Here’s the best performing FTSE 100 stock since the 2020 stock market crash

Jonathan Smith reveals and reviews the top performing FTSE 100 stock over the past year, which delivered an impressive 332% gain.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

A lot has happened over the course of the past year. It’s interesting to think back to the stock market crash last March. It’s certainly taught me a few lessons, both good and bad. One of the points I noted was the severity of the crash in such a short space of time, and the speed with which the market recovered. If we go back exactly one year and look at the best performing FTSE 100 stocks since then, there’s some impressive returns!

The top FTSE 100 stock prize goes to…

The best performing FTSE 100 stock in this period was Entain (LSE:ENT). Over the past 12 months it’s up a cool 332%. In the FTSE 100 index, there are 17 stocks that have posted a share price growth of over 100%. This in itself tells me some interesting points.

First, that it’s possible to make large returns without having to resort to speculative penny stocks or other high-risk investments. It also shows me the benefit of staying calm under pressure and not selling out on a short-term dip. If I had sold out in March, I could have missed out on these kind of bounce backs.

Should you invest £1,000 in Bellway right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bellway made the list?

See the 6 stocks

I want to move back to Entain, given that the return is considerably higher than its peers. Entain owns gambling brands such as Ladbrokes and Coral. Although the share price dipped in March 2020, the long-term performance has been meant that if I had bought the stock a decade ago, I’d have generated a 10 times return.

The main reason for the long-term success of Entain is down to the increase in the accessibility of gambling around the world. Entain has taken advantage of this via strategic acquisitions over the years. In 2012 it bought Sportingbet. In 2016 it bought Bwin.party, and the following year it bought Ladbrokes Coral. 

2020 growth

One element that has supported accelerated growth over the past year or so has been a surge in online activity and also growth in the US. 

Thanks to a deal struck a couple of years ago with MGM Resorts in the US, Entain has benefited from the relaxation of online gambling restrictions there. 2020 results showed the partnership is now live in 12 states, with market share growing by 18%.

The online growth can also be seen here in the UK. This has grown exponentially over the past year, a key element in making Entain the best performing FTSE 100 stock. Although largely thanks to lockdown, Entain does deserve credit for being in a position to allow it to take advantage of people being bored at home. This is one risk going forward though, as easing lockdown measures could easily see online revenues slow down.

The online growth last year helped Entain to post a profit of £113.8m. This was a bounce back from the loss of £131.2m in 2019.

I think Entain may struggle to keep the crown of being the best performing FTSE 100 stock over the next year, but this doesn’t mean I wouldn’t buy it. I think the outlook remains promising, and that share price growth is still there. So I would look to buy Entain shares now.

Should you invest £1,000 in Bellway right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bellway made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

jonathansmith1 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.

More on Investing Articles

Tesla building with tesla logo and two teslas in front
Investing Articles

Tesla stock is down. But it may be far from out!

Tesla stock has crashed this year but its long-term record of value creation is outstanding. So, could this be a…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

£3k in savings? That’s plenty to start buying shares and earning passive income!

Christopher Ruane explores how a stock market newcomer could start buying shares with a few thousand pounds and an appetite…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

5 passive income techniques of stock market millionaires

Christopher Ruane details a handful of approaches many successful stock market investors use to grow their passive income streams.

Read more »

Aston Martin DBX - rear pic of trunk
Investing Articles

Down 42% in a year, here’s why Aston Martin shares could keep falling

Aston Martin shares have destroyed vast amounts of shareholder value since the company listed in 2018. Are they now a…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

FTSE shares: a once in a blue moon chance to get rich?

Christopher Ruane explains why he thinks hunting for blue-chip FTSE bargains in the current market could help an investor build…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

4 stocks Fools have bought for growth and dividends

Sometimes, an investor doesn’t have to make the choice between buying a growth stock or dividend shares! Some investments offer…

Read more »

Rolls-Royce's Pearl 10X engine series
Investing Articles

Is there no limit to how high Rolls-Royce shares might go?

Christopher Ruane sees some reasons Rolls-Royce shares could continue pushing upwards. But is he persuaded enough about the potential value…

Read more »

Businessman hand flipping wooden block cube from 2024 to 2025 on coins
Investing Articles

How much could £20k in a Stocks and Shares ISA be worth in 2030?

UK investors have enjoyed spectacular returns in their Stocks and Shares ISA's over the past five years. Would could the…

Read more »