Making sure you’re buying the best UK shares is a challenge at the moment. The coronavirus crisis has seriously impacted the global economy, plunging the UK into recession. Whole industries have been turned upside down, and are still reeling from the effects of the virus.
However, I believe now could be a great time to buy shares in great UK companies. You just have to pick carefully. Here’s what I’d buy now.
Britvic (LSE: BVIC) shares have been on a bit of a downward spiral in the year-to-date, dropping by 6%. This fall in share price means the price-to-earnings ratio is just 14, which I think makes now a great buying opportunity for UK based investors.
The drinks manufacturer has strong brands in its portfolio, such as Robinsons, R Whites and J2O. It also has exclusive agreements to make and distribute drinks on behalf of Pepsico. To give an idea of the size of the company, every minute in Great Britain 17,600 Britvic drinks are bought.
The business has been impacted by the coronavirus outbreak. In its Q3 trading update, which covers the period to the end of June, revenue declined by 16.3% on last year. However, a drop in out-of-home consumption was offset by strong growth in at-home consumption. This meant that the company saw market value share gains in all business units.
As we’re slowly seeing life turn back to normal, I don’t think it will e btoo long before Britvic’s revenue reaches pre-coronavirus levels. I’d buy this UK share now while it still looks cheap.
Another great UK share to buy?
Games Workshop (LSE: GAW) is a company I love, mainly for its unique products, high margins and loyal customer base. If you aren’t familiar with Games Workshop, the company makes fantasy miniatures and licenses its product out.
It is often seen by prospective buyers as a growth gem. The UK-based company’s share price has risen 51% in the year-to-date, despite temporarily closing its doors due to Covid-19. In its latest results, released last month, the company posted a 10% jump in profit for the year ending 31 May. Its sales were up by 5% in the year.
Despite its rapid growth — 1,500% in the past five years — I don’t think it’s too late to buy Games Workshop shares. Although currently on the expensive side, the opportunity to license its product out offers a chance to push its revenue growth further. The business also opened 23 new stores in the financial year.
Although I’d rather buy the shares at a much cheaper level, I don’t think this is a realistic prospect. Following the coronavirus crisis, I think that Games Workshop has proved it is one of the more resilient UK businesses, and for that reason, I believe its shares are worth buying at today’s price.
Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.
Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.
The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.
But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.
T Sligo has no position in any of the shares mentioned. The Motley Fool UK has recommended Britvic. 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.