Sam is a trader and one of our lead stock analysts at AskTraders. After starting his career predominantly in the forex markets, Sam now focuses on gold and stocks with a preference for macroeconomic analysis.
What are the best shares to buy now? It’s a million-dollar question (well it potentially is if you have enough capital to invest), but, knowing which stocks to buy at the right time can be difficult, especially if you are just starting.
The outbreak of the coronavirus pandemic has accelerated change. We have seen a rise in the value of “at-home” stocks such as Peloton and Netflix, and a fall in other areas of the market like the leisure industry.
However, that fall provides us with a potential opportunity going forward, so here are some stocks we consider to be the best to buy right now…
eToro is the world’s leading social trading and investing platform and is perfect for those who are looking to build their portfolio. Their platform is very user-friendly and with 0% commission to pay they are a great choice.
Huya is a video game streaming company from China that allows users to stream the games they play to audiences on its platform.
China has a substantial market for esports and the planned merger with Douyu International (NASDAQ: DOYU), Huya’s rival in the industry, could create an enormous and dominant company in the market. However, recent reports have stated there has been little progress made with Chinese antitrust authorities regarding the deal, so that is a risk to look out for.
Huya makes money by taking a cut of tips viewers pay to players on the platform, but it also has advertising revenue as well.
The esports industry still has significant growth potential, and Huya is a company that is right at the heart of that in China.
BAE Systems is a large defence company in the UK. Its customers include Australia, India, Saudi Arabia, the UK and the US.
The company is at the forefront of the defence and security industry, and with technology and products continuously changing and requiring upgrades, BAE Systems will always be in demand.
Its share price has fallen since the pandemic as investors became concerned that defence spending will tighten. But, with the rising tensions across the globe between both larger and smaller nations (Russia and Ukraine being one example), countries may feel they have no choice but to keep defence spending elevated. It is the fear of the what-if, especially in times of uncertainty.
BAE Systems is currently trading around the 500p level. Its shares represent an excellent opportunity for investors to buy into an undervalued stock.
With IAG we have a stock that is still sitting at lows (despite its recent break higher) but one that could be primed for a big comeback when travel demand kicks in.
The company has British Airways, Iberia, Aer Lingus, Iberia Express, LEVEL, and Vueling under its banner. These airlines cover most of the European and European to US routes.
The London to New York route is the highest revenue route in the world according to Business Insider, and the company that profits the most from it is IAG’s very own British Airways, which made over $1 billion from the route between 2018 and 2019.
Its share price is still way below its pre-pandemic levels as international travel has still not picked up. We may continue to see some nervousness in the near term, especially after the US placed 100 countries on its “Do Not Travel” list. However, I think it is an excellent opportunity for a long term hold.
European Metals Holdings is an Australian based exploration company that came to my attention a few months ago.
Firstly let me warn you that AIM-listed shares can be volatile and are considered riskier investments.
However, EMH is a company I like. The exploration firm owns a large stake in the Cinovec Lithium/Tin project based in the Czech Republic on the border with Germany, which hosts the largest lithium resource in Europe and one of the most significant tin deposits in the world.
One positive about the potential of the company is where it is based, right at the heart of many electric vehicle and lithium battery manufacturing facilities. Volkswagen recently announced that its first electric vehicle plant will be in Zwickau, about an hour and 50 minutes drive from the Cinovec project.
I recommended American Airlines shares back in November and since then they have gained just under $10 in value. Like IAG, American Airlines was hit hard by the coronavirus pandemic as travel demand plummeted.
But, since then, travel domestic travel in the US has increased with some states completely opening up with no restrictions in place. With the travel stocks I have mentioned, we are looking for moves higher as restrictions ease and demand increases, but at the same time, we have to be aware that there is a risk the restrictions may remain in place for some time.
The company’s share price is up 33% in the last three months. It is my belief that travel demand will pick up sooner rather than later, and we should see American Airlines benefit.
Apple just keeps on growing. The company has a wide range of products and services that include Apple Pay, Apple TV, and Apple Watches, and we haven’t even mentioned the phones, iPads, or Macs yet.
In its upcoming earnings report, Apple is expected to hike its dividend and authorise further share buybacks, with one Morgan Staley analyst saying that the company will remain aggressive in its buyback programme.
If you are a beginner, Apple stock is definitely one worth buying.
Johnson & Johnson is undoubtedly an excellent stock for beginners. The company’s reliability and solid foundations are excellent for investors just getting started.
JNJ has a variety of brands under its banner that include Neutrogena, Listerine, Band-Aid, Nicorette and plenty more. It is also developing a coronavirus vaccine that is part of the US’ Operation Warp Speed.
Its product range is so vast that there will always be demand.
The company also recently hiked its dividend once more. Despite the uncertainty surrounding its coronavirus vaccine, JNJ shares are still a great buy.
Open Orphan is a great AIM stock to look at. The company focuses on the testing of vaccines and antivirals via human challenge clinical trials. Open Orphan themselves do not conduct costly R&D drug development, but they complete the background work, providing clinical trial services and data management.
The company, like most other businesses in the industry, has also been involved in developing Covid-19 vaccines, helping to run the first human challenge trials, winning a UK Government contract worth over £40 million in October 2020.
This AIM-listed stock provides a great opportunity to invest in a company that is seeing increased demand for its work because of the pandemic.
EA is a stock I like for two reasons, 1) It is a big name in a rapidly growing industry 2) It has games that will be key in esports and the esports betting market.
EA has some of the most popular sports-based video games under its banner, including Fifa, Madden NFL, and UFC. Of course, the gaming industry has had a bump up as a result of the pandemic, and we know restrictions are easing as vaccinations increase, but I am overall bullish on the long-term prospects for the company and video game stocks overall.
The first thing you need to do is research the company you are investing in. Look at earnings, products in its portfolio, or services that it provides to see if there will be future demand. Then look to its prospects, for example, will demand increase due to certain conditions in the industry? Or could political issues destabilise the company? All of these influence how the stock will be priced, and its earnings performance going forward.
Next, you need to find a broker to be able to buy the shares. You must find the right broker for you. Make sure they are regulated, have the instruments you want to trade or invest in and that the fees aren’t too high. Some brokers will offer other advantages such as education or daily market updates, so make sure to look out for them.
So, you have your broker and the stock you want to buy. Now you need to open and fund your account. The process for opening an account is similar for most brokers, you will need to answer some questions and provide some personal details before depositing money via one of the methods the broker provides (usually, cred/debit card, bank transfer, or an eWallet).
Now, there are different order types you can set, and you must understand each one. Of course, if you don’t, we are here to help, and you can check out our page on order types here.
All that’s left is for you to select and buy the company shares, but before you do, make sure you have a plan on where you want to exit the position and how long you want to hold the shares for. These factors will help you determine how many shares you buy and the amount of money you risk.
Above we mentioned that finding the right broker is an essential part of the process, but how do you know which broker is best for buying or trading shares online? The first thing to do is to make sure they are regulated in the country or region you are in. If you are in the UK, you want to make sure that the broker is FCA regulated. Other points to look for are the commissions and fees charged. A lot of brokers offer low costs now, so make sure you are not paying more than you have to. One thing we suggest is setting up a demo account with the broker you are interested in. It will give you a sense of how their platform works and whether it is the right one for you.
Trading and investing can be challenging, but if you follow the right steps and take time to learn and practice (demo trade), it can be beneficial over time.
Learning is something we want to emphasise here, as there are risks to investing, and without the right knowledge, it is tough to achieve success.
Take time to check out different investing and trading strategies, learn from other experienced traders and always, always have a plan.
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