With the stock market constantly fluctuating, keep up with the best shares to buy can be easier said than done. After all, there’s so much to consider when investing in a stock. However, you don’t have to do so alone, because we’ve done our research and picked out the ten best shares to buy right now.
In this edition of our monthly stock market analysis, we are going to look at the best shares to buy now in October 2021 – with our expert analysis covering October 18th to October 21st.
Updated data and YTD returns are as of October 21st, 2021.
Before we take a closer look at the best shares to buy today, here’s a quick look at our top 10 picks:
- Mercado Libre (MELI)
- Facebook (FB)
- Vodafone (VOD)
- Apple (AAPL)
- Airbnb (ABNB)
- American Express (AXP)
- Costco (COST)
- Pinterest (PINS)
- Rolls-Royce (RR)
- T-Mobile (TMUS)
You can buy all of these top shares, as well as many others, at eToro and pay 0% fees!
October 18th to October 21st: Many people will not have heard of Mercado Libre, making it a hidden gem for equity investors. Put simply, Mercado Libre is an Argentine company that offers online marketplaces for a variety of different products. These include e-commerce marketplaces, advertising marketplaces, credit services, and even real estate.
Right now, Mercado Libre is heavily focused on the Latin American market, leading the company to have over 667 million visits per month. Figures for Q2 2021 saw the company generate a remarkable $1.7bn in revenue, around $320m more than the previous quarter. This led to Mercado Libre making a profit for the first time since Q3 2020, generating $68m in net income.
Looking ahead, we like the look of this stock due to Mercado Libre’s fantastic potential to continue expanding in Latin America. Mercado Pago, the company’s payment platform, allows users to send and receive money digitally – much like PayPal. If this continues to grow, it’ll provide a massive boost to revenues for Mercado Libre, helping push the stock price higher.
October 18th to October 21st: Facebook is a regular on our list of the best stocks to buy right now, yet there are some exciting changes ahead that make the company even more attractive than usual. Facebook is set to release its Q3 2021 earnings next week, with analysts estimating that it will have shown exceptional revenue growth due to increased ad spending. Ultimately, if this were the case, we’d likely see a pop in the share price.
Furthermore, you may have seen in the news lately that Facebook will also be changing their name next week to reflect that they are no longer a social media company and are now focused on building the ‘metaverse’. This is an ambitious move to change the company’s well-established name but highlights how Facebook is focusing on different areas such as augmented reality glasses and AI.
Finally, Facebook still intends to launch its own cryptocurrency shortly, called ‘Diem’. This digital coin will be used to send payments between users and is touted to offer a cheaper alternative to credit card companies when it comes to making payments. Overall, these innovations highlight just how bright the future is for Facebook.
October 18th to October 21st: Vodafone is one of the most well-known telecoms firms in the UK and hosts networks in 22 countries across Asia, Africa, Europe, and Oceania. The company has had a pretty crazy 2021, rising to a high of 142.76p in May before falling by 22.50% to current levels. However, although this price drop seems drastic, it may provide an excellent opportunity to buy at an attractive price.
One of the most exciting things about Vodafone is the company’s innovations in the African market. Vodafone has created a platform called M-Pesa, which enables people to send and receive money using their smartphones. This platform has become so popular that it is now the most common way of sending money in various African nations – creating huge chunks of revenue for Vodafone.
Furthermore, Vodafone’s 5G network is still growing throughout Europe, providing another revenue stream for the firm. Finally, Vodafone even pay a dividend yield of 7.06%, disbursed twice every year. Although the share price has taken a hit recently, we feel that Vodafone could be poised to bounce back in the months ahead.
October 18th to October 21st: Everyone has heard of Apple. As the creator of the iPhone and MacBook, Apple has built incredible brand appeal through consistent innovation and attractive products. Recently, Apple’s stock has pulled back by 9.6%, providing an excellent opportunity for investors to buy Apple at a lower price.
Much of Apple’s growth can be attributed to the exceptionally popular iPhone, which dominates the smartphone market. Recently, Apple released the iPhone 13 and iPhone 13 Pro, which people have been clamouring to buy. Furthermore, most people have at least one Apple product in their daily lives, highlighting how prevalent the brand is. We can’t see this changing any time soon, meaning revenues will continue to increase.
Q2 2021 revenue was slightly down from Q1 2021 – although it was over $20billion higher than the previous year, so there’s no cause for concern in that regard. Furthermore, Apple has made over $20billion in net income in the last three quarters, which is impressive given that consumers are still emerging from the pandemic’s effects. Overall, these reasons combined with Apple’s small dividend means that Apple is still the number one tech stock we’d recommend investing in.
October 18th to October 21st: Airbnb has made our list of best shares to buy now multiple times over the past year – and it’s clear to see why. The travel giant has been climbing steadily since July, rising 30.55% from that point. With the price approaching the 50-day EMA, now may be an excellent time to consider an investment.
Q2 2021 revenues for Airbnb topped $1.33billion, highlighting the strength to bounce back from the pandemic’s effects. Furthermore, Airbnb recently told shareholders that they expect Q3 2021 to be their strongest quarter in terms of income – which is music to the ears of speculative investors. Furthermore, average booking fees are up, and long-term stays are becoming more popular, increasing this stock’s attractiveness.
We like Airbnb as a long-term play, as the ‘work from home’ culture shift has made vacations more viable for many families. People can now take their laptops and work abroad (or in their home country) in an Airbnb, making the company’s services even more popular. We see no reason for this growth to stop, which is why we’re so bullish on Airbnb.
October 18th to October 21st: As you can imagine, credit card spending has been down considerably over the past year and a half as consumers were unable to make purchases due to lockdowns and reduced funds. However, American Express has bounced back admirably from this setback, posting revenues of $10.06bn in Q2 2021 – which is their best quarter since Q4 2019. This has given the company a net income of $2.28bn for the most recent quarter, which is pretty similar to the first three months of the year.
American Express is focusing on the younger generation, providing appealing rewards programmes that suit the tastes of this age range. This has been shown in credit card spending, as people from younger generations have been spending more than ever on American Express credit cards in Q2.
The future does look rosy for this company, as all trends are pointing upwards in terms of volume and revenues. American Express’s P/E ratio is now sitting at 20.16, far higher than other companies such as Capital One. We see no reason for this company to stop growing for the remainder of the year, which is why we recommend it to equity investors of all risk appetites.
October 18th to October 21st: Costco is an American corporation that operates a vast chain of retail stores that you need a membership to enter. These stores sell pretty much everything and tend to offer products at a much lower price than you’ll find elsewhere. Costco has over 800 locations worldwide, in countries including the US, Canada, Mexico, the UK, and Japan.
The company’s stock is currently trading at all-time highs of $470, following a remarkable bull run since March 2021. Much of this growth can be attributed to Costco improving the e-commerce side of its operations, as the company has traditionally focused primarily on physical locations. Furthermore, due to the financial issues that many consumers have faced due to the COVID-19 pandemic, Costco has been a go-to for many due to its low prices.
The final quarter of Costco’s reporting period saw the company’s sales increase by 15.8% from the previous year. Again, much of this can be attributed to higher footfall now that lockdowns are easing. Overall, we believe Costco will continue to grow over the coming years due to its stellar business model, leading to further gains in the stock price.
October 18th to October 21st: Pinterest is a social media site designed to promote image sharing between users. The company has grown exponentially since launching in 2010 and still retains a considerable user base due to its unique concept. Although the company has fallen drastically since the highs of February 2021, the underlying business model still provides many reasons to be optimistic.
One of the main reasons to be optimistic about Pinterest’s stock price is that the company has found a way to increase revenues, whilst the user base has dwindled slightly. Revenues increased 26.36% between Q1 and Q2 2021, whilst active users decreased. Although the user base falling is negative, the fact that Pinterest still grew income means that the company’s business model is solid.
The gross profit margin over the trailing twelve months is just over 77%, which is exceptionally high. Furthermore, Pinterest turned a from in Q2 2021 after making a loss in the previous quarter, which gives hope to Q3 earning’s announcements. Overall, if Pinterest can continue growing revenue per user whilst halting the decrease in user base, we’ll surely see the stock creep up in the months ahead.
October 18th to October 21st: The Netflix share price has risen over 213% since the beginning of 2018, as the technology giant has secured its grip on the video streaming sector. Netflix were the first-movers in the industry, meaning that companies such as Amazon Prime and Apple+ are finding it difficult to tempt customers away from Netflix’s platform.
One great thing about Netflix’s business model is that it can consistently increase prices each year. This price increase doesn’t come at the expense of customers leaving, meaning Netflix can improve revenues while still adding more subscribers. This has netted the company just under $27.6 billion in revenue over the past 12 months.
Finally, Netflix is still expanding into developing nations and are pushing heavily into India. This is a vast market, and if Netflix can gain a solid portion of it, it’ll add another massive boost to revenues. Overall, we can’t see Netflix’s growth slowing down anytime soon, and that’s why we recommend it to both retail and professional equity investors.
October 18th to October 21st: T-Mobile has had a pretty crazy 2021. The start of the year was excellent, with the stock price rising 29% between February and July. However, since then, T-Mobile’s shares have plummeted just over 19% and are now trading at the same price they were back in February 2021.
Much of this decrease came as a result of the cyberattack that T-Mobile experienced in August 2021. However, this stock decline may provide an excellent opportunity to buy. Q2 2021 revenues reached $20bn, which is a 13% increase from the previous year. Furthermore, the merger between T-Mobile and Sprint has meant that the company has a vast 5G network in the US, which gives them an appealing market share over this growing area.
Finally, T-Mobile is branching out from simply offering mobile telecom services and now offer home internet services. This has helped the company reach 104.80 million customers this year, over 6 million more than last year. So, although the data breach has hampered the stock price somewhat, the underlying financials and metrics still make a bullish case for T-Mobile’s stock.
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The S&P 500 and the NASDAQ were up over 1% for the week, following a strong rebound in Friday’s session. The growth rate in PPI dipped, causing sentiment to become more positive. However, with Q3 earnings season now upon us, traders are expected to be hesitant, translating to periods of stagnation in the market.
UK indices also had a fantastic week, with the FTSE 100 now trading at a 20-month high. Traders will be hoping that the index can return to pre-pandemic highs in the coming weeks, with a solid performance from property and energy stocks helping boost momentum.
- S&P 500: +1.45%
- NASDAQ Composite: +1.84%
- Dow Jones: +1.17%
- FTSE 100: +1.95%
- FTSE All-Share: +1.91%
The following shares didn’t quite make the cut this week – but are most definitely worth keeping an eye on over the next week.
- Blackberry: Blackberry has been at the front of Reddit’s meme stock craze, but actually has solid fundamentals. With cyber security going to be increasingly important going forward, keep an eye on this one once volatility dies down.
- Johnson & Johnson: This COVID-19 vaccine maker has been trending strongly upwards since October. The stock has lost significant ground in recent weeks due to manufacturing issues and the pause on distribution over fears that the vaccine could cause blood clots in some people. We see this pullback as a potential opportunity to buy. The Johnson & Johnson vaccine is one of the first one-shot vaccines developed for COVID-19 and as manufacturing capacity ramps up, the shot could be the prime weapon against COVID-19 around the world. Plus, the US government is likely to recommend a second dose of the shot, which is good news for J&J’s bottom line.
While there are many different types of shares out there, there are also thousands of different company shares from around the world that you can invest in. Different shares of companies come in all shapes and sizes, so it’s important to do your research and ensure you invest in the companies that best match your portfolio. Let’s take a look at some of the most popular companies to invest in in the UK.
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- The platform is tailored to those with little to no experience of buying shares online
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Here what you need to do to buy shares from eToro:
Step 1: Open an Account
First and foremost, head over to the eToro website and elect to open an account. You will now be asked to enter some personal information – such as your full name, home address, date of birth, and contact details, You’ll also need to choose a username and a strong password.
Step 2: Upload ID
On top of the Financial Conduct Authority (FCA), eToro is also regulated by ASIC (Australia) and CySEC (Cyprus). As such, it is required to identify each and every user that opens an account. All you need to do is upload a copy of your UK passport or driver’s license, followed by a utility bill or bank account statement.
Step 3: Deposit Funds
You will now be asked to deposit some funds. eToro accepts a variety of UK payment methods, including:
- Debit Card
- Credit Card
- UK Bank Transfer
You will need to meet a minimum deposit amount of $50. Your GBP deposit will be converted to USD (0.5% conversion fee), as this allows you to access both UK and international markets at the click of a button.
Once your account has been funded, you can then buy your chosen shares. If you know which of the above companies you wish to buy shares in, simply enter it into the search box at the top of the screen, and then click on the ‘TRADE’ button. In our example, we are looking to buy BP shares.
You will then see an order box that asks you to enter the amount that you wish to buy. This is in US dollars and not the number of individual shares. As we noted earlier, you can buy from just $50 (around £35) worth of shares at eToro, so there is no requirement to buy a whole stock.
Finally, click on the ‘OPEN TRADE’ button to complete the share investment process!
Figuring out what stocks to buy and sell on a weekly basis involves a lot of analysis. Our research team scans the market for investment opportunities to bring you the best stocks to buy each week. Here are some of the main ways we decide which shares are best:
The first thing our team does when researching a stock is to get an idea of what it’s worth. This value analysis, better known as fundamental analysis, involves looking at companies’ revenue, profits, cash flow, and earnings to calculate an estimate of their fair prices.
When a company’s calculated fair value is higher than its current stock price, that’s a good sign that the market is undervaluing the shares. Our portfolio includes many shares that are undervalued because these stocks have high upside and relatively low downside.
We also use technical analysis to find short-term investment opportunities. Technical analysis involves looking at a stock’s price movements to determine where the price will go next. Our research team is able to find technical patterns like bullish breakouts, price momentum, and reversals to trade every week.
One of the advantages of using technical analysis to identify stock picks is that common patterns typically have well-defined price targets. So, when we recommend a new stock to buy, we have a specific price trajectory and profit target in mind.
While our analysis team is composed of seasoned experts, we think it’s worthwhile to get a second opinion. That’s why we always look to see what Wall Street analysts think about the stocks we recommend.
Wall Street analysts typically make their 12-month price targets for individual stocks public. We can check those price targets against our own targets from fundamental and technical analysis. If they agree, we can be confident in our recommendation. If they don’t agree, we investigate why and explain to investors why we believe our analysis is correct.
Since our portfolio is updated weekly, market news has a big impact on the shares we recommend and price changes within the portfolio. Our research team keeps an eye on news developments throughout the week to identify catalysts that could propel a stock higher or lower. When news impacts the stocks already in our portfolio, we update investors so that you always know what’s going on.
Ultimately, picking the best shares each week is a tough job. The market is unpredictable and even the best analysts on Wall Street have a tough time beating the market consistently. Our portfolio has a strong track record since launch, but remember that you should never invest more than you can afford to lose.
Want to learn more about how to find the best shares? You can read more on how to pick stocks here.
As you’ll see from our list of the best shares to buy in October 2021, most of our portfolio consists of US stocks. This is because the US economy is roaring back as it reaches high vaccination rates against COVID-19. American Express, Apple, Facebook, Vodafone, and others are expecting a solid end to the year. We are especially keen on Netflix for its strong and stable characteristics, and on Shopify for its long-term value.
Over in the UK, various FTSE 100 shares are now looking like exciting investment opportunities as we head towards the end of the year. Overall, the FTSE 100 Index itself is still up for the year, highlighting how well the economy has bounced back since last year.
The latest addition to our portfolio is Unilever. This company is a great defensive stock to add to your portfolio to help hedge against stock market movements. In addition, Unilever’s attractive dividend yield makes it a great option for investors looking to generate a passive income!
If you want to invest in the best shares to buy today, there’s no better place to do so than eToro. Simply click the link below to sign up today!
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