Stock market

These FTSE 100 stocks are flying! Can they keep it up?

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The past few years have been miserable for some stock markets, particularly in the UK. I am hoping that we are slowly but surely turning a corner. Should FTSE 100 As the stock continues to rise, times ahead could be prosperous for our retail investors.

Both these stocks have risen this year. So, can they maintain their strong form going forward?

next

I haven’t paid much attention to fashion and lifestyle retailers. next (LSE: NXT) this year and I regret it.

Its share price has risen 16.1% year to date. Over the past year, it has grown by an impressive 43.1 percent. I thought the FTSE 100’s 8.3% rise over the past 12 months was impressive. The next has surpassed it, and then some.

The risks to business are clear. We are in the midst of a cost-of-life crisis, a constant threat to Next’s sales. If the economy sinks, it will affect the firm.

Next had previously warned that sales were expected to decline in the remaining three quarters of its year due to factors including wet spring weather. With its shares trading at 14.2 times earnings, above the Footsie average of 11, it could be argued that its stock is expensive.

Despite this, annual profits are expected to rise by around 5% to £960m this year. And I love the moves of businesses that continue to invest in future growth. For example, it has increased its equity stake in Reiss from 21% to 72%, while also taking a 97% stake in FatFace.

His yield is below the 2.2% Footsie average. But there is room for growth, and with the business returning £425m to shareholders last year through a combination of dividends and share buybacks, management appear keen to reward shareholders.

The next one seems to go from strength to strength. The stock is now firmly on my radar. I’ll be digging deeper into the company in the coming weeks.

Lloyd’s

Like Next, the high street banking behemoth Lloyds Banking Group (LSE: LLOY) is set to launch a flight in 2024. Year to date, it is up 14.4%. Over the past 12 months, it has grown by 20.9 percent.

But like the next one, can it keep it up? It is easy to argue both for and against.

On the one hand, Lloyds stock looks cheap. Investors can buy its shares trading at 7.3 times earnings, comfortably below the Footsie average. Its price-to-book ratio of 0.7 is also below the benchmark for a fair value of 1.

To me, this shows that the stock has upside potential. Again, he will face obstacles in the coming months. The interest rate is one. They will squeeze his margins. Like Next, it is suffering from a downturn in the UK economy.

But while I think we are ready to endure more volatility this year, in retrospect I see a bright future for Lloyds. And along with its cheap valuation, it has an impressive 5% yield that is comfortably earnings.

I am already a shareholder. Despite its rally, I still think its shares look attractive and am keen to increase my position.


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