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2 FTSE 100 stocks to buy right now

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I’ve recently been looking for FTSE 100 stocks to buy for my portfolio to capitalise on the economic recovery over the next few years. With that in mind, here are two blue-chip stocks to buy right now, based on my analysis. I’d buy both of the companies for my portfolio today. 

Best stocks to buy now?

One sector that’s benefited tremendously over the past 12 months as consumers have been stuck at home is the online gambling market.

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Ethical considerations aside, this industry has seen tremendous growth during the past 12-months, despite many sporting events being disrupted. Instead of betting on sporting events, consumers have turned to online casinos.

With so much spare time at home, this has become a popular pastime for many. Gaming companies like Entain (LSE: ENT) and Flutter Entertainment (LSE: FLTR) are capitalising on this trend.

Entain, formerly known as GVC Holdings, has used some of its pandemic profits to launch a takeover offer for European peer Enlabs. The £311m proposal will expand Entain’s presence in Sweden. 

Usually, I’d be sceptical about a company that’s buying up growth. Spending money on acquisitions can often result in disaster and lead to large write-offs and high costs if a business struggles to integrate the target.

However, Enlabs has a long track record of successfully buying and integrating businesses. That’s why I think this could be one of the best FTSE 100 stocks to buy right now.

The pandemic has produced windfall profits for the group. Net income hit £58m for 2020, the first time since 2015 the organisation has reported a profit. Analysts are expecting further growth in 2021 as Entain capitalises on the tailwinds seen in 2021.

Analysts are forecasting a net profit of £335m for 2021. That said, these are just forecasts and should not be relied on for making investment decisions. The company may underperform or outperform this figure.

FTSE 100 growth star? 

Flutter is also expected to report a dramatic increase in profitability, thanks to the pandemic. Analysts project a potential net profit of £528m for 2021. That’s up from £144m in 2019. Still, as noted above, these are just forecasts and should be taken with a pinch of salt at this stage. 

Nevertheless, the group may benefit from a one-off jump in profitability if it decides to go ahead with the potential IPO of its US business FanDuel. Such an IPO may be highly sought after as this is one of the fastest-growing gaming firms in the country. That said, there’s no guarantee any listing will go ahead at this stage.

While these companies have seen an increase in profitability over the past 12 months, the good times may not last. With an economic unlocking underway in the UK and US, consumers will likely spend less time at home. That implies they’ll spend less time gaming.

This could have a significant impact on Entain and Flutter. So, while the City is currently expecting the good times to last, I wouldn’t be surprised if earnings come in below expectations. As well as this risk, there’s always the threat of regulatory headwinds, which are particularly challenging for gambling companies. 

Despite these risks, I believe these FTSE 100 companies are some of the best stocks to now based on their long-term potential. I’d buy both for my portfolio today. 

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of Flutter Entertainment. 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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