3 shares to buy with £3,000 for the UK recovery

Rupert Hargreaves thinks these three stocks could be some of the best shares to buy today to capitalise on the recovery in different sectors.

| 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.

As the UK economy rebuilds after the pandemic, I have been searching for shares to buy to invest in the recovery

Here are three companies in three different sectors I would buy with £3k today. 

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Recovery shares to buy

The first company is the construction group Balfour Beatty (LSE: BBY). This might not be suitable for all investors. Indeed, construction businesses can be risky to own because profit margins in the industry are razor-thin. As such, these corporations can struggle to pass on rising costs to customers, which can impede profit growth. 

Still, I think this company is one of the best shares to buy for its exposure to the UK construction sector. The industry is already reporting strong growth. Moreover, the government’s infrastructure spending plans should only drive growth higher in the medium term. 

As one of the largest construction businesses in the country, Balfour should be able to capitalise on this trend over the next few years. Its size should also help it navigate any headwinds at the same time. That’s why I would buy the stock for my recovery portfolio today. 

Property sector

In the property sector, I would acquire LSL Property (LSE: LSL). The property industry is one of the largest sectors of the UK economy, and LSL is one of the few genuinely diversified property businesses listed in London.

The company owns estate agent brands, provides financial services, and works as a surveyor for some of the largest mortgage providers in the country. The group is a one-stop-shop for property in the UK.

That’s why I think this is one of the best shares to buy today and would require it for my recovery portfolio. I feel that no matter what happens over the next few years, LSL’s diversified portfolio will help the business navigate any environment. 

That does not mean the enterprise is without its risks and challenges. For example, the property market could come under pressure if interest rates suddenly increase. That would curb demand for the group’s services, weighing on profitability and the stock price. 

Travel and tourism

The last company I would acquire for my recovery portfolio is SSP Group (LSE: SSPG). I think it’s fair to say this enterprise, which owns a portfolio of food and beverage outlets in travel locations worldwide, has had its business model decimated by the pandemic. Revenues for the six months ended 31 March 2021 declined 79% on a like-for-like basis

Considering the challenges facing the enterprise, it’s certainly not for the faint-hearted. Not only have SSP’s revenues collapsed over the past year, but it has also built up an enormous debt mountain. At the end of March, net debt, including lease liabilities, was £2bn. In comparison, revenue for the six month period was £257m. 

Management doesn’t expect revenues to return to pre-Covid-19 levels until 2024. That implies SSP is set for several years of uncertainty. So the risks of investing here are clear. Nevertheless, I would buy the stock for my portfolio because I believe it has excellent recovery potential. I think the company can outperform expectations as the global economy reopens, which could make it one of the best shares to buy today. 

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.

Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.

But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before!

Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended SSP Group. 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

A Rolls-Royce employee works on an engine
Investing Articles

In penny stock territory, is the Rolls-Royce share price set to soar?

The Rolls-Royce share price has sunk recently, falling into penny stock territory. But with flying hours recovering, is it too…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Lloyds shares drop 20% in 4 months. Should I buy now?

Lloyds shares have lost a fifth of their value since peaking on 17 January this year. But after rebounding from…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

As the stock market recovery stalls, should I wait to buy?

Has the stock market recovery run out of steam? If so, what does that mean for our writer's portfolio? Here…

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Investing Articles

At 55p, is the Argo Blockchain (LON:ARB) share price too cheap to miss?

With a low P/E ratio and strong financial results, could the Bitcoin miner be good value for money?

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Here are 2 recession-proof FTSE stocks!

In the face of current economic uncertainty and fears of a looming recession, this Fool identifies two recession-proof FTSE stocks.

Read more »

British Pennies on a Pound Note
Investing Articles

Here is 1 penny stock primed to benefit from the construction boom!

Jabran Khan delves deeper into a penny stock that he believes could benefit from the construction boom, and explains why…

Read more »

Various denominations of notes in a pile
Investing Articles

Here is 1 top passive income stock to buy and hold!

Jabran Khan wants to boost his passive income stream through dividends and has identified this insurance giant as a way…

Read more »

Cheerful young businesspeople with laptop working in office
Investing Articles

These are the 5 worst ways to invest in stocks

It's all too easy to lose money when you don't really know how to invest in stocks. Here are the…

Read more »