2 FTSE 250 ‘coronavirus stocks’ I’d buy right now

2 FTSE 250 ‘coronavirus stocks’ I’d buy right now

The recent stock market crash may have dissuaded some investors from buying FTSE 250 Stock. However, while some businesses are suffering in the pandemic, others are prospering. With that in mind, here are two ‘coronavirus stocks’ investors might benefit from buying right now. 

Coronavirus stocks on offer

AO World (LSE: AO) has seen a substantial increase in its share price this year.

The company is one of the few coronavirus stocks that’s reported rising sales in the pandemic. The online retailer of electrical products reported a 16% increase in sales for the year ending March 31.

The company went on to add that even after the reopening of the UK high street, sales had continued to trend higher. This suggests that AO is in line for a bumper 2020. It may also mean the group is well prepared for a second wave of coronavirus if one develops. 

In fact, a second wave, awful though that prospect is, may even be a positive development for AO World. This year customers who usually shopped on the high street, have had no choice but to use the firm’s services. This helped push the group into profit for the first time.

After many years of losses, AO World reported a net profit of £1.7m for 2020. Next year, analysts are forecasting a net income of £24m for the group, followed by £34m in 2022. 

This growth potential is the primary reason why AO World stands out in the world of coronavirus stocks. Not only is the company set to perform well this year, but its growth may continue for many years to come. 

Computacenter

Tech sector companies like Computacenter (LSE: CCC) have been some of the best performing coronavirus stocks in 2020. Computacenter is a provider of information technology infrastructure services.

The demand for its services has boomed since the crisis began. Following a strong performance in 2019, the company has reported that profit in the first half of the year has been “substantially” ahead of last year. It now expects to report a surge in earnings for 2020 as a whole. 

As the world becomes more dependent on computers and computing technology, this trend may only continue. As one of the largest tech stocks on the London market, Computacenter may be the best company to own for investors who want to buy into this theme. 

As such, now could be an excellent time to snap up a share of this business as part of a basket of coronavirus stocks. Despite its recent trading performance, the Stock are only dealing just above the level at which they began the year. This implies that they could rise substantially in the years ahead as profits grow. 

In addition to this growth, the group also offers investors a dividend yield of 2.1%. The payout has more than doubled in the past six years. Further profit growth may help power more payout increases in the years ahead. 

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the Stock look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

More reading

  • Top British stocks for August 2020
  • Looking to protect your portfolio from coronavirus? I’d buy these 3 UK stocks
  • 3 cheap Stock I’d buy if the stock market crashes

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the Stock 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.

The post 2 FTSE 250 ‘coronavirus stocks’ I’d buy right now appeared first on The Motley Fool UK.

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Author: Rupert Hargreaves

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