Me: “Good morrow, ChatGPT; what are your top 5 FTSE 100 stocks to buy for March 2026 (and why)?”
ChatGPT:
- Data & analytics leader RELX – Growing recurring revenues & diversified global customer base
- Global data & analytics growth stock Experian – Strong organic growth, particularly in North America
- Global bank HSBC – Strong capital base & global market breadth
- Pharma giant GSK – Competitive valuation & pipeline growth potential
- Oil major BP (LSE: BP.) – Repositioning after strategic write-downs & energy price tailwinds
So that’s what the computer chips are saying, but what about the human touch? For my money, there are two turkeys in that list and three with potential, including one that I think is worth considering today.
Ignoring issues
Let’s address the two bad choices first: RELX and Experian. These two data companies are perhaps worth looking at, but my digital friend has totally skipped over the big story here – AI is threatening to eat their lunch!
RELX is down 40% in the last year and Experian down 35%, largely on the back of worries that their complex services can be replaced by sufficiently advanced models of AI. We’re not there yet however, and this could turn out to be a terrific time to buy both of them at a low ebb. All the same, I’m a bit miffed that the issue wasn’t included in ChatGPT’s analysis.
Two of the other stocks in the list piqued my curiosity though. After years of overpromising and underdelivering, GSK may finally have got its act together. The new strategic changes (including more investment in its drug pipeline) seem to be working wonders with the shares up 57% in the last 12 months. I am bullish on banking at the moment too, and HSBC offers an interesting option to get exposure to the fast-growing economy of China.
Strong case
The final stock on the list is one I believe investors may wish to consider today: oil giant BP. The firm has lagged behind its peers in the US and Shell in the UK for years. Yet with the turnaround on, this could end up being a cheap buy.
What are the reasons for optimism? Well, a new CEO focused on the profit-making side of the business for one thing, the biggest oil field find in 25 years (near the coast of Brazil) for another.
Perhaps the strongest reason is that our modern world runs on oil and any shift away is looking like it will take longer than first believed. Warren Buffett and the late Charlie Munger are on record as saying it will be needed for another 200 years at least.
This does create an ethical conundrum too, for those who do not wish to invest in companies that produce polluting products. And there is the threat of advances in green technology coming along and denting BP’s revenues too.
However, I believe BP is one of the possible FTSE 100 candidates for a big turnaround in the years ahead.
As for ChatGPT, its suggestions are too patchy for my liking. I’ll carry on doing my own research.
