2 FTSE 100 growth stocks I’d buy right now

Rupert Hargreaves takes a look at two FTSE 100 growth stocks that could exit the coronavirus outbreak in a stronger position.

| More on:

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

At this point, it’s not easy to pinpoint which FTSE 100 growth stocks will emerge from the coronavirus crisis in one piece.

However, two companies stand out as being better positioned than many of their peers to weather the storm.

Top FTSE 100 growth stocks

Ocado (LSE: OCDO) stands out to me as one of the best FTSE 100 growth stocks.

The company has never reported a profit, but during the past five years, it has become a world leader in online shopping. Ocado has signed contracts with retailers all over the world to provide its online retailing technology.

Its technology has helped it manage the surge in demand for its services over the past few weeks. As robots predominantly operate the group’s warehouses, there’s a low risk that the virus outbreak will force the business to shut up shop.

That being said, Ocado did have to close its website at the end of last month. The firm was struggling to deal with a surge in new customers. Management will be hoping these customers will stick with the business for life.

As such, now could be an excellent time to snap up a share in this leading FTSE 100 growth stock.

As mentioned, the company isn’t profitable just yet, but analysts were expecting the group to produce sales of £2bn in 2020. It looks as if there’s a good chance Ocado could now go past this projection.

Delivered to your door

As well as Ocado, another business that’s likely seen a spike in demand for its services over the past few weeks is Just Eat Takeaway.com (LSE: JET). 

With many customers stuck in their homes, and restaurants unable to open, consumers have turned to online delivery platforms to bring the restaurants to their door.

As FTSE 100 growth stocks go, this business stands out. Indeed, Just Eat was already a market leader before the virus outbreak. The disruption might allow it to consolidate its position in the market.

After Just Eat merged with Takeaway.com earlier this year, the group is now a European tech champion. Analysts are expecting profits to grow by more than 160% over the next two years.

With demand for delivery services spiking, there’s a good chance Just Eat could now beat this target.

There’s also been some speculation that when the lockdown is over, consumers won’t go back to their old habits. This suggests working from home might become more mainstream. Ordering food to your door, rather than going out, might also grow in popularity.

Only time will tell if this will take place, but it is another reason why Just Eat could be a good investment at current levels.

As such, if you are looking for FTSE 100 growth stocks to add to your portfolio today, these tech champions might be worth a closer look. As they continue to dominate their respective markets and build on the successes of the past few years, investors could see big returns. 

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.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. 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.

More on Investing Articles

Illustration of flames over a black background
Investing Articles

2 red-hot UK growth stocks to consider buying in April

These two growth stocks are performing well, but can they continue to deliver for investors through 2024 and beyond?

Read more »

Charticle

Is JD Sports Fashion one of the FTSE 100’s best value stocks? Here’s what the charts say!

The JD Sports Fashion share price remains a wild ride during the first quarter. Could it be one of the…

Read more »

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »