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Best stocks to buy now: this FTSE stock is high on my list!

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A FTSE stock on my best stocks to buy now list is Playtech (LSE:PTEC). Despite the Covid-19 pandemic having an impact on performance, here’s why I think this stock could make a good addition to my portfolio.

FTSE gaming giant

Playtech is not your typical online gaming firm. It has grown to become one of the largest online gaming software suppliers in the world. Some of its license agreements are with well-known names such as William Hill, Ladbrokes, and Warner Bros. It also strategically acquires companies that will diversify its offering and enhance its footprint, which is something I admire immensely.

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As I write this, Playtech shares are trading for just over 465p. This is nearly 100% higher than this time last year. At its current levels, the FTSE 250 incumbent is trading over 30% higher than pre-crash levels. I believe this is down to strong performance as well as recent full year results. I believe it benefited somewhat during the lockdown as people looked to other forms of entertainment such as gaming when they couldn’t go out to eat, drink, or fly to their favourite holiday destinations.

Full year results and Covid-19

Full year results as a whole are a mixed bag for Playtech as Covid-19 did affect it. I still put it on my best stocks to buy now list despite this impact. Business-to-business performance was the main revenue stream which caused revenue to fall. The cancellation of sporting events also played its part. On a positive note, Playtech’s digital segment grew 30%. This was driven by casino, live casino bingo, and online poker businesses, which thrived.

Best stocks to buy now have risk and reward

The reason I place Playtech on my best stocks to buy now list is due to its unique offering and standing in a multi-billion dollar industry. I do expect further trading updates to reveal a return to profitability from a business-to-business perspective. It also has a favourable track record and is well positioned to ride the wave of online betting becoming big business.

Internet betting has become a key activity in recent times and Playtech is well positioned to ride this wave and benefit. It is believed that the size of the global gaming market will be worth close to $100bn in just three years’ time. I see PTEC having a big chunk of that pot.

Analysts have predicted a nearly 70% improvement in annual earnings for 2021 for Playtech. Furthermore, in October of last year, insiders were buying shares, which always fills me with confidence. If those at the top are confident in investing their money then I also feel better about investing my hard earned cash too.

There are risks associated with Playtech, as with any stock. It is in a very heavily regulated industry. If restrictions and regulations change, this could affect operations and profitability. In addition to this, we are still in the pandemic. Further lockdowns and variants of the virus could mean more negative impact on the B2B side of things as well as cancelled sporting events which will affect revenue streams.

At its current price point, it is firmly on my best stocks to buy now list. I believe it could enhance my portfolio for the long term, which is how I invest. Here is another FTSE stock I really like.

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Jabran Khan has no position in any of the 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.

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