Should I buy these 3 reopening stocks (including this FTSE 100 share) in May?

Investor interest in UK shares has marched northwards in recent weeks. Is now the time to buy these reopening stocks for my Stocks and Shares ISA?

| 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.

Demand for UK shares has risen over the past few weeks as hopes over the economic recovery have picked up. Uncertainty over global activity remains high as the Covid-19 crisis drags on. But it’s possible that investor interest in so-called reopening stocks will continue rising in the days and weeks ahead. These sort of shares stand to gain the most from retreating Covid-19 lockdowns and travel restrictions.

 Should I buy these UK reopening stocks for my ISA in May?

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!

One of my FTSE 100 favourites

Associated British Foods (LSE: ABF) would be an attractive UK share to buy during any usual economic recovery. But I think the FTSE 100 stock is a particularly great company to buy this time around. Why? Well I think clothing spending is likely to be particularly high following the end of Covid-19 restrictions. This bodes well for this reopening stock’s fast fashion Primark division.

News of huge queues forming outside its storefronts have been plastered all over the papers recently as people have sought to glam up and refresh their wardrobes as they hit the town (and the workplace) again. Indeed, Primark enjoyed record weekly sales in England and Wales during the seven days to 12 April. I think ABF is a great pick for long-term share investors as the business seeks to expand its presence on foreign shores. But bear in mind that rising concerns over sustainability could cause profits growth to disappoint if consumers begin to turn their backs on fast fashion.

Man-made threats

I don’t think Gem Diamonds (LSE: GEMD) is an attractive reopening stock to buy today, however. That’s even though consumer spending is likely to receive a jolt. Buying UK mining shares requires a healthy tolerance of risk as a variety of exploration and production problems can unexpectedly occur. However, in the case of this company I’m chiefly concerned by the soaring popularity of lab-grown diamonds and how this will damage long-term profit. Today Pandora, the world’s biggest jewellery chain, said it will no longer sell mined stones on ethical and environmental concerns. It will sell artificial diamonds only, a move that could be replicated by other major chains before too long.

A better UK reopening stock

I’d be happier buying Wizz Air (LSE: WIZZ) shares for my Stocks and Shares ISA today. Of course this reopening stock also carries its fair share of risks today as Covid-19 infection rates remain buoyant in large parts of Europe. still, I think this UK share has a much brighter long-term future than Gem Diamonds. Firstly, the low-cost airline segment is expected to drive the recovery in the broader aviation sector. Secondly, this particular operator has significant exposure to Central and Eastern European emerging markets, regions where travel spending is growing strongly. Things are also looking up in the shorter term, too, with European Union lawmakers proposing plans to permit inbound travel under certain conditions. It’s possible that the continent’s airways could be buzzing again in a matter of weeks.

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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods and Wizz Air Holdings. 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

Young woman with face mask using mobile phone and buying groceries in the supermarket during virus pandemic.
Investing Articles

Down over 80%, is the boohoo share price a steal?

The boohoo share price has lost over four fifths of its value in one year. Our writer explains why he's…

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing Articles

Here’s why I’ll buy this FTSE 250 growth stock next month

Andrew Woods likes this FTSE 250 growth stock and thinks it would be a good addition to his portfolio as…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

3 signs that shares could be set for a new bull market

Stock markets are cyclical, and investors go through phases of buying and selling. How can we best deal with the…

Read more »

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

How I plan to make passive income with just £3 a day

There are multiple ways to make passive income in 2022, but our writer considers a popular method that involves dividend…

Read more »

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

Lloyds shares are down 10% in 2022. What next?

Lloyds shares have dropped by almost a tenth so far in 2022. But the bank is in good shape to…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How to aim to use the Warren Buffett method to make a million, starting today

Why do investors love Warren Buffett so much? His 3.6 million percent investment return since 1965 probably has a lot…

Read more »

Various denominations of notes in a pile
Investing Articles

3 big income stocks hiding in plain sight

There are plenty of high-paying income stocks flying under the radar right now. Paul Summers offers three examples he likes.

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

2 FTSE 100 shares I’m buying in July

Andrew Woods wonders whether these two FTSE 100 shares could bring growth to his portfolio and if he should add…

Read more »