3 FTSE 100 Shares To Buy

Last Updated August 11th 2021
5 Min Read

Investing is risky; that’s why it is always best to go for top stocks that have been proven and tested. Blue-chip stocks rank among the best on this front. However, even as one focuses on the blue-chips, there are growth stocks that can outperform the market at any given time.

On this basis, here are the top three FTSE 100 stocks to buy right now.

3 FTSE 100 Shares To Buy

  1. Flutter (FLTR)
  2. Just Eat (JET)
  3. Aveva (AVV)

Flutter (FLTR)

Flutter (FLTR) makes it to the top as one of the best FTSE 100 shares to buy now.

The company’s top position in this ranking is driven by the return of the football season. The English Premier League and other European leagues kick off this weekend. This means sports betting is about to get big over the next eight months or so.

For a company like Flutter that is heavily involved in the sports betting market, this will positively impact its revenues. As revenues grow, so will the potential for the stock to perform well.

Besides the potential for strong revenue growth over the next few quarters, Flutter’s books paint a picture of stability.

One of the most critical metrics that one derives from its books is the revenue growth rate. The company has quite a healthy growth rate of 156.90%.

This will likely expand even further as the new football season kicks in across Europe.

The company is also liquid enough to sustain its operations presently. This is evident in its operating cash flows that stand at GBP 998.4 million and leveraged free cash flows of GBP 1.25 billion.

The only risk to this company is that its debt levels are quite high. Its debt stands at GBP 3.43 billion. With a current ratio of 0.74, this is a risk.

However, for a company operating in a growth market and in peak season, these numbers are unlikely to affect its stock performance in the medium term. If anything, these numbers are likely to get better.

The technicals are pretty good too, and FLTR’s current prices make for a perfect entry point.

The stock has made a V-shaped recovery since late July and pushed through the 50-day and 100-day moving average resistance levels over the past week of trading.

This is an indicator that buying sentiment is on the rise. It is quite consistent with the expectation of higher revenues as the new football season starts.

Analysts are pretty bullish on this stock too, and the majority of them rank it as a buy or a strong buy.

Unless there is a drastic negative turn of events in the stock market, this is most definitely a top growth stock to buy now and hold for the rest of the year. It has everything going for it at the moment.

Just Eat (JET)

Just Eat (JET) is another stock that makes for a top buy at current prices. One of the things that give it growth potential is the market it operates.

The food delivery market is on an exponential growth curve at the moment. With a lot more people working from home than ever before, food delivery companies are set to record massive growth for the next few years.

It is also a market where no single player is yet to become so dominant to dim the rest’s growth prospects. Besides, Just Eat is shaping up as a potential market leader.

Just Eat’s books are pretty good and indicate that the company can operate sustainably even if something adverse were to happen in the economy.

One of the best pointers to its stability, and potential, is its quarterly growth rate. Just Eat has a quarterly revenue growth rate of 476.80%. This is high by any standards.

With the online food delivery market on a growth trajectory, this growth rate will likely stay high, and even get higher.

Just Eat has a pretty healthy balance sheet too. For instance, it has a quick ratio of 1.08. This means it has liquid assets that can cover all its short-term debt obligations.

This is important because the Bank of England has indicated that it could raise interest rates in 2022. This is a move that could hurt companies that are overleveraged, and do not have enough resources to cover themselves.

Just Eat also has positive cash flows, which means it has the resources to cover all its operations without resulting in extraneous borrowing to finance its operations.

The charts paint a picture of growth too. JET has been bullish all through the first week of August. It has already pushed through the 50-day moving average resistance and is now close to the 100-day resistance.

If it pushes through the 100-day resistance in the coming days, then its potential for the rest of the year could be pretty high.

Aveva (AVV)

Aveva (AVV) is also a pretty attractive UK stock to buy now. Unlike the two high-growth stocks above, this is more of mixed stock. It offers both an element of stability and growth.

The reason it makes it to this list is that the world economy is on a rebound. This means the demand for high-value engineering and software services will grow as well.

Since Aveva is already an established player in this market, its prospects for the rest of 2021 and possibly in 2022 and beyond are good.

The company has a quarterly revenue growth rate of 10.40%. That’s healthy for a mature industry with multiple highly capitalized players.

Aveva also has a good balance sheet. With a current ratio of 1.46, it has more than enough resources to cover short-term liabilities if the need arises.

Aveva also has the cash flows to sustain its operations and has an operating cash flow of GBP 58.4 million.

The price chart also points to the current price as a good entry point. Since May, the stock has been on a bullish channel and is trading firmly above the 50-day moving average support. It’s an indicator that bullish momentum is on the rise.

Based on these factors, AAV is a good FTSE 100 stock to buy now and hold for the year and beyond. 

eToro - Buy Top Stocks with No Commission

etoro broker

eToro have proven themselves trustworthy within the stock market over many years – we recommend you try them out.

Your capital is at risk. Other fees may apply

Read More:

Should You Buy These 5 FTSE 100 Stocks Today?

Top 5 UK Growth Stocks That Could Make You Rich

3 Top UK Stocks You Can Buy And Hold For The Next Decade

2 FTSE 100 Stocks To Buy Now

FTSE 100 Investing: 2 Bargain Buys to Consider Today

Top UK Shares