Looking for the best UK shares to buy right now? I’d concentrate on blue-chip growth stocks. Even though the world’s facing potentially another year of uncertainty due to the coronavirus pandemic, I reckon many blue-chip stocks are well-placed to navigate the uncertainty in 2021.
Some of these businesses may even be able to take advantage of the situation.
The best UK shares to buy
I think two categories of businesses will succeed in the year ahead. Companies that will benefit from increased government spending. And firms that have seen sales grow as a result of the crisis.
Companies I think fall into the first bracket include mining giants Rio Tinto and BHP. These organisations are some of the largest producers of key commodities globally, such as iron ore and copper. Prices of both resources have increased over the past 12 months, thanks to Asia’s rising demand. I’m confident this trend will continue.
The UK alone is planning to spend £100bn over the next few years on infrastructure. That’s not much in the grand scheme of things. But I think it’s a good marker of how much money will flow into the construction and materials sector in 2021 and beyond.
As well as the international giants Rio and BHP, other ways to play this boom include Balfour Beatty, Morgan Sindall and Breedon. I believe it’s highly likely all of these firms will benefit from the UK’s infrastructure boom over the next few years. That’s why I believe they could be some of the best UK shares to buy right now.
The other section of firms I believe could be some of the best UK shares to buy right now is companies that have already benefitted from the pandemic.
Companies such as Tesco and Morrisons fall into this bucket. Both of these firms have reported large increases in sales over the past 12 months.
Other firms include health & safety equipment supplier Halma. This business has a great reputation both in its industry and the City. It’s spent the past decade buying up smaller competitors and merging them into the larger group.
By stripping out unnecessary costs, Halma has improved profit margins and achieved economies of scale. If management continues to pursue this strategy, I reckon the stock should continue to yield high total returns for investors.
One of the best UK shares to own over the past 24 months has been Games Workshop. The fantasy gaming company has a devoted fan base and reported strong sales growth in 2020, even though most of its stores were closed. Online sales growth replaced brick and mortar sales as stuck-at-home hobbyists splashed out. As we’ve entered yet another lockdown, I think it’s likely the firm will continue to benefit from this tailwind.
Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Halma and Tesco. 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.