Legal & General, Persimmon, and TBC Bank are three companies on my list of best stocks to buy right now. All of these FTSE-listed shares fell over the past week amid a global markets sell-off.
Stocks started falling towards the end of last week as US inflation data came in higher than analysts had anticipated. This was compounded by negative economic forecasts in the UK and Germany, as well as new Covid-19 restrictions in China.
The correction appeared to have come to a halt yesterday, so now looks like a good time to buy in.
These are three stocks that I own and I’m looking to buy more of them. Currently, I’m looking at buying more Legal & General and Persimmon shares. I’ve already bought more TBC stock.
Legal & General
Legal & General stock is down 6% over the week. But I think it’s a good opportunity to buy more of this big-dividend stock.
The yield has been increasing in recent months as the share prices fell. The L&G dividend has also been growing. Last year’s payout of 18.45p was 5% higher than the previous year. That’s a smaller increase than usual, due to the pandemic, but it’s still good to see it increasing.
Right now, I could expect a 7.4% dividend yield. Of course, dividends are never guaranteed.
The business performed well last year with a 39% increase in annual pre-tax profits. Full-year pre-tax profit rose to £2.49bn, while profit after tax was up 28% to £2.05bn.
Negative economic forecasts for the next two years won’t help this firm. But in the long run, I’m positive on L&G.
Persimmon
Housebuilder Persimmon is another dividend big hitter. It actually offers a whopping 10.2% dividend yield.
But the reason Persimmon is on this list is because its recently become one of my favourite housebuilders. It is seemingly less exposed to the costs of the cladding crisis than other developers.
The firm expects to spend £75m on recladding homes in the UK. This is less than 10% of the company’s pre-tax profits in 2021.
Moreover, house prices are at record levels and this will help Persimmon’s margins. Earlier this week, housebuilder Crest Nicholson upgraded its forecast for the year, highlighting higher prices being achieved.
Yes, higher interest rates could hurt the sector in the near future, but in the long run, the UK has a shortage of homes and I’m confident that demand will remain strong.
TBC Bank
Georgia’s number one bank is a personal favourite of mine. I backed it when Russia invaded Ukraine and the bank’s share price collapsed. It has since jumped 16%.
However, the stock is down 9% over the last week.
Despite this, all the signs have been positive. TBC is coming off the back of a stellar 2021. It has a P/E ratio of just three.
The bank said in May that profits were up year on year as the Georgian economy boomed. First-quarter net profits rose 46% year on year to 224m lari (£61m).
It also said that its Uzbek operations were expanding in line with expectations.
I see Georgia as a democratic, stable and high-growth market. Georgia’s economy grew by a further 14.4% in Q1 despite the war in Ukraine.