I have picked some of my best stocks to buy now from sectors that are thriving or can thrive in the future for my portfolio.
Sectors that are currently thriving
E-commerce has surged due to the rise in demand for online shopping due to restrictions. I believe the virus accelerated a shift towards online shopping and entertainment, away from the high street. Firms need e-commerce solutions to cater for rising demand from their customers.
Online gaming benefited when many of us were in lockdown, looking for new pastimes and with a bit more money in our pocket as we were unable to go to the cinema, or our favourite restaurants or bars.
Leisure firms will benefit in my opinion due to pent-up demand. After a long period of isolation, people want to go out and spend, me included. Restaurants, pubs, and other leisure firms could fare well if they have survived the downturn.
My best stocks to buy now picks from these sectors
Clipper Logistics (LSE:CLG) is a stock I like. It has thrived during the economic downturn and continued on an upward trajectory. Shares are currently trading for 829p per share. This is a 145% increase on levels from this time last year. Results have been promising as organic growth continued, supplemented well by new contract wins. The risk involved with Clipper is that it is trading at all-time highs and can be considered expensive trading at a price-to-earnings ratio of 44. Any negative news could mean a sharp share price fall.
FTSE 100 incumbent Flutter Entertainment (LSE:FLTR) is my next best stock to buy now pick. It operates one of the largest gaming and gambling platforms in the world. Under its umbrella, it has many brands and companies such as Betfair and Paddy Power. A recent trading update confirmed its momentum continues as player numbers are increasing as well as year-on-year revenues. In addition to this, it is experiencing growth in previously untapped markets such as the US. The risk with Flutter is that it, like Clipper, is trading at a high price of 12,545p per share. When its recent news of positive trading broke, it didn’t surge which indicates a lot of this news was already priced in. A bump in the road could cause a share price drop, a bit like Clipper.
Whitbread (LSE:WTB) is a UK-based restaurant and hotel firm with brands such as Premier Inn and Beefeater. Despite a challenging 2020 where it lost share price value and reported losses, I see it as an excellent leisure stock and recovery play. In its annual report announced in May, there were expected financial points such as a decrease in revenue and profit, but I refer to the positives. At the height of the pandemic period, it managed to reduce overall debt and increase market share by 11%. The risk with Whitbread is that Covid-19 variants may cause further restrictions which could in turn affect progress and recovery across leisure stocks.
Jabran Khan has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Flutter Entertainment and Flutter Entertainment PLC. The Motley Fool UK has recommended Clipper Logistics. 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.