3 shares I’d buy for after coronavirus

These companies delivered a steady performance last year, despite the pandemic. Roland Head explains these are the shares he’d buy today.

| 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.

Today, it seems hard to imagine a time when coronavirus won’t dominate the headlines. But history suggests that the pandemic will pass. As an investor, I try to look ahead. Recently I’ve been picking shares to buy that I think will perform when life returns to normal.

Each of the companies I’ve chosen is a mid-sized business with a solid track record. Recent news suggests to me that all three could outperform the market in 2021.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

A defensive winner?

Soft drinks group Britvic (LSE: BVIC) has a defensive product and much-loved brands such as J2O, Robinson’s and Fruit Shoot. The firm’s products are an automatic purchase in many situations.

Unfortunately, many of these purchases take place in pubs, restaurants, and cafes. Food and drink outlets have suffered long periods of closure during lockdown. As a result, Britvic’s revenue fell by 7% last year. Underlying profits fell by 22%.

I don’t see these numbers as a big concern. My impression is that Britvic’s management did everything it could to manage the situation. When life returns to normal and the hospitality trade reopens, I expect sales to recover to normal levels.

Britvic shares have fallen by about 15% over the last year. Although the shares rose on vaccine news in November, they’ve since slipped back again. I reckon Britvic looks decent value at the moment, on 14 times forecast earnings, with a 3.5% dividend yield. This is definitely a share I’d buy at the moment.

Profit from tech growth

My next pick is specialist recruitment group SThree (LSE: STEM). Recruiters have suffered during the pandemic as companies cut back on hiring ahead of a possible recession. But SThree’s focus on the so-called STEM sectors — Science, Technology, Engineering and Mathematics — gives me confidence that demand should recover quickly.

Indeed, SThree has already reported improving trading. In November, the company said that trading during the last three months of 2020 was “coming in ahead of expectations”. In December, SThree said that its net fees for the year fell by just 8%, which seems an impressive result to me.

Recruitment is a cyclical business, but SThree has proven to be highly profitable in the past. I expect a good recovery and view this as a growth share I’d buy at current levels.

An emerging market share I’d buy

The final stock I’ve chosen is a company I already own. Asset manager Ashmore Group (LSE: ASHM) is a FTSE 250 firm that specialises in emerging markets. The group is run by founder Mark Coombs, who still owns 31% of Ashmore stock.

I’m a fan of owner-manager companies, as in my experience they’re often run well and with long-term growth in mind. Ashmore was affected by the general turbulence in financial markets last year, but the company’s results for the 12 months to 30 June 2020 showed a modest rise in profits and an operating margin of more than 60%.

The company’s balance sheet remained strong too — Ashmore ended the period with more than £700m of cash on hand. Mr Coombs says that economic forecasts for the year ahead suggest that growth in emerging markets will be higher than in the developed world. This could create opportunities for Ashmore.

Although Ashmore’s share price has risen since I bought the stock, the shares still yield almost 4%. I think further growth is likely and plan to buy more.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Roland Head owns shares of Ashmore Group. The Motley Fool UK has recommended Britvic. 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

Futuristic front of NIO car in Norwegian showroom
Investing Articles

Down over 50%, is NIO stock the best EV pick right now?

NIO stock has dipped over 50% in the past year. Does this create the perfect opportunity to buy or are…

Read more »

Buffett at the BRK AGM
Investing Articles

3 Warren Buffett techniques to build my wealth

Our writer shares a trio of Warren Buffett investing habits he hopes can help him build his own wealth.

Read more »

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

Aviva shares are in demand. Should I buy too?

Hargreaves Lansdown investors were piling into Aviva shares last week. This Fool is asking whether he should join the queue.

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

3 reasons why I think the IAG share price could rally this year

Jon Smith writes about how improving risk sentiment could help the IAG share price this year, but not without risks…

Read more »

Passive and Active: text from letters of the wooden alphabet on a green chalk board
Investing Articles

A passive income stock I’ve bought to supercharge my wealth!

I think this UK dividend stock is one of the best to buy for healthy long-term passive income. Here's why…

Read more »

British Pennies on a Pound Note
Investing Articles

3 hot penny stocks I’m buying in June!

With their exciting growth potential, penny stocks can be great investments. I've found three to buy next month based on…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

2 green dividend shares I’d buy with £500

Jon Smith explains two dividend shares with a focus on renewable energy that have caught his eye at the moment.

Read more »

Young black woman walking in Central London for shopping
Investing Articles

Should I buy these cheap FTSE 100 shares before June?

Paul Summers considers whether he should add these cheap FTSE 100 stocks to his portfolio before their next updates.

Read more »