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The FTSE 100 full of exciting and interesting companies that can offer long-term growth. I looked at the index to find stocks that I can invest in when the market recovers. Let’s take a closer look.
Expectation of high income
first of all Experian (LSE:EXPN) reiterated its full-year guidance in a report for the three months to 30 June. At the time of writing, the shares are trading at 2,770 pence.
In the same results, the credit reporting firm said revenue rose 7%, with full-year revenue expected to rise 7-9%.
Over the past couple of years, the business has benefited from a very active real estate market.
however, City downgraded the company to “neutral” in August. This led to several reasons for this move, including a decrease in the volume of housing transactions. So, in July, housing transactions decreased by 20% compared to the same period last year.
While this may be worrisome in the short term, it is likely that the housing market will pick up again in the near future.
Moreover, the business has seen attractive revenue growth over the past five years. For the years ended March 2018 through 2022, earnings per share (EPS) rose from ¢94.4 to ¢124.5. This translates to a total annual EPS growth rate of 5.7%. I find it consistent and attractive.
Yield 11.88%!
secondly, Rio Tinto (LSE: RIO) can offer me both growth and profit. It is widely known to boast one of the highest dividend payouts in the market, paying $10.40 per share in 2021. That’s equal to dividend yield about 11.88%.
Last year, the mining company benefited from higher commodity prices. For example, from 2020 to 2021, pre-tax profits rose from $15.3 billion to $30.8 billion.
However, the recent market slowdown and possible recession have led to a deterioration in results.
Despite this, the demand for base metals, especially copper, will grow in the coming years. This is because these components are very important for environmentally friendly products such as electric vehicles.
So I think there is a strong possibility that commodity prices will rise in the future. This could be good news for Rio Tinto.
The business is making a big push to expand into the copper market with a $2.7 billion bid for the owner of a Mongolian copper mine. Turquoise Hill Resources.
That bid was unsuccessful, but Rio Tinto acquired the company after increasing the offer to $3.3 billion. This could allow the company to participate in further copper exploration, thus supporting long-term production plans.
Overall, both of these firms undeniably face challenges in the short term. However, when it comes to investing, I prefer to look beyond the tip of my nose. The opportunities for growth and profit in these expanding businesses are too great to ignore, especially if and when the market rebounds. I will soon be adding shares of both companies to my portfolio.
