My best stocks to buy now list: 1 FTSE AIM stock for 2021 and beyond

Jabran Khan details one of his best FTSE AIM stocks from his best stocks to buy now list which he believes could have a great 2021.

| 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.

Here is one of my best stocks to buy now, which currently resides on the FTSE AIM index. I believe it has great potential for 2021 and beyond.

FTSE AIM best stocks to buy now

I believe investing in the FTSE AIM can be a good earner. As with any investments, I carry out my research and look at the upside potential of a stock, as well as risk and reward.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Anglo Asian Mining (LSE:AAZ) is a gold, copper, and silver explorer and producer in Azerbaijan. It is most definitely a minnow in its respective sector, with a market cap of approximately £170m. Since the pandemic began, gold has enjoyed strong performance. The pandemic and crash caused lots of uncertainty. This led to many invesors buying gold as a safe-haven asset to store value.

In 2016, I could buy shares in AAZ for a lowly 4p per share. As I write this, shares are trading closer to 155p which is close to a 3,800% increase! AAZ’s market crash low was 77p which means it has increased over 100% since then based on current levels. 

Gold rush

Here’s why AAZ is one of my best stocks to buy now for 2021 and beyond. Firstly, it has regained control of a politically disputed mineral-rich area. AAZ announced that the recent war between Azerbaijan and Armenia saw AAZ’s Vejnaly contract area “liberated”. AAZ will resume operations and I believe it could be fruitful in the long term.

Next, AAZ has been growing nicely. In the last three years it has seen a year-on-year growth in revenue, profit, and cash reserves. Full-year results for 2020, announced last month, made for excellent reading in my opinion. AAZ reported record revenues, of over $100m for 2020. In addition, cash generation of over $38m saw AAZ become debt-free.

Finally, despite the crash, AAZ has continued to pay dividends. Many firms cut dividends throughout 2020. AAZ announced a special dividend payment at the end of January 2021 based on a record 2020. It already paid a dividend in November 2020 so business is good. I think AAZ has lots of upside for 2021 with record performance, no debt and paying out dividends. I regard it highly on my best stocks to buy now list for 2021. 

Risk and reward

One of the world’s best investors, Warren Buffett, has stayed away from speculative assets such as gold. These are assets that don’t provide their own cash flow. I do believe there are risks involved with investing in AAZ and firms that operate in the materials and minerals sector. AAZ is a small fish in a rather large pond. In addition to its size, it operates in a very volatile part of the world. Politics could again affect its operations, which could hinder its progress.

Gold’s longer-term prospects are risky. Low interest rates are currently aiding performance of the metal. A stock market rally could see investors become less risk averse and more confident, thereby eliminating gold’s defensive ability.

Despite these risks, I see AAZ recording a better 2021 than 2020 and continuing its impressive growth journey. AAZ is one of the highest materials-related picks on my best stocks to buy now list. I do like AAZ but here is a stock I am currently avoiding for 2021. 

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Jabran Khan 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.

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 considered, so you should consider taking independent financial advice.

More on Investing Articles

Senior woman wearing glasses using laptop at home
Investing Articles

2 value stocks with high dividend yields to buy in July

Our writer examines two value stocks for his portfolio that marry low price-to-earnings ratios with high dividend yields.

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Could I double my money buying at today’s Scottish Mortgage share price?

The Scottish Mortgage share price has crashed. Does that mean now could be a rewarding moment for our writer to…

Read more »

Hand holding pound notes
Investing Articles

Will the Lloyds dividend yield top 5%?

Our writer considers the outlook for the Lloyds dividend -- and what he should do about it.

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

3 ways I’m protecting my FTSE 100 stock portfolio right now

Jon Smith writes about several different ways he's trying to plan for the future to try to make his FTSE…

Read more »

Preparing a budget during a pandemic
Investing Articles

3 reasons I think the Aviva share price could double in 5 years

I'm not aiming to get rich quick, but today's Aviva share price makes me want to buy more and hold…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The easyJet share price fell 10% last week. Here’s what I’m doing!

Last week saw the easyJet share price continue its poor performance. Here, this Fool weighs up if this is an…

Read more »

Lady wearing a head scarf looks over pages on company financials
Investing Articles

Are Royal Mail shares a buy today?

Royal Mail shares have experienced a drastic fall this year. In this article, Charlie Keough decides whether this is an…

Read more »

A bull outlined against a field
Investing Articles

2 FTSE 100 shares for the new bull market

I think the FTSE 100 is home to some promising companies such as these two I'd consider owning shares in…

Read more »