Here’s 1 of my best stocks to buy now and hold!

Jabran Khan details one of his best stocks to buy now and explains why he is considering adding more shares to his holdings.

| 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.

I recently purchased Rightmove (LSE:RMV) shares. I consider it to be one of the best stocks for me to buy now given my investing mantra, which is to buy and hold for the long term.

The burgeoning housing market in the UK, as well as pressure on tech stocks has made me consider adding further shares to my holdings. 

Market leader

Rightmove.co.uk is the UK’s largest online property website in the UK. Founded in 2000, when the top four estate agencies combined forces to create the platform, the business has gone from strength to strength. It currently resides on the UK’s premier index, the FTSE 100 and has a market cap of over £5.5bn.

As I write, Rightmove shares are trading for 655p. At this time last year, the shares were trading for 595p, which is a 10% increase over a 12-month period. Most of my best stocks to buy now have produced double-digit returns over a 12-month period.

The Rightmove share price has come under pressure recently, as have many others. Macroeconomic factors, as well as the tragic events unfolding in Ukraine, have led to volatile global markets in the past few months. Rightmove’s shares have dropped from 800p to current levels between December 21 to today. That is an 18% decline.

Why Rightmove is one of my best stocks to buy now

One of the key reasons I like Rightmove is its position in its industry. I view it as an industry leader and the go-to platform for many property seekers and sellers in the UK. This unique position provides it with a competitive advantage. This gives it excellent pricing power, which helps it grow organically, in turn, potentially increase shareholder returns.

It is worth noting a risk of growing competition in the marketplace that could hinder Rightmove’s progress. There are now many other websites and portals available for sellers and property seekers alike.

Although the current macroeconomic environment may look volatile, the UK housing market is booming. Demand for housing in the UK is far outstripping supply. When the pandemic hit, the UK government scrapped stamp duty for a year which boosted the market further. In addition to this, Rightmove recently reported house prices are at their highest levels since 2016. All these factors, and Rightmove’s dominant position in the market should help boost performance and returns.

The risk Rightmove’s progress faces in the short term, in my opinion, is rising interest rates. These rates could put new and first time buyers off from purchasing properties. I do believe this is not something that will affect Rightmove in the longer term.

I’m buying more shares

Rightmove’s final results posted last month made for excellent reading and have helped me come to the conclusion to purchase more shares for my holdings. Revenue, profit, and dividend per share all increased compared to the year before. A dividend yield of close to 2% is a bonus for me as it would help me make a passive income.

I think Rightmove is one of my best stocks to buy now that fits perfectly with my long-term, buy-and-hold investing mantra. I do expect some minor headwinds due to global volatility.

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.

Jabran Khan owns shares in Rightmove. The Motley Fool UK has recommended Rightmove. 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

Investing Articles

2 ISA strategies for success in 2025

The ISA is a great vehicle for our investments, sheltering our returns from tax and providing us with the opportunity…

Read more »

Investing Articles

Here’s how an investor could start building a £10,000 second income for £180 per month in 2025

Our writer illustrates how an investor could put under £200 each month into shares and build a long-term five-figure passive…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Here’s how I’m finding bargain shares to buy for 2025!

Our writer takes a fairly simply approach when it comes to hunting for cheap shares to buy for his portfolio.…

Read more »

A graph made of neon tubes in a room
Investing Articles

Up 262%! This lesser-known energy company is putting other S&P 500 stocks to shame

Our writer delves into the rationale behind the parabolic growth of this under-the-radar S&P 500 energy company. The reason isn’t…

Read more »

Investing Articles

Just released: December’s small-cap stock recommendation [PREMIUM PICKS]

We believe the UK small-cap market offers a myriad of opportunities across a wide range of different businesses and industries.

Read more »

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

£20k of savings? Here’s how an investor could turn that into passive income of £5k a year

A £20k lump sum, invested in a mix of blue-chip shares with a long-term approach, could generate thousands of pounds…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Is the BP share price set for a 75% jump?

The highest analyst target for BP shares in 2025 is 75% above the current price. So should investors consider buying…

Read more »

UK money in a Jar on a background
Investing Articles

An investor could start investing with just £5 a day. Here’s how

Christopher Ruane explains how an investor could start investing in the stock market with limited funds, by following some simple…

Read more »