Identifying the best UK shares to buy now from across the FTSE 100 is very subjective. However, I think they’re likely to be those companies that offer long-term growth potential because of industry trends, or because of their market positions.
Such companies may also offer less risk than their index peers. For example, they may enjoy wider economic moats, or have stronger financial positions as a result of past outperformance.
With that in mind, here are five FTSE 100 shares that could be worth buying today. Over the long run, they could produce market-beating returns that boost an investor’s portfolio performance.
Why pharmaceutical stocks could be among the best UK shares to buy now
FTSE 100 pharmaceutical companies such as AstraZeneca and GSK could be among the best UK shares to buy now. Both companies have solid market positions and could benefit from long-term industry growth trends. And that should lead to rising profitability and higher share prices over the coming years.
For example, the world’s population is growing in size and is also ageing. This may mean that demand for a variety of drugs increases over the coming years. With both companies having strong development pipelines, they may be able to capitalise on rising demand over a long timescale.
Clearly, AstraZeneca’s Covid-19 vaccine news has dominated headlines of late. This means it trades on a higher valuation than GSK. However, with the two companies having long-term growth opportunities, they may both merit higher valuations in the coming years that catalyses their share prices. As such, they may be among the best UK shares to buy now.
FTSE 100 consumer goods companies could outperform their index peers
FTSE 100 consumer goods companies such as Unilever, Diageo and Reckitt Benckiser may also be some of the best UK shares to buy now. Their market positions mean they could deliver improving financial performances as the prospects for the world economy improves.
Certainly, Diageo and Unilever have experienced tough operating conditions this year. Some of their key markets, such as hospitality venues, have led to disappointing sales that could persist in the short run. Meanwhile, Reckitt Benckiser’s sales growth could slow as demand for hygiene products eases off.
However, their exposure to some of the world’s fastest-growing economies could make them among the best UK shares to buy now. Within those markets, they have dominant positions as a result of their range of consumer goods that provide a wide economic moat as a result of their strong consumer loyalty.
Therefore, while their valuations may be relatively high compared to some FTSE 100 stocks, their capacity to deliver earnings growth appears to be high. This may result in improving share price performances as a stock market recovery and improving economic conditions take hold.
