I’m searching for top UK shares to buy for my Stocks and Shares ISA this June. Here are some of the best UK stocks on my radar today:
On your bike
Bike and car maintenance retailer Halfords Group (LSE: HFD) is a top FTSE 250 stock I’d buy and hold for years. The company is having a tough time making its bikes at the moment, due to parts shortages caused by Brexit- and Covid-19-related supply problems.
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But it’s also struggling to keep up with demand due to the resurgence in cycling in Britain. This is a trend I expect to continue too, as spending on cycling infrastructure in the UK steadily increases. Indeed, the UK government last year pledged to invest up to £2bn “to create new era for cycling and walking.”
Rising environmental concerns and the escalating fitness boom mean that pedal power should continue growing in popularity too. It’s estimated that just 2% of all journeys in Britain are powered by the pedal, providing plenty of upside for the likes of Halfords to exploit.
One of the best retail stocks to buy?
City analysts think earnings at Halfords are expected to drop 34% year-on-year in the 12 months to March 2022. Many forecasts suggest that bike demand will fall as coronavirus lockdowns are eased and people return to gyms, public transport and the like.
Still, for the reasons above — and the fact that the public health emergency continues to roll on — I think forecasts could be upgraded as the year progresses.
Besides, the number-crunchers think that annual earnings will rebound in fiscal 2023. A 15% bottom-line rise is currently forecasted. Today, Halfords shares aren’t that cheap, the FTSE 250 company trading on a forward price-to-earnings (P/E) ratio of 17 times. But I think the bright long-term outlook for cycling on these shores, along with the possibility that near-term profits forecasts could be bumped up as the year progresses, still makes this one of the best UK stocks to buy today, in my opinion.
Another tasty UK share
I’d also happily load up on shares in Domino’s Pizza Group (LSE: DOM). That’s even though the company faces a significant shortfall of workers. In fact, the FTSE 250 fast-food giant is on the lookout for 5,000 new chefs and delivery drivers right now.
However, I still think Domino’s is a great UK share to buy today. Why? Well its colossal brand power makes it one of the best stocks to buy to exploit the ballooning food delivery market. Revenues in this market are predicted to rise at a compound annual growth rate of 5.6% through to 2024, says Statista.
This explains why City analysts think annual earnings at Domino’s will rise 6% in both 2021 and 2022. The company trades on a forward P/E ratio of 22 times as a result. But I think the food delivery colossus is worthy of such a meaty premium, and I’d happily buy it for my ISA.