If I had £2,000 to invest today, I’d focus on buying the best stocks on the market. With that in mind, here are two investments I think are some of the best UK shares to buy today.
UK shares to buy
The first company on my list is Moneysupermarket.com (LSE: MONY). As UK shares go, I think this enterprise offers something for everyone. It has growth potential and supports an attractive dividend yield.
Unfortunately, it’s currently going through a period of significant turbulence. During the pandemic, there’s been a drop in the number of consumers shopping around for better financial, energy and travel deals. As a result, for the six months to the end of June, group revenues declined 11% and profit after tax fell 31%.
The good news is that management believes “normal trading conditions” will return in 2022. This is the main reason why I think this is one of the best UK shares to buy today. I think the market’s overlooking its recovery potential and focusing too much on current issues.
Moneysupermarket has a strong balance sheet with just under £9m of cash to finance its turnaround. And the stock supports a dividend yield of 5.2%, at the time of writing.
While management’s confident the group can return to growth next year, this is far from guaranteed. Headwinds, such as competition and rising wages, may eat away at the company’s profit margins. These are two risks I’ll be keeping an eye on as we advance.
I think one of the best UK shares to buy to invest in the global economic recovery is the small-cap Trifast (LSE: TRI). The international producer of high-quality industrial fastenings reported a modest 6% decline in revenues last year.
However, thanks to the global economic recovery, sales jumped 50% during the first half of its current financial year. The growth was supported by orders from “existing customers, new contract wins, and further supported by a very healthy pipeline.”
To help support its growth, the company also recently announced the acquisition of North American specialist fastenings distributor, Falcon.
Costing £6m, the purchase will boost Trifast’s presence in the North American market. I think further acquisitions in the region are likely as the group expands its footprint in one of the largest markets in the world for industrial manufacturing.
The dual tailwinds of economic growth and acquisitions lead me to conclude that this is one of the best UK shares to buy now for my portfolio.
That said, the company might not be suitable for all investors. It’s a relatively small business with a market capitalisation of under £200m. Therefore, it may be a riskier proposition as it could lack the checks and balances usually in place at larger companies.
Despite this risk, I’m happy to add the stock to my portfolio.