Despite the current economic environment, some FTSE 100 shares have reported a relatively robust financial performance recently. And one growth stock has achieved a much better performance than many of its peers.
As such, now could be the time to snap up a share of this FTSE 100 growth champion. It could continue to produce high returns in the long run that improve your financial prospects.
The economic impact of coronavirus is likely to be significant. Some businesses though, have reported an improved trading performance in the pandemic.
One such company is the online supermarket Ocado (LSE: ODCO). According to the organisation’s latest trading update, sales at the group are booming as shoppers have been forced to move away from traditional brick and mortar retailers.
Thanks to this trend, group sales doubled in the company’s second quarter. The FTSE 100 growth stock was even forced to suspend customer signups for several days to deal with demand.
Following this growth, Ocado is expecting sales to grow by a double-digit percentage this year. It’s unlikely this will be just a flash in the pan. The coronavirus pandemic has pushed more consumers to shop online. Many are finding it easier and simpler than going to the store. This may mean they stick with Ocado even after the lockdown is over.
Ocado is a pioneer in the use of robot warehouses. This has helped the company gain an edge over competitors in the recent virus crisis.
Not only does the company sell grocery products to consumers, but it also sells technology. Ocado has been selling its warehouse technology all over the world. This should help the business reap big profits in the future as these deals start to pay off.
For example, the business already provides technology solutions for FTSE 100 peers Wm Morrison and Marks & Spencer.
Other retailers may also consider signing up to Ocado’s offering in the near term. The pandemic has highlighted how fragile supply chains really are. The FTSE 100 growth stock’s technology could help other retailers protect their operations from similar outbreaks in the future.
FTSE 100 growth stock
All in all, with sales booming and demand for the company’s technology only set to grow, it looks as if Ocado’s future is bright. A sustained growth period is likely over the coming years, especially with demand for the firm’s technology services likely to support sales growth in the long run.
Over the past two-and-a-half years, shares in the retailer have jumped by more than 600%. That’s enough to turn every £1,000 invested into more than £6,000.
Clearly, there are risks ahead for investors, and the growth stock may not repeat this performance over the next two-and-a-half years. However, with demand for its services booming, now could be a great time to buy a share in this enterprise.
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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.