These FTSE 100 shares could be some of the best stocks to buy now
I think some of the best stocks to buy now can be found in the FTSE 100. This blue-chip index contains the UK’s 100 largest listed companies. In my opinion, it’s a great place to look for investments.
Buying shares in large companies isn’t risk-free, but it certainly comes with less risk than investing in small-caps. Smaller businesses can lack the checks and balances required to discover problems before they become a large issue.
With that being the case, here are some of the FTSE 100 growth shares that I believe are the best stocks to buy now.
FTSE 100 investments
Mining and commodity companies are expected to be some of the market’s best growth stocks for 2021 and 2022. Rising commodity prices have helped these organisations, and put them on track to generate record profits over the next 12 months.
With that in mind, I think mining giant BHP could be a good buy today. The company is the world’s largest mining group, producing everything from copper to iron ore. These key commodities’ prices have already risen rapidly over the past 12 months. That could translate into large profits for the miner.
Meanwhile, Glencore is also set to benefit from rising commodity prices and increased demand for commodities. The commodity trader helps companies get resources to where they need to be. This business comes with low-profit margins, but as the largest trader in the world, Glencore has significant economies of scale.
Of course, these commodity giants are also exposed to substantial risks. Commodity prices can be highly volatile. Just because they’ve risen for the past 12 months, does not mean that they will continue to move higher. So that’s something investors need to consider.
Still, I’m comfortable with the risks of owning these FTSE 100 stocks. That’s why I would buy them for my portfolio today.
Best stocks to buy now?
Two other FTSE 100 companies that are set to report explosive growth next year, according to current projections, are Hargreaves Lansdown and Smiths.
These are two very different businesses. Hargreaves is the country’s largest online stockbroker. Smiths is one of the world’s largest healthcare businesses.
They’re also expected to grow for different reasons in the year ahead. Hargreaves should benefit from an increase in trading commissions. On the other hand, Smiths may benefit from the resumption of surgical operations that were postponed this year due to the pandemic.
These forecasts are, however, just that at present. There’s no guarantee Hargreaves will see an increase in trading commissions over the next 12 months. There’s also no guarantee Smiths will see additional demand for its medical products. Demand may remain depressed for some time, making City growth expectations irrelevant.
That’s always going to be a risk with buying growth stocks. Nonetheless, I still believe that these are some of the best shares to buy today, and I’m considering adding the FTSE 100 stocks to my portfolio.
5 Stocks For Trying To Build Wealth After 50
Markets around the world are reeling from the coronavirus pandemic…
And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.
But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.
Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…
You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.
That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.
Click here to claim your free copy of this special investing report now!
Rupert Hargreaves does not own any share mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. 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.