Investors can’t stop buying these FTSE 100 stocks. Should you follow the money?

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Investors can’t stop buying these FTSE 100 stocks. Should you follow the money? Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Admiral Group and Tesco and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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.center_img Simply click below to discover how you can take advantage of this. Paul Summers | Monday, 17th August, 2020 | More on: ADM KGF OCDO The FTSE 100 index is down almost 3% from where it was one month ago. By contrast, a number of its constituents continue to recover strongly. Some shares are even hitting all-time highs!Let’s take a closer look at three examples of stocks that investors can’t seem to get enough of.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Fewer claims, higher profits Shares in insurer Admiral (LSE: ADM) are up 14% in the last month alone. If you’d bought back in the middle of a miserable March, you’d now be sitting on an even bigger gain of around 43%. This popularity isn’t a complete surprise. Last week’s interim results revealed a 31% rise in statutory pre-tax profit to £286.1m. At least some of this is due to the company receiving fewer motor claims in March and April as the UK was forced into lockdown.Another attraction has been the company’s decision to reinstate its special dividend. The 20.7p per share payout will now be distributed in addition to a half-year dividend of 70.5p. Despite its high margins and income credentials, Admiral now trades on a forecast price-to-earnings (P/E) ratio of 20. This makes it significantly more expensive than top-tier peer Direct Line Insurance (13 times earnings).After such a strong performance, I think the share price might soon pause for breath. Lockdown beneficiaryA second stock from the FTSE 100 that’s been doing very well is B&Q and Screwfix owner Kingfisher (LSE: KGF).A beneficiary of people having (a lot) more time on their hands lately, Kingfisher recently reported a 21.6% jump in like-for-like sales in the second quarter of its financial year (to 18 July).As a result of this and cost-cutting measures, the company now believes that half-year adjusted pre-tax profit will come in ahead of that achieved last year. Unsurprisingly, investors have reacted positively. Over the last month alone, Kingfisher’s stock has climbed 19% in value. If you’d bought when the world was going to hell in a handcart back in March, you would have doubled your money by now. That’s a much better return than the 22% achieved by the index. Whether this momentum can last, however, is debatable. With restrictions lifted and people slowly returning to work, the shares may begin to lose steam.A forecast price-to-earnings ratio of 14 is far from excessive, but with a lot of debt still on the balance sheet, I wouldn’t go chasing the stock from here.Pride before the fall?A third FTSE 100 company that’s been doing very well is Ocado (LSE: OCDO). Up 10% in the last month and well over 100% since early March, the online grocery retailer continues to attract momentum-chasing investors. Since betting with the trend can often prove a winning strategy, I don’t doubt there’s a chance to still make money with Ocado. Once again, however, I would caution that this company is far from a risk-free bet.Lockdown helped retail revenue soar by 27% year-on-year in the six months to the end of May but the company is still making a loss. That’s concerning when, at nearly £18bn, Ocado’s valuation is approaching that of FTSE 100 peer Tesco. After all, the latter boasts a near-27% share of the grocery market. There’s also Amazon to worry about. The Hatfield-based business will surely benefit from the shift to online grocery shopping. At this price, however, it simply must deliver.  See all posts by Paul Summers Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.last_img

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