As the UK economy reopens, I’ve been searching for the best UK shares to buy today. I think there are many bargains to be had in the FTSE 100. With that in mind, here are two blue-chip stocks I’d buy for my portfolio right now.
UK shares to buy today
Around 70% of the FTSE 100’s profits come from outside the UK. Therefore, finding UK-focused companies in the index isn’t straightforward. But there are a couple of businesses that have more exposure than most.
B&Q owner Kingfisher (LSE: KGF) earned around 70% of its retail profit from its UK retail premises in its financial year ended 31 January. The company reported strong growth across the business thanks, in part, to the booming DIY market. Sales across the group increased nearly 7% overall in the year. UK and Ireland sales rose 11%.
I think this trend could continue, which is why I’d buy the FTSE 100 stock today. The working-from-home trend, coupled with the roaring housing market, should continue to drive demand for DIY goods and equipment. As one of the largest related retailers in the country, Kingfisher’s flagship business, B&Q, should benefit substantially from this trend.
That said, before the pandemic, Kingfisher had been struggling to grow sales for years. It could go back to this state if the housing boom runs out of steam and workers are called back to offices. In my opinion, these are the primary challenges facing the business right now.
Still, at the moment, it doesn’t seem as if the market is going to slow in the near term. That’s why I believe this is one of the best UK shares to buy today and why I’d acquire the FTSE 100 stock for my portfolio.
FTSE 100 growth
I have to say Rightmove (LSE: RMV) is one of my favourite FTSE 100 stocks. The company’s property portal is one of the UK’s most recognisable property brands. It’s also one of the most visited websites in the country.
The organisation’s profit slumped 37% last year. According to management, this decline reflected “support offered to our customers” throughout the pandemic.
However, the company is expected to experience a rapid turnaround in 2021. Current analyst projections are forecasting earnings growth of 62% for the year, which implies the firm is on track to earn a net profit of £176m. Net profit for 2019 was £173m.
These are just projections at this stage. There’s no guarantee the business will hit these targets. Another coronavirus wave, or an increase in interest rates, could destabilise the housing market, hurting both buyers, sellers and agents. Rightmove’s earnings would almost certainly suffer in this case.
Even after taking these risks into account, I believe Rightmove is one of the best UK shares to buy today. It’s also one of the few pure-play tech businesses in the FTSE 100. As a way to gain exposure to the fast-growing tech sector, Rightmove is one of my favourite options as well.
Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended 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.