For months now, the FTSE 100 index was above the 6,000 levels. Until September. There hasn’t been one trading session this month so far where the index has closed at or above 6,000. Its performance is dangerously close to levels seen during the stock market crash a few months ago. But the astute investor knows this is a good time to buy, as we at the Motley Fool have reiterated through this time. I think the following are the best UK shares to buy today, while their share prices get dragged down because of macro trends.
FTSE 100 share to buy
Online grocer Ocado (LSE: OCDO) has seen impressive performance in recent months. As the rest of the world locked down, this FTSE 100 company saw a turn for the better as consumers started stocking up and avoided going to the supermarkets.
What would have otherwise been a slower transition to online sales has probably been accelerated by Covid-19. The results are there to see in OCDO’s sales numbers, which rose 23% according to the latest results. There could be some cooling off in the trading update due next week, reflecting the post-lockdown times. But the writing is there on the wall. Barring any unforeseen events, OCDO is well on its way to becoming a more dominant force in UK’s consumer market, making it one of the best UK shares to buy now. And this is a better time than any other to buy this FTSE 100 stock.
I say this based on its recent share price movements. OCDO’s average share price has been increasing every month since February. However, as I write, the share price is almost 9% lower than it was even a few days ago, when it hit its highest levels for 2020. Even though I reckon that it will continue to rise over time, it’s nice to catch the share price at relative lows when we can. In other words, buy on dips.
Pause for one of the best UK shares
Another FTSE 100 star stock, AstraZeneca (LSE: AZN), also deserves reiteration as one of the best UK stocks to buy now. Besides the overall softening in investor sentiment, the pause in its Covid-19 vaccine trial (after a participant fell ill) has disappointed investors recently, resulting in a share price fall. However, I’m bullish about the stock for two reasons.
One, so far the trials have gone well, and it considers the latest pause to be “routine“. Until such time that we have more substantial information on the trials, I am optimistic about the stock. Two, even prior to developing the Covid-19 vaccine, the AZN stock was coveted by investors. It follows that irrespective of what happens with the vaccine, the rest of its business stays as is. The recent share price dip means this is an opportune time to invest in one of the best UK shares around. In fact, its rise has already begun again, though there’s room for more.
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Manika Premsingh owns shares of AstraZeneca. The Motley Fool UK has no position in any of the shares mentioned. 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.