We asked our freelance writers to share the best British stocks they’d buy this November. Here’s what they chose:
Rupert Hargreaves: Drax
Power generation group Drax (LSE: DRX) used to operate one of the largest coal power stations in Western Europe. It has since reduced emissions by over 90%.
It is not stopping there. By introducing Carbon Capture and Storage technologies, management believes the company can deliver “millions of tonnes of negative emissions” annually from 2030.
This path is unlikely to be risk-free. Challenges the company may face include additional regulations and rising costs.
Nevertheless, considering Drax’s growth potential, I would buy the stock today.
Rupert Hargreaves does not own shares in Drax.
Charlie Keough: BP
My best stock pick for November is BP (LSE: BP). At the time of writing, the last 12 months have seen returns of 75% – and I can only see this continuing.
What excites me about BP is that the firm is clearly looking towards the future. It has adopted a clear strategy to increase renewable production through attainable targets. It estimates it will be generating 50GW by 2030. That’s enough to power 15 million homes.
While the switch from gas and oil to renewable could cause some short-term issues, I think BP is a great long-term addition to my portfolio.
Charlie Keough does not own shares in BP.
Zaven Boyrazian: Games Workshop
Games Workshop (LSE:GAW) is the mastermind behind the immensely popular Warhammer franchise. What started out as a fun tabletop adventure has evolved into a fully fletched world, sprawling into video games, books, tv shows and even films.
The bulk of income is generated from selling figurines to play the classic tabletop game. However, additional revenue originates from IP licensing agreements and a recently launched streaming service called Warhammer+.
The stock was hit hard in September following rising freight costs triggered by the pandemic. But these appear to be short-term problems. So, personally, I think the recent decline presents an excellent buying opportunity this month.
Zaven Boyrazian does not own shares in Games Workshop.
Edward Sheldon: ASOS
My best British stock pick for November is online fashion retailer ASOS (LSE: ASC). Its share price has fallen recently and I think this has created a good entry point for long-term investors like myself.
ASOS does have a few challenges to work through right now. Firstly, it looks set to face higher input costs and supply chain challenges in the near term. This could hit profits. Secondly, the company needs to find a new CEO. Recently, Nick Beighton announced that he would be stepping down.
I’m not overly concerned by these challenges, however, as I think ASOS will overcome them. I expect the stock to recover in the medium term as the growth story associated with the e-commerce boom is still very much intact.
Edward Sheldon owns shares in ASOS.
Paul Summers: Luceco
After a brutal couple of months for its share price, I think LED lighting firm Luceco (LSE: LUCE) now looks great value.
Sentiment around the company has soured due to concerns over supply chain holdups and significant cost inflation. As problematic as these are, I question whether either should trouble a long-term Foolish investor. A P/E of 17 at the time of writing takes at least some of this into account and looks very reasonable for a company generating great returns on capital in a niche area. There’s even a 2.2% yield to comfort holders while they await a recovery.
Paul Summers has no position in Luceco
Harshil Patel: Future
My best stock pick for November is magazine and website publisher Future (LSE:FUTR). It’s a US-focused and digital media platform.
Future owns over 200 brands, including Techradar, Digital Photographer and Marie Claire.
It had a string of encouraging trading updates this year and I reckon the positive trend could continue. As a content creator, it earns from digital advertising. This space could thrive over the coming months as we approach Black Friday sales and the Christmas holidays.
Economic uncertainties and pandemic concerns remain, but overall, I reckon it’s a decent growth company with momentum on its side.
Harshil Patel does not own shares in Future.
Roland Head: Kingfisher
B&Q and Screwfix owner Kingfisher (LSE: KGF) has had a bumper two years. Demand for DIY products surged during the pandemic, as many of us spent more time at home.
In my view, the events of the last 18 months have accelerated the group’s much-needed turnaround and clarified its strategic direction.
Home improvement is a lifelong habit for most homeowners and a growing number of renters. But demand could slow as life returns to normal, so Kingfisher needs to show it can retain its new-won customers. If it does, I think it could do well.
Roland Head does not own shares in Kingfisher.
