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Which are the best FTSE 100 shares to buy right now? Here are my top picks

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After shedding around 32% of its value in the depths of the stock market crash, the FTSE 100 index has since risen by 20%. At first glance, this may seem like an impressive recovery. However, in comparison with other major global indices, the FTSE’s recent performance has left a lot to be desired.

That said, I’m confident that there are plenty of buying opportunities for investors savvy enough to spot them. After all, the UK’s blue-chip index is home to some of the world’s most well-established companies.

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With that in mind, here are two FTSE 100 stocks that I think rank among the best investments for this month and beyond.

A FTSE 100 growth gem

First up is GVC Holdings (LSE: GVC), a company that has plenty of growth potential, in my view. In fact, over the last six months, the sports betting and gambling firm has been one of the best performing stocks in the entire index. Its share price has risen by a whopping 57% at a time when many other UK-listed companies have watched their valuations falter.

In my opinion, this reinforces the idea that GVC makes for a wise investment given the current level economic uncertainty. In fact, I reckon it’s likely that the gambling company could be one of the few businesses in the FTSE 100 to continue with a strong trading performance in spite of looming lockdown restrictions and widespread financial hardship.

Despite restrictions forcing GVC to close its retail stores, the company has profited handsomely. This is primarily thanks to strong online gaming and gambling revenues. For example, net gaming revenue rose 14% in the third quarter of 2020. Moreover, full-year cash profits are now expected to be ahead of previous guidance.

Considering the company’s outstanding performance, subsequent share price boom and bright future prospects, GVC shares still look under-appreciated in my eyes. Ultimately, a forward price-to-earnings ratio of 16 suggests there could be significant value to be had.

The cheapest stock in the entire index?

Secondly, shares in Aviva (LSE: AV) have been catching my eye recently. The principal reason for this being how insanely cheap they look, with a forward P/E ratio of 4.6.

Don’t get me wrong, the shares won’t be delivering any eye-watering returns in the months and years to come. Nonetheless, I’m confident that there’s significant room for growth in the company’s valuation. Combine this with a generous dividend yield and what’s not to love?

Evidently, the insurance company was never going to pass through the coronavirus pandemic unscathed. However, I’ve been impressed by the group’s new business growth, positive operating profits, and improved capital position. As a result, Aviva has committed to restarting its dividend payment (albeit reduced) sooner than analysts first anticipated.

Ultimately, with Aviva’s valuation still down 30% on the year, I reckon there’s an ideal opportunity here to grab a bargain. What’s more, it seems that the group’s leadership feels the same way, with the new CEO, Amanda Blanc, recently hoovering up £1m worth of shares in the company.

A Top Share with Enormous Growth Potential

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Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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Matthew Dumigan 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

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