The stock market is slowly recovering from the COVID-19 pandemic as the economy is reopening. But which are the best stocks to buy now for gaining massive returns over the long run? Long-term investors are in a continuous quest to find the perfect shares to invest in as the market is filled with opportunities today. Here, we have compiled the best 2 FTSE 100 stocks to buy now in this market volatility.
Market volatility is not always a negative sign. Sometimes volatility brings with it a whole lot of optimism and opportunities for investors. If you have a long-term investing horizon, then this is the best time to buy high-quality shares at a perceived discount.
Let us see why buying AstraZeneca and Smurfit Kappa stocks now will help you double your investments in the future.
1. AstraZeneca (AZN)
With the acquisition of Alexion Pharmaceuticals, the AZN stock has seen a significant rise this month.
AstraZeneca, the multinational pharmaceutical and biotechnology company, was once hailed as one of the potential winners in the COVID-19 vaccine race. Despite the pressure that the pandemic imposed on commercial drug launches earlier in 2020, sales of new and advanced medicines like AstraZeneca drove the total product sales 9% higher year over year. Even though the AstraZeneca vaccine was plagued with issue after issue since its inception, AZN didn’t need its vaccine candidate to become one of the best 2 FTSE 100 stocks to buy now in this market volatility.
AstraZeneca is one of the largest and most diversified medical companies in the world. Over the past year, the stock generated almost $41.9 billion in free cash flow. This is undoubtedly a significant profit the company can distribute to shareholders as dividends or spend on acquiring new sources of revenue.
But why buy AstraZeneca now? The AZN stock has risen tremendously in late July after closing its takeover of the biotech Alexion Pharmaceuticals. The company was planning this acquisition since the beginning of this year. It can generate healthy returns from this acquisition, which will boost the performance of AZN stock in the market.
Meanwhile, AstraZeneca is currently spreading its branches to significant areas of the medical industry. The company's biggest and most effective cancer drug is called Tagrisso. In the Q1 of 2021, the sales of Tagrisso soared over 17% to nearly $1.5 billion. While, some of the other cancer medicines include Imfinzi and Lynparza, which also grew 20% and 37%, respectively.
Also, AstraZeneca paid Daiichi Sankyo $1.35 billion upfront to develop and commercialize a new cancer treatment together called Enhertu. This treatment also got approved to treat HER2-positive breast cancer patients who fail to respond to standard care. Additionally, AstraZeneca is also enrolling participants in yet another study that aims to take down the variant, Beta, first discovered in South Africa. All these show the massive buying opportunity and future potential the AZN stock has.
The pharmaceutical giant is thus showing some quality indicators. Moreover, the company has also delivered double-digit percentage returns against equity and invested capital, and AZN stock price is expected to grow even more in the coming days. On top of this, AstraZeneca has also been paying steady shareholder dividends, which is one more reason why buying AZN is the right move.
Further, analysts expect the company's earnings to rise over 100 to 200% this year. Also, announcements suggest that the firm has several growth plans in the pipeline, making this the best time to buy AZN stocks. If it continues to keep its operational momentum, AstraZeneca could rise to record heights by the end of 2021.
2. Smurfit Kappa (SKG)
Smurfit Kappa is a potential stock that has an array of developmental plans for the coming years.
The leading UK packaging and containers business, Smurfit Kappa, is the 2nd FTSE 100 stock to buy now in this market volatility. The company is a leading operator in its field, and the SKG stock price has seen a significant rise this year. In addition, the company has also grown in its monthly corrugated shipments since its inception in 1990.
There are several potential reasons to buy Smurfit Kappa now. One is undoubtedly the increasing popularity of e-commerce businesses and discount retailers. Furthermore, it has established itself as a sustainable, renewable, biodegradable solution. It also has a broad and rich international customer base that boosts SKG’s share price. The company has over 64,000 customers worldwide. It has branches in over 36 countries, of which 23 are in Europe and the other 13 in America.
The company delivered its successful first-quarter trading statement on April 30, 2021. CEO Tony Smurfit pointed out that a strong performance in the initial three months of 2021 has set the foundation for accelerated revenue and earnings growth for the rest of the year. Since the stock has high growth potential, analysts say that if you buy SKG now, you could double your money over the long run.
SKG stock has received significant traction from a substantial price increase on the ISE earlier this year. As it is a large-cap stock with high coverage by analysts, any recent changes in its outlook are an added advantage to the growth of SKG stock price. This is the best opportunity to buy Smurfit Kappa as it has been stable relative to the rest of the market as per data.
The company’s future seems bright as profit is expected to grow by 64% over the next couple of years, making SKG a potential stock to buy now for massive returns in the future. Analysts expect earnings to increase by a mid-single-digit percentage this year. In an estimate, by 2022, the firm could likely reap some of the benefits of its investments in growth projects.
Smurfit Kappa is not a cheap stock, and there are potential risks in investing in it. But it seems like higher cash flow is on the cards for the firm, which means SKG stock could likely rise tremendously in the coming days. In addition, unlike other firms, it has a strategic investment plan for 2021-2023 that makes SKG a potential buy for the long term. The company aims to focus on growth, sustainability, and cost optimization for the coming years - an excellent customer-centric approach.
Savvy investors have always profited from an economic downturn, as they know how to frame opportunities and reap benefits from them. If you are a novice investor with a long-term plan, then these are the best 2 FTSE 100 stocks to buy now in this market volatility.
With this in mind, it is crucial to understand the market patterns and potential risks before entering into any investments. On the other hand, if you have a solid investment strategy, these 2 are the best stocks to buy right now for doubling your money over the long run.
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