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It seems as if FTSE Actions cannot stop. They are increasing and I want to take advantage of it.
The UK stock market has not performed well in recent years. From Brexit to the recent pandemic, we have faced serious challenges.
But could it be that we are seeing the light at the end of the tunnel with the recent rally? With a little luck.
Here are two Footsie stars I have my sights set firmly on this month. If I had money, I would buy them today.
Marks and Spencer
After a fantastic 2023, Marks and Spencer (LSE: MKS) has maintained its excellent form this year. So far, it has increased by 11.5%.
There are a few reasons why I like the look of his stock this month. First, it looks like we might be getting closer to interest rate cuts. When that happens, it should lead to an increase in spending. This will give Marks & Spencer a big boost.
Second, the company has made impressive progress with its turnaround strategy and I'm looking forward to getting in now while its stock still looks like a decent value trading at 14.8 times earnings.
Last year, the company saw growth in sales, market share and free cash flow and that made investors even more bullish on the stock. Since he took over in 2022, CEO Stuart Machin has done an incredible job reviving the business.
The cost of living remains a constant threat and while rate cuts are expected, if the economy worsens that could lead to a slowdown in sales.
There is also the income perspective to consider. Although its yield is just below 1%, its payout has growth potential. Analysts expect a payout of 5.6 pence per share this year. That's an 87% increase from last year.
London Stock Exchange Group
Actions in London Stock Exchange Group (LSE: LSEG) have not recorded as strong a performance as their Footsie counterpart. However, with a 3.4% increase in 2024, they are heading in the right direction.
I'm looking at the stock for one main reason. Recently signed a 10-year partnership with microsoft. The agreement will see the companies “Co-develop new products and services for data and analytics.“and improve the”position itself as a leading global financial market data and infrastructure provider”.
It's no secret that the artificial intelligence (ai) sector will continue to grow and expand, so I think it's an exciting step. Some predict that generative ai will become a $1.3 trillion market by 2032, growing at a compound annual growth rate of 42% over the next decade. We are expected to start seeing the partnership's first products used in the coming months.
One downside is that the shares look quite expensive. Another risk is that weaker financial markets could see lower trading activity. It also faces a lot of competition in the financial data sector.
But long term, I'm excited to see what the company can continue to do. Hopefully, its deal with Microsoft is a sign of things to come. I think its stock could be a smart buy today.
