Here’s 1 of my best stocks to buy now and hold!

Jabran Khan details one of his best stocks to buy now and explains why he is considering adding more shares to his holdings.

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I recently purchased Rightmove (LSE:RMV) shares. I consider it to be one of the best stocks for me to buy now given my investing mantra, which is to buy and hold for the long term.

The burgeoning housing market in the UK, as well as pressure on tech stocks has made me consider adding further shares to my holdings. 

Market leader is the UK’s largest online property website in the UK. Founded in 2000, when the top four estate agencies combined forces to create the platform, the business has gone from strength to strength. It currently resides on the UK’s premier index, the FTSE 100 and has a market cap of over £5.5bn.

As I write, Rightmove shares are trading for 655p. At this time last year, the shares were trading for 595p, which is a 10% increase over a 12-month period. Most of my best stocks to buy now have produced double-digit returns over a 12-month period.

The Rightmove share price has come under pressure recently, as have many others. Macroeconomic factors, as well as the tragic events unfolding in Ukraine, have led to volatile global markets in the past few months. Rightmove’s shares have dropped from 800p to current levels between December 21 to today. That is an 18% decline.

Why Rightmove is one of my best stocks to buy now

One of the key reasons I like Rightmove is its position in its industry. I view it as an industry leader and the go-to platform for many property seekers and sellers in the UK. This unique position provides it with a competitive advantage. This gives it excellent pricing power, which helps it grow organically, in turn, potentially increase shareholder returns.

It is worth noting a risk of growing competition in the marketplace that could hinder Rightmove’s progress. There are now many other websites and portals available for sellers and property seekers alike.

Although the current macroeconomic environment may look volatile, the UK housing market is booming. Demand for housing in the UK is far outstripping supply. When the pandemic hit, the UK government scrapped stamp duty for a year which boosted the market further. In addition to this, Rightmove recently reported house prices are at their highest levels since 2016. All these factors, and Rightmove’s dominant position in the market should help boost performance and returns.

The risk Rightmove’s progress faces in the short term, in my opinion, is rising interest rates. These rates could put new and first time buyers off from purchasing properties. I do believe this is not something that will affect Rightmove in the longer term.

I’m buying more shares

Rightmove’s final results posted last month made for excellent reading and have helped me come to the conclusion to purchase more shares for my holdings. Revenue, profit, and dividend per share all increased compared to the year before. A dividend yield of close to 2% is a bonus for me as it would help me make a passive income.

I think Rightmove is one of my best stocks to buy now that fits perfectly with my long-term, buy-and-hold investing mantra. I do expect some minor headwinds due to global volatility.

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 assessed. Consider taking independent financial advice.

Jabran Khan owns shares in Rightmove. The Motley Fool UK has recommended Rightmove. 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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