3 UK reopening stocks to buy in June

As the UK moves along the road to a final lifting of Covid restrictions, this Fool discusses three ‘reopening’ stocks he’d like to buy right now.

| 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.

I’m considering which UK stocks I’d like to buy this month. The rollout of the Covid vaccination programme is continuing apace. And while we’re not out of the woods yet, my optimism about a return to normality is rising.

The three companies I’ve got my eye on right now had bright growth prospects before the pandemic struck. They’ve been battered by lockdowns. However, I think they’re strong businesses and are soundly positioned for recovery in a full reopening of the economy.

My stocks to buy list

Cinema company Everyman Media Group (LSE: EMAN) suffered severe disruption in 2020. It saw just 10 weeks of normal trading conditions against 17 weeks of restricted trading and 25 weeks of full closure. Much of the first half of 2021 has been a washout too.

Thanks to vaccines and the UK’s roadmap out of lockdown, EMAN shares have risen from their lows of last year. Nevertheless, the business is still priced at a discount to its pre-pandemic value. Clearly, there’s a near-term risk the stock’s recovery could stall if I were to buy now and we see a delay to the 21 June D-Day, or even renewed lockdowns or restrictions. Beyond this, there’s competition from other cinemas and streaming services like Netflix.

However, I think Everyman can thrive due to its differentiated premium offering. It has atmospheric venues, and quality food and drink. And its programme of content ranges from mainstream and independent films to theatre and live concert streams.

Another premium leisure brand

Fuller, Smith & Turner (LSE: FSTA) also ranks highly on my list of stocks to buy in June. As you’d expect, this premium pubs and hotels group is another business that’s been hit hard by the pandemic. Its pubs were open on only 27% of the 388 days between 20 March 2020 and 12 April 2021.

As with EMAN — and also with my third stock to buy in June — FSTA shares have risen from their lows of last year, but remain at a discount to their pre-pandemic value. Like the cinema chain, the recovery of the FSTA share price could stall in the event of renewed lockdowns or restrictions. Also, with its significant focus on London, Fullers could potentially be held back by a slow return of tourists to the capital and workers to city offices.

On balance though, I reckon Fullers’ well-invested estate and ownership of some of London’s most iconic pubs should serve it well.

My travel stock to buy

Travel is another sector that’s endured a severe adverse impact from the pandemic. But National Express (LSE: NEX) is one stock in the sector I’m keen on right now. Like Everyman and Fullers, National Express has strengthened its balance sheet with an equity fundraising and secured additional liquidity from supportive lenders.

Nevertheless, the NEX share price could suffer should there be a slower-than-expected full reopening of the economy. Beyond this, the company also faces the challenge of moving to a fully zero-emissions fleet for a cleaner and greener future.

However, with its scale and good history of innovation, I think it’s well placed to meet the challenge. As such, NEX also makes it onto my list of stocks to buy in June.

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.

G A Chester has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Netflix. The Motley Fool UK has recommended Fuller Smith & Turner. 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.

More on Investing Articles

Investing Articles

Here’s the latest growth and share price forecasts for Nvidia stock

Nvidia is due to report Q4 results towards the end of February. Should I buy the stock in anticipation of…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Is the party over for the S&P 500 as Trump’s tariffs loom?

Donald Trump's planned tariffs have cast doubts on the future performance of the S&P 500. What should investors do now?

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Warren Buffett continues to invest in this well-known pizza company

Warren Buffett just bought another 1.1m shares in Domino’s Pizza. Should investors follow him into the well-known fast food company…

Read more »

Investing Articles

A £100 weekly income from a Stocks and Shares ISA? It’s possible!

Mark Hartley details how a combination of good stock picks and patience could transform a Stocks and Shares ISA into…

Read more »

Young black colleagues high-fiving each other at work
US Stock

Why Apple stock could be set to soar with the new Alibaba partnership

Jon Smith explains why a new deal relating to the Chinese market could be good news for Apple stock, not…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

This FTSE stock tanked 58% last week. But there could be some good news!

Shares in John Wood Group plunged after the FTSE engineering stock released a trading update. But our writer thinks there…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

£1,000 invested in Tesla shares 2 months ago is now worth…

Tesla shares have soared over the last decade. However, since 17 December 2024, they have lost more than a quarter…

Read more »

US Stock

Could Trump’s tariffs cause a stock market crash?

Jon Smith looks at the recent whipsaw movements in the markets relating to US trade policy and talks through stock…

Read more »