Hargreaves Lansdown investors LOVE these FTSE 100 shares! Should I buy them?

I’m constructing a listing of beaten-down FTSE 100 shares to purchase for my portfolio immediately. I’m trying to find successful corporations which have fallen sharply extra not too long ago, however which have the potential to rebound strongly in time.

These two Footsie shares have attracted vital dip-buying curiosity from Hargreaves Lansdown prospects of late. Actually they’re among the many 10 hottest UK and US shares within the seven days to six March.

However which — if any — ought to I add to my Shares and Shares ISA immediately?

St James’ Place

Monetary providers agency St James’ Place (LSE:STJ) has struggled to develop enterprise throughout this powerful financial interval. However the greatest headache proper now pertains to scrutiny over its service ranges and excessive prices.

It has put aside a staggering £426m to compensate prospects following “a big improve in complaints” over servicing, the agency introduced final week. As a consequence, it slashed the full dividend by 55% in 2023, and mentioned it could restrict shareholder payouts to 50% of the underlying full-year money end result for the subsequent three years.

The share value unsurprisingly plunged on the information. And Hargreaves Lansdown buyers have been busy dip-buying the corporate in response, maybe in hope that the cost attracts a line below the issue. The agency attracted 1.31% of all purchase orders on Hargreaves’ platform within the final week.

However I discover it arduous to get keen about this brusied firm immediately. On the plus aspect, revenues throughout the monetary providers sector may rise sharply within the years forward as folks take larger management of their funds.

Nonetheless, I’m anxious concerning the reputational injury that’s been inflicted on St James’ Place. This may be crushing for companies that take care of peoples’ cash. With the enterprise subsequently overhauling its payment construction and scrapping withdrawal prices, earnings may even be signficantly impacted for the subsequent few years if not longer.

Proper now the dangers of proudly owning this FTSE share are too nice, in my view.

Reckitt

Whereas I’m not tempted to purchase St James’ Place shares immediately, I could think about opening a place in fast-moving shopper items (FMCG) large Reckitt (LSE:RKT).

This FTSE agency additionally collapsed final week following a disappointing buying and selling replace. Nonetheless, it attracted 1.03% of all purchase directions from Hargreaves Lansdown purchasers up to now seven days.

Reckitt’s share value plunged on information of a massively underwhelming finish to 2023. Whereas full-year like-for-like gross sales rose 3.5%, poor gross sales of chilly and flu merchandise meant that corresponding revenues slipped 1.2% yr on yr.

Broader gross sales grew weakly final yr as value hikes prompted folks to buy cheaper manufacturers. And it may stay a difficulty in 2024 too if rates of interest fail to return down.

However as a long-term investor I’m nonetheless attracted by Reckitt’s shares. The corporate owns an enormous secure of high-margin shopper favourites like Nurofen painkillers, Durex condoms, and Dettol disinfectants, demand for which ought to take off once more when financial situations normalise.

I additionally just like the FTSE 100 agency’s broad geographic footprint that spans 68 nations. This gives stable publicity to fast-growing rising markets that would give earnings progress a big enhance.

I’ve been in search of a possibility to purchase Reckitt shares for a while. I’ll look fastidiously at including it to my portfolio within the coming days.