Persimmon (PSN) & Imperial Brands (IMB): 2 blue-chip stocks to buy

Highlights

  • New year’s optimism has led the FTSE 100 index to reach new highs last seen in February 2020.
  • The index was boosted by easing fears over the severity of Omicron’s impact on the global economic recovery.

The UK’s benchmark index, FTSE 100, touched new highs last seen since February 2020 in its first trading session of the new year, jumping nearly 1.5 per cent in the early trading session.

The blue-chip index’s gains were due to optimism that the Omicron variant will not impact the global economy’s road to recovery as greatly as initially feared.

While airline stocks such as IAG (LON: IAG) were amongst one of the highest gainers on the index, boosted by recently listed airline Wizz Air’s (LON: WIZZ) strong December update.

Several other FTSE 100 index-listed stocks from different sectors also witnessed gains on the first trading day of the year.

Given this context, let us look at 2 FTSE 100 index listed stocks and explore their investment possibilities:

  1. Imperial Brands PLC (LON: IMB)

Imperial Brands is a tobacco major. It is slated to go ex-dividend on 17 February to make its final dividend payment of 48.48 pence per share. The payment date is set for 31 March.

The company’s FY 2021 reported net revenue rose by 0.7 per cent to £32,791 million, from £32,562 million in the year before. And its reported FY 2021 operating profit jumped by 15.2 per cent to £3,146 million, from 2,731 million in FY 2020.

IMB share price and volume

Image source: Refinitiv

The company’s shares were higher by 0.87 per cent, trading at GBX 1,630.50 on 4 January 2022 at 13:33 hrs BST. It had a market cap of £ 15,298.69 million and had given shareholders a one-year return of 6.13 per cent as of date.

Meanwhile, the FTSE 100 index was at 7,491.38, up by 1.45 per cent as of date.

  1. Persimmon PLC (LON: PSN)

Persimmon is a UK based housebuilding company. The company’s shares rose about 1.5 per cent today, similarly, buoyed by the broader FTSE 100 index new year optimism.

The stock was also among several other real estate sector stocks to rise as the sector shrugged off concerns that Omicron’s impact on the sector maybe not be as high as feared earlier.

The company’s average private new home sales reservation rate per site for the period between 1 July and 8 November 2021 was about 16 per cent over its pre-pandemic levels seen in 2019.

The company’s shares were higher by 1.47 per cent, trading at GBX 2,898.00 on 4 January 2022 at 13:22 hrs BST. It had a market cap of £9,113.53 million and had given shareholders a one-year return of 4.75 per cent as of date.

Related Read: Barratt (BDEV) & Persimmon (PSN): Should you buy these housing stocks?

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