The Motley Fool

2 of the best reopening stocks to buy in June

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.

macro shot of computer monitor with FTSE 100 stock market data in trading application
Image source: Getty Images

UK share prices are back on the ascent as optimism around the economic recovery improves. I myself have my eye on several reopening stocks whose profits could be about to explode as Covid-19 lockdowns end. Here are a couple of the best that are on my list today.

Riding the jobs recovery

Buying shares in London-listed recruitment stocks is a great way to ride the economic recovery, in my opinion. And I think Robert Walters (LSE: RWA) is a particularly-attractive reopening stock because of its dirt-cheap price. City analysts think earnings here will rise 180% year on year in 2021. This leaves the company trading on a forward price-to-earnings growth (PEG) ratio of just 0.2. A reading below 1 suggests that a UK share could be undervalued.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Data from the UK illustrates how strongly profits could be about to explode at Robert Walters and its peers. According to the Chartered Institute of Personnel and Development, employers in Britain — a territory responsible for a quarter of Robert Walters’ net fees — are planning to take on staff at their fastest pace for nine years.

I think this particular reopening stock is a great pick for long-term investors too. Asia is Robert Walters’ single largest territory, one which I expect to deliver mighty income growth as economic conditions there boom. But I have to remember that companies like this are only as good as the talent they are looking to find jobs for, however. And a brain drain among its candidate pool versus that of its rivals could hit profits hard.

A Ryanair cabin crew member

Another top reopening stock to buy

The flight plan for Ryanair’s (LSE: RYA) recovery remains packed with risk. But I still think it could prove to be a clever buy, despite its current perils.

Covid-19 infection rates across much of mainland Europe have trended lower in recent weeks, leading to hopes that the Irish flyer’s planes could be back in the skies en masse before too long. But there’s a long way to go before the public health emergency is over and spikes like that currently being reported in Britain will be greeted with fresh dismay.

As a long-term investor though, I think Ryanair could be considered a very attractive reopening stock to buy today. Thanks to the €1.2bn Eurobond the company issued last month it retains one of the strongest balance sheets in the industry. I’m confident that it will have the financial might to overcome the Covid-19 crisis and to ramp up capacity quickly as lockdowns are phased out.

Passenger demand for low-cost plane tickets rocketed during the first couple of decades of the century. I’m confident that they will remain the driving force behind the wider aviation industry when the pandemic finally ends too. And this particular reopening stock has a considerable geographical footprint from which to exploit the market to its fullest.

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 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.