Coronavirus, a.k.a. COVID-19 created one of the biggest global markets plummets in history. Most of the major stocks(European stocks) have reported a steep fall in their prices. And not only stocks but other markets are also worst affected. The crude oil prices were at an all-time low some days ago. All this was because the people stopped spending money in the world economy due to lock-down.
However, as the lock-down is easing and the virus is getting under control, stocks are starting to cover up. In fact, many people have already doubled their investments with smart decisions in the market.
Hopefully, you would also be able to do it now. Why? Because here is the article that lists the best European stocks to buy after COVID-19.
Top European Stocks Post COVID-19 to Buy
Halfords group’s 325 stores opened in the pandemic too because the British government described them as an essential retail provider. The organisation is one of the leading car, motorcycle, and bicycle retail and repair service providers.
The COVID-19 gave the public a wakeup call about their health. The company is continuously supplying bicycles because people are starting to include cycling as a daily exercise in their routine. Although the company’s current quarter sales are expected to be low, the future of the company looks promising.
The reason being – the government promoting social distancing and encouraging people to avoid public transports.
The company’s ROCE is 8.6% currently and is still lower than its past performance of 15%, three years ago. Overall, the organization has got affected by the pandemic, but the people’s increased consciousness towards health shows positive signs.
2. Reckitt Benckiser
Reckitt Benckiser is a global leader in household cleaning products, and the company does not affect by the pandemic much. The reasons – people prioritised health and stockpiled products like Dettol, Harpic, and several soaps, detergents, and hand washes.
The company also supplies medicines and saw a massive 33% jump in only over-the-counter medicines like Nurofen. Other products also saw a significant rise and the company’s total sales grew 13%.
Further, the company is trading at a 52-week high but seems to have no looking back in the near future. You can easily see in the charts that giant conglomerates’ stock prices barely affect.
Bakkavor (Buy Now)is a market leader in chilled food suppliers with more than a 33% share of its key products in the UK. The essential products are pizzas, desserts, meats, salads, and many more, from which the organisation’s 90% sales come.
Although the company got the benefit of lockdown initially, eventually the firm’s sales plummeted. The benefit was because of people stocking the frozen item foods for themselves. However, the significant consumer base of the company was people with a lack of time or busier lives and thus, the sales went down further.
According to analysts Peel Hunt, ‘Bakkavor will see the 10% downfall in the sales of which 7% will be from the last nine months.’
The company is in a better position than its small counterparts, and the P/E ratio of the firm stands at 6x.
Out of all the four shares, Accesso was at the best position in the previous year and is worst affected by this pandemic. For reference, the Accesso firm was trading on an EBITDA (earnings before interest, tax, depreciation, and amortization) of 19.5x, and currently, it is around 2x.
The company provides technological services for theme parks, museums, and other venues and saw a deep fall in the prices post lockdown. It is working to develop several measures and alternative “new normal” methods to maintain social distancing.
The company might see a surge in prices once the lock-down is over, and people are willing to spend as well as go out to hang out.
The current share price of the Accesso stands around 300 GBX and note that precisely one year ago it was trading around 1100 GBX. Don’t be shocked; see the charts.
The sign shows that once the crisis starts bettering, the firm would recover at somewhere around previous prices. Again, see the above figure, and you’ll know what we are talking about!
If you have now planned to invest in any of the stocks above, then don’t forget to read these crucial tips. The tips would surely help you and better your decision-making skills.
The Bottom Line –
According to Barclays, European stocks would outshine US shares in the COVID recovery rate. Although the European equities are underperforming than their US counterparts, experts reveal that the former is in a much better position.
However, for the people who invested back before the pandemic also need not worry as the record says that the market will recover. And, not only recover but would give a significant return (10+ %) in the long term.
Note that it is also important to trade with a trusted broker and failure in it can cost serious bucks. ROinvesting and ABInvesting are two good brokers which provide the right features at competitive prices.
Whatever may be the case, there are some sectors that benefited from this pandemic. The rise of remote working and online shopping are some reasons. Know the complete details here.