UK shares to buy now: my top 2 FTSE 100 stocks

Rupert Hargreaves highlights what he believes are two of the best UK shares to buy now in the FTSE 100 as the economy returns to growth.

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Recent data continues to support the conclusion that the UK economic recovery is gaining pace. As such, I’ve been looking for UK shares to buy now for my portfolio that may profit from this recovery. Here are my two favourite FTSE 100 companies I’d buy for this purpose today.

UK shares to buy now

The first on my list is Segro (LSE: SGRO). The pandemic has given a shot in the arm to the e-commerce sector. And as companies’ online sales have increased, managers have rushed to find warehouse capacity to meet demand. 

As one of the largest publicly-listed real estate investment trusts focusing on warehouses, I’d buy Segro to play this theme. I think its latest trading update shows the strength of the market.

It saw £18m of new headline rent signed during the first quarter, up from £14.3m a year earlier. On top of this, the company has £87m of potential new headline rent from 1.3m sqm of space under construction. 

I think these numbers show just how much potential the company has over the next few months and years.

However, the enterprise may face some challenges along the way. It could end up over expanding, which would saddle the business with large debts and unfilled properties. The rush to develop new facilities by competitors may also impact demand for the group’s warehouses. 

Despite these risks and challenges, I’d buy this FTSE 100 stock today for its income and growth potential. As the online retail market continues to expand, I think this is one of the best UK shares to buy now. 

FTSE 100 stock

Sticking with companies I believe will benefit from the changes that have come about due to the pandemic, I’d also buy Avast (LSE: AVST) for my portfolio. 

I think this FTSE 100 cybersecurity company is one of the best UK shares to buy now because cybersecurity is one of the world’s fastest-growing sectors.

Throughout the pandemic, technology has become an invaluable lifeline for many. Unfortunately, scammers have rushed to take advantage of this. Avast helps consumers protect their systems, which helped drive revenues higher by 10% year-on-year in the first quarter. 

As technology plays an ever-increasing role in the world, I expect this to continue. This is the primary reason why I believe Avast is one of the best UK shares to buy now. 

That’s not to say the company won’t face risks as we advance. Reputation is everything in the cybersecurity market. If Avast suffers a cyberattack, or customers start to lose confidence in the group’s software, sales could quickly go into reverse. The firm also needs to maintain research and development spending to stay ahead of attackers. 

Even after taking these risks and challenges into account, I’d buy the FTSE 100 stock for my portfolio today, considering its growth potential. 

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 Avast Plc. 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.

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