I think owning a basket of UK shares could be one of the best ways to profit from a new bull market. With that in mind, here are three FTSE 350 stocks I’d buy for my portfolio today.
UK shares to buy
The first company on my list of shares to buy for a new bull market is ITV (LSE: ITV). Shares in this business have been under pressure over the past 12 months. It’s easy to understand why. Group advertising revenue plunged at the beginning of the pandemic. And it’s been slow to recover.
The company’s most recent trading updates show it’s getting back on its feet and, as the UK economy continues to open up, I think this trend will continue.
Unfortunately, the company also faces other challenges. Large US streaming services are giving ITV a run for its money. These platforms have been drawing users away, and that’s likely to continue. This could impact the group’s appeal to advertisers. That’s the biggest challenge facing the enterprise right now.
Still, I’d buy ITV shares for my portfolio today for the new bull market, despite this risk.
Bull market investment
Another stock I’d buy for my basket of UK shares is Plus 500 (LSE: PLUS). Rising stock markets tend to encourage investors and traders to take on more risk. That’s generally good news for stockbrokers and trading platforms such as Plus 500.
This company isn’t the only business in the sector, but I think it’s one of the best. It has a track record of returning excess profits to investors and, at the time of writing, the stock supports a dividend yield of just under 4%.
Of course, there’s no guarantee the business will benefit from the new bull market. There’s also no guarantee the company will hit current dividend forecasts. The group’s most considerable risk is competition, as larger peers have more money to throw at customer-acquisition initiatives. If customers start to leave the platform, growth could slow.
Even after taking these risks into account, I’d buy Plus 500 for my portfolio today.
Finally, I’d also add lifestyle retail group Frasers Group (LSE: FRAS) to my basket of UK shares for a new bull market.
As the Sports Direct brand owner (and like all retailers), Frasers’ top and bottom lines have taken a big hit due to the pandemic. But I think the company’s fortunes could begin to change as the UK economy starts to open up. And analysts appear to agree.
The City expects its income to rise to £143m by 2022, up from £94m in 2020. These are just forecasts at this stage, and there’s no guarantee Frasers will hit this target.
Indeed, the company faces multiple risks such as increasing competition in the retail sector. The problems facing brick-and-mortar retailers are also well documented. High costs and business rates have been and will continue to be serious issues for the organisation, and other UK shares in the sector, as we advance.
Nevertheless, I’d buy Frasers for its recovery potential in the new bull market.
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Rupert Hargreaves owns shares in ITV. The Motley Fool UK has recommended ITV. 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.