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Investors looking for the best stocks to buy in todayâs market turmoil have two potential lines of attack. They could snap up previously flying stocks that are suddenly taking a beating as war in Iran spooks investors, or target those that are standing firm.
Personally, Iâm leaning towards the former. HSBC Holdings and Barclays are topping my shopping list after falling 9% and 12% respectively last week. The biggest FTSE 100 faller was British Airways owner International Consolidated Airlines Group, which slumped 18%. But I already hold that.
Still, Iâm also curious about a brace of blue-chips that have taken this weekâs troubles on the chin. Could these two thriving concerns prove better opportunities?
Admiral Group shares climb
The first is general insurer Admiral Group (LSE: ADM), whose shares rose 5% over the week, making it the FTSE 100âs single biggest climber.
The stock was boosted by a strong set of full-year results on Thursday (5 March), driven by what the company called an âexceptionalâ performance from its UK motor division. The shares jumped 7.6% on the day as the board reported a 16% rise in pre-tax profit to a record £957.9m. Customer numbers climbed 7%.
Shareholders were rewarded too. The board increased the dividend per share 7% to 205p and declared a special dividend of 17.2p. Admiral’s already a solid income stock, with a trailing yield of around 5.2%. It doesnât look expensive either, trading on a price-to-earnings ratio (P/E) of roughly 12.4.
However, the shares have been fairly subdued over longer periods. Theyâre up just 6% over the last 12 months and only 4% over five years.
Motor insurance is a cyclical and competitive market, and rivals will be gunning for Admiral after these strong results. Still, Admiral looks well worth considering, particularly for income-focused investors.
Airtel Africa also performs
The weekâs second-best performer was Africa-focused telecoms group Airtel Africa (LSE: AAF). It didnât release results last week but the shares still rose 4.7%. The Airtel Africa share price is now up 150% over the last year and an extraordinary 360% over five, making it one of the FTSE 100âs top performers.
I suspect investors see Africa as largely insulated from Middle East tensions. Iâve always viewed Airtel Africa as an aggressive growth play but now its showing its defensive qualities. Everybody wants a mobile phone today, and customers typically pay through fixed monthly contracts. That said, telecoms firms like BT Group and Vodafone have been volatile over the years.
Airtel Africa beats them both with a massive growth. During the nine months to 31 December, it reported a 28% increase in revenue and a 41% rise in operating profit. The company is also partnering with Elon Muskâs SpaceX to expand network coverage, saving it a fortune on building new infrastructure.
The firm has previously been hit by currency volatility in Nigeria, so some of its recent strong performance may be bouncing back from that. It isnât cheap. The shares trade on a trailing P/E ratio of around 80, although that falls to roughly 21.5 on a forward basis and it may be worth a closer look.
Are these two the best? That depends on an investor’s personal goals. Both Admiral and Airtel Africa carry risks, but show FTSE 100 companies can still thrive in tricky markets. A little diversification can go a long way in days like these.
The post As markets plunge, are these the 2 best FTSE 100 stocks to buy today? appeared first on The Motley Fool UK.
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HSBC Holdings is an advertising partner of Motley Fool Money. Harvey Jones has positions in International Consolidated Airlines Group. The Motley Fool UK has recommended Admiral Group Plc, Airtel Africa Plc, Barclays Plc, and HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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