Business & Investment

5 UK Stocks I Will Buy

I recently bought UK stocks for my portfolio to invest in the UK economic recovery.These are also 5 companies that are paying attention to purchase

UK stocks with growth potential

Two companies that seem to have worked incredibly well in the last 12 months Bloomsbury Publishing And Pets at home.. The former benefits from the resurgence of reading during the coronavirus crisis. The latter increased sales as the number of pets across the UK jumped to record levels.

Both companies believe this trend will continue and I would like to believe this view. So today I will buy both of these UK stocks for my portfolio.

Of course, these companies can be disappointed if growth does not meet expectations. This is the biggest risk facing equities today.

Recovery will be played

Bloomsbury and pets are growth plays.I also buy the collected stock Robert Walters And Workspace For my UK stock portfolio.

Last year, recruiter Robert Walters learned that demand for services had plummeted. But over the last six months, demand has been steadily recovering, like employers. Rekindled recruitment plan..

Workspaces also seem to benefit from new economic activity. In a market update released in early May, flexible office space providers reported that monthly rentals had increased from 71 in January to 150 by March.However, despite this improvement, the number of customers using the office was still small. 30% by the end of April..

These figures clearly show the challenges facing Workspace and Robert Walters. Yes, the economy is resuming, but it may take some time for all sectors to reach activity levels in 2019. In the meantime, these companies have to deal with lower levels of revenue and profits.

Despite these challenges, we bought both UK stocks for our portfolio as the recovery progressed.

Two certainty

Looking at the funeral home operator dignity, I remember the saying, “There are only two certainty: life, death, and taxes.”

The operation of the funeral home has a special defensive nature that was available to dignity. Over the last decade, the company has built a portfolio of funeral homes across the UK and has become more and more powerful.

However, these days there is a demand for aggressive pricing policies. This has hurt the group’s reputation. However, the country’s footprint should provide the basis for driving recovery.

In April, the company launched a strategy to develop a better business, based on the lessons learned over the past few years. If management sticks to the plan, I think the company can recover better. That’s why I buy a company for a portfolio of UK stocks.

One of the big danger signs for me is the high level of debt of the company. This can be a problem if profit growth does not meet expectations. In this worst-case scenario, dignity may need to take urgent action to raise capital.

Rupert Hargreaves does not own the mentioned share. The Motley Fool UK recommends Bloomsbury Publishing. The views expressed about the companies 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 exploring different insights, Better investors than us.

5 UK Stocks I Will Buy 5 UK Stocks I Will Buy

Back to top button