It has been a busy time in the stock market recently, with lots of positive momentum. That makes it a good time to hunt for some possible price risers among UK shares.
Here are 10 UK shares I would buy now.
I’d buy UK shares boosted by vaccine hopes
The Covid-19 vaccine news has been received very positively. Investors clearly hope it signals a path back to business as usual. Many obvious beneficiaries of the vaccine have already risen. But there are still some UK shares I’d buy expecting further gains.
For example, when the high street opens up again fully, I expect UK shares such as pub chain J D Wetherspoon to benefit. Another company whose recovery is not yet fully priced into its share price, in my opinion, is W H Smith. With both a high street and travel business, its revenues have fallen sharply as both markets have been hit in 2020. But I expect demand to return. So I see the current price as good value.
As commuters start to travel again, I also see value in some transport companies. For example, Go-Ahead has both a bus and train network. A vaccine will help passenger numbers recover. The shares have risen sharply but remain at less than half of what they were earlier this year. However, the company looks in good shape, announcing last week it plans to restart dividends. With bus operator Stagecoach set to announce interim results this Wednesday, I will look closely at how their recovery is progressing. I continue to see upside potential in this holding of mine.
I’d buy resilient retailers
The recent collapses of Arcadia and Debenhams underline how brutal the retail environment is at the moment. But some retailers have proven their resilience by weathering the storm well. I would consider buying these UK shares.
Tesco led the move to return business rates relief, a clear sign of its confident outlook. Value retailer B&M has had a stellar business performance in 2020. While its shares have already gained a lot, I think the company has strong momentum. Cycling retailer Halfords fell as low as 50p in March so its current price of more than five times that level may not seem like a bargain. But in fact I see further upside. The increase in cycling seen this year is set to stay, in my view. Halfords is an obvious beneficiary.
I expect some shares to be Brexit winners
The Brexit transition period ends this month. So I would consider buying UK shares that might see improved business as the realities of Brexit take hold. With more demand for stockpiling and logistics help, I would buy warehousing specialist Clipper Logistics. I don’t think its share price is cheap. But it has strong positive momentum already, which I think Brexit will help further.
I already think Safestore is an excellent long-term investment. Its portfolio of storage facilities offers exposure to the growing personal storage market. But it also offers some upside from any increase in commercial storage demands, such as Brexit stockpiling. Finally I expect that some UK focused groups will see a fillip from their lack of overseas exposure. One such share is agricultural supplier Carr’s Group. I see its strong exposure to local markets as positive for its share price.
