Following the stock market crash earlier in the year, many FTSE 100 stocks have rallied back to previous highs. This means investors might have missed out on the opportunity to snap up high-quality businesses at deeply-discounted prices.
However, with some analysts expecting another stock market crash later this year, investors may have another chance. With that in mind, here are two FTSE 100 shares I plan to buy in the next crash.
FTSE 100 shares on offer
Next (LSE: NXT) is one of the UK’s most efficient retailers. Unlike many of its high street peers, the clothing giant has been investing heavily in its e-commerce infrastructure over the past few years. Online sales made up more than half of the group’s total sales last year.
Therefore, the FTSE 100 champion seems extremely well-positioned to profit from the boom in online shopping.
Next has other attractive qualities as well. The business has a credit card division, which is highly profitable, and it also helps other brands sell their goods. This implies the company has similar qualities to online retail giant Amazon, which uses its infrastructure to help other brands shift products.
In addition to these qualities, the FTSE 100 group is run by an experienced and high capable management team. Management also owns a large percentage of the company, so they’re highly incentivised to produce good outcomes for shareholders.
Considering all of the above, I think shares in Next could be worth snapping up in the next stock market crash as part of a diversified portfolio.
Another FTSE 100 stock I’ve currently got my eye on is information provider Relx (LSE: REL). The tech giant provides information and analytics for professional and business customers across industries. It specialises in the scientific, medical, and technology sectors.
This business is highly specialised. It’s also difficult to break into its core market. Customers will only buy data from trusted providers that can produce the best information. Cost isn’t necessarily a factor here, quality is vital.
That’s where FTSE 100 firm Relx excels. The group has been in business for over 100 years and, in recent years, its growth has taken off. Earnings per share have expanded at 12% per annum for the past six years. This has helped support share price and dividend growth. The per share dividend payout has nearly doubled since 2014.
As the world becomes increasingly reliant on tech, Relx should prosper. That suggests the stock could continue to provide high total returns in the years ahead when held in a diversified portfolio.
That said, shares in the FTSE 100 stock look a bit pricy right now. It’s trading at a forward price-to-earnings ratio of 20. That’s why I’d wait for another stock market crash before buying into the growth story for the long term.
Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended RELX. 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.