I have a lot of FTSE 100 stocks on my list of potential buys for the coming months. I’ve already taken a look at three I’m keen on and, today, I’ll examine another three with significant news coming in September.
The first time I got near after lockdown restrictions started to ease, I was surprised to see a queue stretching round the block at Primark. That’s enthusiasm. Primark’s the jewel in Associated British Foods’ (LSE: ABF) crown.
The FTSE 100 group is also big in sugar and other comestibles. Those foodie things tend to do fine, but most investors seem to concentrate on Primark. That’s possibly the reason behind ABF’s big pandemic drop, and its cautious recovery from November 2021.
But the recovery started to fade following the company’s Q3 trading update on 1 July, with ABF shares down more than 10% in 2021.
Retail revenue had trebled in the quarter compared to 2020, but declined 11% over the full nine months. Overall revenue to date dipped 2%. I didn’t see anything unexpected there, but I’m keenly awaiting a trading update due on 13 September. It comes ahead of full-year results due on 9 November.
Will I finally buy? I’ll wait and see the results before I decide.
DIY bonanza
The Kingfisher (LSE: KGF) share price is up 80% over the past two years, but it had previously been on a multi-year slide. Over five years, we’re looking at a slip of around 4%, while the FTSE 100 has gained close to 5%. Some of the recovery in the past couple of years for the owner of B&QÂ has been down to an uptick in DIY as people were stuck at home.
That extra demand surely has to retreat now, as I doubt the lockdown has created a new generation of long-term DIY enthusiasts. Right now, we can only guess at what effect that might have on Kingfisher’s bottom line.
I don’t expect first-half results, due on 22 September, to give us any real idea yet. They’ll only cover the period to July, and the firm has already upped its first-half guidance based on Q2 figures.
Kingfisher shares look reasonably valued to me, and I’m keeping the stock on my list of candidates. But I can’t help wondering if we might see some dips and better buying opportunities ahead.
Under the FTSE 100 radar
My final pick today is Ferguson (LSE: FERG). The name might not hit the headlines too much, but the share price has been storming ahead. Ferguson shares have almost doubled over the past two years, and were among the earliest to recover from the pandemic hammering.
There’s likely to have been a bit of a pandemic boost here too for the FTSE 100 plumbing and heating products supplier. Putting off a house move because of lockdown difficulties? Well, why not do some home improvements instead? Plenty of folk went down that route over the course of 2020.
If Ferguson shares might look overvalued now, the company itself wouldn’t seem to agree. After announcing a share buyback programme, Ferguson has been hoovering them up. Is that a wise move?
We should know more on 28 September, when we’ll have full-year results.