My 3 picks for the best UK shares to buy in June

Mark David Hartley is bullish about the UK stock market right now. He reckons these are the three best shares to buy for his portfolio next month.

| More on:
Newspaper and direction sign with investment options

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Payday is coming and these are the top three stocks that make me want to throw cash at them in June.

Marks and Spencer

In 2016, Marks and Spencer Group (LSE: MKS) took a tumble that wiped 82% off its share price over the following five years. It has since been struggling to recover.

Now it seems to be back in the game with a vengeance after posting impressive earnings this week. With revenue up 9% and adjusted earnings up 45%, it’s no surprise the share price is soaring. Deutsche Bank, Goldman Sachs, and JP Morgan all put in positive ratings for the stock this week.

It’s not in the clear yet, though. It sports a fair chunk of debt after several years of declines and faces stiff competition from rivals. As a higher-end retailer, it could suffer further losses if the economy takes a turn for the worse. I like the direction it’s headed but it’s possible the share price could fall again.

However, the strategy implemented two years ago to revive the business appears to be finally working. As noted by CEO Stuart Machin, sales on both sides of the business (online and in-store) have grown for 12 consecutive quarters.

A British pub favourite

Mitchells & Butlers (LSE: MAB) is a stalwart on the UK pub scene, operating since 1898. Covid hit it hard though and it fell out of profit in 2020, with negative earnings throughout most of last few years. This year has brought a promising recovery though.

In first-half results posted this week, it revealed adjusted operating profits up 64% compared to last year. Revenue is up 7% from £1.28bn to 1.4bn and earnings per share (EPS) more than doubled from 5.5p to 13.5. The results prompted a 14% jump in share price to over 300p, the highest it’s been in almost three years.  

But shifting consumer habits combined with rising costs threaten its bottom line. It’s a powerful and well-established brand but the sector-based risk remains. There’s signs pub culture might be on the decline in the UK, with fewer young people drinking. M&B still delivers the food side of the business but it’s largely known for its boozers.

I still plan to buy the stock but will keep a close eye on societal developments.


Asset management firm Schroders (LSE: SDR) was given a buy rating by UBS this week. That surprised me, considering the stock is down 15% in the past year. But the company’s Asia-based investment products have been doing very well recently, particularly its Oriental Income and Asia Income funds. These have helped to shore up disappointing performance on the European side.

Overall, shares in Schroder are estimated to be undervalued by 30% using a discounted cash flow model, so growth potential is there. The trailing price-to-earnings (P/E) ratio of 15.5 is expected to reduce to 12.7 as earnings increase. That could open up several good buying opportunities in the coming months.

But it’s not a growth stock so I wouldn’t expect much from the share price. Even positive analysts envision little more than 9% growth in the coming year. The key value proposition for me is the 5.5% dividend yield, which is well-covered by earnings with a consistent track record of payments. I’m buying it for that.

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.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Mark Hartley has positions in Marks And Spencer Group Plc. The Motley Fool UK has recommended Schroders 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.

More on Investing Articles

Happy young plus size woman sitting at kitchen table and watching tv series on tablet computer
Investing Articles

Could Raspberry Pi be a growth share to buy and hold?

Our writer explains why he thinks a newly-listed UK growth share could have a bright future -- and considers whether…

Read more »

A pastel colored growing graph with rising rocket.
Market Movers

The FTSE 100 jumps after the Bank of England meeting. Here’s what’s next

Jon Smith runs over the takeaways from the Bank of England meeting today and flags up which FTSE 100 stocks…

Read more »

Middle-aged white male courier delivering boxes to young black lady
Investing Articles

How I’d start investing in great value UK shares with £10,000 today

Harvey Jones can see a heap of UK shares he'd like to add to an ISA today. Many combine low…

Read more »

Young Black woman looking concerned while in front of her laptop
Investing Articles

Why did the YouGov share price just crash 37%?

The YouGov share price has been weak for a while. But that's nothing compared to what happened after this profit…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

YouGov shares collapse 37%! What’s going on with this AIM stock?

Our writer takes a look at why YouGov shares fell dramatically today and assesses whether this might be a chance…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

Earnings up almost 15%! Is it time to seriously consider this FTSE 250 stock?

Ongoing recovery and growth in this high-performing FTSE 250 business means there may be more to come for investors.

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

Are there still bargains on the FTSE 100? Here’s what the charts say

The FTSE 100 has been gaining momentum this year. But this Fool still sees plenty of bargains on the index.…

Read more »

Inflation in newspapers
Investing For Beginners

These FTSE stocks could surge with inflation back at 2%

Jon Smith explains several reasons why lower inflation is good for FTSE stocks, and provides examples of those he thinks…

Read more »