Should I buy these forgotten FTSE 100 stocks in February?

FTSE 100 stocks are well represented in my portfolio. And in the past few months, I have gained more as share prices in certain sectors have come under downward pressure.

But today I looked at a part of the index that investors may not have considered. Of course I ignored him.

So, are they suitable for my portfolio? Let’s take a closer look.

Ocado

I see Ocado (LSE:OCDO) today as shares have traded near five-year highs. In all honesty, I haven’t thought about it much in recent years. The company has struggled to turn its business model into a profitable one, and as a result, its stock has fallen from its peak caused by the pandemic.

For the full year, Ocado said it expects EBITDA to be close to, in line with its guidance. That’s hardly exciting, but there are some promising aspects here. For one, the company will be damaged in a very difficult environment, characterized by double inflation and a crisis in the cost of living.

Ocado has been successful in attracting new customers. The problem is that the size of the basket has shrunk. It should be noted that delivery costs are approximately the same, regardless of whether customers order strawberries or a large weekly shop.

But I am encouraged by the progress the firm has made, especially as Ocado’s premium price points are not exactly aligned to the pressure on household budgets in the UK.

I’m not buying it right now, but I’m keeping an eye on this.

Bunzl

Bunzl (LSE:BNZL) is a British multinational distribution and outsourcing company headquartered in London. The company has shown impressive growth in recent years – its share price is up 7% in one year and 50% in three years – partly due to its highly successful acquisition-based growth strategy.

The company provides essential products for businesses – from hard hats and cleaning products to tableware and coffee mugs – and sells innovative solutions to a wide range of customers. Bunzl management claims its success can be attributed to reliability. It is now worth more than £10bn.

Today the business support services trades at a price-to-earnings ratio of 18.4. That’s above the index average but below Bunzl’s long-term average – somewhere in the top 20.

Business looks strong despite the macroeconomic environment, but I have some concerns about the capacity to continue to grow through 2023. The British economy is likely to contract according to the IMF, and that may not be positive for demand.

While it’s all unscientific, I also note that Bunzl’s share price has fluctuated wildly over the past two years – when the general trend is upward. It might pay me to catch it in the trough.

Bunzl is certainly an interesting proposition and one I’ll keep an eye on, but I haven’t bought one yet.