But since a 52-week low of 4,306p in mid-October, Next shares have regained 15%.

I don’t know if it’s anything to do with Mike Ashley, but the Frasers Group founder has just upped his stakes in ASOS and Hugo Boss. Does his renewed interest in the fashion sector mean optimism is returning to Next too?

Forecasts put Next on a forecast dividend yield of 4%, with a price-to-earnings (P/E) ratio of just nine. In normal times, I think that would make it a no-brainer buy. But 10% inflation and rising interest rates are leaving people with a fair bit less spare cash to spend on new clothes, so a lower valuation does make sense.

Oversold

But I rate Next as possibly the best managed in the business. Considering that, and with a long-term view, it looks oversold to me. And it’s on my list of buy candidates.

Examining Next’s current performance, we face one problem. The most recent results only cover the six months to July. And the real inflation pain only kicked in after that.

Still, the half did look positive. Full-price brand sales rose by 12.4% compared to 2021 (and by 22.3% compared to the pre-pandemic year of 2019). Profit before tax was up too, by 16% over the first half of 2021 (and by 22% over 2019).

Second half

The update gave us a glimpse of how the second half is going. Next rated August sales as below expectations, but said that September sales improved a little.

The company has reduced its full-year profit guidance to £840m, from £860m. But that would still represent a 2.1% rise. Similarly, the board expects earnings per share to come in 2.7% ahead, at 545p.

We’ll hear more on 2 November, with Next’s third-quarter trading statement. The quarter will cover August, September and October. That’s a period in which inflation jumped to 10%, and the UK had three prime ministers and three chancellors. With all that going on, anything could happen to even the best retailer.

Buy the best

Speaking of the best, I think that’s what times like these bring out. When a sector hits the dumps, all companies in it can take a kicking — the best and the worst alike. And I reckon that makes it a great time for investors to load up on shares of the best.

The best in a sector will often come out of a downturn a lot more strongly than weaker competitors. And going forward after a shakeout, they can end up looking even better than before.

I think the risks are clear. Any sign of the business coming in below expectations in November’s update, and I can see the Next share price dipping again. And it looks like we might be in for a lengthy period of austerity. But if Q3 looks in any way positive, I think we might just be at a turning point.

In which direction? Well, that’s open to debate.

Next

Reporting early next month is clothing and home retailer Next (LSE: NXT).

The fact that it scores consistently well on quality metrics suggests the £6bn cap is one of the best retailers in the entire UK market. Unfortunately, this is easily forgotten in a period of market malaise such as the one we’re in. The shares were down 41% year-to-date by the end of Friday.

This isn’t hard to fathom. As a general rule, any company that relies on discretionary spending tends to do badly during recessions. I don’t see Next being the exception here. And if sales have been even worse than anticipated, there could be more pain to come for existing holders. Full-year profit guidance was already reduced by £20m to £840m in September.

On the flip side, even a slightly better-than-expected statement on 2 November could be warmly received by a market desperate for something to smile about.

I’m content to watch rather than buy Next shares for now.

Taylor Wimpey

Top league housebuilder Taylor Wimpey (LSE: TW) delivers its latest update on 9 November. After halving in value in 2022, investors will be hoping for something, anything, to stabilise the share price.

I think they may be disappointed, at least as far as the outlook for trading is concerned. While completions may have been fairly steady over the summer, the recent rise in interest rates is likely to be impacting demand for new homes.

How much of all this is priced in? I suspect a fair bit. The stock already changes hands on a seriously low price-to-earnings (P/E) ratio of five. What’s more, it yields a forecast 11%, at least for now.

That last bit is important. While earnings should cover the payout, I’m wary of relying too much on Taylor Wimpey for generating passive income going forward.

Again, I’m keeping my powder dry until after that statement.

Halma

Last on today’s list of FTSE 100 stocks that I’ll be watching is Halma (LSE: HLMA). Of the three I’ve highlighted today, I’d say this company is the least cyclical. Halma specialises in life-saving technologies across three market areas: Safety, Environment and Health– not the sort of things that employers can afford to ignore thanks to increasing regulation.

Notwithstanding this, 2022 hasn’t been a vintage year for those already holding. The company’s valuation has sunk 35%.

Despite this fall, Halma shares still change hands at a P/E of 29. That’s still high, at least relative to many/most other UK-listed shares. While I do think this premium can be justified to some extent (Halma has an unbroken record of increasing its dividend by 5% or more for the last 43 years!), it’s still not ideal in the current climate. There’s a risk we could see a big move in the price if the half-year numbers on 17 November disappoint.

There is, however, something to be positive about here. Unlike Next, Halma retained its full-year guidance in September. Perhaps the worst is over.

Regardless, I still remain very interested in opening a position here.

Tesco

Tesco (LSE: TSCO) is the UK’s biggest supermarket. Apart from selling groceries, the retailer also has businesses in fuel, banking services, and mobile phone plans. It also has operations in several European countries.

The grocer posted its half-year earnings earlier this week. Tesco shareholders reacted negatively to the numbers, dropping the stock by 3% as CEO Ken Murphy revised the company’s outlook downwards, albeit slightly. Nevertheless, a large number of director dealings occurred with executives of the FTSE giant opting to purchase a substantial number of shares to shore up investor confidence.

• Name: John Allan
• Position of director: Chairman
• Nature of transaction: Purchase of shares
• Date of transaction: 5 October 2022
• Amount bought: 45,000 @ £2.09
• Total value: £94,050

• Name: Ken Murphy
• Position of director: Group Chief Executive Officer
• Nature of transaction: Purchase of shares
• Date of transaction: 5 October 2022
• Amount bought: 24,352 @ £2.04
• Total value: £49,675.64

• Name: Imran Nawaz
• Position of director: Chief Financial Officer
• Nature of transaction: Purchase of shares
• Date of transaction: 5 October 2022
• Amount bought: 24,352 @ £2.04
• Total value: £49,675.64

Legal & General

Legal & General (LSE: LGEN) is a multinational financial services and asset management company from London. Not only does it offer life insurance, it also offers services such as investment management, lifetime mortgages, pensions, and annuities.

L&G also reported results, although just a brief trading update on its H1 performance. In short, it expects full-year operating profit growth to roughly match its first-half figure of 8%. Additionally, the insurer expects annual capital generation of £1.8bn as interest rate increases should positively impact its bottom line and solvency coverage ratio. Following this positive update, four director dealings were carried out.

• Name: Henrietta Baldock
• Position of director: Non-Executive Director
• Nature of transaction: Purchase of shares
• Date of transaction: 3 October 2022
• Amount bought: 1,096 @ £2.14
• Total value: £2,343.25

• Name: Ric Lewis
• Position of director: Non-Executive Director
• Nature of transaction: Purchase of shares
• Date of transaction: 3 October 2022
• Amount bought: 1,486 @ £2.14
• Total value: £3,177.07

• Name: Nilufer von Bismarck
• Position of director: Non-Executive Director
• Nature of transaction: Purchase of shares
• Date of transaction: 3 October 2022
• Amount bought: 3,061 @ £2.14
• Total value: £6,544.42

• Name: Sir John Kingman
• Position of director: Chairman
• Nature of transaction: Purchase of shares
• Date of transaction: 3 October 2022
• Amount bought: 759 @ £2.16
• Total value: £1,642.48

Next

Next (LSE: NXT) is a multinational clothing company. Aside from clothes, it also sells footwear and home products. It has 500 stores located in the UK, with another 200 across Europe, Asia, and the Middle East.

Next shares have dropped 15% since its half-year report and are now down almost 45% this year. Under those circumstances, it seems Next’s chairman and his partner bought a large number of shares to reassure investors. Having said that, this trade occurred last week and was only reported this week.

• Name: Michael Roney & Sandra Silverio De Roney
• Position of director: Chairman and civil partner
• Nature of transaction: Purchase of shares
• Date of transaction: 30 September 2022
• Amount bought: 7,500 @ £2.16
• Total value: £359,211.59

• Name: Lord Wolfson of Aspley Guise
• Position of director: Chief Executive Officer
• Nature of transaction: Long-term incentive plan (partnership shares)
• Date of transaction: 3 October 2022
• Amount bought: 4,891 @ Nil
• Total value: N/A

• Name: Amanda James
• Position of director: Group Finance Director
• Nature of transaction: Long-term incentive plan (partnership shares)
• Date of transaction: 3 October 2022
• Amount bought: 2,978 @ Nil
• Total value: N/A

• Name: Richard Papp
• Position of director: Group Merchandise and Operations Director
• Nature of transaction: Long-term incentive plan (partnership shares)
• Date of transaction: 3 October 2022
• Amount bought: 2,887 @ Nil
• Total value: N/A

• Name: Jane Shields
• Position of director: Group Sales, Marketing, and HR Director
• Nature of transaction: Long-term incentive plan (partnership shares)
• Date of transaction: 3 October 2022
• Amount bought: 2,887 @ Nil
• Total value: N/A

• Name: Amanda James
• Position of director: Group Finance Director
• Nature of transaction: Sale of shares (gift to spouse)
• Date of transaction: 3 October 2022
• Amount bought: 2,978 @ Nil
• Total value: N/A

Types of shares

To provide context, there are a few types of shares that can be purchased by directors. Some directors opt to purchase shares via the open market. Having said that, directors also have the option to purchase and receive shares via a share incentive plan (SIP).

A SIP is an employee plan for companies within the UK to flexibly award shares to employees. Publicly listed companies normally exercise this option because it’s tax-efficient for both the employer and its employees.

On this occasion of FTSE director dealings, Tesco’s three most influential directors bought shares with their own cash. This was also the case with L&G’s directors, although its non-executive directors bought shares under their terms of appointment.

On the other hand, Next’s chairman and his partner purchased shares at several venues which amounted to £0.3m worth of equity. Meanwhile, the other four directors acquired shares as part of a vesting of share awards under the March 2019-22 plan. These shares need to be held for a minimum period of two years before realising their value.

The headline figures for the first half were actually positive, but inflationary pressures mean the fashion and lifestyle retailer has reduced its second-half guidance.

First-half profits up

Full-price sales grew by 12.4% compared to 2021. And they were 22% ahead of the equivalent period in 2019, before Covid. Profit before tax rose 16% to £401m. And again, that easily beat first-half profit in 2019, by 22%.

The downside is a reduction in full-year profit guidance, by £20m to £840m. It would still represent a 2% increase on 2021 though. Next’s forecast for earnings per share now stands at 545p, for a 2.7% increase on 2021.

Valuation

If that proves accurate, we’re looking at a forward price-to-earnings (P/E) multiple of 8.8, based on the latest Next share price.

So we have a company widely acknowledged to be a leader in the sector. It’s doing better now than before the pandemic, and it still expects profits to grow this year even in the current financial climate. Yet investors believe it’s only worth a P/E of 8.8.

Well, that’s market sentiment for you.

Key insight

I want to share one quote from Next’s latest report, which I will leave here without further comment. Making the case that addressing the supply side of the economy is key, Next says:

Government can (and probably should) ease the UK’s journey through this cost of living crisis. Smoothing the economic shock of sky high energy prices will prevent unnecessary suffering and bankruptcies. But ‘borrow and spend’ remedies can ultimately only treat the symptoms of inflation; they are not the cure. And there is a balance here, as we are already seeing, when a government borrows too much their currency will devalue, and stoke inflation next year.

Sales mix

The first half marked a definite change in shopping habits. Next’s high street retail sales jumped by 63% compared to 2021, while online sales fell 5%. Considering that online sales count for around 1.6 times the volume of retail sales, that means the total hasn’t increased as much as it might seem.

Total group sales grew by 15% compared to the previous year, and by 24% compared to 2019.

I’m particularly interested in how margins are going. And in the three years since 2019, Next’s operating margin has declined by 0.8% to 16.9%. I think that’s pretty good, considering the supply problems and intense competition the business faces.

The future

Next’s latest company report is, I think, one of the best I’ve read in a long time. By that, I mean it’s well written, insightful, and informative. Unlike most of the turgid prose I see every day, this one is a joy, and I recommend potential investors read it for themselves.

There are clearly plenty of economic risks ahead, and it might take a brave investor to put money into the retail sector right now. But Next strikes me as a company that truly understands what it’s doing.

And on the current valuation, I have it on my buy candidates list.

I reckon Next (LSE: NXT) is one of the UK’s strongest retailers. The business offers clothing, footwear, accessories, beauty and home products. And it’s a hybrid operation with revenue coming from online sales and via its store estate. Last year, around 66% of revenue came from the online operation.

There’s a lot of strength in the brand. And the company has an impressive history of growth.

However, investors’ perceptions about the looming cost-of-living crisis have soured the progress of the shares. They sit at around £58 as I write. That’s down from last year’s all-time high just above £80. But the stock tempts me while it remains below £65.

Potential for upside surprises

My feeling is the cost-of-living crisis may not prove to be as bad as expected. Many commodity prices have been falling along with container shipping rates. And that could help to put downward pressure on price inflation going forward. On top of that, the government’s recent intervention in the energy market could help stretched consumers.

My guess is there’s potential for Next to surprise the market to the upside. In other words, sales ahead could be stronger than analysts expect. And the company could issue outlook statements that sound more optimistic than thought possible a few weeks ago.

Of course, I could be wrong in my assumptions. And it’s worth me bearing in mind that all shares carry risks as well as positive potential. Businesses can suffer operational setbacks at any time. However, we’ll find out more about current progress when Next issues its half-year report on 29 September. And I’ll be keen to read that.

Meanwhile, City analysts expect strong advances in the shareholder dividend. And the forward-looking yield is running at around 3.4% for the trading year to January 2024. I think that’s attractive if growth in earnings does gain momentum in the months and years ahead.

Trading has been steady

Next issued a positive trading statement on 4 August. And that strikes me as a good base upon which to build. Sales were a little higher than expectations. And the company reckons part of the reason for that could be failing competitors. Customers have fewer choices because many other company’s stores have closed.

However, a lot of the strength in the business comes from the firm’s vast online presence. And that helped the business to remain in good shape through the challenges of the pandemic. I reckon the resilience of the operation shows up in the ongoing dividend payments and the company’s programme of share buybacks.

Therefore, I’d look at the current dip in the share price as an opportunity to take a contrarian position in the shares of a robust FTSE 100 stalwart. However, I could be wrong to be optimistic about Next’s prospects. Nevertheless, I’d add the stock to my diversified portfolio to hold for the long term when I have some spare cash.

Retail business

As a quick reminder, Next is best known as a fashion retailer selling clothing and accessories for all, as well as homewares and beauty. It’s a high street staple in the UK with over 500 stores here and 200 overseas. It also has a successful online store that accounts for more than half of its sales.

So what’s happening with Next shares currently? Well, as I write, they’re trading for 5,838p. At this time last year, the stock was 7,670p, so that’s a 23% drop over a 12-month period.

The investment case

Let’s start by looking at the bear aspects of Next shares. Firstly, current macroeconomic headwinds could play a big part in its performance and levels of return. Soaring inflation, rising costs, as well as supply chain issues will affect it. Rising costs will put pressure on profit margins. Supply chain issues could negatively impact operations and product availability.

Finally, a cost-of-living crisis has emerged in the UK. The crisis could see demand for its fashion and home products fall as consumers consider cheaper goods or simply decide not to buy new fashion and interiors pieces.

So to the bull case. I think Next shares look good value for money on a price-to-earnings ratio of just 10. In addition to this, they would also boost my passive income stream through dividends. The current dividend yield stands at 6.9%. This is higher than the FTSE 100 average of 3%-4%. I’m aware the dividends can be cancelled, however.

I’m buoyed by Next’s growth story to date, and position in the market. It has strategically moved with the times such as scrapping its catalogue model and moving online very early on, later moving into selling third-party brands, and offering full e-commerce services to other labels. I like this because it tells me not only does it know how to grow, it also has experience of navigating stormy waters and evolving.

A FTSE 100 stock I’d buy

A final noteworthy point is that Simon Wolfson, Next’s CEO, is connected to a charitable trust that purchased £10m worth of shares in July. I like it when insiders are purchasing shares. This is because they should know best whether it’s heading in the right direction. If insiders are willing to buy the shares, maybe I should too?

In conclusion, I believe Next is a well-run business with great growth prospects too. It has a powerful profile and presence, as well as a strong historic track record, and an enticing passive income opportunity currently. I plan on buying the shares for my portfolio. However, I do expect some further headwinds in the short to medium term.

I think any time is a good time to start buying FTSE 100 shares. But I do see some cracking buys at the moment. Starting today, which would be my first three FTSE 100 buys?

Bank

Without hesitation, my first buy would be Lloyds Banking Group (LSE: LLOY). Now, I have to start with a caution. I first bought some Lloyds shares a few years ago, and the price is still way below what I paid.

But (and the reason I’m holding and might buy more) I’ve been enjoying a steady income stream. Forecasts put the dividend at around 5.5% this year, and it would be strongly covered by earnings.

Lloyds faces a conflict between the benefits of higher interest rates on its lending, and fewer individuals and companies borrowing money during the squeeze.

But the bank has sufficient spare capital to be buying back its own shares now. Based on that, I think Lloyds is likely to maintain its dividend.

High street

My second pick has first-half results scheduled for 29 September, in what is likely to be a tough year. It’s fashion retailer Next (LSE: NXT), and I rate it for long-term recovery potential.

The Next share price has fallen over the past 12 months. But it’s up 38% over five years, which I see as an impressive performance.

The forecast dividends aren’t sparkling, with an expected yield of around 3.5%. And forecast price-to-earnings (P/E) multiples of around 10 aren’t the lowest around.

Times are tough in the sector. But I think that gives me an opportunity to buy the best in the business at a reasonable price. Billionaire investor Warren Buffett did, after all, famously suggest: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Mining

I’m tempted to buy Rio Tinto (LSE: RIO) shares too after the recent price slump. The negativity comes as the mining giant has cut its interim dividend.

The forecast yield had been getting very high. But this is a cyclical business, and we should expect dividends to rise and fall as demand and commodities prices go up and down. This time, a squeeze in Chinese demand due to that country’s zero-Covid policy seems to be the trigger.

But Rio did point out that its reduced 2022 first-half payout was still its “second highest ever interim dividend“.

The Rio Tinto share price is another that’s had a tough year, but it had a good five years. This time we’re looking at a five-year gain of 24%.

Risk

Anyone thinking of buying these needs to do their own research, as I’m only scratching the surface. And I could see all three facing a volatile year or more.

But at today’s valuations, they’re all on my FTSE 100 shares shortlist.

However, rarely do we think about shareholder perks offered by firms. Some companies reward you for buying into their stock by offering tasty discounts.

A recession-proof stock offering 25% off your storage needs

For example, Safestore (LSE:SAFE) is the UK’s largest and Europe’s second largest provider of self-storage space. Safestore has been a pandemic winner, seeing net income soar from £178m in 2020 to £382m in 2021.

The stock looks cheap to me with a price-to-earnings (P/E) ratio of just 5.

In the self-storage industry, it is said there are “four Ds” that benefit the sector: death, divorce, disaster and downsizing. For that reason, I think Safestore is a good risk-off addition to my portfolio.

As well as offering a dividend yield of 2.4%, Safestore provides those holding at least 100 shares (worth £1,113 at current market prices) a 25% discount off their services.

Supposing you wanted to rent out 10 square feet of space (about the size of a car boot) for a year, that would cost around £240. The 25% discount would, therefore, be worth £60. That is the equivalent of a 5% yield on the shares.

Having said that, as consumer budgets tighten, self-storage might start to look like an easy luxury to scrap. Why pay to house your surplus items when you could bin or sell them?

A high-street favourite helping investors look their best

Next (LSE:NXT)’s share price has been on a steep downward trend this year, losing 28% of its value since 1 January. It is now trading at a P/E ratio of 11, far below that of some of its closest FTSE 100 competitors. JD Sports has a P/E of 15.8, and Burberry trades at a P/E of 17.8.

In addition, the retailer offers investors a 25% discount off purchases of any size once a year, as long as they hold at least 100 shares.

However, those 100 shares have a hefty market price of £5,818 at the time of writing.

Even if I did all my autumn and winter shopping at once, I would only spend around £500, which would leave me with savings of just £125. That would only equate to a 2% return on the shares, and I would have to wear almost exclusively Next produce just to achieve that.

And with a moderate dividend yield of 2.2%, below the FTSE 100 average of 3.7%, I will have to say “next” to the prospect of investing in Next shares, especially as consumer sentiment looks set to continue souring.

Investing in what you know…

Legendary investor Peter Lynch coined the maxim “invest in what you know”. That means using your own experience as a consumer to sniff out companies that are doing a good job.

And given that some companies offer shareholder discounts, I think it makes even more sense to invest in companies that I shop with.

However, I also have to take into account the companies’ fundamentals and the generosity of the perks they offer before taking the plunge with my hard-earned capital.

The crown has slipped

B&Q and Screwfix owner Kingfisher (LSE: KGF) did exceptionally well during the pandemic. With nowhere to go, many of us finally got to focus on those DIY jobs we’d not had time for.

Naturally, this could only last so long and it’s no surprise that demand has since moderated. However, the current cost-of-living crisis has served as a double whammy for Kingfisher. With many families now just trying to make ends meet, nothing but the most essential projects are put on hold.

This may be why the company is currently popular among short sellers. In fact, it’s even more ‘hated’ than battered cinema firm Cineworld!

Contrarian opportunity

Then again, it’s worth considering how much of this is already priced in.

Having crashed by over a third in the last year, shares in Kingfisher now change hands for just eight times earnings. We could see a huge bounce in the price if half-year numbers on 20 September are even slightly better than feared. This may be boosted further by the aforementioned short sellers rushing to close their positions. Although never guaranteed, there’s a chunky 5% dividend yield too.

Too much risk

However, I reckon there’s a chance that full-year earnings estimates might be revised down once the dust settles. Consequently, this stock may not be the bargain it appears. Therefore, I’ll be waiting for signs that we’re through the worst inflation-wise before becoming bullish about Kingfisher.

I’m more positive about another FTSE 100 stock reporting next month.

Another FTSE 100 stock that could soar

Like its index peer, shares in clothing stalwart Next (LSE: NXT) have not had a good 2022. The FTSE 100 stock has lost almost 25% of its value in the last year thanks to the dip in consumer sentiment.

Even so, it’s interesting to note that the share price has continued falling despite the company raising its guidance on full-year sales earlier this month in response to better-than-expected Q2 figures. Growth of around 6.2% is now predicted, slightly above the previous estimate of 5%. Pre-tax profit is also forecast to be £10m higher at £860m.

I wonder if, due to the ongoing hot weather, it might actually beat these projections when half-year numbers arrive on 29 September.

Better buy?

Next shares now trade at a price-to-earnings (P/E) ratio of 11. That’s actually fairly average relative to consumer stocks in general. What’s more, the £8bn cap operates in a hyper-competitive sector where customer loyalty is hard to maintain.

Then again, being a Fool means I can afford to take a long-term approach and base decisions on fundamentals.

As retailers go, Next is a cut above the rest. It’s got a solid record when it comes to generating returns on the money it invests. The management team — led by Simon Wolfson — is also highly experienced. Importantly, there’s limited interest from short sellers too.

So, while perhaps not a bargain, I do feel more confident about taking a position here in the near future.

Winning through greater volatility

Shares in Hargreaves Lansdown (LSE:HL) have been volatile recently. In the past year, they’re down 48.5%, while in the last three months they’ve fallen 11.5%. At the time of writing, they’re trading at 813p.

The asset management firm saw a noticeable boost in business during the pandemic. This was primarily due to heightened interest in the stock market as more people worked remotely or were furloughed.

What’s more, greater market volatility provided the company with an opportunity to increase profit margins through the wider spreads provided to customers.

To that end, for the year ended June between 2020 and 2021, revenue grew from £550m to £631m. However, pre-tax profit declined slightly from £378m to £366m. This is something I’d like to see reverse in the future.

While there is the obvious risk from the broader economic environment, the business reported client growth of 90,000 for the four months to 30 April. Its client retention rate was also solid at 92.4%.

However, there is no guarantee that this rate of growth will continue in future, of course.

In addition, it had net new business of £2.5bn, indicating that the firm has the potential to grow even further.

A retail recovery?

Second, the Next (LSE:NXT) share price is down 17.6% in the last year, while it’s up 12% in the past three months. The shares are currently trading at 6,580p.

The clothing retailer was hit hard during the pandemic as its shops were forced to close. Unsurprisingly, for the year ended January 2021, pre-tax profit slumped to £342m from £748m the year before. 

The firm is now dealing with further issues, like wage and cost inflation. These have the potential to hit future balance sheets.

Due to the uncertain economic outlook, however, both Credit Suisse and Deutsche Bank cut their price targets on the shares, from 8.025p to 6,450p, and from 9,250p to 7,850p, respectively.

On the other hand, for the 13 weeks to 30 April, sales grew by 21.3% year on year. More specifically, store sales rose by 285%, showing the benefit of being able to have shops open again.

Furthermore, the company expects full-year pre-tax profit to increase by 3.3%.

Overall, the shares of both businesses are down markedly in the past year. For me, this presents an interesting buying opportunity to load up on these two firms before the market rebounds and potentially moves the share prices higher. I’ll be adding both companies to my portfolio soon.