Business & Investment

What are the best UK stocks to buy at ISA right now?

The best UK stocks to buy on ISA may vary depending on the investor’s purpose. For example, investors seeking passive income tend to prefer dividend stocks.On the other hand, investors with a long-term perspective need to prioritize Capital growth More than income.

However, the most attractive shares may have common characteristics. For example, it has a low debt level and a competitive advantage over its peers. Underestimation Their long-term outlook.

Over time, such companies can have a positive impact on ISA performance. They can lead to increased financial freedom for investors.

Low debt level among the highest stocks in the UK

The UK’s best stocks could be companies with a solid balance sheet. After all, the economy is currently experiencing a very difficult time. Risks such as coronavirus are likely to continue in the coming months and can have a negative impact on economic growth.

for that reason, Berkeley And Taylor Winpay It can be an attractive purchase with ISA. Both stocks have a large amount of cash on their balance sheets. This provides financial strength to survive periods of potential sales decline.

A significant amount of cash may also allow them to prioritize long-term opportunities that are not available to their rivals, as they focus on short-term survival. This could increase the profitability of Berkeley and Taylor Winpey and raise stock prices.

Competitive advantage over sector peers

The best UK stocks in 2021 may also have a competitive advantage over their peers. This may reduce the impact of weak business outlooks and may provide a higher level of financial performance in the short term. They may also be in a stronger position to generate high returns in the long run, perhaps benefiting from a global economic recovery.

Therefore, Reckitt Benckiser And Diageo It can be an attractive investment for ISA investors. They have strong brands across a wide range of market segments. There are also strategies that can maximize profits by increasing innovation and efficiency.

The global economy is projected to improve performance in 2021, so buying a global-focused company can mitigate risk and increase profits.

Long-term outlook

Of course, even the best UK stocks can experience difficult times in 2021. Therefore, it is important to look at their outlook in the long run. Investors expecting similar returns in the short term as they experienced in the aftermath of the 2020 stock market crash may be disappointed. After all, great risk remains.

However, in the long run, the equity market may experience further growth catalyzing the ISA portfolio.

Top share with great growth potential

Knowledgeable investors like you will not want to miss this timely opportunity …

This is your chance to discover exactly why Motley Fool UK analysts were so excited about this “pure” online business (despite the pandemic!).

Not only does this company enjoy a dominant position in the market …

However, its light-capital and highly scalable business model previously helped make that happen. Consistently high sales, Amazing margin of nearly 70%,and Rise Shareholder Returns … In fact, in 2019, we returned over £ 150m to shareholders through dividends and repurchases.

And this is the really exciting part …

COVID-19 may have cast a curve on the company, but management has acted swiftly to ensure that the business is properly positioned to survive the current era of uncertainty … in fact. , Our analysts believe it should come back to life, as soon as normal economic activity resumes.

That’s why, given that stocks appear to be trading in fairly demanding valuations for the year to March 2021, now is the perfect time to start building your own stock in this exceptional business. We think it’s time.

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Peter Stevens It owns shares in Berkeley Group Holdings, Diageo, Reckitt Benckiser and Taylor Wimpey. Motley Fool UK recommends Diageo. 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.



What are the best UK stocks to buy at ISA right now?

https://www.fool.co.uk/investing/2021/01/02/what-are-the-best-uk-shares-to-buy-in-an-isa-now/ What are the best UK stocks to buy at ISA right now?

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