As the reopening of the UK economy continues, I believe some of the best stocks to buy now are businesses that may benefit from this trend. As such, here are two FTSE 100 companies that I’d buy for my portfolio.
Best stocks to buy now
The first company on my list is the catering group Compass (LSE: CPG). Before the pandemic, this enterprise operated a relatively profitable business.
Contract catering requires little upfront investment as the facilities and equipment are usually owned by the client. This allowed the company to generate robust profit margins and a strong return on investment before the pandemic.
However, over the past 12 months, the company’s revenue has slumped. It reported a 30.4% decline in its last financial year. In addition, operating margins fell from 7% before the pandemic, to 3.4%.
The thing is, the pandemic may have disrupted many of the company’s … Read more