Best stocks to buy now: here’s my FTSE 100 pick

I reckon Experian (LSE: EXPN) is one of the best stocks to buy now on the FTSE 100. Since the beginning of the year, the shares have risen 6% and they’ve increased almost 10% during the last year. But it’s now trading close to its all-time high.

So have I missed the boat? I don’t think so. I’d buy now as I reckon this FTSE 100 stock could push higher. And the reason why I think this is due to the first-quarter trading update it released yesterday.

The update

In short, the performance during the first three months was strong. What I thought was particularly encouraging was that it saw growth across all its regions and segments. It’s not every day that a company reports this type of increase in all its divisions.

Experian stated that “total revenue growth was 31% at actual exchange rates and 28% at constant exchange rates. Organic revenue growth was 22%, and all regions and segments delivered growth for the quarter”.

These are impressive numbers, especially if this trend can continue for the rest of the year. Of course, there’s no guarantee that it will. But what’s reassuring is the forward guidance it gave.

Outlook

The FTSE 100 firm now expects “total revenue growth for the full year in the range of 13-15%, of which we expect organic revenue growth of 9-11%, and continue to expect strong EBIT margin accretion, all at constant currency”.

This is an uplift in guidance. Previously it expected full-year revenue growth between 11% to 13% and organic growth of 7% to 9%. This increase may not seem a lot, but it’s a good sign for the firm. The news has clearly been received well by the market as the stock increased by almost 4% yesterday.

What I really like is that a large portion of the expected sales growth is organic. This means that it won’t increase revenue simply by acquiring a company. It should come through Experian’s own efforts. If the firm can deliver this, then it’s doing something right and should push the FTSE 100 stock higher from its current level.

Profits

If Experian has upgraded its sale guidance, I could possibly be looking at an increase in profitability too. An uplift in full-year profit margins is likely to be positively received by investors.

Of course this is just me speculating. The company intends to release its interim results on 17 November. This will give me a better indication if it remains on track with its growth targets.

Let’s also not forget that Experian is fast becoming a data-driven firm. And it’s this that’s driving most firms and economies. What’s also helping is that companies are now starting to recover from the pandemic, which should act as a tailwind too.

Risks

The FTSE 100 stock isn’t cheap. I’ve mentioned that the shares are trading close to their all-time high. This may put some investors off. It also means that any negative news (including a slight miss of its targets) could hit the share price. The valuation is already high so it’s very sensitive to any gloomy press.

But having said that, I reckon Experian is one of the best stocks to buy right now. Hence I’d snap up the shares, even at this level.