£2k to invest? I’d buy Ocado shares to hold for 10 years

first_img Rupert Hargreaves 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. Our 6 ‘Best Buys Now’ Shares This year, the Ocado (LSE: OCDO) share price has surged ahead of the broader market as demand for the company’s services has exploded. The lockdown imposed to try and contain the spread of coronavirus forced many people across the UK to change their shopping habits.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…Ocado, with its robotic warehouses, was by far the biggest beneficiary of this shift. Demand for the company’s services increased so quickly, it had to stop taking on new customers in March and April. Ocado share price and demandThe rising Ocado share price reflects the growing demand for its grocery delivery service.Initial figures show that grocery sales surged 18.9% across Britain in the four weeks to June 14. Total online sales jumped nearly 100% year-on-year. And according to data collection agency Kantar, Ocado was the sector’s standout performer. According to the agency’s figures, over the 12 weeks to June 14, Ocado’s sales rose 42.2%!Ocado is far more than an online retailer. The company also licenses its technology for robotic warehouses around the world to other retailers. This side of the business has been slow to get off the ground. While the company has signed several agreements, Ocado will only get paid once its technology is up and running. The good news is, the pandemic should accelerate demand for the company’s technology. Organisations with highly automated production lines, like Ocado, were able to keep going throughout the crisis. This may lead to other retailers re-thinking their approach to automation and investing more to streamline their process.That would be great news for the Ocado share price. If the company can grow its international footprint, it should be able to attract new investors around the world. This would help push the stock higher as investors buy into this high-tech growth story. Reduced riskBuying tech stocks is usually a high-risk activity. However, with Ocado, the risk is somewhat mitigated by the company’s existing international footprint.What’s more, the firm’s established footprint in the grocery market here in the UK provides a steady stream of cash to help support its international expansion. This helps reduce the overall risk associated with the investment. Unlike other FTSE 100 stocks, the Ocado share price may also see higher demand if there is a second wave of coronavirus. If the government has to re-impose the lockdown to contain such a second wave, demand for online grocery deliveries may return to the record levels seen in March and April.For Ocado, which has spent the past few weeks boosting the size of its delivery network to meet increased demand, this may lead to record sales activity. Another outbreak may also lead to an uptick in demand for technology as other businesses rush to adapt to the new normal. Therefore, buying Ocado shares today may be a sensible investment decision for buy-and-hold investors with a long-term outlook.  Image source: Getty Images Rupert Hargreaves | Saturday, 27th June, 2020 | More on: OCDO 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. See all posts by Rupert Hargreaves 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.center_img 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” £2k to invest? I’d buy Ocado shares to hold for 10 yearslast_img

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