If you are looking for the best UK shares to buy now, I highly recommend taking a look at the tech sector. The UK is home to the fastest-growing tech sector in Europe. As the world becomes increasingly reliant on technology, the best way to profit from this trend may be to buy a diversified basket of related stocks.
Today, I’m going to take a look at three such companies I think could be worth buying now.
The best UK shares to buy
Computacenter (LSE: CCC) is one of the fastest-growing domestic technology businesses. Over the past six years, the company has reported annualised earnings growth of 15%.
The group, which provides the information technology infrastructure services, has seen the demand boom in 2020. City analysts had been expecting the company to report a decline in earnings for this year.
However, according to its latest trading update, management expects trading to be “materially above” initial expectations.
As such, I think the company qualifies as one of the best UK shares to buy now. With earnings set to jump substantially this year, investors could see high total returns from the stock in the years ahead as it builds on its position in the market.
The stock also supports a dividend yield of 2%, and the payout is covered twice by earnings per share.
This is an asset-light operation. The firm takes a cut of every insurance policy or energy deal it sells.
As a result, the business is highly profitable. Its average operating profit margin for the past six years is 30%. The average margin of all UK shares is 6.4%. During the same time frame, the company has reported average annualised earnings growth of 12%.
At the time of writing, shares in Moneysupermarket.com are changing hands at a forward price-to-earnings (P/E) multiple of 22. This looks expensive at first, but I think it’s a price worth paying for such a profitable and recognisable business that has cornered the comparison market.
Further, the stock also supports a dividend yield of 3.6%, which only adds to the appeal of the business, in my opinion. The average yield of all UK shares is 3.4%.
One of the best ways to invest in the technology revolution may be to own the nuts and bolts. Or, in this case, telecommunications infrastructure. Spirent Communications (LSE: SPT) is one way to play this theme.
The company is perfectly positioned to benefit from the world’s transition to 5G technology. It’s widely believed it’s only a matter of time before 5G becomes the mobile standard around the world. Building the infrastructure to hit this milestone will be a challenge. Luckily, Spirent already has the know-how and resources.
As demand for the company’s services has grown over the past few years, its net income has jumped.
From just $13m in 2015, City analysts believe the company will report net income of $85m for 2020. As the rollout of 5G technology continues, I think it’s highly likely the group can maintain this rate of growth.
Therefore, Spirent could be one of the best UK shares to buy now.
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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Moneysupermarket.com. 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.