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Me: “Good morrow, ChatGPT; what are your top 5 FTSE 100 stocks to buy for March 2026 (and why)?”
ChatGPT:
- Information & analytics chief RELX – Rising recurring revenues & diversified world buyer base
- International information & analytics development inventory Experian – Robust natural development, significantly in North America
- International financial institution HSBC – Robust capital base & world market breadth
- Pharma big GSK – Aggressive valuation & pipeline development potential
- Oil main BP (LSE: BP.) – Repositioning after strategic write-downs & power worth tailwinds
In order that’s what the pc chips are saying, however what in regards to the human contact? For my cash, there are two turkeys in that listing and three with potential, together with one which I believe is price contemplating immediately.
Ignoring points
Let’s tackle the 2 unhealthy decisions first: RELX and Experian. These two information corporations are maybe price , however my digital good friend has completely disregarded the large story right here – AI is threatening to eat their lunch!
RELX is down 40% within the final yr and Experian down 35%, largely on the again of worries that their complicated providers could be changed by sufficiently superior fashions of AI. We’re not there but nonetheless, and this might grow to be a terrific time to purchase each of them at a low ebb. All the identical, I’m a bit miffed that the problem wasn’t included in ChatGPT’s evaluation.
Two of the opposite shares within the listing piqued my curiosity although. After years of overpromising and underdelivering, GSK could lastly have gotten its act collectively. The brand new strategic modifications (together with extra funding in its drug pipeline) appear to be working wonders with the shares up 57% within the final 12 months. I’m bullish on banking in the mean time too, and HSBC affords an fascinating choice to get publicity to the fast-growing financial system of China.
Robust case
The ultimate inventory on the listing is one I consider buyers could want to think about immediately: oil big BP. The agency has lagged behind its friends within the US and Shell within the UK for years. But with the turnaround on, this might find yourself being an inexpensive purchase.
What are the explanations for optimism? Nicely, a brand new CEO centered on the profit-making facet of the enterprise for one factor, the largest oil subject discover in 25 years (close to the coast of Brazil) for one more.
Maybe the strongest motive is that our fashionable world runs on oil and any shift away is trying like it can take longer than first believed. Warren Buffett and the late Charlie Munger are on report as saying it is going to be wanted for one more 200 years at the very least.
This does create an moral conundrum too, for many who don’t want to put money into corporations that produce polluting merchandise. And there may be the specter of advances in inexperienced know-how coming alongside and denting BP’s revenues too.
Nevertheless, I consider BP is without doubt one of the potential FTSE 100 candidates for an enormous turnaround within the years forward.
As for ChatGPT, its options are too patchy for my liking. I’ll keep it up doing my very own analysis.
