I’m scouring the London Stock Exchange for the best UK stocks to buy for November. Here are two FTSE 100 companies I think could enjoy explosive share price gains next month.
Fancy a flutter?
I’d snap up Flutter Entertainment (LSE: FLTR) before third-quarter results are released on 2 November. Business here has been booming, with most recent financials in August showing a 28% jump in pro-forma revenues between January and June. I’m expecting another solid release that could propel the share price higher next month.
As a long-term UK investor, I’m particularly excited by Flutter’s huge profits opportunities in the US. Experts at Global Industry Analysts think the gambling market Stateside will be worth more than $260bn by 2026, given that gambling regulations are being rolled back.
This could also see the FTSE 100 firm become the subject of a takeover approach itself. Both Entain and Playtech are currently in discussions with suitors as consolidation in the industry heats up.
Gambling is a highly-regulated industry and laws around it could be tightened in Flutter’s other markets. Recent changes in the US could also be reversed later down the line, dealing a blow to leisure companies in this industry. But, at the moment, I still believe Flutter’s investment case is compelling and I’d buy it today.
A FTSE 100 heavyweight I already own
The prospect of a bubbly trading statement over at Coca-Cola HBC (LSE: CCH) makes this a great FTSE 100 share to buy for next month too. As a shareholder in the drinks bottler I’m eager to see what news it’ll report on 3 November. Most recent financials over the summer showed like-for-like sales leap 23.1% n the first six months of 2020, at constant currencies.
Sure, Coca-Cola HBC is benefitting from the reopening of its markets following earlier Covid-19 lockdowns. But I didn’t just buy this UK share last year for this near-term boost. I bought it because the tremendous brand power of the drinks it bottles, allied with the excellent track record of product innovation over at The Coca-Cola Company, made it a stress-free share to hold forever.
I also think Coca-Cola HBC is a great stock to buy for November because of its brilliant value. City analysts think earnings here will soar 28% year-on-year in 2021. This leaves the company trading on a forward price-to-earnings growth (PEG) ratio of 0.7. A reminder that any reading below 1 suggests a stock could be undervalued by the market.
Of course, companies involved in the drinks industry could suffer again if the Covid-19 situation worsens. Sales to the hospitality sector could plummet again if people become reluctant (or are prohibited through fresh lockdowns) to go out to eat, drink and socialise.
But, in my opinion, this threat is baked into Coca-Cola HBC’s rock-bottom share price. I plan to hold this FTSE 100 share for many years to come.
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Royston Wild owns shares of Coca-Cola HBC. The Motley Fool UK owns shares of and has recommended Flutter Entertainment and Flutter Entertainment PLC. 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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