How I’d build a ‘best stocks to buy now’ list

first_img Get the full details on this £5 stock now – while your report is free. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. How I’d build a ‘best stocks to buy now’ list Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Simply click below to discover how you can take advantage of this. Enter Your Email Address Peter Stephens | Tuesday, 2nd March, 2021 Our 6 ‘Best Buys Now’ Shares Every investor will have a different approach when seeking to build a ‘best stocks to buy now’ list.It could be focused on the quality of a business, as well as its price. This may enable an investor to buy the most attractive companies while they trade at prices that undervalue their long-term prospects.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Through focusing on a wide range of sectors, it may be possible to unearth a diverse range of companies. This could limit risk in what remains an uncertain economic environment.High-quality companies may be among the best stocks to buy nowCompanies with solid financial positions and competitive advantages may feature on a ‘best stocks to buy now’ list. This doesn’t guarantee their investment success. However, they may be able to more easily overcome challenging operating conditions such as those currently in place for many companies.Similarly, they could deliver higher profitability in the long run. This is because of their capacity to invest in new growth areas and rely on a loyal customer base.Identifying such companies is very subjective. However, by assessing their annual reports and latest investor updates it may be possible to find them within a specific sector. Comparing them to sector peers may also make it clearer which companies have a more attractive growth outlook in a potential economic recovery over the coming years.Buying undervalued sharesCompanies that offer good value for money may be among the best stocks to buy now. Even if an investor is able to unearth a very high-quality business, paying too much for it can lead to disappointing returns. Such a company could lack a margin of safety. This may indicate investors have already factored in its future earnings potential.Clearly, there are various methods to analyse companies. Different ones can be more relevant to different sectors. For example, the price-to-book (P/B) ratio may be more relevant for banks and REITs. Meanwhile, the price-to-earnings (P/E) ratio may be more useful when comparing consumer goods businesses.Comparing a company’s valuation to its long-term average and its sector peers may provide guidance as to whether it offers good value for money at the present time.Searching in a wide range of sectorsIt may be prudent to search for the best stocks to buy now in a wide range of sectors. Otherwise, an investor may be limiting their choice to a small number of businesses. And that leads to higher risks because of a greater reliance on a concentrated range of industries.A diverse portfolio may also be able to offer greater returns in the coming years. It may allow an investor to capitalise on a broader range of growth opportunities lacking in a concentrated portfolio. Although a diverse portfolio never guarantees positive investment returns, it may create a more favourable risk/reward opportunity for a long-term investor. FREE REPORT: Why this £5 stock could be set to surge Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Peter Stephenslast_img

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