The Motley Fool

Forget the stock market crash – I’d invest £5k in these 2 fast-climbing FTSE 100 stocks

Image source: Getty Images.

This year’s stock market crash was the fastest in history by some measures, and the FTSE 100 is still trading 20% below its January high. Not every company is down, though. These two winners are actually trading higher than at the start of the year. Any company that can emerge from the pandemic with its share price intact has plenty going for it. 

Now is a great time to go hunting for bargain FTSE 100 stocks after the stock market crash, but you might want to balance your risk by investing in one or two survivors as well. If I had £5k to invest, or any other sum, I’d consider splitting it between them.

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...

Ashtead Group has the power

The Ashtead Group (LSE: AHT) share price is up 40% in the last three months, and an incredible 165% over five years. Actually, it has done even better than that. Analysis by wealth platform AJ Bell suggests it is easily the best performing stock on the FTSE 100 over the past decade. In that time, it delivered a total return of 2,589.6%, with dividends reinvested for growth.

Ashtead is thriving thanks to US subsidiary Sunbelt, which generates 90% of its earnings from renting out industrial and power generation equipment. That means it has benefited from outperformance in the US.

It survived the stock market crash in reasonable shape. Now it could benefit from attempts by the US Federal Reserve and President Donald Trump to revive the economy, with monetary stimulus and an infrastructure splurge.

My one worry is that the infrastructure package has been widely anticipated, but not yet delivered. If it doesn’t come through, Ashtead could stutter. A victory for Democratic candidate Joe Biden could also lead to corporate tax hikes, squeezing Sunbelt’s earnings.

This is a solid business, though, one that has been able to get through the pandemic without making staff redundant or calling on government furlough schemes. It also maintained its dividend, despite profits halving in the fourth quarter. The yield is low at 1.5%, but covered three times by earnings. Today it trades at 14.75 times earnings.

Bunzl survives the stock market crash

Distribution and outsourcing group Bunzl (LSE: BNZL) has also bounced back strongly since March, rising 33% in the last three months.

As an international business-to-business group, the Bunzl share price fell during the stock market crash, but its resilience is impressive. Last month, it announced 6% revenue growth despite the pandemic, boosted by recent acquisitions.

While profits at its lower margin food service and retail sectors took a knock, the FTSE 100 group benefited from rising demand at its safety, cleaning & hygiene and healthcare sectors, where it enjoyed “significant sales volumes of Covid-19 related products”.

Bunzl is repaying employee-related government support packages and bringing forward the settlement of tax deferrals where possible. “Substantial funding headroom available with strong cashflows and a robust balance sheet”, makes this a strong package.

You can buy it today or put it on your watch list and load up if we get another stock market crash.

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...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Harvey Jones 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.

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.