep growing.

The price fall points to some of the risks, such as a weak economy hurting consumer spending and the shop estate expansion programme eating into short-term profits.

As a long-term investor, though, I reckon the current price is well below what I expect JD Sports to be worth in future. That is why I have been buying the shares.