My top 5 shares to buy in April

What are the best shares to buy in April? Stephen Wright thinks UK building and banking and US tech could provide investors with solid long-term returns.

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With the FTSE 100 and FTSE 250 both finishing March lower than they started, I think it’s a great time to be looking for investment opportunities. But it’s not just UK shares I’m looking to buy in April.

I’m seeing some attractive opportunities in the S&P 500 as well. Here are the top five shares from my watchlist.

Lloyds Banking Group

The big story from March was liquidity issues in the banking sector. And that caused bank share prices to fall whether or not they were directly involved in the problems.

Lloyds Banking Group is one such example. Despite the bank having the largest base of retail deposits among the UK banks, its stock fell around 10% in March. 

I think this takes the stock into bargain territory. There’s a risk tighter banking regulations could dampen the company’s profitability, but I think the price today more than allows for this.

Lloyds Banking Group is top of my list of stocks to buy in April. I think the uncertainty in the broader sector has created a great opportunity here.

Forterra

Buying shares in a brick company as the UK housing market enters its 11th consecutive month of falling prices might seem like a strange idea. But I think Forterra shares are great value right now.

It’s definitely true that a slowing property market is a risk for the company’s short-term cash flows. But the longer-term outlook for the business looks much brighter to me. 

UK housing has a supply shortage. And this filters down into the brick manufacturing industry, which I expect to both limit the impact of the downturn and support growth as the market recovers.

At a price-to-earnings (P/E) ratio of around seven, the stock isn’t expensive by any standards. I think Forterra shares are a great investment opportunity as April begins.

Alphabet

The uncertainty around the banking sector took the spotlight off Google’s parent company Alphabet last month. But it’s still one of my top stocks to buy in April.

Before that, the market was worrying about the threat posed by ChatGPT. But while the risk of competition is not to be underestimated, I’m looking to add to my investment in the company this month.

I see Alphabet as a company with a great business model, decent growth prospects, and a balance sheet that should allow it to withstand a recession. And at around $100, I still think the stock is a bargain. 

Prologis and Warehouse REIT

Lastly, two real estate investment trusts (REITs) make my list. Prologis in the US and Warehouse REIT in the UK both focus on leasing industrial distribution centres and warehouses.

Both have a general tailwind behind them from the growth of e-commerce. And data from Morgan Stanley shows that the cost of warehouse space is rising. 

Inflation on both sides of the Atlantic has been high lately, which I think is also good for these companies. Higher prices makes it more expensive for competitors to build alternative facilities.

There’s an ongoing risk rising interest rates might cut into the value of their assets. But as long as growth in rental income remains stable, I think these could be great investments for a while to come.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Stephen Wright has positions in Alphabet. The Motley Fool UK has recommended Alphabet, Lloyds Banking Group Plc, and Warehouse REIT Plc. 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.

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