I’m searching for some of the best British stocks to buy for my ISA today. Here are three UK shares whose soaring prices have caught my attention.
A high-risk FTSE 100 share
It’s perhaps no surprise to see the Barclays (LSE: BARC) share price go gangbusters in recent months. The bank is up 70% over the past year as impressive coronavirus vaccine rollouts in the company’s key British and US marketplaces have fuelled hopes of a strong economic recovery.
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It’s quite possible that cyclical UK share Barclays will enjoy a strong earnings rebound in 2021 (City analysts think annual earnings will double). However, I’ve serious reservations over the FTSE 100 bank for the longer term.
Low, profits-crushing interest rates appear to be here to stay following the global economic meltdown of 2020. And the business faces increasing competitive pressures as the number of challenger banks grows. Price comparison website Finder says 14m adults now own an account with a digital-only bank. And it predicts the number could rise to 23m by 2026.
A better UK stock to buy?
I’d be much happier to add B&M European Value Retail (LSE: BME) shares to my Stocks and Shares ISA. The budget retailer has risen around two-thirds in value over the past 12 months. And there’s many reasons why I think it’ll outperform the Barclays share price over the long term.
The growing market shares of grocers Aldi and Lidl show value remains an important factor for consumers. It’s one that’ll be particularly critical following the blow Covid-19 has inflicted on consumer confidence and spending power too.
What’s more, B&M is expanding rapidly to make the most of this opportunity (it opened a net 16 new stores in the final three months of 2020). Be aware, however. The British Retail Consortium has recently warned that cost pressures are likely to rise across the sector. This is due to Brexit red tape, higher shipping costs, and rising commodity prices. It’s something that could take a large chunk out of B&M’s profit margins.
A reassuring read-across
I also think the Next Fifteen Communications (LSE: NFC) share price could also add to recent strength. This UK media share has gained a whopping 130% in value over the past year. And fresh trading details from rival ad agency WPP this week led me to believe Next Fifteen could continue to soar. On Wednesday, the FTSE 100 firm said that it has enjoyed “a strong start to the year with a return to growth in all business lines and most major markets.”
It follows Next Fifteen’s full-year results announcement this month in which it said it’s currently trading ahead of expectations. I like the look of both these UK shares from a long-term perspective. But remember that they face significant threats as companies decide to bring their advertising and marketing activities increasingly in-house.