The price of Bitcoin fell below $8,000 in September and it was still below this level in morning trading on October 18. Cryptocurrencies appeared to regain some momentum in spring 2019, in part due to the demand for safe havens as the trade war worsened and bond yields in the developed world were throttled. Bond yields recovered in the late summer and early autumn, and selling pressure has grown after a limited trade deal was reached between the US and China earlier this month.
Bitcoin may be in for another sell-off after the UK and EU reached a Brexit deal that is subject to a vote today. The results of said vote are unknown at the time of writing. If the deal sticks, contrarian picks like Bitcoin may be in for a rough ride to finish the year.
So instead of Bitcoin, her are two FTSE 100 stocks that I love after taking the above into account.
Experian
Experian (LSE: EXPN) is a multinational consumer credit reporting company. Like many other nations in the developed world, citizens in the UK are wrestling with high levels of debt. Analysis released in January by the Trade Union Congress (TUC) reported that unsecured debt as a share of household income stood at a record 30.4% as debts rose by an average of £886 per household. Experian’s credit services and data collection are in high demand in this environment.
This company has enjoyed huge growth as this need for credit services and data collection has exploded worldwide too. And Experian also sells decision analytic and marketing assistance to businesses. It has been a leader in data gathering since the mid-2000s. Shares of the firm have climbed 34% year-on-year as of early morning trading on October 18.
Experian’s dividend has grown at a CAGR of 5.1% in the past six years, but its yield stands at a modest 1.6%. The shares have dropped 3.6% over the past month but the small dip in share price has not put a dent in the premium valuation. Its stock boasts a price-to-earnings ratio of 40 as I write. The stock’s Relative Strength Index (RSI) is trending towards technically oversold territory. If the shares do slip below 30, I plan on jumping on that buy signal and scooping up this data giant.
Halma
Halma (LSE: HLMA) is a group of technology companies that make products for hazard detection and life protection. The stock has climbed 43% year-on-year as I write, even though shares of Halma have dropped 6% over the past month.
Its most recent full-year report in June saw the company posting record revenue and profit. This was the 16th consecutive year Halma had reached this milestone. It reported revenue growth in all four sectors and in all major regions, with the strongest performance seen in the US and UK. The company finished the year boasting a good balance sheet with cash conversion of 88%.
The company hit another milestone in 2019 as it delivered its 40th consecutive year of dividend growth of 5% or more. Investors can expect to see its half-year results for 2019/20 in late November.
Shares of Halma have steadily fallen since rising into technically overbought territory in June, according to its RSI covering the last six months. Halma’s top shelf growth means that investors will also be paying a premium for its stock that boasts a P/E ratio of 41.