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This could be one of the best shares to buy now

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I believe magazine publisher Future (LSE: FUTR) is one of the best shares to buy now. I think this business is incredibly well run and, over the past few years, it’s been able to adapt to the changing media landscape.

As other companies in the sector have struggled, Future has pushed on thanks, in part, to its digital strategy. 

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Best shares to buy now for the long term

The publishing sector is facing pressure from the digital landscape. This isn’t a new phenomenon. Over the past two decades, as the internet has grown and developed, consumers have slowly moved away from print applications. 

The pandemic accelerated this trend. Rather than venturing out to buy physical publications, consumers read them online from the safety of their homes. 

Unlike other publishers, Future’s business model is built around the internet. The company has acquired a portfolio of specialist publications, which have a niche audience. Digital advertisers are willing to pay a premium to gain exposure to this audience. 

And Future has been more than happy to meet this demand. Digital advertising revenue and e-commerce product affiliate revenue make up a core component of its sales stream. This grip on the digital world is the primary reason why I think this is one of the best shares to buy now.

The business model gives the company the edge over its competitors. It’s been able to use the cash generated from existing operations to acquire new publications. Management can then integrate the new magazines into the digital infrastructure, reducing costs and increasing revenues. 

Growing with acquisitions

To bulk up the enterprise, Future also recently acquired the comparison website GoCo. According to the group’s latest trading update, the new acquisition is performing in line with expectations. The enterprise is on track to achieve £15m of synergies from the newly-acquired business. 

With digital advertising and the newly-acquired GoCo performing well, City analysts reckon earnings per share will jump 72% this year. As the company grows, it should generate more cash, which can be used for additional acquisitions, which will then drive the growth rate higher. 

There are a couple of risks with this strategy. There’s always going to be a risk the company will end up overpaying for an acquisition. This could lead to higher costs and a slowdown in growth.

Future also relies heavily on debt to fund its deals. Therefore, a sudden increase in interest rates could dramatically increase the group’s interest bill. 

Despite these risks, I continue to believe this is one of the best shares to buy now. That’s why I’d acquire the growth stock for my portfolio today.

Past performance is never a guarantee of future potential. But considering Future’s track record of buying and integrating acquisitions, I think the company can continue to grow using this strategy. 

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Rupert Hargreaves 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.

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