3 hot FTSE 100 stocks I’m buying during the dip

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The FTSE 100 is full of the biggest companies. Every so often, I scour the index to find businesses to add to my long-term portfolio. I’ve found three firms that currently look attractive during the recent broader stock market dip. While I already own shares in one of the companies, should I buy shares in all three? Let’s take a closer look.

International Consolidated Airlines Group

The first business is International Consolidated Airlines Group (LSE:IAG). This is an airline conglomerate that owns well-known brands including British Airways. 

I already own shares in IAG, but I’m thinking of adding some more at these current levels. It trades at around 130p and is down 36% in the past month. 

The company was battered during the pandemic as international travel ground to a halt. 

For the three months to 31 March, however, the firm reported that passenger capacity had reached 65% of pre-pandemic levels. 

This was a massive improvement compared to the same period in 2021, which recorded capacity levels of just 19.6%. IAG forecasts average passenger capacity of 80% for the full year.

The business reported an operating loss of €754m, narrowing from €1.1bn on a year-on-year comparison.

With more countries opening, the operating environment may soon improve for IAG. That said, the rising price of jet fuel may begin to eat into future profit margins.

Anglo American

The second company I’m interested in is Anglo American (LSE:AAL). It mines a variety of metals, including copper and platinum group metals (PGMs), alongside diamonds.

The share price is down 13% in the past month and currently trades at 3,357p.

Between 2017 and 2021, profit before tax increased from $5.5bn to $17.6bn. In addition, revenue grew from $26bn to $41.5bn. 

For the first three months of 2022, however, output fell by around 10%. Some of this can be attributed to supply chain issues as the world opens up again after the pandemic.

Indeed, the firm lowered its full-year production guidance. Despite this, commodities are still trading at high levels and this may continue to benefit Anglo American for the foreseeable future.

InterContinental Hotels Group

The final company I’m looking at is hotel conglomerate InterContinental Hotels Group (LSE:IHG). This firm owns famous brands including Holiday Inn Express.  

Currently trading at 4,855p, the share price is down 3% in the past month.

The business has rebounded strongly after the pandemic. Between 2020 and 2021, it swung from a loss before tax of $280m to a profit before tax of $361m. Over the same period, revenue rose from $2.4bn to $2.9bn.

Demand is also increasing again, with revenue per room up 61% for the first three months of 2022 compared with the same period in 2021.

While hotel occupancy is rising, there is always the risk that future pandemic variants will halt the company’s recovery.

Overall, I think each of these firms presents an exciting buying opportunity during this stock market dip. I will add to my IAG holding and buy shares in both Anglo American and InterContinental Hotels Group soon. 

The post 3 hot FTSE 100 stocks I’m buying during the dip appeared first on The Motley Fool UK.

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Andrew Woods owns shares in International Consolidated Airlines Group. The Motley Fool UK has recommended InterContinental Hotels Group. 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.