The Motley Fool

FTSE 100 bargains: the best stocks to buy right now

Image source: Getty Images

Stock markets around the world have rallied in the first few weeks of 2021. However, the FTSE 100 has lagged behind its global peers. As such, I believe some of the best stocks to buy right now could be hidden in this index. 

Here are three companies, in particular, that stand out to me as being undervalued today. 

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...

The best stocks to buy right now

BT (LSE: BT.A) is one company investors love to hate. The telecommunications giant has produced relatively poor returns for investors for the past five years. It is easy to understand why. The group has been haemorrhaging customers, it has a lot of debt, and the organisation recently eliminated its dividend

Nevertheless, despite these challenges, BT is trying to change for the better. It is investing more in customer service and infrastructure. I think these investments will help the company return to growth, although it still faces substantial competition from peers and has a mountain of debt to manage. 

Despite these challenges, I think the FTSE 100 stock has potential. That’s why I would buy the company for my portfolio today. 

Banking recovery

NatWest (LSE: NWG) is another company that investors aren’t always keen on. The group, which was formerly known as RBS, is still majority-owned by the UK government after being bailed out in the financial crisis.

Following the pandemic, NatWest’s outlook is pretty mixed. The group is expecting to write off billions of pounds of defaulted loans. Low interest rates have also curbed its profit margins. These risks won’t go away any time soon. 

Looking past these issues, however, NatWest’s long term outlook is improving. If the UK economic recovery starts to gain traction over the next 12 months, the group may see an improvement in demand for loans and mortgages. That would help its bottom line. Regulators have also given the green light for the firm to reintroduce dividends

With the stock trading at a significant discount to book value at the time of writing, I think this could be one of the best shares to buy now to capitalise on the recovery. That’s why, despite the risks outlined above, I’d buy it now. 

FTSE 100 recovery play 

Another recovery play I would buy today is British Land (LSE: BLND). Shares in this organisation have fallen dramatically over the past 12 months. However, the decline has outpaced the fall in the value of the company’s property portfolio. I think this presents an opportunity.

As the UK economic recovery gets under way, British Land may see an increase in rent collections and property values. This could lead to a significant improvement in investor sentiment towards the business, propelling shares in the FTSE 100 real estate investment trust higher. 

That being said, there’s no guarantee the UK economy will improve markedly over the next 12 months. Commercial property values could continue to decline, putting additional pressure on the company’s balance sheet. In the worst-case scenario, British Land may even have to ask shareholders for more money to keep creditors at bay. 

These risks could hurt the company’s long-term potential. Still, I think it’s one of the best shares to buy now as a way to profit from a potential economic recovery. 

One stock for a post-Covid world...

Covid-19 is ripping the investment world in two…

Some companies have seen exploding cash-flows, soaring valuations and record results…

…Others are scrimping and suffering.

Entire industries look to be going extinct.

Such world-changing events may only happen once in a lifetime.

And it seems there’s no middle ground.

Financially, you’ll want to learn how to get positioned on the winning side.

That’s why our expert analysts have put together this special report.

If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains...

Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge!

Rupert Hargreaves owns shares in British Land Co. The Motley Fool UK has recommended British Land Co. 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

Renowned stock-picker Mark Rogers and his 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 click below to discover how you can take advantage of this.