I’m looking for the best UK reopening stocks to buy as Covid-19 restrictions are eased. These two are on my shopping list today:
Will this UK share beat expectations?
I think that some of the UK’s media companies could be among the best reopening stocks to buy today. I’ve long tipped shares like ITV (LSE: ITV) as attractive buys as the world recovers from the pandemic. Comments from the FTSE 100 broadcaster’s commercial operations director Kelly Williams in The Guardian today has boosted my enthusiasm for this particular reopening stock too.
She says that “after each lockdown we have seen a big advertising bounce,” a phenomenon that bodes well as coronavirus restrictions are unwound in the coming weeks. Williams added, too, that “I don’t think we thought at the beginning of the year we would get back to 2019 advertising spend levels but there is a possibility we could.” The return of ratings winners like Love Island and the UEFA Euro 2020 football championship in particular bode well.
Be mindful that traditional broadcasters still face considerable competitive pressures from the likes of Netflix, Disney, and Amazon. ITV may have invested heavily in production and the fast-growing video-on-demand sectors in recent years. But it could struggle to keep up with the US streaming giants over the long term.
Another of the best reopening shares to buy!
I believe Greggs (LSE: GRG) is one more of the best reopening stocks to buy today. The company’s blockbuster trading update of earlier this week showed that trading at the FTSE 250 baker is already clicking through the gears.
Greggs said that it has enjoyed “a strong recovery in sales levels” as the government has eased Covid-19 restrictions. Like-for-like sales were down 3.9% in the eight weeks to 8 May. This was vastly better than the 23.3% drop endured during the 10 weeks to 13 March.
In fact, demand for Greggs’s sausage rolls, hot drinks, and other tasty treats has been so robust that the UK retail share advised that “profits are likely to be materially higher” than it previously expected. In fact it advised that profits “could be around 2019 levels in the absence of further restrictions.”
Of course this is a big ‘if,’ and Greggs’s sales recovery could easily unravel if fresh coronavirus lockdowns are introduced. Infection numbers in the UK have ticked up only modestly in recent days. But it has raised fears that a new wave of the pandemic has swept onto these shores.
I still think Greggs is one of the best reopening stocks to buy for a long-term investor like me though. Its broad range of sticky treats have everlasting appeal. And steps to refresh its menus — including the retailer’s entry into the meat-free market — have largely gone down a treat. I’m also encouraged by the baker’s progress in the fast-growing delivery segment. It has now rolled out delivery services to 800 of its stores).
