£10k to invest? I think these are the best UK shares to buy now

This Fool highlights what he believes are some of the best UK shares on the market right now for investors looking to deploy a lump sum.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

If you are looking for the best UK shares to buy now, I highly recommend taking a look at the tech sector. The UK is home to the fastest-growing tech sector in Europe. As the world becomes increasingly reliant on technology, the best way to profit from this trend may be to buy a diversified basket of related stocks. 

Today, I’m going to take a look at three such companies I think could be worth buying now. 

The best UK shares to buy

Computacenter (LSE: CCC) is one of the fastest-growing domestic technology businesses. Over the past six years, the company has reported annualised earnings growth of 15%. 

The group, which provides the information technology infrastructure services, has seen the demand boom in 2020. City analysts had been expecting the company to report a decline in earnings for this year.

However, according to its latest trading update, management expects trading to be “materially above” initial expectations. 

As such, I think the company qualifies as one of the best UK shares to buy now. With earnings set to jump substantially this year, investors could see high total returns from the stock in the years ahead as it builds on its position in the market.

The stock also supports a dividend yield of 2%, and the payout is covered twice by earnings per share.

Moneysupermarket.com

Moneysupermarket.com (LSE: MONY) is another UK technology leader. The company operates one of the most well-known comparison websites in the country.

This is an asset-light operation. The firm takes a cut of every insurance policy or energy deal it sells.

As a result, the business is highly profitable. Its average operating profit margin for the past six years is 30%. The average margin of all UK shares is 6.4%. During the same time frame, the company has reported average annualised earnings growth of 12%. 

At the time of writing, shares in Moneysupermarket.com are changing hands at a forward price-to-earnings (P/E) multiple of 22. This looks expensive at first, but I think it’s a price worth paying for such a profitable and recognisable business that has cornered the comparison market.

Further, the stock also supports a dividend yield of 3.6%, which only adds to the appeal of the business, in my opinion. The average yield of all UK shares is 3.4%. 

Spirent Communications

One of the best ways to invest in the technology revolution may be to own the nuts and bolts. Or, in this case, telecommunications infrastructure. Spirent Communications (LSE: SPT) is one way to play this theme.  

The company is perfectly positioned to benefit from the world’s transition to 5G technology. It’s widely believed it’s only a matter of time before 5G becomes the mobile standard around the world. Building the infrastructure to hit this milestone will be a challenge. Luckily, Spirent already has the know-how and resources. 

As demand for the company’s services has grown over the past few years, its net income has jumped.

From just $13m in 2015, City analysts believe the company will report net income of $85m for 2020. As the rollout of 5G technology continues, I think it’s highly likely the group can maintain this rate of growth.

Therefore, Spirent could be one of the best UK shares to buy now. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Moneysupermarket.com. 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.

More on Investing Articles

Newspaper and direction sign with investment options
Investing Articles

When cheap markets meet favourable conditions, sentiment flips very quickly

London’s stock market is cheap — some sectors, even cheaper. Given a change in sentiment, the uprating could be substantial.

Read more »

Investing Articles

Empty Stocks and Shares ISA? I’d snap up these 3 stocks to start with!

Sumayya Mansoor explains how she would start to build wealth from scratch with an empty Stocks and Shares ISA and…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

7.7% yield and going cheap! Why is this unknown FTSE 250 stock flying?

It's no household name, but there's one FTSE 250 stock with a high dividend yield and booming profits that looks…

Read more »

Photo of a man going through financial problems
Investing Articles

I’d stop staring at the Nvidia share price and buy this FTSE 100 stock instead

This writer reckons there is a smarter way to invest in Nvidia today without taking on stock-specific risk. Here is…

Read more »

Young lady working from home office during coronavirus pandemic.
Top Stocks

5 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Young Asian man drinking coffee at home and looking at his phone
Dividend Shares

These 3 FTSE 250 stocks offer me the highest dividend yields, but should I buy?

Jon Smith considers FTSE 250 shares with a very high yield, but questions whether the income is going to be…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Is FTSE 100 takeover target DS Smith a great buy?

A mega-merger between FTSE 100 giants DS Smith and Mondi has the City abuzz. But is there any value in…

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

The WPP share price dips as profits fall. Here’s why it could be a top dividend buy

I'm starting to think the WPP share price undervalues the stock, especially if the long-term dividend outlook comes good.

Read more »