Buying UK shares simply based on how a particular share price is likely to behave in the near term can often spell trouble.
Newsflow surrounding a specific company can unexpectedly disappoint the market, causing it to plummet in value. Unforeseen external problems, like industry changes or broader economic upheaval, can also cause a stock to sink.
Last year’s stock market crash following the Covid-19 outbreak is a perfect example of this. Great UK shares were sold off heavily along with the bad.
That said, there’s no harm in buying stocks which could rise in value in the following days, weeks or months on one condition. That these UK shares will provide me with decent long-term returns irrespective of whether or not they rise in price in the near future.
Here are three of what I consider to be the best UK shares to buy for solid share prices in July. I’d buy them today and be happy to hold them for years.
#1: A tasty business
I think the Devro share price could rise strongly when it releases half-year results on Tuesday, 27 July. The sausage skins-maker has the wind in its sails right now, thanks to strong demand in Asia and Latin America.
Sales to these regions were up 15% in the four months to January 29, latest financials showed. And I think these emerging regions could deliver terrific profits at the UK share in the years ahead as wealth levels increase.
Devro is targeting average annual growth of 6-10% in developing territories through ongoing investment in headcount and production capacity. I think this firm’s a great buy despite the threat the growing popularity of meat-free diets pose.
#2: A top UK dividend share
I also think DCC’s share price could balloon when it releases its own trading update tomorrow (16 July). But this isn’t why I’d buy the FTSE 100 share for my own stocks portfolio right now. Instead, I’d buy it for the fact it’s raised dividends every year for more than a quarter of a century.
DCC provides sales, marketing and support services across four divisions (LPG, Retail & Oil, Technology and Healthcare). And its long and exceptional record when it comes to acquisitions has enabled it to keep growing profits despite the pressures created by the Covid-19 crisis.
I’d buy this UK share despite the threat to the oil and gas industries as green energy becomes increasingly popular.
#3: Home run
Emergency callout specialist Homeserve is also set to update the market on Friday, 16 July. And I’m expecting another encouraging update here too as its North American operations click through the gears.
Revenues on the other side of the Atlantic jumped 22% in the financial year to March as customer numbers increased by 300,000 to 4.7m. It’s true that this UK share has a lot of debt on its books that causes some concern. But I’d still buy as its trading performance overseas gets steadily stronger.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Devro and Homeserve. 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.