FTSE 250 recovery play

Before mid-March, shares in high-performance polymer producer Victrex (LSE: VCT) had been reluctant to take part in the recovery. Since then, they’ve climbed almost 30% in value as demand has bounced back. Based on last Friday’s Q3 management statement, I think this momentum should continue.

Last week, the FTSE 250 company said that it had “delivered a strong quarter” over the three months to the end of June. Group revenue now looks to be back on track after last year’s disruption in all of the company’s markets.

Looking ahead, the resurgence in business seen to date and a “robust” order book for Q4 now mean full-year numbers should be closer to “the upper end of market expectations”.

Naturally, there are potential bumps in the road ahead. According to Victrex, these include rising prices of materials, currency headwinds and the inevitable need for ongoing investment. Moreover, the shares aren’t cheap at 32 times FY21 earnings (falling to 27 times in FY22).

However, Victrex’s quality goes some way to justifying this valuation. It had £88.3m in cash at the end of June, has now reinstated dividends and consistently posts great margins and returns on capital. 

I’m also excited by the company’s growth potential via its ‘mega programmes’. These include the use of the company’s PEEK products in new applications such as knee replacements. Last Friday, it was announced that five patients had now been implanted with ‘PEEK Knees’ via its partner Maxx Orthopedics. Although still early days, no issues have been reported so far.

Still around 20% below its all-time price high, I see more upside for this stock and would be comfortable adding to my current stake.

Share price momentum

A trading statement from FTSE 250 soft drinks giant Britvic (LSE: BVIC) is due later this month. Based on its performance in 2021 so far, I don’t think investors should have much to fear. Those buying in January will have already enjoyed a gain of around 20%.

Sure, the share price won’t double overnight and there’s an opportunity cost to consider. It can be tempting for me to prioritise racier stocks over one that should provide steadier performance.

Nevertheless, Britvic strikes me as a great, defensive pick and one I’d buy regardless of what economists and analysts were saying about interest rates, inflation and the like. It’s got a portfolio of easily recognisable, ‘sticky’ brands that shoppers both like and will buy through habit. This makes earnings far more predictable than your typical tech stock. There’s also a 2.4% yield, easily covered by profits, to consider.

Back in May, Britvic reported that trading in the first weeks of H2 had been “encouraging“. As such, some of the Covid recovery is surely already priced in. Even so, I think a full return to normality in bars, pubs and restaurants should allow it to breach its previous record share price high before too long.

I’d be happy to add Britvic to my own portfolio today. 

The post 2 FTSE 250 stocks to buy now appeared first on The Twelfth Magpie.

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Paul Summers owns shares in Victrex. The Motley Fool UK has recommended Britvic and Victrex. 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.

Taking a quick look at International Consolidated Airlines Group‘s (LSE: IAG) share price lately, I’m beginning to spot some turbulence. Despite these blips on the radar though, this Anglo-Spanish airline holding company is up this year. As of 26 May, it is trading at around 202p, up an impressive 27% from 159p a year ago.

As an investor looking for a less volatile travel play, IAG shares might be just the ticket. Having seen its stock price crash land in February 2020 from an all-time high of 457p, could it still have plenty of runway to go?

Looking at IAG’s financials

IAG shares were the worst-performing in the FTSE 100 in 2020, and they tend to perform badly when the Footsie does.

It’s also no secret that money is tight as air travel remains restricted. In Q1 this year, IAG reported a net loss of €1.7bn. However, these losses were down almost 37% from Q1 2020. IAG’s liquidity also remains at an impressive €10.5bn, a slight increase from the same time last year. This is due to bond issuances, revolving credit facilities, and reduced costs. 

But there’s no ignoring the elephant in the room. Passenger capacity is running at 20% of 2019 levels. IAG is also anticipating a figure of 25% for the second quarter of the year.

IAG’s share price potential

Although airlines remain crippled, IAG can take some solace from a number of positives. Its cargo operations improved by 35% quarter-on-quarter, taking in revenues of €350m. Though this is but a small dent in the grand scheme of things, it’s an improvement nonetheless. What’s more, IAG has been investing in making its fleet more efficient. By dumping older plane models such as 747s, it could make profitability easier in the future. 

Also, as things stand, we are in the end game of this pandemic — touch wood. Vaccinations are proceeding in the UK at a rapid rate, with Europe beginning to catch up. This has led to a rapid reopening of the economy, with air travel returning across the globe. As one of the largest airline groups in the world by passengers carried, the only way is up from here — barring any renewed lockdowns. 

Risks to IAG shares

There are, unfortunately, too many risks to choose from to put them all down here. Even at the best of times, the aviation industry is a challenging one for investors. Volatile fuel costs, industrial action, geopolitical tensions, terrorism and the usual economic cycle are all headwinds.

What’s more, IAG’s stock price may suffer in the future thanks to its ever-increasing debt. By the end of March, net debt stood at €11.5bn, up 18% from last year. With air travel not expected to return to pre-pandemic levels until at least 2024, it will be hard for IAG to generate enough profit to actually pay this back before too much interest accrues. 

So, is IAG a buy?

Is IAG a buy? This is a genuinely tough one for me. On the one hand, I am a big fan of IAG; I believe it has weathered the pandemic well and that it is still cheap compared to all-time highs. However, its rising debt levels and the uncertainty around air travel just make it too much of a risk for my portfolio right now.

The post Should I Invest in IAG shares right now? appeared first on The Twelfth Magpie.

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Jamie Adams has no position in IAG. The Motley Fool UK has no position in any of the shares mentioned. 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.

Why is the Cineworld share price falling?

One potential explanation for the decline might be a simple bout of profit-taking. Having done so well over recent months, it’s only natural some traders will want to sell up and move on.

Whether this decision is the right one is debatable. On Monday, the FTSE 250 firm revealed it had seen a “strong opening weekend” and that it expected audience numbers to continue rising in the months ahead. With delayed blockbusters such as Top Gun: Maverick, No Time to Die and Black Widow finally due for release, it’s possible that recent weakness in the Cineworld share price will prove temporary.

That said, I’m still wary. The arrival of warmer weather in the UK risks spoiling the party. On top of this, investors can’t overlook the astonishing amount of debt still weighing on the balance sheet.

There are also developments within the film industry that need to be considered. The chance of movies being made available to stream at the same time they’re released in cinemas could be another headwind for Cineworld, especially once all the additional costs of making at trip are factored in.   

Taking the above into account, it’s perhaps to be expected the company remains a favourite with short-sellers (those betting that a particular share price will fall). As I type, Cineworld is the second most hated stock on the market. The only stock attracting more short-sellers, according to shorttracker.co.uk, is supermarket giant Sainsbury.

Are there safer ‘reopening’ opportunities in the market? I think so.

A better opportunity?

Today’s update from low-cost gym provider The Gym Group (LSE: GYM) has been warmly received by the market. It’s not hard to see why. 

With all of the company’s 187 sites now open, trading has “outperformed” management’s own expectations. Total memberships climbed from 547,000 at the end of February to 729,000 by 24 May. This brings the company close to the 794,000 memberships seen in December 2019. Fitness fans are also visiting sites at record levels (an average of 1.5 times per week). 

Although trading may slow during the summer, GYM is in no mood to rest. Having opened four new gyms since 12 April, the firm looks set to take advantage of (newly) vacated sites and continue growing its estate. With net debt of “only” £63m at the end of April, GYM is clearly in better financial health to achieve its goals than Cineworld.

Of course, any investment involves risk and GYM’s no exception. In my view, there’s a distinct lack of economic moat here. As a result, the company will likely always face fierce competition for members.

There’s also no guarantee the popularity of working out from home, from both a convenience and cost perspective, won’t continue rising. And, as much as I hate to say it, there’s also a chance that coronavirus infection rates could spike again. 

Despite these potential drawbacks, I suspect I’d feel far more comfortable buying GYM over CINE right now. 

The post The Cineworld share price is flagging. I think this reopening stock is a better buy appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended The Gym Group. 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.

Halfords

Bike and car parts retailer Halfords (LSE: HFD) was a huge beneficiary of the push to exercise during lockdowns. With movement restricted and most shops and all leisure facilities closed, what could be better than peddling the misery away? Sales duly rocketed, followed by its share price.

The company, which also operates auto repair centres, releases its latest set of full-year numbers next month. While the inevitably good numbers should push the shares higher, a cautious outlook could do the opposite. After all, trading may be about to get tougher as the UK prepares to fully unlock.

Halfords faces two problems: those with bikes won’t be in a hurry to replace them and people now want to spend their money on things they’ve been itching to do. On top of this, it still presents as a pretty unexceptional company without last year’s unexpected tailwind. Margins are low. Returns on capital — what it makes on the money it invests in itself — are also very average.

I wouldn’t buy and might even sell some if I needed cash to invest in what I see as a better growth pick.

AO World

Another company that’s done well out of the pandemic has been online domestic appliance seller AO World (LSE: AO). In fact, it was one of the best-performing UK shares last year. The share price rocketed from 57p a pop in April 2020 to 411p a share by 31 December.

Since then, however, we’ve seen sentiment turn. I don’t think this is surprising. CEO John Roberts is confident that AO will “continue to be a double-digit growth business in the year ahead,” but the market seems to think otherwise. On 29 times earnings, the stock also looks pretty expensive for a company with no discernible moat or market-leading position. Will customers remain loyal? I’m sceptical.  

Prior to Covid-19, AO was a loss-making, ‘jam tomorrow’ stock. Without evidence that it can continue to thrive in normal market conditions, I’d be taking some profit here if I hadn’t already started doing so.

Gear4music

Multiple UK lockdowns have also been kind to online musical instrument seller Gear4music (LSE: G4M). Over the last year, the share price has leapt 225%! The question now is whether this momentum can be sustained after the company reports to the market on 22 June.

Like Halfords, Gear4music faces some tough comparisons going forward. While playing music can be a lifelong pursuit, one has to wonder whether people have all the guitars, drums and trumpets they need for now. G4M’s small-cap status also means it’s more susceptible to big share price moves compared to the average FTSE 100 juggernaut. If investors get nervous, the party could be (temporarily) over.

But the long-term growth prospects are surely excellent thanks to the gradual reduction of independent musical instrument retailers on the high street. For this reason, I’d be happy to hold this UK share. If the shares fall back next month, I’d back up the truck and buy too.

The post Would I buy or sell these top-performing UK shares? appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

However, in the past 12 months, the Cineworld stock price has risen 50% from 57p. I’m always looking for cheap shares that can diversify my portfolio. Is Cineworld actually on the rise as Britain reopens, or is it too risky for my portfolio?

A quick glance at Cineworld’s financial situation

Let’s be honest, the cinema industry did not need Covid-19 to put it in a bad position. The sector was already in decline, and the pandemic simply worsened a bad situation. This was reflected in Cineworld’s poor 2020 performance. 

Last year, revenue plunged 80.6% to £852m from £4.3bn in 2019, while losses mounted to a whopping £2.2bn. To keep itself from going completely under, some £810m of new debt was raised. More debt has since been raised, bringing its total to around £6bn.

Cineworld’s share price potential

It’s tough to talk about potential when I see a debt pile that big. The one saving grace that Cineworld has right now is that its UK branches reopened today, 19 May. Having already reopened many of its locations in the US last month, this ‘homecoming’ could go a long way towards recovery. 

Following the success of films such as Godzilla vs Kong in the US, similar expectations have been placed in the UK. Investors will be hoping that pent-up demand for moviegoing after more than a year in lockdown will see plenty of bums on seats. 

It is also my belief that Cineworld could enjoy a Darwinian post-pandemic survival. While many cinema chains will not survive this pandemic, Cineworld could mop up the market share left behind by these closures. 

My concerns about Cineworld’s share price

There are already rumours circulating of the increased severity of the Indian Covid variant. We have already seen in cities such as Glasgow that Cineworld has been prevented from reopening over fears of rising cases. This situation could swiftly escalate, causing more cinemas to close once again.

And even with a reopening, success wouldn’t be guaranteed. Before its March 2020 drop (when it sat at 182p), Cineworld’s share price was already 44% off its 2017 all-time highs of 325p. Streaming has been disrupting the cinema industry for years. 

Even returning to profitability may not be enough for Cineworld to pay off its debt faster than interest accrues at such enormous amounts. 

So, should I invest in Cineworld?

There is a reason that Cineworld is such a heavily shorted stock — so few investors believe it can stage a comeback. I don’t hold out much hope for the cinema industry as a whole, or Cineworld. With such massive debt as well as the looming threat of more lockdowns, it’s a no from me.

The post Will Cineworld shares ever be worth buying? appeared first on The Twelfth Magpie.

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Jamie Adams has no position in Cineworld Group. The Motley Fool UK has no position in any of the shares mentioned. 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.

With Diageo shares up by 17.8% year-to-date, investor confidence in the company has quickly recovered from the initial stages of the pandemic. In fact, at approximately 3,300p per share, the company is trading above where it was prior to the pandemic, at around 3,200p.

Resilience during pandemic

In its first half of 2021 results, Diageo managed to increase net sales of its alcohol beverage products by 0.9%. The company noted that the increase in sales was a result of people buying the products for consumption at home. The company’s sales grew by 12% in North America and by 10% in the UK.

This meant that net profit was only down by 15.3% year-on-year, and was still healthy at £1.58bn.

Shortly after the first half of 2021 results, Diageo announced it would return capital to shareholders. The company announced that it had decided to increase its dividend by 2%. All of this resulted in Diageo shares rising by 9.95% in the last three months.

Looking to the future

As bars and restaurants open up across Europe, could demand for the company’s products positively impact share price further? Looking ahead to full-year 2021 results, Diageo announced that it expects organic operating profit growth to increase by at least 14%. The company stated the increase in profit will arrive from the economic re-opening in Europe and a recovery in its Africa, Asia Pacific, and Latin American markets.

This outlook was a driver behind the decision to repurchase shares. By the end of the fiscal year 2022, the company plans to repurchase £1bn shares and immediately cancel them. Another promising sign for investors was Diageo stating that e-commerce rose to 5% of group sales, up from 2% prior to the pandemic.

The risks

The principal risk to shareholders of Diageo is similar to that most businesses currently face – the course the pandemic will take. Further widespread lockdowns would again reduce profit, which could weigh on the share price.

Broader than this is the question of how much further growth can Diageo squeeze from its market. The overall beverage industry has experienced consolidation through acquisitions. At present, half of the world’s top-selling spirit brands are owned by Pernod Ricard, Baijiu, and Diageo itself. This makes further growth through acquisition tricky.

To answer my original question, I can’t see Diageo shares rising significantly as pandemic restrictions ease further. The company’s share price recovered from the pandemic hit quickly. This was followed by Diageo broadcasting its positive outlook through the share buyback. I believe this has already been accounted for in its current share price, which is fairly valued, in my opinion.

The fact that Diageo shares did so well during the pandemic is a sign of an overall strong business. Rather than a reopening play, I would look to Diageo when adding a steady, low-growth acquisition to my portfolio.

The post Diageo shares rise but could this reopening play make further gains? appeared first on The Twelfth Magpie.

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Ben Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Diageo. 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.

Like most listed companies with a high street presence, fashion retailer Superdry (LSE: SDRY) was pummelled by the coronavirus in 2020. By mid-March last year, its shares were changing hands for just over 100p. Since then however, they’ve bounced roughly 150%! Could there be more to come now the company’s been allowed to re-open its stores?

Superdry shares: positives and negatives

Based on the general reaction from consumers, things certainly look encouraging. By yesterday afternoon, reports suggested that high street footfall was nearly double that recorded last week. Although Superdry wasn’t explicitly mentioned, I’d imagine more than a few people wandered into its stores. 

There are also reasons to be positive on the company’s ongoing ‘reset’ after years of underperformance. Back in January, CEO and founder Julian Dunkerton said Superdry was making “great progress” with its “influencer-led, digital marketing strategy.” This included a new partnership with football star Neymar Jr. As someone with 143m followers on social media, that looks to be quite a coup for the business. 

But will all this be sufficient to resurrect its image among younger shoppers? I’m not so sure. Long gone are the days when Superdry was the fashion brand to be seen wearing. Online giants such as Boohoo and ASOS, I’d argue, are now far more popular with Superdry’s original demographic. On top of this, the company’s balance sheet is a lot less robust than it once was. To be clear, it’ll be a feat for the company to return to the days when the shares changed hands for 2,000p a pop (2018). 

A more general argument against buying shares in any UK retailer now is that the rush to the shops will prove short-lived as savings made during lockdown run out. Alternatively, those who are able to continue spending will be more likely to go on holiday abroad or enjoy more time in pubs and restaurants. 

Superdry is a great example of the adage that investors should buy ‘when there’s blood on the streets’. Notwithstanding this, I wonder if the rally is almost done.

Better bet?

One example of a company I’d buy over Superdry shares right now is XP Power (LSE: XPP). A world away from the high street, the mid-cap manufactures critical power control components. Its share price is up over 9% this morning following the release of a decent trading update. 

While order intake over the three months to the end of March was pretty much flat relative to the same period in 2020, it was actually up 32% from the previous quarter. Partly due to a buoyant semiconductor sector, this goes some way to showing how well XPP has recovered from the pandemic. All told, revenue rose 16% to £57.1m over Q1.

Based on the current demand for its products, I can see this rebound continuing. Aside from this, XPP’s balance sheet looks solid with only £18.4m in net debt. Although not an income stock, news that the mid-cap would return 18p per share in dividends for Q1 is another sign of confidence.

Sure, nothing can be guaranteed. XP acknowledged today that Covid-19 uncertainty could still impact business. Moreover, at 25 times earnings, the shares weren’t exactly cheap before markets opened this morning. They’ll now be even more expensive!

Nevertheless, I’d buy this hot growth stock over a still-troubled retailer any day.  

The post Is it time to buy Superdry shares? appeared first on The Twelfth Magpie.

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Paul Summers owns shares of boohoo group. The Motley Fool UK has recommended ASOS, boohoo group, and XP Power. 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.

A UK share ready to fizz

As a holder of the stock, I never expected today’s final results from drinks firm AG Barr (LSE:BAG) to be all that impressive. And so proved to be the case.

Due to the enforced closure of bars and pubs, the producer of thirst-quenching brands such as IRN-BRU and Rubicon has been hit hard by the pandemic. Revenue fell 11.2% to £227m over the 12 months to 24 January. Pre-tax profit also decreased — by 12.3% — to £32.8m (or £26m once one-off costs were deducted). Despite this, there were a few bits of good news.

Partly as a result of steps taken to control costs, Barr ended the year with £50m in net cash. That’s up significantly from the £10.9m logged at the end of the previous financial year. This comforts me. As an investor, I need to know a business I part-own has a sufficiently robust balance sheet to negotiate inevitable periods of ‘sticky’ trading. 

In other news, CEO Roger White said the company had “the clear intention to recommence dividend payments in 2021.” The fact that it hasn’t done so already is actually a positive for me. As nice as dividends are, I don’t want a business showering me with cash until it’s confident in its outlook. 

All told, I’ve no problem staying invested. That’s not to say I expect the share price to motor back to its 2019 high for a while. 

While the lifting of restrictions should be good news for AG Barr, it would be foolhardy to assume there won’t be obstacles ahead. The possibility of a third wave of the coronavirus can’t be ignored. Especially if the vaccine programme runs into trouble.

This is a UK share for the ‘bottom drawer’. 

Sweet treat

Of course, there are other ‘reopening’ options available in the small/mid-cap space. Chocolatier Hotel Chocolat (LSE: HOTC) is another example of one that could do very nicely in time. 

Now, it’s quite reasonable to say that sales of chocolate are unlikely to rocket as we approach summer. This is particularly the case if we get a heatwave! 

As a counter to this argument, I suspect HOTC’s next update on trading could be better than some in the market are expecting. It should, after all, take into account trading in the Easter period. If reports are to be believed, many in the UK are treating this weekend as a second Christmas and spending lots on decorations and, very likely, chocolate eggs.

On top of this, the recent decision by rival Thorntons to abandon its high street stores could prove a boon to the £500m-cap. It should allow HOTC to assume pole position at the luxury end of the UK market.

Like AG Barr, I wouldn’t buy Hotel Chocolat stock if I were only considering holding it for a few weeks or months. Investing requires patience. Trying to predict where a share price will go in the very near term is asking for trouble.

On a mid-to-long-term basis, however, I’m confident these UK shares could do very well for holders.

The post 2 UK shares to buy for the great ‘reopening’ appeared first on The Twelfth Magpie.

More reading

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Paul Summers owns shares in AG Barr. The Motley Fool UK has recommended AG Barr. 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.

That said, I think it’s crucial to be selective when investing in reopening plays. Some of these stocks, such as hotel chains, have already had huge runs which means the good news could be priced in already. Others, such as airlines, look financially vulnerable.

Here, I’m going to highlight three reopening stocks I’d be happy to buy for my own portfolio today. These should benefit as economic activity picks up. However, they also have long-term growth potential.

Visa

One stock that strikes me as a great reopening play is Visa (NYSE: V). It operates the world’s largest payments network. For every $1 spent by consumers in physical locations, $0.15 goes through Visa’s network.

During the pandemic, Visa’s revenues declined as less transactions took place. This year and next year should be very different however. As the world reopens, transactions are likely to surge. It’s worth noting that around 20% of Visa’s revenue comes from international transactions. So, the company should benefit as international travel eventually picks up.

In the long term, the future looks bright for Visa. According to Accenture, 2.7trn transactions are set to move from cash to cards and e-payments by 2030.

But Visa is an expensive stock. Its forward-looking P/E ratio is about 40 and this only adds risk to the investment case. All things considered however, I think the stock has a lot of appeal.

Alphabet

Another stock that strikes me as a good reopening play is Alphabet (NASDAQ: GOOG). It owns Google and YouTube and is the largest digital advertising company in the world.

As the world returns to normal and economic activity picks up, businesses are likely to increase their advertising budgets. This should benefit Alphabet. Travel advertising, in particular, could drive Alphabet’s top-line much higher, in my view.

But Alphabet isn’t just a reopening play. This stock appears to have strong long-term growth potential. Between now and 2025, the online advertising market is set to more than double in size and this growth should provide strong tailwinds for the company.

However, one risk here is that regulators are targeting big tech firms like Alphabet. This adds some uncertainty to the investment case. Overall, however, I think the risk/reward proposition is attractive. The stock’s P/E ratio of 30 seems reasonable to me, given the long-term growth potential.

Coca-Cola HBC

Finally, I also think Coca-Cola HBC (LSE: CCH) is worth a look as a reopening stock. It’s a strategic partner of the Coca-Cola Company that bottles and distributes its products in 28 countries.

Revenues here took a big hit in 2020 due to Covid-19 lockdowns. With restaurants and bars closed, travel halted, and live sport played behind closed doors, sales plummeted 12.7% to €6.1bn.

The rollout of vaccines should be a game-changer for Coca-Cola HBC. “We expect to see a strong FX-neutral revenue recovery in 2021,” the company said recently. For FY2021 and FY2022, analysts expect revenue growth of 8.3% and 6.7% respectively.

Of course, if we see Covid-19 setbacks, Coca-Cola HBC could be impacted. This is a risk. But with the shares still about 25% below their all-time high and trading on a forward-looking P/E ratio of under 20, I think it’s a good time to be buying this reopening stock.

The post 3 ‘reopening’ stocks I’d buy today appeared first on The Twelfth Magpie.

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Edward Sheldon owns shares in Alphabet. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Alphabet (C shares) and Visa. 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.