I’m on the lookout for top UK shares to add to my portfolio in June. Here are a couple that I think could soar in price next month.
Watch out for fresh financials!
I think buying Flowtech Fluidpower (LSE: FLO) could be a good idea before it updates the market around the time of its annual general meeting on 3 May. The company’s share price has now recovered all the ground it lost following the 2020 stock market crash. Its latest forecast-beating update a month ago leads me to believe another sunny release is in the offing.
This UK engineering share makes hydraulic and pneumatic systems that allow industrial companies to create, transfer, and control power. And demand for its goods is picking up as original equipment manufacturers (OEMs) restock and activity among resellers improves. Indeed, Flowtech’s first-quarter performance was so robust that it predicted it could end 2021 with a revenues run rate similar to pre-pandemic levels.
At current prices, Flowtech Fluidpower changes hands on a forward price-to-earnings (P/E) ratio of around 21 times. This sort of meaty rating — allied with the strong recent share price performance — poses an investment risk. If the company were to announce that its trading has started to level off, it could prompt a sharp share price reversal.
Logistics leviathan
I also think Urban Logistics REIT (LSE: SHED) could be a shrewd buy before it releases full-year results on 9 June. UK logistics and warehousing shares Clipper Logistics and Tritax Big Box REIT are already in my portfolio. I think rising e-commerce volumes will deliver strong and sustained shareholder returns. And I’m expecting Urban Logistics’s upcoming release to reiterate its exceptional structural opportunities.
I plan to hold those shares for a decade or more. Demand for distribution and storage assets continues to outstrip demand by a fair lick as Internet shopping activity rises. Consequently, rents are on a steady upward slant and the likes of Urban Logistics are expanding rapidly to exploit this market to the fullest. The company claimed at the time of its interim report in November that “the logistics market continues to break all records”.
The Covid-19 outbreak supercharged online shopping volumes as lockdowns shuttered physical stores all over the globe. A legion of new Internet users entered the fray and retailers invested vast sums to improve their online operations. It’s no wonder that Urban Logistics has said that “we expect that behavioural changes formed during lockdown are here to stay”. And logistics services providers like this stand to benefit significantly from this sea change in consumer habits.
Urban Logistics’s healthy appetite for acquisitions could create trouble later down the line. Property companies can overpay for assets, or an asset can fail to deliver on its promise for a variety of reasons. That said, I’d still add this UK share to my own shares portfolio right now.
