3 UK shares to buy in April 2021

As summer begins to roll in and restrictions ease, here are three UK shares Jamie Adams is looking to buy in April for long-term gains.

| 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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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.

Summer is always a tricky time for my portfolio as I tend to buy FTSE company shares just as they hit their top, but this year I’m getting in before that with my top three UK shares to buy in April.

Balfour Beatty

Balfour Beatty (LSE: BBY) is the first UK share I want to buy next month. Prior to the pandemic, which shut down most construction across the UK, the industry was contributing approximately £140 billion pounds to the economy.

Balfour Beatty leads the pack in British construction and has the most to gain from the eventual reopening of the country. As governmental infrastructure plans resume, I think that UK construction stocks will receive a big boost for years to come, beginning with easings in April. Infrastructure never stops, and the company has the resources to weather any hardship, which leads me to believe that Balfour Beatty’s share price will be the biggest beneficiary when construction sites reopen.

Of course, there is always the looming threat of a global recession thanks to mounting Covid-19-induced debt, which could see the construction sector as one of the worst-hit, dramatically hurting Balfour Beatty.

Playtech

Of all the top UK shares to buy in April, I wouldn’t have normally thought of a gaming giant, yet I’m itching to add Playtech (LSE: PTEC) to my portfolio before summer.

This is a risky ‘bet’ for me (forgive the pun). A 10.6% decline in B2B revenue in 2020 weighed on Playtech and contributed to a group-wide 25% decline in revenues to €1.07 billion for the year, meaning that it really has a lot of ground to make up if it’s going to stand a chance at seeing its share price grow.

But I think that the gambling software developer will be the biggest winner when fans return to events such as the Olympics and UEFA European Championship. I believe that the return of fans, albeit in a restricted fashion, will see an upsurge in gambling as home-stayers attempt to up the stakes. Especially those fans who have extra disposable income that would have otherwise been spent on social events.

Even though Playtech’s share price has risen more than 130% in the past 12 months, it is still a long way off of its 2017 highs, which makes its current price cheap for me (and my Foolish colleague Jabran Khan agrees).

Virgin Money UK

Much like gamblers, I believe that banks will be among the biggest winners from increased disposable income, making Virgin Money UK (LSE: VMUK) my final top UK share to buy in April.

Banks were hit hard in 2020 as businesses everywhere closed their doors, but with an economic reopening and improved outlook on the horizon, I foresee these losses receding, which should see Virgin Money stage a recovery over the coming years. I am hoping that pent-up frustration from being locked down will lead to increased borrowing as people jet off on holidays and other experiences, beginning this summer, which will only benefit the company.

Of course, banks are still very risky during a pandemic, and although Virgin Money is among my top British shares to buy in April, ultra-low interest rates will put massive pressure on already depressed profit margins, thus increasing my risk in such a position.

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.

More on Investing Articles

Investing Articles

Here’s what Stocks & Shares ISA investors are buying today!

ISA investors are piling into these UK and US stocks. But which could be the best buy right now? Royston…

Read more »

Investing Articles

2 powerful passive income stocks investors should consider snapping up

Building a passive income stream via dividend-paying stocks is possible, according to our writer, who details two picks to take…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing For Beginners

This UK stock has gained 42% since I bought it, but I think it’s still a bargain

Jon Smith outlines his reasons for thinking that a UK stock he owns has the potential to keep rallying for…

Read more »

Investing Articles

1 under-the-radar value stock I’m eyeing up for returns and growth

This Fool is looking for quality stocks at bargain prices and reckons this potentially overlooked value stock could be a…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

National Grid shares have plunged — but if I’d bought 2 years ago, would I be in profit?

National Grid shares are about 22% lower than in May, but that may just be a small blip for long-term…

Read more »

Investing Articles

This FTSE 250 stock looks unmissable — but buying shares now could be a mistake for me!

It’s tough when a stock looks fundamentally sound, but there’s a cloud hanging over it. This is what’s happening with…

Read more »

A Black father and daughter having breakfast at hotel restaurant
Investing Articles

Raspberry Pi shares are piping hot! Should I invest right now?

Raspberry Pi shares are certainly bearing fruit for those lucky enough to have invested early. Have I missed the boat…

Read more »

Dividend Shares

How much passive income from stocks could I make with a £37k salary?

Jon Smith takes a look at how much passive income he could make by squeezing all the juice out of…

Read more »