3 FTSE 100 shares to buy

Rupert Hargreaves looks at some of his favourite FTSE 100 shares to buy in the current market considering their growth potential.

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I’m always looking for FTSE 100 shares to buy for my portfolio. Right now, I think there are plenty of bargains on the market that could make great additions to my portfolio. Here are three of my favourite stocks on offer right now. 

FTSE 100 stocks 

The first company is the online vehicle marketplace Autotrader (LSE: AUTO). Like many businesses in the UK, last year was a challenging period for the FTSE 100 company. Revenues for the year to the end of March slumped 29%

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However, it seems as if things could be looking up this year. The demand for second-hand cars is booming. Some reports have even suggested used-car prices are rising so fast, vehicles become worth more the second they leave the forecourt. 

This is excellent news for Autotrader after a tough year. That’s why I think this is one of the best shares to buy now in the blue-chip index. 

Still, despite this potential, the company’s facing increasing competition in the market, which could harm growth. The market for used cars could also go into reverse at any point. 

Even after taking these risks into account, I’d still buy Autotrader for my portfolio. 

The best shares to buy 

As well as Autotrader, I’d also buy FTSE 100 company St. James’s Place (LSE: STJ) for my portfolio. 

The asset and wealth manager is benefiting from increased demand for its services across the UK. Indeed, for the six months to the end of June, the company reported gross inflows of £9.2bn.

The combination of these inflows and rising equity markets pushed group funds under management to £144bn, up from £129bn at the end of December 2020. 

With assets under management and profits rising, management’s reinvesting for growth. It’s increased the number of qualified advisors by 139 this year and is enrolling more in its Academy programmes. 

As St. James’s Place continues to reinvest in its adviser network, I think the company will continue to attract assets. This is why I think the stock’s one of the best shares to buy now in the FTSE 100. As we advance, some challenges it may face include competition and additional regulatory costs, which could impact profit margins. 

Double tailwinds 

The third and final group I’d buy for my FTSE 100 portfolio is Rentokil (LSE: RTO). The pest control company’s currently benefiting from a double tailwind.

The demand for pest control services is rising, and the number of acquisition opportunities is also increasing. In the first half of 2021, the company’s revenues grew 18%, and it completed 24 acquisitions.  

Like St. James’s Place, I think the group’s growth should continue as management reinvests for growth and demand for its services grows. Therefore, as Rentokil’s network expands, I reckon the stock could make the perfect growth investment for my portfolio. 

Risks it may face include higher wage and materials costs, as well as higher interest rates, which could make its acquisitions more expensive. 

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Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Auto Trader. 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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