2 UK shares I’d buy in November

These two UK shares could be worth buying ahead of the key Christmas trading period, which I feel may lead to a re-rating if sales expand.

| 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.

The outlook for UK shares at present is highly uncertain. The prospect of a no-deal Brexit looms large on the horizon, and the coronavirus crisis has wreaked havoc with the economy. 

However, while many companies are struggling, others have defied the gloom. I think these stocks could be the best investments in the short term.

The companies that have, so far, been able to avoid the worst of the pandemic, could be the best investments to own for a second wave.

Should you invest £1,000 in Games Workshop 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 Games Workshop made the list?

See the 6 stocks

Today I’m going to take a look at two such businesses I’d buy in November. 

UK shares to buy 

Supermarket giant Morrisons (LSE: MRW) has seen sales growth this year. According to its latest trading updates, food sales jumped nearly 9% during the first half of the year.

Unfortunately, a decline in petrol sales and rising costs took the shine off results — underlying profit dropped 25% for the period — but I think the food sales growth highlights the group’s strengths. 

As we head into the Christmas period, the company is making some significant changes. It has slashed costs and invested in its online operations. This should help the group cope with higher demand over the next few months. 

In my opinion, Morrisons is one of the best retailers and UK shares to own ahead of what could be a tough winter. Unlike many of its peers, the online business is profitable and deals with tech giants such as Amazon and Deliveroo have helped the firm meet rising demand. Morrisons has doubled online volumes and capacity has increased fivefold this year. 

Thanks to this growth, Morrisons has been able to maintain its dividend for the year. The stock offers a dividend yield of 5.1. It also looks inexpensive. The shares are changing hands at a forward price-to-earnings (P/E) ratio of 12.6. 

Cheap opportunity 

Another retailer I like the look of ahead of Christmas is Marks and Spencer (LSE: MKS). This company has made some big mistakes over the past few years. However, over the past 10 months, the stock has plunged to levels not seen for more than 20 years. 

I reckon this could be a buying opportunity. It seems as if investors have written off the group, but an impressive performance over Christmas could change market sentiment. Indeed, right now, the stock is trading at a price-to-book (P/B) value of 0.5. That implies the group’s assets are worth 100% more than its current market value. There are only few blue-chip UK share that offer this kind of value. As such, I think shares in Marks are too cheap and offer a wide margin of safety. 

Therefore, it seems to me as if the risk of investing in Marks and Spencer is worth the reward. It would appear that the group’s current share price already reflects most of the bad news facing the business, and I think a potential profit of 100% is more than enough potential compensation for me taking on the risks here.  

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation 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 owns no share 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.

Were you born before 1972?

No matter what year you were born in, this special report is well worth a look.

It’s called: ‘5 Shares for Trying to Build Wealth after 50’. And it’s yours, absolutely FREE.

At The Motley Fool, we believe it’s never too late to build wealth with shares. Indeed, despite the current global upheaval, this may be an ideal time to start. Our analyst team have crunched the numbers. This free report brings you up to speed.

See the 5 stocks

More on Investing Articles

Investing Articles

Aim to earn a £50k second income in retirement by investing just this much each month

Even with a small monthly investment, it’s possible to earn a £50k second income with a successful investment strategy and…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

Down 22% in a month! Is this my chance to buy shares in this FTSE 100 outperformer?

Shares in InterContinental Hotels Group have outperformed the FTSE 100 over the long term. So is a chance to buy…

Read more »

Investing Articles

How much would Tesla stock be worth if it was valued like Nvidia?

The market seems to view Tesla as a tech stock rather than a car manufacturer. What could this mean for…

Read more »

Investing Articles

This ex-penny stock skyrocketed 900% in 2020! Is it about to surge again?

This subdued hydrogen penny stock was hot in 2020, but with demand for green hydrogen rising in Europe, can the…

Read more »

Investing Articles

Looking for cheap shares to buy in March? Here are 3 to consider

Zaven Boyrazian shares three cheap-looking stocks he’s considering buying as long-term investment opportunities while the valuations remain cheap.

Read more »

Investing Articles

How much would an investor need in an ISA for a £1,999 monthly passive income?

Millions of Britons invest to take a passive income, but millions more don’t. Dr James Fox explains how investing can…

Read more »

Hand of a mature man opening a safety deposit box.
Investing Articles

3 of the safest dividend stocks in the UK?

These three dividend stocks have been hiking shareholder payouts for more than two decades in a row, but does that…

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

£10,000 invested in Lloyds shares 3 years ago is now worth…

Lloyds shares, unloved for some time, have started to realise their potential. The stock is up over one, two, three,…

Read more »