Best Shares to Buy Right Now
Top 10 best stocks investors are buying on the market today.
Top 10 Shares To Buy Today
- Gamestop (GME)
- BP plc (BP)
- Tesla (TSLA)
- Lloyds Banking (LLOY)
- Hargreaves Lansdown (HL)
- Rolls-Royce (RR)
- Aviva (AV)
- Alibaba (BABA)
- Alphabet (GOOGL)
- International Consolidated Airlines (IAG)
1. Gamestop (GME)
Meme game stocks have been soaring over the past week with Gamestop Corp (GME) being the leader of the pack with its shares being up by 24% over the month as of Friday 27th August. Having said that, the meme stock witnessed a decline within its shares yesterday with the stock declining by -0.13% in a single day, trailing behind the S&P 500’s gains of 0.88% leaving the stock to sit on the market at 204.95 as of close of play on Friday.
Meme stocks are known to be extremely volatile due to being driven through social engagement via social media channels. That being said, GME is due to release its next quarterly earnings on September 8th with Wall Street analysts expecting GME to remain positive and looking for the stock to confirm earnings of -$0.42 per share, confirming a YoY growth of 70% with Zacks Consensus Estimates expecting earnings of $0.02 per share for the full year, representing a 100.93% change year-over-year.
2. BP (BP)
Whilst 2020 was a changeling year for the oil industry, 2021 is seeing improvements within the market as various companies raise earnings estimates, alongside predictions that 2022 will be the year this industry fully rebounds. Having said that, one of the largest oil and gas integrated companies on the market, BP plc (BP), looks to be one the most promising stocks to be a part of.
In recent weeks BP released its second quarter 2021 earnings that blew past estimates reaching $2.8 billion from an estimate of $2.2 billion in profit, and followed up with the announcement that BP will look to buy back $1.4 billion of its own shares in Q3 off the back of $2.4 billion in cash surplus. BP also increased its dividend by 4% to $5.46 per share for the quarter.
Moving forward, BP anticipates to keep firm on its buybacks and aims to buy approximately $1 billion per quarter, alongside aiming to increase its dividend by 4% annually leading through to 2025.
3. Tesla (TSLA)
The electronic vehicle manufacturer Tesla Inc (TSLA) is once again gaining momentum. In recent days Tesla CEO Elon Musk announced that the EV maker’s Full Self Driving beta will be available in the coming four weeks across the U.S. Additionally, Tesla hosted an Artificial Intelligence (AI) day last week that offered investors an insight into Tesla’s transformations that include transportation, batteries, solar and more at a fraction of the cost compared to other auto manufacturing stocks.
According to Zacks Investment Research, earnings are expected to grow at a compound rate of 35.04% over the coming five years, whilst the stock currently has a P/E multiple of 370 today with a forward p/e ratio of 140.67.
4. Lloyds Banking (LLOY)
Being ranked the UK’s 3rd most valued bank based on market capitalization and according to recent reports, Lloyds Bank is also the UK’s highest mortgage lender that is continuing to drive momentum. In recent news, Lloyds Banking Group (LLOY) announced that it is entering the property market by becoming a private landlord that aims to have a target of purchasing 50,000 homes across the UK in the next 10 years.
Additionally, Lloyds Banking Group released its H1 2021 results at the start of August that showed signs of improvement, however did take a slight dip in its shares following the release. The company reported a statutory profit before tax of £3.9 billion, an increase from a loss of £0.6 billion YoY, net income increased by 2% YoY beating analysts estimates of £7.6 billion and an interim ordinary dividend of £0.67 per share.
5. Hargreaves Lansdown (HL)
Hargreaves Lansdown (HL) is the UK’s largest fund platform that manages over £130 billion for over 1.5 million clients, according to data.
HL stock reported its annual results at the start of August that witnessed £8.7 billion of net new business, its Assets Under Administration improved by 30% to £135.5 billion including the company reporting that it has seen an increased change in customer demand with the younger generation opting to focus on their financial positioning.
Despite Hargreaves Lansdown warning that the pandemic stock boom will not last, caused the firm to decline by over 11% in a single day. But seeing more of the younger generation come on board over the past year has been reported to be here to say meaning that investments will be here further over the long-term.
6. Rolls-Royce Holdings (RR)
The British multinational aerospace and defense company Rolls-Royce Holdings PLC (RR) continues to be a top-performing stock within the FTSE 100 as it witnessed its share price hit a five-month high on Wednesday 25th of August to 120.16p, resulting to the stock issuing an absolute return of over 33% over the past 12 months, and being up within its shares over 12% over the past three months.
Following the recent report release, JP Morgan raised its price target for the stock to 130.00 from 105.00 it initially placed on the company. The firm also anticipates RR to increase free cash flow over the coming years and with RR’s cost-cutting programme heading in the right direction as underlying profits beat estimates, looks to be another standout feature for the investment banking company.
7. Aviva (AV)
As the UK’s largest general insurer and leading life and pensions provider, AV is also one of the largest stocks to be listed on the London Stock Exchange based on market capitalization, with AV holding a market cap of $16.06 billion upon writing. Aviva is currently up within its shares over the year by approximately 27% in 2021, and is up almost 50% over the past year.
Following the stock's recent half-year 2021 results, Aviva’s new chief executive Amanda Blanc announced that the company will release at least £4 billion to shareholders by next June with the stock also achieving its best revenue performance from UK general insurance in over a decade.
Following the news, Deutsche bank advised that Aviva stock looks to offer “attractive value” to shareholders as it has provided “reassurance and clarity”. Deutsche Bank holds a consensus ‘Buy’ rating for AV stock, alongside giving a price target of 500.00p for the stock.
8. Alibaba (BABA)
The Chinese e-commerce giant Alibaba Group Holding (BABA) started 2021 with a mixed bag of results. Firstly, BABA reported an earnings result of $2.57 per share for the quarter, up by 12% year over year and beating Zacks Consensus Estimate by 19%. Revenue rose by 34% for Q1 2022 to $31.9 billion, however it missed estimates slightly, Annual Active Consumers in China also fell short of expectations coming in at 828 million against 830 million expected.
Despite missing out on estimates, BABA is predicted to rise in revenue YOY and active consumers are set to grow but the stock is lagging way behind the broader market with the stock providing a total return of - 23% against the S&P 500’s return of 35.5%.
Despite Alibaba facing regulatory challenges in the short term, this Chinese multinational tech company looks like it should hold up just fine in the long term.
9. Alphabet (GOOGL)
The parent company to Google, Alphabet (GOOGL) is marginally on the edge of archiving the $2 trillion market cap as of writing, alongside the likes of Apple (AAPL) and Microsoft (MSFT). The giant company also reached a record high on Friday 27th, closing at $2,891.01 making it the fifth consecutive day the stock has risen.
Within the stock's recent earnings report, GOOGL shattered earnings reaching revenue of $61.9 billion, up by 62% YoY. Earnings also blow across estimates gaining a diluted earnings per share of $27.26, from $19.35 per share analysts expected.
Moving forward, analysts are predicting this stock to continue delivering and have predicted Q3 revenue of $63.3 billion, with earnings predicted to rise to $23.76 per share for the quarter.
10. International Consolidated Airlines (IAG)
As 2020 witnessed the aviation industry come to standstill, to say it's been a challenging year for the industry would be an understatement to say the least.
International Consolidated Airlines Group S-A (IAG) is an airline holding company that holds various airlines such as British Airways, Aer Lingus, Iberia and more that gives the title of being one of the largest airline holding companies in the world.
IAG stock is currently up around 7.1% year-to-date, with analysts further looking for this stock to gain with a 12 month average price target set at 230.42, showing a 44% upside from where the stock sits on the market today. As more and more flights gain approval globally, with the eagerly anticipated US-UK channel also set to once again open in the coming months IAG stock is set to perform well over the coming year.
What Could Be The Best Shares To Buy In 2021?
As 2020 has shown us anything can happen at any given moment. This too can be said for the stock market which has witnessed extreme volatility over the past 17 months as many stocks have declined significantly but on the back of that, many have flourished in such challenging times brought on due to the ongoing COVID-19 pandemic.
Stocks such as Zoom (ZM), Amazon (AMZN), Tesla (TSLA) and many more all rose significantly well over the course of 2020 due to various contributing factors such as lockdown restrictions and social media hype. Additionally, other investments such as gold, mutual funds and index funds also gained in 2020 with these assets being deemed to be safer investments within challenging times.
As we head swiftly into the third quarter of 2021, the market has witnessed a great run this year with the S&P 500 index reaching above 50 record highs throughout the year so far following on from 2020. But despite the market maintaining its bullish run, uncertainty and further challenges still surround making it challenging to pick the best-performing stocks on the market for 2021.
A great way to look at stocks as a collective is by taking a look at the FTSE All-World Fund (VWRL) and or the Fundsmith Equity Fund. Both of these funds hold a collection of the worlds most publicly traded assets such as Amazon, Apple, Microsoft and thousands more where you can analyze and take a deeper closer look into individual stocks or seek to invest in the funds themselves who both have performed well with the Fundsmith Equity Fund returning 24% over the past year.
But the question still remains, how do you pick the best-performing stocks that look set to beat the market in 2021?
How Do You Decide Which Shares Are The Best?
As we have previously reiterated, the answer to this question is much more complex and challenging than what people may believe. Put it this way, if it was easy we would all be sitting on a healthy sum of cash right now.
Choosing the right stocks on your own can be a challenging task that requires work, time, persistence and understanding, especially if you are a beginner investor you have to be prepared to put in the hard work. Additionally, it's worth knowing that there are hedge fund managers that can take over this task for you that are paid healthy wages in order to undertake the task of choosing the best stocks on the market, but even they can become stuck at times.
On that note, here we have picked a few different ways that can help you choose and identify the best-performing stocks on the market.
Here are a few ways you can choose the best shares to buy.
Keep an eye on the market trends
Ok, the first point comes in as one of the most important factors to undertake when looking at which stocks are the best to buy on the market because if you don’t know what is happening within the market, how do you know which stocks are the best? This is where you need to be on form with keeping up to date with the latest news and opinions.
There are many different ways investors can keep up to date with market happenings including digitally by looking at news sites such as the Financial Times, Bloomberg, Thomas Reuters and many more that will detail the latest financial news, alongside giving expert views and opinions on individual stocks. Likewise, social media platforms can also be a good source to obtain financial news. However, you have to err on the side of caution and make sure you conduct additional research or only visit trustworthy social media accounts due to these platforms being a prime target for the popular ‘pump and dump’ scheme. This scheme will see fraudulent investors falsely hype up a certain stock and then look to sell their shares once the price has inflated, so it pays to be vigilant.
When looking into trending stocks this is a prime way to spot good opportunities within the market. But it requires more work than just watching these blossoming assets trend, it pays to see why these stocks are trending in the first place by taking a closer look into the market and the company to see what is going on inside that is causing such attention.
Read Also: Trend Trading Strategies
Fundamental analysis is a method of measuring a stock's “intrinsic” value, or “true” value of a stock. Whereas the market value is the price the stock is currently trading at.
Investors and analysts alike both look into a company’s “fundamental” analysis in order to determine the value of the stock by taking a look at various factors such as revenue, cash flow, debt, future growth plans and more. By taking a look into these key areas it will also determine if a stock is deemed to be under or overvalued based on its valuation.
Additionally, fundamental analysts will also look at the industry in which a stock sits in to determine how well the company has and will perform within its market, alongside how it might perform within the wider market.
If you are a beginner investor this may seem daunting to understand how this strategy operates. But the good news here for regular investors is that there are plenty of financial experts on hand on the market today that will give you their fundamental run downs on individual stocks that have exceptional experience within this field such as Goldman Sachs, Morgan Stanley, JP Morgan that deliver their reports and news updates on their websites. Analysts will also set “price targets” that regular investors will be able to obtain which experts believe reflects a stock's true value based on their analysis that can be a good general guide for regular investors to take forward when looking into a stock of interest.
On the other side of fundamental analysis you have technical analysis. This form of analysing is much more complicated, especially if you are a beginner investor.
Technical analysis is a trading discipline that is used to identify price trends and trading opportunities in the form of charts and graphs gathered from trading activities. Many who use this form of trading discipline believe that it is the best way to predict future happenings and price movements that helps investors have the edge over the market.
But it may be wise to keep things simple at the beginning.
In short, it's tricky and not easy
The world of investing draws in millions of people across the globe today due to the market being highly valuable. But the reality is it can be extremely challenging.
By using either fundamental or technical analysts throughout your journey these strategies will do what they do best, help to identify the underpriced stocks by the wider market that look to hold strong momentum for the long term. This in turn will witness investors see gains as the stock prices rise.
In theory, investors do not actually need to adopt these strategies into their journey. Although without realising investors will adopt fundamental analysis to some degree when choosing their stocks of interest, this has also witnessed retail investors be ahead of the game against institutional investors in some cases.
But always remember that you should only invest what you can afford to lose, as investments can go up as quickly as what they can go down.
Don't Miss: How To Be A Good Stock Investor
What Are The Best Shares To Buy For Beginners?
If you are new to the investing world it's strongly advised to start right from the basic start point by taking your time to understand how the market operates and build up on your knowledge.
If you are a beginner investor that is confident to go it alone from the get go there are some key golden rules you need to follow and keep in mind before you begin investing. Firstly, this goes for all investors: never invest more than what you’re willing to lose. You should set aside personal finances aside from your investing funds and always keep in line with your limitations. Secondly, investing in more than one stock is highly recommended as it lowers volatility because investing in an individual stock specifically can drop by 10% or it could even fall completely leaving you with zero. A good starting point for beginner investors is to invest between 5%-10% into your collection. Additionally, if you are looking to have a portfolio of stocks most experts advise beginners to hold between 10-15 stocks in order to diversify your holdings.
On the other hand, if you are an investor that is not fully confident in picking the right stocks there are alternative options out there that can help you on your journey. Robo-advisors are digital financial advisors that manage investments and provide financial advice based on your data input that holds minimal human interaction. Additionally, index funds are also deemed to lower-risk investments that give exposure to over 1000, in some cases, to the world's top-performing companies on the market that look to lower investors chances of failure. Take the FTSE All World index as a prime example as this index holds over 3,900 companies spread across over 50 countries and covers more than 95% of the global investable market capitalisation.
Always keep in mind that there are zero guarantees when investing in any investment or by using a specific investment strategy. This is where it pays to use due diligence and conduct as much research throughout your trading journey.
How To Buy Shares Now?
With all of the above in mind and if you feel ready to begin your stock trading journey, here is a step-by-step guide on how to buy shares now that should take you around 15 minutes from start to finish.
1. Choose the right platform
Whether you are a beginner investor or an experienced investor choosing the right trading platform is an essential part of the process as you want to make sure your chosen platform meets all of your investing needs.
2. Open your share trading account
Once you have decided on your chosen platform next comes the part of opening an account. Depending on the platform, each may have additional steps in the process to open an account but typically you will need a form of ID, bank details, national insurance or a social security number if you are residing in the USA.
3. Confirm all details
Before you jump ahead it's worth double checking that all of your bank details are correct and you will need to deposit your account in order to place your investments.
4. Research your shares of interes
If you are already confident in the shares you wish to invest in, additional research will not do any harm or look at your platform's latest news updates to give you further stock inspiration. Additionally, some trading platforms allow you to copy investor portfolios to help you gain a further understanding on how stocks operate and stocks are performing.
5. Buy your chosen shares
The last and final step is to buy your chosen shares. Now you are officially on your way to beginning your stock trading journey.
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