The term ‘V day’ has historically been used to commemorate a victory in important battles or wars. Today, it took on another meaning as the first Covid-19 vaccine was administered. With vaccination beginning and hope of normality returning, here are some of my best shares to buy now.
#1 Travel stocks
Airlines are not the best shares to buy now in my opinion. But I am looking at alternatives such as National Express, Stagecoach, and Go Ahead Group. Each of these travel stocks are national bus operators with extensive operations throughout the UK and in international markets too. The Covid-19 pandemic put paid to public transport so share prices and performance declined badly. That being said, there are opportunities to pick up cheap shares in these firms in my opinion. Social distancing and face masks means public transport is beginning to return to normal levels. With vaccination upon us, share prices are rallying and I expect performance for these stocks to do the same.
#2 The best shares to buy now are defensive
Defensive stocks are those which will perform consistently despite the market downturn. The top defensive stocks are those that provide essential products and services. With that in mind, I really like the look of consumer goods giants Unilever and Reckitt Benckiser Group.
Loyalty to the popular brand names that each of these firms possess means that they consistently perform well. Worldwide reach and brand loyalty and recognition has successfully equated to high profits and plenty of cash surplus. This surplus is usually good news for investors. Unilever has not cut its dividend for 20 years. It is also currently trading at a lower price point than prior to the market crash.
Reckitt is also enjoying stellar performance of late. Its hygiene division is experiencing huge demand and sales across the board are up. Insiders are currently buying shares which for me is a tell tale sign things are going well and why I rate it as one of the best shares to buy now.
3# Tech stocks
Last but not least technology stocks have always been considered a safe bet in my opinion. Due to the Covid-19 pandemic, the need for technology has sped up as many look to streamline and automate manual processes. That’s why I really like Sage Group and Avast as two of the best shares to buy now.
Sage is a world leader in accountancy software. With sales of nearly £2bn each year, it is a successful, established company. I would class it as a reliable tech stock with further growth potential. Earlier this year it reported almost 90% of its revenue was recurring. It has a solid balance sheet, very little debt, and supports strong cash generation with high profit margins.
Avast is known for its anti-virus software with a reported 400m users worldwide. Cyber security has become a big business in recent times as technology has evolved. Avast’s profits continue to rise and it possesses a business model which works for it well. Covid-19 has not affected sales as the first half of 2020 saw underlying profits rise by nearly 15%. High profit margins and growth potential are what make me add Avast to my best shares to buy now list.
Jabran Khan has no position in any 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.