Although the stock market has performed well in the past year, some stocks have performed weakly. I now think that some of them provide buying opportunities for my portfolio. If I wanted to invest £1,500 in my portfolio today, I would choose to buy these three UK stocks now and invest £500 each.
Consumer Goods Giant
One company whose share price has been sluggish recently is a consumer goods giant Unilever (London Stock Exchange: ULVR), The manufacturer of the brand, for example Lynx with Marmite. its Update today in the third quarter It seems to have boosted sentiment for the stock in early trading. The company’s sales volume has declined compared with the same period last year, but due to price increases, sales have increased overall.
The group has been fighting cost inflation and expects more in the future. So far, price increases have helped mitigate the effects of inflation. But there is a risk that if cost inflation remains high, further price increases will cause sales to fall. Nevertheless, I think now may be a good time to add Unilever to my portfolio. Even after today’s rise, the stock price is still 17% below its level a year ago. But this is a company with global influence and a broad portfolio of premium brands, which gives it pricing power. With a 3.8% yield and the potential for stock price appreciation, I will consider adding Unilever to my portfolio today.
I will consider buying more for my portfolio. Another FTSE 100 index member is British American Tobacco (London Stock Exchange: Bat)For me, one of the main attractions here is the 8.1% yield, but I also see some growth opportunities. Tobacco may not be seen as a growth industry, but through the integration and shift to new tobacco products in recent years, the company’s revenue has actually been growing.
I have recently increased my BATS position because I think the price is very attractive. It is only 3% higher than a year ago, while the broader FTSE 100 index rose 24% during this period. Obviously, many investors continue to be skeptical of stocks based on the risks of declining demand for cigarettes in many markets. However, at the current price, I am willing to accept this risk in my portfolio in exchange for gains.
Continued growth prospects
The third company in which I will put 500 pounds of portfolio funds into it is JD Sports (London Stock Exchange: JD). Unlike my other two choices, these stocks have soared in the past year, increasing by 31%.But I think the strong growth story here can make these a good example Buy UK stocks now and save them in my portfolio The next few years.
I like JD Sports because its proven retail model and expertise have brought long-term profit growth, and I think this growth may continue into the future. Although the pandemic affected last year’s performance, the company’s interim results indicate that it has moved forward again. It has a lot of untapped market potential in the UK and overseas. One risk is that overseas expansion into highly competitive markets may result in lower profit margins. But together with Unilever and BATS, I think JD Sports is a strong British stock that can be added to my portfolio.
Christopher Ruane owns shares in British American Tobacco. Motley Fool UK recommended British American Tobacco and Unilever. The views expressed by the companies mentioned in this article are those of the author and may therefore differ from the official recommendations we made in subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that taking into account a variety of different insights, We are better investors.