Forget easyJet shares! Here’s what I’d buy instead

first_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. It seems fair to say that 2020 has been a year budget airline easyJet (LSE: EZJ) will want to forget. As if the coronavirus pandemic and subsequent grounding of flights weren’t bad enough for business, the company was also recently forced to announce that millions of customer details were hacked back in January. Despite all this, those buying the stock back when markets crashed in March will have done very well. Indeed, easyJet’s share price was flying a little over 60% higher yesterday than where it was in mid-March.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Are the shares are still worth buying? Not in my view.Reasons to steer clear of easyJetThe arguments against buying now are both plentiful and powerful.First, investor expectations may be unreasonably high. Even if the company manages to get more planes in the air, you’d need to be a real optimist to think that things will return to how they used to be anytime soon.Ask your nearest and dearest whether they’d be happy to fly tomorrow. I’ll bet the majority won’t, even if middle seats were kept free. Also consider the increased costs associated with keeping planes clean and the need to offer big discounts to attract flyers in an already highly competitive industry.All this surely has implications for profits and, ultimately, the share price. Will those who’ve recently made a packet be willing to stick around? I’m not so sure, especially as we become more aware of the full economic impact of the pandemic. Even Warren Buffett, arguably the greatest proponent of buy-and-hold investing, dumped all his airline stocks not that long ago.Another thing worth considering is that a not-insignificant portion of easyJet’s shares are being shorted. In other words, a fair number of market participants are now betting the share will fall. These highly researched shorters don’t always get their calls right but it takes guts to go against them.So, what would I buy instead?As an alternative, I would suggest investing in quality, market-leading companies that, crucially, tend to be resilient in good times or bad. I wrote about one such firm earlier this month. Of course, if you really want some exposure to easyJet, you could push equal amounts of cash into all of the UK’s listed airlines and cross your fingers. This is less dangerous than backing the Luton-based business on its own but it does feel more akin to gambling than investing to me. It’s still a poor way of diversifying your capital as well. A less risky, albeit potentially less lucrative alternative would be buy a cheap FTSE 100 exchange-traded fund. This ensures at least some of your money is invested in easyJet. The remainder is spread around the rest of the UK’s biggest companies.Another consideration, particularly in light of easyJet’s recent woes, is getting some exposure to cybersecurity stocks. The growing need for companies of all sizes to protect themselves from sophisticated hackers makes this a great option for long term defensive investors, in my opinion.If you’d rather not sort the wheat from the chaff, then the iShares Digital Security UCITS ETF could be ideal. It tracks a basket of 113 stocks, roughly half of which are based in the US. The ongoing charge is 0.4%, making this a relatively cheap way of getting on board this mega-trend.  Paul Summers | Saturday, 20th June, 2020 | More on: EZJ ISF I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Forget easyJet shares! Here’s what I’d buy instead “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Paul Summers 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. Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Paul Summerslast_img read more

Read More »