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Post-Brexit investing: 4 FTSE 100 shares I’d buy now

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The Brexit deal is finally here. With its timely pre-Christmas release, it sounds like nothing short of a miracle considering the cloud of uncertainty we were all living under until very recently. The stock markets are clearly happy. The FTSE 100 index continues to rally as I write this Tuesday afternoon. 

Even though the continued pandemic may dent the euphoria, I reckon some shares will perform well because of this. Here are four of them: 

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#1. Auto Trader could see market improvements

Digital marketplaces are will only grow over time and Auto Trader can win just by being a well-run business in the segment. It has taken a financial hit this year, but it’s optimistic about its long-term prospects. So are investors in the stock, going by its share price performance. It has shown a strong comeback since the stock market crash and is now trading at a price-to-earnings (P/E) ratio of 36 times. 

With the Brexit deal done, it can get a further boost as prospects for the UK, its main market, improve.

#2. Burberry could see post-Brexit stability

While this FTSE 100 luxury brand and retailer has a significant global presence, Europe is an important market for it as well. Exact revenue from the continent is unknown, because it’s reported clubbed together with revenues from the Middle East, Africa, and India.

All together they are 37% of the total, of which I’m guessing a non-trivial proportion is from Europe. With a Brexit deal in place, the threat of any loss of business on lack of regulatory clarity or higher taxes has now dissipated. 

The Chinese market, a big one for BRBY, is anyway on the upswing, as is its share price. With its European market now better placed too, 2021 can be a good year for the stock. 

#3. Segro to benefit from UK’s online shopping

The FTSE 100 real estate investment trust, with interests in warehousing properties, released a positive trading update in late October. It has signed new contracts and its rental income is healthy too. With the uptrend in online shopping expected to continue, especially because of the pandemic, Segro’s fortunes can also be reasonably expected to move in that direction.

This is even more so after Brexit, considering that it operates in the UK and some parts of Europe only. Better prospects for the UK can boost Segro’s business further.  

#4. Persimmon to get Brexit boost

FTSE 100 real estate stocks were among the biggest gainers last year when Boris Johnson won the UK general election with a clear majority. I reckon that with greater certainty on Brexit now, they can show even greater gains. 

If the stamp duty waiver is withdrawn, as currently planned, there will be a hit to the real estate market. But if the pandemic comes under control soon, it may only be a short-term one. PSN, with its share price performance and dividend yield, is my preferred stock among the real estate set. 

A Top Share with Enormous Growth Potential

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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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Manika Premsingh owns shares of Burberry. The Motley Fool UK has recommended Auto Trader and Burberry. 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.

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