2021 has been a great year for stock market investors, so far. Year to date, the FTSE 100 is up more than 10%. Meanwhile, the S&P 500 is up more than 15% (which shows the importance of owning international shares).
The good news is that there are still plenty of opportunities for investors as we start the second half of the year. With that in mind, here are three stocks I’d buy today.
Apple
One I like the look of as we start Q3 is Apple (NASDAQ: AAPL). It’s been a bit of a laggard this year, due to the fact that investors have been focused on ‘reopening‘ stocks. However, recently, Apple stock has started rising again. In June, it shot up from $125 to $140.
I think Apple shares have the potential to keep rising. The reopening trade appears to be losing its momentum and we’re now seeing institutional money flow into ‘growth-at-a-reasonable-price’ stocks. Apple certainly offers growth at a reasonable price. This year, its net profit is expected to rise 51%. Yet its forward-looking P/E ratio is just 27.
One risk here is the threat of regulatory action against the company. This could impact profit margins going forward. Overall, however, I believe the stock has a very attractive risk/reward profile.
Boohoo
Another stock I see as a ‘buy’ right now is Boohoo (LSE: BOO). The fast-growing online fashion retailer owns a number of well-known brands including Boohoo, PrettyLittleThing, Nasty Gal and, more recently, Debenhams.
There are a number of reasons I’m bullish here. One is that growth’s very strong. In a recent trading update, the company reported a revenue gain of 32% for the three months to 31 May.
Another is that broker sentiment is improving. Recently, analysts at Liberum upgraded the stock to ‘buy,’ saying the shares are cheap at present. I agree – I think the stock’s forward-looking P/E ratio of 29 is a steal. It’s worth noting that the median price target here is about 470p – well above the current share price.
A third reason I’m bullish is that an insider just bought a load of stock. Last month, board member Iain McDonald spent just under £330,000 on shares. This suggests he’s confident about the future.
Some risks to consider here include competition from rivals such as ASOS, and reputational issues. Both could impact profitability going forward. However, I think these risks are priced into the stock.
Fiverr
Finally, I’d also buy shares in Fiverr International (NYSE: FVRR). It operates one of the world’s largest freelance employment platforms. It’s currently trading about 25% below its 2021 high and I think it’s a good time to buy the stock.
This company has a lot of momentum right now. Recently, it reported a “massive start” to 2021 with revenue for the first quarter of the year up 100%.
I expect Fiverr to continue growing rapidly in the years ahead. In the near term, it should benefit as economic activity picks up and businesses hire more staff. Many businesses will turn to freelancers for flexibility. In the long run, it should benefit as the employment model evolves and the ‘gig economy’ grows.
This is a more speculative stock. Currently, the company isn’t making a profit, which increases risk. The stock is also highly volatile.
I’m comfortable with the risks though. I think the long-term potential here is significant.
