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

Jabran Khan identifies two FTSE 100 picks he believes are some of the best stocks to buy now for his portfolio and explains why.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

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.

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.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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.

More on Investing Articles

Passive income text with pin graph chart on business table
Investing Articles

Yields of up to 7%! I’d consider boosting my income with these FTSE dividend stocks

The London market has some decent-looking dividend stocks right now, and I’m tempted by these two for growing income streams.

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

I’d put £20K in an ISA now to target a £1,900 monthly second income in future!

Christopher Ruane shares why he thinks a long-term approach to investing and careful selection of shares could help him build…

Read more »

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »