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Stock market rally! I reckon these are some of the best shares to buy in 2021

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As UK shares rally, I’m hunting around for the best shares to buy for my portfolio. I’m focusing on FTSE 100 shares, as companies listed on the lead index generate more than three quarters of their earnings from overseas.

I reckon that this makes them along the best shares to buy today, because they give UK investors global exposure with the security of a London listing. Here are three FTSE 100 stocks right at the top of my shopping list.

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Equipment rental company Ashtead Group is actually a play on the US economy rather than the UK. I think the US could also do well in the months ahead, as president-elect Joe Biden pumps yet more stimulus into the economy. Ashtead could benefit as its US subsidiary Sunbelt generates 90% of its earnings from the States.

Three of the best shares

The Ashtead share price has soared since the crash last March, more than doubling in value. Although I don’t expect it to double in the year ahead, Ashtead still looks a strong long-term buy-and-hold to me, given its strong cash flows and rental revenues. It may also be expensive at more than 20 times earnings, but I believe that’s a price worth paying.

London is home to a host of top mining stocks, including Anglo American. If the global economy recovers this year, the mining sector could reap the benefits, as demand for metals and minerals will revive. Chinese demand is already rebounding, as an emerging Asia leads the world out of post-Covid recession. This is where the bulk of the commodity demand will come from.

The Anglo American share price has roughly doubled since last spring’s crash and is up an incredible 900% measured over five years. Yet it still trades at just 13.2 times earnings, so it’s not expensive. The stock also yields a solid 3.01%. The global recovery will inevitably be bumpy and I’d take advantage of any dips to load up on this stock.

The recovery will come

Frankly, I reckon household goods giant Reckitt Benckiser Group (LSE: RB) is always one of the best shares to buy. I’m a big fan of this company, which sells a host of familiar brands such as Air Wick, Clearasil, Dettol and Nurofen.

One attraction is that shoppers still buy these low-cost essentials during a downtime. Also, Reckitt Benckiser now sells across the globe, including emerging Asia, which should generate rising worldwide revenues.

Reckitt Benckiser’s sales increased in the pandemic, as disinfectant sales soared. Its share price has fallen around 20% in the last six months as investors position themselves for the recovery. But that leaves it trading at around 18 times earnings. I like the look of that valuation, which is cheap by its own standards.

The Reckitt Benckiser share price comes with a yield of 2.78% and it now looks like a good time to buy. Consumers may become less hygiene conscious if we defeat Covid-19, but this stock is more than just a pandemic play. It’s one of the UK’s best shares.

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Harvey Jones has no position in any of the shares mentioned. 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.

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