Me: “Tomorrow, ChatGPT; what are your top 5 FTSE 100 stocks to buy in March 2026 (and why)?”
ChatGPT:
- A leader in data and analytics RELX – Continued revenue growth and diverse customer base around the world
- Global data and stock growth statistics Experian – Strong organic growth, especially in North America
- The world bank HSBC – Strong capital base and global market scope
- Pharma giant GSK – Estimating the competitiveness and growth potential of pipelines
- Great oil BP (LSE: BP.) – Reset after strategic write-down and energy price tailwinds
So that’s what computer chips mean, but what about human touch? For my money, there are two turkeys on that list and three strong ones, including one that I think is worth considering today.
Image source: Getty Images
Ignoring problems
Let’s talk about the two worst options first: RELX and Experian. These two data companies should probably be looked at, but my digital friend completely missed the big story here – AI is threatening to eat their lunch!
RELX is down 40% in the past year and Experian is down 35%, mostly after concerns that their complex services could be replaced by sufficiently advanced AI models. We’re not there yet, and this would be a great time to buy both at a bargain price. However, I am confused that the issue was not included in the ChatGPT analysis.
Two other stocks on the list piqued my curiosity though. After years of overreliance and under-delivering, GSK may have got its act together. New strategic changes (including more investment in the drug pipeline) seem to be doing wonders with shares up 57% in the past 12 months. I’m interested in banking at the moment, and HSBC offers an interesting option to gain exposure to China’s fast-growing economy.
A strong case
The last stock on the list is one that I believe investors may want to consider today: oil giant BP. The company has lagged behind its peers in the US and Shell in the UK for years. However with a change, this could end up being a cheap buy.
What are the reasons for hope? However, the new CEO is focused on the profit-making side of the business for one thing, the largest oil field found in 25 years (off the coast of Brazil) for another.
Perhaps the strongest reason is that our modern world runs on oil and any change seems likely to take longer than originally thought. Warren Buffett and the late Charlie Munger are on record saying it will take at least another 200 years.
This creates moral confusion, for those who do not wish to invest in companies that produce polluting products. And there is the threat of future green technology developments and draining BP’s income.
However, I believe that BP is one of the FTSE 100 candidates that could see a big change in the coming years.
As for ChatGPT, its suggestions are too small for my liking. I will continue to do my own research.
