A FTSE 100 share I’m buying for the stock market recovery

first_img 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. Dan Peeke | Friday, 14th May, 2021 | More on: GLEN A FTSE 100 share I’m buying for the stock market recovery Enter Your Email Address Image source: Getty Images See all posts by Dan Peeke Our 6 ‘Best Buys Now’ Shares Dan Peeke has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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 “This Stock Could Be Like Buying Amazon in 1997” 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. 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. Glencore (LSE:GLEN) is a FTSE 100 share with fingers in a lot of pies. It is a world-famous mining company and one of the biggest commodity traders in the world. It also happened to be ranked as the 48th biggest public company in the world by Forbes in 2020.This sheer size probably had a hand in its weathering of, and hearty recovery from, the Covid-19 pandemic. On 23 March 2020, it hit a low of 112p per share. At the time of writing, it’s at 324p – that’s a 189% increase in a little over a year. A well-timed £3,000 investment would have seen profits edging towards £6,000 by now.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…A promising investmentI also view the FTSE 100 share as a relatively safe investment. The fact that the company is so diversified makes it strong and resilient. For example, if zinc production in Canada dried up, the company would still be the biggest producer of copper in Africa. You get the idea. Promisingly, the FTSE 100 share has really started to tackle its debt issues in recent years. In the last six years is has reduced this by almost $15bn, with a drop from $17.5bn to $15.8bn between 2019 and 2020. It plans to reduce debt even further over the course of 2021, targeting $13bn.This comes just as rising expectations of inflation rocked the FTSE 100 this week. Glencore is in a good position here as its net debt to EBITDA ratio (earnings before inflation, tax, depreciation, and amortisation) is stable at less than 1.5. As such, it doesn’t have as much to worry about as FTSE 100 companies with more serious debt issues. This reduction of debt also allowed it to reinstate its dividend at a sustainable, if not overwhelmingly exciting, 1.3% yield. It isn’t exactly a life-changing amount of passive income, but it’s certainly better than nothing.Furthermore, as the world slowly recovers, the need for commodities to support infrastructure plans should start to rise. At the same time, the price of some of the commodities Glencore supplies is skyrocketing. Copper prices, for example, hit an all-time high this week. This should help it continue to recover after a 34% fall in revenue last year.The downsidesOf course, as with every share, Glencore has its downsides. As my colleague Harvey Jones says, the company is no longer undervalued like it was last year. He explains that the company is trading at about 28 times its earnings, which isn’t unreasonable. This doesn’t necessarily make for a bad investment, but it certainly isn’t the bargain it would’ve been in March 2020.There is also the underlying risk of a single, game-changing disaster. A collapse in commodity prices could easily send Glencore spiralling back into masses of debt. It’s happened before, so certainly isn’t impossible.It also has to comply with a variety of strict government regulations around the world that could lead to serious repercussions if broken. It was even accused of bribery towards the end of 2019 and faced allegations of ‘failure to prevent corruption’ in the Democratic Republic Of Congo in June 2020.Still, I personally think that the positives outweigh the negatives in the case of this FTSE 100 share, so this is one on the short list for my portfolio. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img

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