Key points
- The travel firm TUI may see its share price rise from the reopening of international borders
- BHP Group mines copper, a precious metal used in the development of electric vehicles
- Both companies could be a great place for me to invest £1,000
With £1,000 to invest in the stock market, I’m on the lookout for the best shares to buy now. Having scoured the indexes, I think I’ve found two great companies. The first, TUI (LSE: TUI), is a travel firm that may well benefit from the global reopening after the Covid-19 pandemic. Secondly, BHP Group (LSE: BHP) is a business that mines a number of commodities, like iron ore and copper. These commodities can have many uses in a number of industries. What justifies investment in these companies? Let’s take a closer look.
Are travel companies the best shares to buy now?
For the three months to 31 December 2021, TUI reported positive results. Revenue was €2.4bn, compared to a mere €0.5bn for the same period in 2020. Furthermore, the number of passengers increased by 1.7m to 2.3m, with a load factor of 79%. This tells me that more aircraft are flying more passengers.
With a strong liquidity position of €3.3bn, the firm may also benefit from the reopening of borders. Just this month, Norway removed all its pandemic-related restrictions. Switzerland and Sweden have made similar moves. I think this could have a domino-effect, as more and more countries completely reopen.
This progress could be halted, however, if other variants arise in the near future. Nonetheless, the comeback of the tourism industry makes TUI one of the best shares for me to buy now.
Metals for the future
The second company, BHP, mines a number of metals and coal. Indeed, iron ore and copper account for 80% of the company’s sales. In recent results for the six months to 31 December 2021, the firm reported a profit of $18.5bn. This is a 33% increase from the same period in 2020.
Furthermore, the results showed a 27% gain in revenue to $30.5bn. While these figures are very encouraging, the iron ore price has suffered. This is chiefly because of policy changes in China that have reduced the need for the commodity.
Nonetheless, copper is essential for efforts to decarbonise. Specifically, this precious metal is a critical component of electric vehicles (EVs). In this sense, the business may well benefit from moves to create a greener world, potentially making it one of the best shares to buy now.
Both of these companies may experience an uptick in the near future. The world is reopening and this can only be a good thing for travel companies. With its strong liquidity position, I think TUI is a good investment at current levels. Furthermore, BHP’s exposure to important precious metals could be very positive indeed. I will be splitting my £1,000 evenly and buying shares in both of these stocks.
Andrew Woods has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.
This post was originally published on Motley Fool
