I’m on the hunt for some of the best UK stocks to buy in May. I won’t load up on UK shares just according to how their share prices might perform though.
Stock markets can be volatile for company-specific reasons as well as concerns related to the broader economy. Buying for a short-term perspective is risky business then.
That’s not to say there’s anything wrong with investing on the expectation that a UK share might rise in value. Here are three of the best stocks to buy in my Stocks and Shares ISA today and hold for the long haul. I think they might soar in May too.
One of the best stocks to buy?
I think snapping up Cambria Automobiles before full-year results come out on Wednesday, 5 May, could be a good idea. Demand for automobiles is usually one of the fastest things to recover when broader economic conditions recover. It’s something I think could become apparent in this UK share’s upcoming financial statement.
Latest industry data from the Society of Motor Manufacturers and Traders (SMMT) showed new car sales in Britain soar 11% year-on-year in March. Obviously a fresh wave of Covid-19 cases on these shores could hamper this recovery. But the successful coronavirus vaccine rollout means trade at car retailers likes Cambria could continue to strengthen.
I’d also happily buy TI Fluid Systems for my Stocks and Shares ISA before first-quarter numbers are released on Wednesday, 12 May. I think this UK share is one of the best stocks to buy for those betting on a strong bounceback in car demand.
This is because the business builds fluid-carrying technology like brake and fuel lines that are critical components in auto manufacturing.
Fresh data from the SMMT suggests that carbuilding might already be experiencing a sharp snapback following 2020’s problems too. It said that manufacturing in the UK soared almost 47% year-on-year in March.
While TI Systems’ trading outlook appears to be improving, remember that a failure of any of its highly-complex products could cause serious reputational damage and a subsequent loss of key customers.
Sales are soaring
A set of positive trading updates have helped the Treatt share price go berserk in 2021. The food and fragrance ingredients manufacturer has risen a whopping 40% in value since the turn of the year. So I think the company could also prove to be one of the best UK stocks to buy before half-year results are unpacked on Tuesday, 11 May.
Last time out in April, Treatt said it had witnessed “strong performance across all categories.” The UK share is clearly making great progress on the sales front (up 14% in the six months to March).
But be beware that commodity prices are (broadly speaking) on the march today. A sustained rise in citrus values could well derail strong profits growth at this UK share.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Treatt. 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.