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I think these FTSE 100 stocks could be the best shares to buy now

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I reckon there are a handful of FTSE 100 stocks that could be worth buying right now. Today, I’m going to take a look at two of these companies, which could be a great addition to any stocks and shares portfolio. 

FTSE 100 growth champion

For the past couple of years, B&Q-owner Kingfisher (LSE: KFG) has struggled to attract investor attention. That all changed in 2020. 

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A DIY mini-boom has sent sales and profits surging at the group. The stock has jumped to a multi-year high as a result. The group’s latest trading update shows the scale of the boom. At the end of September, the FTSE 100 retailer reported a 23.1% increase in first-half profit.

Following this performance, City analysts have rushed to upgrade their growth forecasts for the company this year. Analysts have hiked their earnings estimates by more than 100% since May. 

However, despite the company’s improving performance, it continues to trade at a depressed valuation. The stock is changing hands at a forward price-to-earnings (P/E) multiple of 12.3. The long-term average is around 15. These numbers imply the shares could offer a wide margin of safety at current levels.

Based on these figures, and the company’s long-term growth potential, I think the stock could be worth buying as part of a diversified basket of blue-chip stocks right now.

Paper and packaging

I’m also optimistic on the outlook for FTSE 100 paper and packaging giant Mondi (LSE: MNDI). Manufacturing paper and packaging solutions is a relatively dull business. Nevertheless, it’s an essential one. Demand for the company’s services has also boomed in 2020 as businesses and consumers have become reliant on e-commerce.

Unfortunately, while the company’s sales are expected to increase this year, rising costs will impact profit margins, according to current projections. This will hit overall profitability.

Still, suppose you’re looking for a high-quality FTSE 100 business that has the potential to survive another lockdown and has a good track record of creating value for shareholders. In that case, I highly recommend taking a closer look at Mondi. 

Growth may be forecast to slow down this year, but the business is still forecast to pay out a dividend equivalent to a yield of 4.7% on the current share price. That suggests investors will be paid to wait for the company’s recovery.

I think the dividend yield is also desirable in the current interest rate environment. And even though earnings may fall in 2020, the payout will be well covered by operating income, according to current analyst forecasts. 

Therefore, if you’re looking for a defensive, lockdown-resistant FTSE 100 stock to buy, Mondi ticks all the boxes, in my opinion. With its market-beating dividend yield, the company is also paying investors to hold the shares. There’s a lot to like about this paper and packaging operation. 

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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