UK share markets have printed decent gains since the start of 2021. The FTSE 100 is up around 10% in the year to date, while the FTSE 250 has risen by an identical percentage. And I’m on the hunt for some of the best shares to buy as the economic recovery kicks into gear.
However, he performance of share markets has been more muted over the past couple of months. Investors have hit the pause button as rising Covid-19 cases in some regions has cast doubt over the economic bounceback. Indeed, the World Health Organisation now says infections in Europe are back on the rise following 10 weeks of decline. This could well lead to fresh weakness on global stock indices.
A UK share I just bought
But I’ve no plans to stop buying UK shares for my Stocks and Shares ISA. My quest to find the best stocks to buy saw me add FTSE 100 building materials supplier CRH (LSE: CRH) to my portfolio in June.
I’m expecting demand for the company’s services to soar during the upcoming economic recovery as construction activity bounces back. The introduction of massive infrastructure spending packages should also boost sales of CRH’s cement, aggregates and more complex building products.
But I’m not overly concerned with rising Covid-19 infection rates and what this will mean near-term for the global economy and, by extension, CRH’s profits and share price. This is because I buy shares based on the return I can expect over the long term, say a decade or more.
Over this sort of time horizon I’m convinced the Footsie firm’s ongoing quest for acquisitions will make me brilliant returns. The CRH share price has risen 180% over the past 10 years, thanks in large part to its terrific form when it comes to M&As.
2 of the best stocks to buy?
Here are two more UK shares I’m thinking of buying soon for my ISA:
- The rise of homeworking due to Covid-19 creates a myriad of investing opportunities, in my opinion. Let me give you an example. Analysts at Research Dive reckon the global employee communication software market will be worth $1.6bn by 2026, up from $696m last year. And I think communications software provider CloudCall — despite its smaller financial clout and lesser brand recognition versus some competitors — could be one of the best stocks to buy for this exploding market.
- E-commerce is growing at a jaw-dropping pace. And so is the demand that retailers, manufacturers and couriers have for space to hold and distribute their goods and parcels. This is what makes Urban Logistics such a terrific UK share to buy, as a company which lets out ‘mid box’ commercial properties in Britain. It’s true that profits could suffer if its tenants run into difficulties. But this wouldn’t discourage me from buying the property stock today.
Royston Wild owns shares of CRH. The Motley Fool UK has no position in any of the shares mentioned. 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.