Deliveroo, Ashtead, Entain: Should you buy these FTSE stocks now?

Highlights

  • Food delivery firm Deliveroo reported strong H1 2021 results, driving its shares by almost 9 per cent
  • Ashtead shares rose after closing on its recent loan notes offering on Thursday.
  • Entain reported strong H1 2021 results, announcing its revenue rose by 11 per cent.

Three FTSE listed stocks, Deliveroo (LON: ROO), Ashtead Group PLC (LON: AHT) and Entain PLC (LON: ENT) trended on Thursday following key announcements from each of them.

Let us take a closer look and see if they make a good buy and hold investment for an investor:

  1. Deliveroo (LON: ROO)

Deliveroo is a recently listed company, which is involved in the online food delivery sector. The company’s shares surged on Thursday after announcing strong H1 2021 results.

It reported its orders rose by 100 percent to 148.8 million in H1 2021, and its gross transaction value (GTV) rose by 99 per cent to £3,385.8 million. Online delivery had gained traction during the initial stages of the pandemic, which helped boost the company’s performance.

It also increased its FY 2021 GTV guidance to a range of 50 and 60 per cent up from its previous estimate of 30 to 40 per cent.

Deliveroo’s shares closed at GBX 371.40, up sharply by 8.90 per cent on 12 August. Its market cap stands at £ 6,374.39 million as of 12 August.

Also Read: Deliveroo (LON: ROO) shares surge with the entry of German Delivery Hero

  1. Ashtead Group PLC (LON: AHT)

FTSE 100 index constituent Ashtead is an industrial equipment hire business. The company closed its notes loan offering of US$ 550 million senior notes due 2026 and US$ 750 million due in 2031 on Thursday.

The group’s FY 2021 revenue rose by 3 per cent to £5,031 million, while its rental revenue increased by 1 per cent in FY 2021 due to its business model, diversifying its end markets and other factors. Its full year dividend stands at 42.15 pence per share, up from 40.65 pence per share in FY 2020.

Ashtead’s shares closed at GBX 5,672.00, up by 1.29 per cent on 12 August. Its market cap stands at £25,394.58 million and year to date return stands at 66.19 as on 12 August.

 

  1. Entain PLC (LON: ENT)

Another FTSE 100 index constituent Entain is a sports betting and gambling company, which owns brands such as bwin, Ladbrokes, Sportingbet and others. The stock touched a new 52-week high earlier this week and has been traiding close to it since then.

The company announced its H1 2021 results on Thursday, reporting its net gaming revenue (NGR) rose by 11 per cent to £1,792.6 million. Its online NGR business grew by 28 per cent in H1 2021 due to lockdown restrictions and a full sporting calendar.

The group also upgraded its FY 2021 earnings before interest, tax, depreciation and amortisation (EBITDA) forecast to be between £850 million to £900 million in July due to an optimistic outlook.

Entain’s shares closed at GBX 1,942.50, down by 1.17 per cent on 12 August. Its market cap stands at £11,375.11 million and year to date return stands at 71.37 as on 12 August.

Also Read: 4 Stocks to watch ahead of England’s final UEFA EURO combat 

Bottomline

Entain’s prices are currently trailing close to its 52-week highs, the company’s underlying fundamentals remain solid due to the ongoing sporting events and optimistic outlook. In Deliveroo’s case, while it announced better than expected results, the company also expects its frenetic growth to moderate in the later part of this year, which an investor must consider before adding the stock to their portfolio.

 

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