5 Jul

2 FTSE 100 reopening stocks I’d buy now

first_img Manika Premsingh owns shares of JD Sports Fashion. The Motley Fool UK owns shares of Next. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. FREE REPORT: Why this £5 stock could be set to surge Get the full details on this £5 stock now – while your report is free. Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Manika Premsingh | Monday, 29th March, 2021 | More on: JD NXT The UK is now in the second phase of lockdown easing. Soon enough, things will be even more relaxed as non-essential retailers re-open in two weeks’ time. For this reason, I think it is a good time to consider FTSE 100 retail reopening stocks now.Tough year for retailersRetail has been hard hit since last year by the lockdown and socially-distanced shopping when the lockdowns were lifted. Brick-and-mortar stores were already on the decline before the pandemic, and one year of online shopping has accelerated this trend. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Yet, it may be too soon to write them off. First, because consumers may want to experience in-person shopping once more. As a result, I think there can be a surge in retail footfall once the lockdown is lifted. And two, even without this, some retailers have taken steps to adapt to the new-normal of online purchases. These can hold them in good stead over time. Here are two FTSE 100 reopening stocks that I think can perform once the lockdown lifts:#1. JD Sports Fashion: return to growthJD Sports Fashion (LSE: JD) is an example of a FTSE 100 retailer that has managed to make the most of 2020. Two developments stood out from its trading update in January. One, it reported a 5% increase in revenues for the 22 weeks to 2 January 2021 as “consumers readily switched between physical and digital channels”. Two, for the full-year ending 30 January 2021, it expected headline profit before tax to be “significantly ahead of the current market expectations”. Besides this, it also recently made an acquisition that will expand its US footprint and also one in Poland, that will extend its reach in eastern Europe. This is in addition to its attempts to buy Footasylum last year, which is still pending.#2. NEXT: FTSE 100 stock reaches all-time-highsUK-focused retailer NEXT (LSE: NXT) was also able to manage the transition to online well. In its trading update in early January, it said that for the nine-weeks to 26 December 2020, “Online business compensated for almost all those lost in Retail stores”. Its overall sales were down marginally by half a percent, as its online sales increased by a whole 38%. Investors were clearly positive on the stock, which quickly rose to all-time-highs in the days following the update. Even with some fluctuations, it has remained close to those levels. More recently, it acquired a 25% stake in the UK-based fashion brand and retailer Reiss, which can expand its reach further.  The downside to these reopening stocksIf these reopening stocks have managed to forge ahead in a year like 2020, I have little doubt that they will continue to do so in the future. However, I am uncertain if their shares can make much more gains in the foreseeable future going by their already elevated levels. JD Sports Fashion’s earning ratio is at 42 times. NEXT has a lower ratio of 31 times, but its financials are not in as good a shape as those of JD.On the whole though, I think they are both good buys for me right now. center_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Manika Premsingh 2 FTSE 100 reopening stocks I’d buy now Enter Your Email Address Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment.last_img read more