The Motley Fool

3 UK stocks I’d consider buying for 2021

Image source: Getty Images

Now could be a good time to start thinking about your portfolio moves for 2021. With that in mind, I’m going to take a look at three UK stocks I’d consider buying for a portfolio next year. 

UK stocks to buy

In my opinion, Rightmove (LSE: RMV) is one of the most attractive stocks on the London market today. The firm owns one of the most visited websites in the country.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Its business model is straightforward. Rightmove is essentially a classified website for property. Its running costs are low, and it charges a fee to sellers who want to list on the platform.

What’s more, due to the low running costs of the business, the company is highly cash generative. It also has some of the highest profit margins of all UK stocks.

Historically, management has returned a lot of excess capital to investors with dividends and share buybacks. However, the outlook for the property market is currently highly uncertain. This suggests management may reduce cash returns in the near term.

Still, Rightmove has a clean balance sheet with a net cash balance and no debt. So, I think the business can weather the crisis and has the potential to resume cash returns on the other side. 


The health and safety group Halma (LSE: HLMA) expects its profit to drop by around 10% this year due to the coronavirus pandemic. Nonetheless, like many other UK stocks, the company is well-positioned to return to growth next year when the crisis has passed. 

The demand for health and safety equipment around the world has increased dramatically in recent years. This is unlikely to change in the years ahead.

As one of the largest specialist players in the sector, Halma’s size is a crucial competitive advantage. It can offer products and services at lower prices than the rest of the competition. 

The business also has a solid track record of buying up smaller companies. The group buys these operations and integrates them into the broader operation, using its scale to reduce costs and improve profit margins. Once again, Halma should be able to resume this buy-and-build strategy when the pandemic has passed.


Paper and packaging manufacturer Mondi (LSE: MNDI) is one of the few UK stocks that seems to have benefited from the coronavirus crisis. The lockdown online shopping boom helped the company offset weaknesses in other areas of its operation.

While the company also suffered from low demand for its other products, it has been able to reduce costs, which should soften the blow. Management is projecting underlying cash profits will decline by around €100m, which is an improvement on the corresponding €150m blow it sustained last year. 

The good news is, the firm expects demand to pick up quickly when the crisis has passed. Exports to China were already recovering at the beginning of the summer as the country came out of lockdown.

As the rest of the world follows suit in 2021, shares in Mondi could yield large total returns for investors from current levels. As such, I reckon the company could be the perfect addition to a basket of UK stocks in 2021. 

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Halma and Rightmove. 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.