3 FTSE 100 shares I’ll be watching like a hawk in February

January has been pretty good for UK investors. Since the market can often turn on a dime, however, here are three FTSE 100 I will keep a close eye on the stock in the coming months.

shell

Companies listed in the UK are no bigger than oil companies shell (LSE: SHEL). In fact, the company’s value has increased by more than 20% in the past 12 months, mainly due to the Russia/Ukraine conflict.

I will be interested to see if the full year results on February 2 move the stock even more. My inkling is that the momentum may start to slow.

This may seem strange because analysts expect net profit for 2022 to be almost double what it achieved in 2021. Relative to the entire market, the stock still looks cheap (6 times forecast earnings).

But as has been the case for the past year, there are things that make me uncomfortable. Owners always have to contend with unstable oil prices. And even if the situation has improved, companies in this sector may be forced to pay higher taxes on profits (and will in 2023). Oh, and adapting businesses to the clean energy revolution will take time and money.

Sure, 3.9% yields and shows attractive buybacks. However, as a stock for long-term capital growth, Shell did not make the shortlist.

Unilever

Another top-tier member I’ll be paying attention to is the consumer goods giant Unilever (LSE: ULVR).

Thanks to its portfolio of brands that people usually buy, this company has long weathered economic conflicts better than most.

However, I am wary that many shoppers have switched to cheaper alternatives in 2023. We will know how this affects Unilever when it releases its results for 2022 and comments on its outlook on February 9.

I suspect this is why the stock has been pretty flat in 2023 so far. Price-to-earnings (P/E) which is still not low from 18 may be a factor.

Then again, Unilever shares could do well this year if the slowdown isn’t as expected. Regardless, returns over the decades have been excellent. And that is important to me.

If I had the money, I would be happy to buy the shares before the results day.

Centrist

The final FTSE 100 stock I’ll be looking at next month is owner British Gas Centrist (LSE: SSE).

Like Shell, the company likes the stars of 2023, as the price rises. Go back and Centrica’s value has risen by around 200% since the first UK lockdown in March 2020.

But let’s put it in context. Centrica was an absolute dog before the pandemic. Indeed, the stock is still down almost 30% in the last five years. Alas!

However, the £5.8bn cap is proof that I am can made a big profit if I dared to buy and hold stocks I didn’t like and my timing (fortunately) was good.

The company is also leaner and cash-rich than it used to be. The latter could mean a dividend boost, which could push the share price higher next month. The full-year number is due on February 16.

Then again, I also expect to make a profit at some point. Greater-than-expected inflation could be one of the catalysts.

So, I won’t be a buyer now.