3 top UK shares to buy

Rupert Hargreaves takes a look at three top UK shares to buy, all of which he would acquire for his portfolio as the economy recovers.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

When I am looking for investments for my portfolio, I like to concentrate on what I believe are the market’s best shares. With that in mind, here are three top UK shares to buy today, which I would add to my portfolio. 

Shares to buy

When looking for top UK shares, I focus on company fundamentals rather than stock price performance. That is why I would buy easyJet (LSE: EZJ).

The low-cost airline operator has a robust business model and a high level of brand recognition among consumers. While the pandemic has devastated it, these qualities should help the enterprise stage a strong recovery as the aviation market rebounds. Initial indications show that customers are already booking in solid numbers for 2022, not just with easyJet but with the whole industry in general. 

Should you invest £1,000 in Cineworld right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Cineworld made the list?

See the 6 stocks

While I could select any other aviation enterprise to buy to play this theme, easyJet remains my top pick for the reasons outlined above.

Even though I rate this as one of the top UK shares to buy, I am well aware that it also faces challenges. These include rising costs and the risk of another wave of coronavirus, which could destabilise the aviation industry’s recovery. 

Top UK shares

As well as easyJet, I would also acquire homebuilders Barratt Developments (LSE: BDEV) and Bellway (LSE: BWY). I think these are some of the best shares to buy now, and the reason why is simple. 

The UK housing market is experiencing two tailwinds that are driving both prices and demand higher. Ultra-low interest rates and a lack of new-builds are pushing up demand. Meanwhile, a lack of properties coming to market is restricting supply. 

These top UK shares are rising to the challenge. Barratt is targeting an output of 20,000 homes a year in the near term. In its last fiscal year, the group completed 17,200 properties

After a slight setback in 2020, Bellway’s output rose back above 10,000 properties in the year to the end of July. To meet the growing demand, during the year, the group spent more than £1bn on land with room for just under 20,000 properties, a record for the business. In its 2019 financial year, it acquired just over 13,000 plots. 

These output and buying figures support my conclusion that these homebuilders are rising to meet the challenges of the UK property market and are some of the top UK shares to buy today. As property prices continue to expand, they should reap rewards from their growth plans. 

Of course, there is no guarantee property prices will continue to increase indefinitely. The sudden jump in supply or an increase in interest rates could send demand plunging. This may be bad news for these firms that have invested billions in new developments. 

Despite these risks, I would buy both of these top UK shares for my portfolio today. 

Should you buy Cineworld shares today?

Before you decide, please take a moment to review this first.

Because my colleague Mark Rogers – The Motley Fool UK’s Director of Investing – has released this special report.

It’s called ‘5 Stocks for Trying to Build Wealth After 50’.

And it’s yours, free.

Of course, the decade ahead looks hazardous. What with inflation recently hitting 40-year highs, a ‘cost of living crisis’ and threat of a new Cold War, knowing where to invest has never been trickier.

And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many shares still trade at a substantial discount, offering savvy investors plenty of potential opportunities to strike.

That’s why now could be an ideal time to secure this valuable investment research.

Mark’s ‘Foolish’ analysts have scoured the markets low and high.

This special report reveals 5 of his favourite long-term ‘Buys’.

Please, don’t make any big decisions before seeing them.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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.

More on Investing Articles

Finger clicking a button marked 'Buy' on a keyboard
Investing Articles

Analysts have upgraded this FTSE 100 stock to Buy. What should investors do?

Associated British Foods shares have been uninspiring for some time. But is it finally time to consider buying the FTSE…

Read more »

Man changing battery on electric bicycle
Investing Articles

Prediction: in 12 months the sizzling National Grid share price could turn £10,000 into…

It's been another solid year for the National Grid share price and the dividend yield is decent too. So why…

Read more »

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

Up 185% in 3 years, why does the market love this FTSE 250 stock

Over the past three years, this stock has vastly outperformed the FTSE 250. Dr James Fox takes a closer look…

Read more »

A handsome mature bald bearded black man in a sunglasses and a fashionable blue or teal costume with a tie is standing in front of a wall made of striped wooden timbers and fastening a suit button
Investing Articles

Looking for growth, dividends, or value? These 3 ETFs could be smart ideas to consider

Exchange-traded funds (ETFs) provide a way for investors to spread risk without sacrificing the possibility of huge long-term returns.

Read more »

Happy couple showing relief at news
Investing Articles

Is the Rolls-Royce share price fast becoming a joke?

The FTSE 100 engineering titan has done brilliantly in recent years. But our writer wonders whether the Rolls-Royce share price…

Read more »

Middle-aged white male courier delivering boxes to young black lady
Investing Articles

Is there a ‘best age’ to start buying shares?

Christopher Ruane weighs some possible pros and cons of waiting to start buying shares for the first time, versus starting…

Read more »

piggy bank, searching with binoculars
Investing Articles

Is it time to look again at the FTSE 250’s worst performers?

Our writer considers the prospects for two of the worst-performing shares on the FTSE 250, with falls of at least…

Read more »

A handsome mature bald bearded black man in a sunglasses and a fashionable blue or teal costume with a tie is standing in front of a wall made of striped wooden timbers and fastening a suit button
Investing For Beginners

Down over 40% in the past year, I think investors should consider these value shares

Jon Smith points out two value shares that have fallen heavily over the past year but are starting to look…

Read more »