The Motley Fool | Jul 24, 2020 11:40
Many FTSE 100 stocks have suffered significantly in the coronavirus pandemic. However, some companies have seen an increase in the demand for their products over the past six months.
As such, now may be the time to buy a basket of these companies, ahead of a possible second wave later this year. Here are three FTSE 100 coronavirus stocks that might be worth considering today.
FTSE 100 coronavirus stocks AstraZeneca (LSE: AZN) is working flat out to produce a vaccine to help control the pandemic. It has already started production on Oxford University‘s leading candidate, which is still in its early phases of testing.
If the treatment is given the green light, AstraZeneca could benefit significantly. The FTSE 100 pharmaceutical group could see its sales and profits jump as virtually every country in the world is currently clamouring for a treatment.
This wouldn’t be a one-off for the group. Increased profits would allow Astra to reinvest more cashback into research and development. That could help improve the company’s growth for many years to come.
Therefore, there’s a strong chance investors buying this FTSE 100 coronavirus stock today could see high total returns in the years ahead.
Halma Halma (LSE: LON:HLMA) has reported a surge in demand for its health and safety kit over the past six months. This has helped the company outperform many of its FTSE 100 peers, which have seen sales fall.
Once again, this could help the company’s growth going forward. Halma has an excellent track record of buying up smaller businesses. It then integrates them into the wider group where they can benefit from its overall size and scale.
This approach has helped the company generate some of the best total returns for shareholders in the FTSE 100 over the past decade. Over the next few years, it may even accelerate its acquisition programme. Smaller peers may struggle in the current economic environment. This may mean they’re more susceptible to a takeover from Halma. It could use its excess profits generated over the past six months to fund an acquisition spree.
What’s more, considering the FTSE 100’s company’s performance in the first half of this year, a second wave of coronavirus may help support the group’s strategy. Long-term investors could be well rewarded here.
Reckitt Benckiser Reckitt Benckiser (LSE: RB) has also seen the demand for its products rise over the past six months. As one of the world’s leading producers of disinfectant products, the FTSE 100 company struggled to keep up with demand at the beginning of the crisis. However, over the past few months, management has got to grips with the situation.
As a result, the company is well-placed to meet the world’s higher demand for cleaning and disinfectant products. Like the two companies listed above, the group may also be able to use profits produced over the past six months to help support growth in the years ahead.
Following a series of strategic missteps, Reckitt’s growth was floundering at the beginning of the year. But it now looks as if the company is back on track thanks, in part, to the pandemic. Only time will tell if the business has really put its problems behind it, but with its top-line set to grow significantly this year, it seems likely.
Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Halma. 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.
Motley Fool UK 2020
Written By: The Motley Fool
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