I think some of the best shares to buy now are located in the FTSE 100. And I’m putting my money where my mouth is. Over the past few weeks, I have been buying three blue-chip stocks, which now form the foundations of my portfolio.
Best shares to buy now
The first company on my list is Reckitt (LSE: RKT). This enterprise has reported strong sales growth during the pandemic.
During the first quarter, revenue rose 4.1% on a like-for-like basis. A strong performance in the group’s hygiene division, which accounts for around 80% of revenue, helped drive overall sales higher.
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What’s more, thanks to increased investment in e-commerce over the past year, online sales were 24% higher. As a result, online sales now account for 13% of overall revenues.
Going forward, the company is planning to invest £2bn in research development to discover new products. I think that investment should help drive sales growth for years to come.
The company is also looking for buyers for its underperforming Chinese infant child nutrition business, which has been a consistent underperformer.
Based on these growth and restructuring initiatives, I have been buying the stock for my portfolio today.
One critical risk hanging over the stock is debt. At 2.4 times underlying cash profits, debt is a bit on the high side, I feel. A sudden increase in interest rates or increase in costs could impact debt affordability. This may cause problems across the company.
Another risk is the possibility that the Chinese infant nutrition business does not find any buyers. That could leave the company with this struggling division.
Despite these risks and challenges, I think this FTSE 100 consumer goods business is one of the best shares to buy now. That’s why I have been adding it to my portfolio recently.
FTSE 100 growth
Another stock I have been buying his FTSE 100 insurance group Admiral (LSE: ADM).
This is not the largest insurance company in the country, but it is the most efficient. It has been able to leverage technology and its understanding of customers to improve customer service and efficiency.
According to its employees, the business is also one of the best places to work in the UK.
As well as this accolade, the company is also incredibly well managed. It has recently been diversifying away from the mature UK insurance market. The group is expanding into loans and the car insurance market overseas.
Overall, I think this is one of the best shares to buy now, considering its potential. Admiral has conquered the UK insurance market. It’s now focusing its efforts overseas.
Of course, it’s unlikely to be plain sailing for the group as it tries to conquer new markets. For example, many UK businesses have struggled to enter America.
Admiral may be no different. This could be the most considerable risk the company faces today. An overzealous expansion programme could lump the group with significant liabilities and costs, holding back growth.
Even after taking this risk into account, I have recently bought more of the FTSE 100 stock for my portfolio. I continue to believe this is one of the best shares to buy now, considering its growth potential.
