Business & Investment

3 FTSE 100 shares to buy due to 2021 stock market rebound

After a strong start to 2021, the FTSE 100 has been in the water for the past few weeks.Assumption Coronavirus vaccine program It’s going according to plan, but I think the positive momentum could resume for the rest of the year. In fact, I think it’s quite possible that the strains most suffering from coronavirus-related travel restrictions and blockades will thrive. With this in mind, here are three things I buy before the full market rally.

Burberry

The first on my list are luxury manufacturers and retailers Burberry (LSE: BRBY).. The latest information on trading in the third quarter of last week certainly reassured me and others who have already invested that they were able to survive the storm.

Burberry reports that same-store sales fell 9% overall in the 13 weeks leading up to Boxing Day, thanks to travel bans and store closures.Especially strongGrowth in list-price sales in markets such as mainland China and South Korea. These sales were driven by new young customers, highlighting that the £ 7bn cap has added to their intergenerational appeal. “ExceptionalConsumer reaction to the celebration campaign featuring soccer player Marcus Rashford was another highlight.

And what are the drawbacks? Full recovery will still take some time. As of last week, 15% of Burberry stores remained closed and 36% were open with reduced hours. The tourist center, which has stores, continues to be in a catastrophic slump. However, I think the recovery in sales in Europe, the Middle East and Africa could be a turning point later this year.

Diageo

I can’t mention the FTSE 100 stock, which is likely to rise in 2021. Diageo (LSE: DGE)..

Not surprisingly, the closure of restaurants, pubs and bars around the world has hit the beverage giants hard. But like Burberry, I think Diageo’s stock price will start to rise as the regulations are gradually lifted. After all, the demand for premium alcohol is not permanently compromised by a pandemic. If anything, my friends and family will meet again, which will prove the opposite.

in the meantime, Dividends cannot be ignored.. Despite the current challenges and hardships, Diageo continues to return cash to its owners.

With the brand’s explosive portfolio and global reach, I think this is one of the best “buy and hold” options.

InterContinental Hotels Group

The last FTSE 100 share I feel I should keep rebounding strongly InterContinental Hotels Group (LSE: IHG).. Like the other strains I mentioned, its value was crushed by the coronavirus in March of last year when the blockade came into effect. There are no tourists, business trips or trade.

Since then, we have seen some green shoots. In October, the business behind the brands: regent And Crowne Plaza Third-quarter revenue per available room was down 53.4%.This is actually Improvement With a 75% decline that it endured in the third quarter. The occupancy rate also increased from 25% to 44%. If InterContinental reveals further improvements in trading next month, I think stocks should rise accordingly.

But keep in mind that such companies have been hit hard by the pandemic and it will take some time to recover completely. But at a better time, IHG has shown itself to be a high quality operator. It usually produces a decent margin and high returns on the capital it invests in. I can see those good times coming back. The resumption of global travel should boost share.

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Paul summers I own a stake in Burberry. The Motley Fool UK recommends Burberry, Diageo and InterContinental Hotels Groups. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by considering different insights, Better investors than us.



3 FTSE 100 shares to buy due to 2021 stock market rebound

https://www.fool.co.uk/investing/2021/01/25/ftse-100-shares-id-buy-for-the-stock-market-rally-of-2021/ 3 FTSE 100 shares to buy due to 2021 stock market rebound

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