Business & Investment

3 UK stocks to buy in 2021 and 3 UK stocks to avoid

There are many UK stocks that we would like to buy for our portfolio in 2021, but there are also many that we would like to avoid. With that in mind, here are the three stocks I’ll buy a year ahead and the three stocks I won’t touch with a barge stick.

UK stocks i will buy

I would like to focus on technology stocks in my portfolio in 2021. I think the outlook for this sector is very bright. And as the world became more and more dependent on technology, I was looking for a company that might benefit from this trend. As a result, some of the UK stocks now stand out.

One of the pandemics Biggest winner We have provided food delivery service Anyway, eat.. The demand for services in this business has skyrocketed over the last 12 months. As a result, management has used newly discovered wealth to expand through acquisitions. After these deals and after the pandemic, Just Eat will continue to be a global technology champion.

But Aveva In my opinion, it operates in a completely different sector and has similar characteristics to Just Eat. Create software to manage important functions in the construction and engineering departments. The group is already a leader in these areas and has strong customer relationships, which should support further growth in the future.

And the last tech stock I’m looking at in 2021 Softcat.. Unlike the UK stocks listed above, which provide specific services to their clients, Softcat offers technology solutions. I think this will be a great way for this business to achieve growth in the technology sector. As global demand for technology services continues to grow, so will the need for Softcat services.

Stocks to avoid

Not only do we buy UK stocks by touching technology, we also avoid old world companies. These are, in my opinion, businesses that struggle to adapt to the new normal.

An example is British gas Owner Centrica.. The company is bleeding customers to newer, more agile start-ups with better customer service records. Over the past few years, we have repeatedly reduced dividends and profits have evaporated. As a result, I’m not interested in becoming a shareholder as the company continues to shrink.

BP Another great example. The company still has some compelling qualities, but it will spend less and less need to return to investors to manage the energy transition over the next few years. Oil and gas aren’t dead, but it’s on the way. Therefore, I think it will be difficult for the next few years when BP and its peers try to adapt.

TUI Is the last of the three UK stocks I avoid in 2021. I have been wary of this business for some time. High levels of debt and a very seasonal business model mean that the group has little control over its fate. In addition, pandemics can lose profits and it can take years for Tui’s earnings to recover.

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Rupert Hargreaves does not own the mentioned share. Motley Fool UK recommends Just Eat Takeaway.com NV and Softcat. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by considering different insights, Better investors than us.



3 UK stocks to buy in 2021 and 3 UK stocks to avoid

https://www.fool.co.uk/investing/2021/01/16/3-uk-shares-id-buy-and-3-id-avoid-in-2021/ 3 UK stocks to buy in 2021 and 3 UK stocks to avoid

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