The Motley Fool

Forget the stock market crash! I’d buy these 2 FTSE 100 stocks in an ISA today

Image source: Getty Images.

The FTSE 100’s recent decline has been painful for most investors. Paper losses are likely to have been seen, often big ones. And the near-term prospects for the index could prove to be highly uncertain.

However, it is during such periods that the best buying opportunities can present themselves for long-term investors. The track record of the stock market shows that. The fact is, buying high-quality businesses while they are priced relatively cheaply can lead to high returns in the long run.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

With that in mind, here are two FTSE 100 shares which appear to offer improving outlooks. Buying them in an ISA today could lead to lucrative returns in the coming years.


Beverages company Diageo (LSE: DGE) has recorded a 15% decline in its share price since the start of the year. It reported in February that coronavirus was negatively impacting on its performance. Since then, the company is likely to have experienced further challenges across many of its markets. As such, its profit growth could experience a sharp decline in the coming months.

Clearly, it is not possible to know how long the coronavirus pandemic will last. Nor is it possible to know, at this stage, how deeply it will affect Diageo’s financial performance. But the company’s track record is strong. It has shown it is capable of delivering growth. And its stable of popular brands, could enable it to generate high returns in the long run.

The stock currently trades on a price-to-earnings (P/E) ratio of 19.6. This is significantly higher than many of its FTSE 100 peers, despite the company’s recent share price decline. However, its exposure to fast-growing emerging markets and its sound financial position mean that it could be worth a premium valuation. Over the long run, it has the potential to generate improving returns, which could make now the right time to buy a slice of it in an ISA.

Reckitt Benckiser

Another FTSE 100 global consumer goods business that has recorded a decline in its share price since the start of the year is Reckitt Benckiser (LSE: RB). Its shares are down 8% in 2020, although they had experienced a decline prior to the start of the year due to disappointing operational performance from the business in 2019.

It plans to increase its focus on fast-growing markets such as China, while aiming to enhance its position within the growing e-commerce market. This will require significant investment in the near term, but could lead to Reckitt Benckiser enjoying higher levels of growth in the long run.

The company currently trades on a P/E ratio of 17.5. This appears to be low relative to its historic levels, and suggests that investors have priced-in the uncertainties facing the business from coronavirus and from its weak recent performance. With a range of strong brands and what seems to be a sound strategy, now could be an opportune moment to buy Reckitt Benckiser for the long term.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Peter Stephens owns shares of Diageo and Reckitt Benckiser. The Motley Fool UK has recommended Diageo. 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

The renowned 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 enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.