The FTSE 100‘s been surging in 2024. Up 6.2% so far this year, including a 1% rise in May, I’m optimistic for June and the months forward.

As such, I’ve been scouring the index for potential shares to snap up. Listed here are two top-quality companies which have caught my consideration. I feel buyers ought to contemplate shopping for them immediately.

Tesco

My first choice is Tesco (LSE: TSCO). Just like the Footsie, it has had a powerful begin to the 12 months. Its share price has climbed 7.2%. Within the final 12 months, it’s up a formidable 19.8%.

However I feel Tesco inventory has extra to present. There are a couple of causes I prefer it as a long-term play immediately.

Firstly, it’s a defensive inventory. Come rain or shine, demand for the merchandise it sells will at all times be there. In any case, no matter points resembling uneven financial circumstances, folks have to eat and drink. We noticed the good thing about this in its newest annual earnings launch, the place group gross sales, excluding VAT an gasoline, rose 7.2% for the 52 weeks to 24 February.

In fact, it’s not fairly as simple as that. And regardless of fixed demand for its merchandise, it’s confronted competitors in current occasions. This has come largely from finances supermarkets resembling Aldi and Lidl. Previously few years, particularly given the cost-of-living disaster, they’ve grow to be extra standard than ever.

However Tesco’s nonetheless the most important participant within the area with a 27.4% market share. The closest to that’s Sainsbury’s with 15.3%. Its dominant place offers it an edge over its rivals, resembling having the ability to profit from economies of scale.

To go along with that, there’s additionally the chance to make some passive revenue with its 3.9% dividend yield. That’s simply above the Footsie common. For 2023, its dividend rose 11% 12 months on 12 months to 12.1p.

GSK

My second choice is GSK (LSE: GSK). It’s additionally benefitted from the Footsie rally, rising 19.3% 12 months to this point. It’s up 28.7% within the final 12 months.

Like Tesco, I’m bullish on GSK given its defensive nature. The corporate delivers over 1.5m doses of its vaccines each single day. Similar to with food and drinks, folks want medicines and coverings no matter how the financial system’s performing.

On high of that, the inventory additionally affords passive revenue. It yields barely decrease than Tesco, at 3.3%. Nevertheless, wanting ahead, its yield is anticipated to rise to maintain rising.

There are a couple of dangers I see. Firstly, pharmaceutical firms have to speculate hundreds of thousands into R&D to carry medication and coverings to market, with the chance that it doesn’t repay. In current occasions, there have additionally been considerations over the depth of GSK’s drug pipeline.

However with the agency just lately asserting it has round 90 merchandise in its R&D pipeline, I’m assured that the years forward will see gross sales start to choose up once more. What’s extra, the inventory appears like good worth for cash, buying and selling round 15 occasions earnings. I feel now could possibly be a shrewd time contemplate shopping for.