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These FTSE 100 picks are 2 of my best stocks to buy now!

FTSE 100 (London Stock Exchange Share Index) on Gold Coin Stacks Isolated on White
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I am always looking for the best stocks to buy now for my portfolio. I have identified two FTSE 100 picks that fit that bill in my opinion.

FTSE 100 commodities giant

Glencore (LSE:GLEN) is recognised as the world’s largest commodities firm. The demand for commodities has increased substantially recently as the world bounces back from the pandemic. As I write, shares are trading for 340p. A year ago shares were trading for 185p which is an 83% share price increase.

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There are a few reasons I like Glencore. The FTSE 100 incumbent has a favourable track record of past performance. I know that past performance is not a guarantee of the future but I use it as a gauge. Next, it mines and trades commodities giving it a double pronged attack. This has provided it with a platform to grow and expand its reach globally to become a powerhouse. In addition to this reach and power, it has the financial muscle to regularly swallow up smaller firms and these acquisitions enhance its own offering.

Based on current levels, Glencore has a price-to-earnings ratio of close to 31 which is reasonable based on its track record and future prospects. It also has a dividend yield of close to the FTSE 100 consensus of 3%, which means any investment would make me a passive income too. I would add shares to my portfolio at current levels.

FTSE 100 gambling giant

The other of my best stocks to buy now is Flutter Entertainment (LSE:FLTR). It is one of the largest gaming and gambling platforms with many brands under its banner such as Betfair and Paddy Power.

As I write, shares are trading for 14,615p. Flutter’s share price is actually down in 2021, which I see as an opportunity to buy shares more cheaply. I believe the share price is down for a couple of reasons. Firstly, there is a rise in ethical investing and gambling firms will not be high on the priority list of ethical investors. In addition to this, concerns over inflation have meant there has been volatility in interest rates. Due to this, investors have looked at more defensive shares rather than growth options.

Like Glencore, Flutter has a positive track record and excellent growth prospects. For example, the US market is one of the biggest in the gaming and gambling market. It is making good strides on that front with its Fox Bet platform. Based on its track record, growth journey, and future prospects, I would add shares to my portfolio right now.

The best stocks to buy now have risks too

Glencore operates in a volatile marketplace. When external events occur, such as a pandemic, the prices of commodities fluctuate. This could impact Glencore’s financials and investor sentiment in my opinion. Furthermore, commodities firms do not have the best environmental record. With ethical investing on the rise, any scandals or issues could hurt it too.

Flutter is trading close to all-time highs. The risk with this is that any negative news could affect its share price substantially. Another issue for me is that Flutter announced a positive trading update a few months ago which did not boost its share price. That tells me the FTSE 100 incumbent’s share price has its positive trading and news already locked into its price. I must bear this in mind too.

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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. 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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