These are my best stocks to buy now from sectors well placed to benefit!

Jabran Khan details some of his best stocks to buy now within sectors that have flourished since the pandemic began and the market crashed.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

I have picked some of my best stocks to buy now from sectors that are thriving or can thrive in the future for my portfolio. 

Sectors that are currently thriving

E-commerce has surged due to the rise in demand for online shopping due to restrictions. I believe the virus accelerated a shift towards online shopping and entertainment, away from the high street. Firms need e-commerce solutions to cater for rising demand from their customers. 

Online gaming benefited when many of us were in lockdown, looking for new pastimes and with a bit more money in our pocket as we were unable to go to the cinema, or our favourite restaurants or bars.

Leisure firms will benefit in my opinion due to pent-up demand. After a long period of isolation, people want to go out and spend, me included. Restaurants, pubs, and other leisure firms could fare well if they have survived the downturn. 

My best stocks to buy now picks from these sectors

Clipper Logistics (LSE:CLG) is a stock I like. It has thrived during the economic downturn and continued on an upward trajectory. Shares are currently trading for 829p per share. This is a 145% increase on levels from this time last year. Results have been promising as organic growth continued, supplemented well by new contract wins. The risk involved with Clipper is that it is trading at all-time highs and can be considered expensive trading at a price-to-earnings ratio of 44. Any negative news could mean a sharp share price fall.

FTSE 100 incumbent Flutter Entertainment (LSE:FLTR) is my next best stock to buy now pick. It operates one of the largest gaming and gambling platforms in the world. Under its umbrella, it has many brands and companies such as Betfair and Paddy Power. A recent trading update confirmed its momentum continues as player numbers are increasing as well as year-on-year revenues. In addition to this, it is experiencing growth in previously untapped markets such as the US. The risk with Flutter is that it, like Clipper, is trading at a high price of 12,545p per share. When its recent news of positive trading broke, it didn’t surge which indicates a lot of this news was already priced in. A bump in the road could cause a share price drop, a bit like Clipper.

Whitbread (LSE:WTB) is a UK-based restaurant and hotel firm with brands such as Premier Inn and Beefeater. Despite a challenging 2020 where it lost share price value and reported losses, I see it as an excellent leisure stock and recovery play. In its annual report announced in May, there were expected financial points such as a decrease in revenue and profit, but I refer to the positives. At the height of the pandemic period, it managed to reduce overall debt and increase market share by 11%. The risk with Whitbread is that Covid-19 variants may cause further restrictions which could in turn affect progress and recovery across leisure stocks.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

Jabran Khan has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Flutter Entertainment and Flutter Entertainment PLC. The Motley Fool UK has recommended Clipper Logistics. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Publish Test

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut…

Read more »

Investing Articles

JP P-Press Update Test

Read more »

Investing Articles

JP Test as Author

Test content.

Read more »

Investing Articles

KM Test Post 2

Read more »

Investing Articles

JP Test PP Status

Test content. Test headline

Read more »

Investing Articles

KM Test Post

This is my content.

Read more »

Investing Articles

JP Tag Test

Read more »

Investing Articles

Testing testing one two three

Sample paragraph here, testing, test duplicate

Read more »