UK share prices have enjoyed a purple patch in recent sessions. Both the FTSE 100 and FTSE 250 have been soaring rapidly as investor confidence has improved. Regardless of whether stocks are up or down, I myself am on the hunt (as always) for some of the best UK stocks to buy right now.
As a UK share investor, I’m hoping the new bull market has truly kicked off. However, I won’t be sticking my head in the proverbial oven if British stock markets slump again. As a long-term investor I buy for my Stocks and Shares ISA based on the returns I could make over an extended time period (say a decade or more). Stock market volatility can be common so buying UK shares for short-term gains is an extremely risky business.
A UK share on my radar
That said, I’d be very happy to invest as much as £10k in UK engineering share TI Fluid Systems (LSE: TIFS). I think that companies involved in the manufacture and running of electric cars could end up being some of the best stocks to buy. And this particular one — which makes fluid systems for cars — is increasingly focused on rolling out products for hybrid and battery-only vehicles.
Lawmakers across the globe are ramping up green legislation to combat the climate crisis. And citizens are doing their part to reduce their carbon footprints too. This is why global sales of electric vehicles (EVs) rocketed 43% in 2020 (according to EV-volumes.com). This was despite the impact of Covid-19 on the broader motor industry. And it’s also in spite of the handsome premiums that these sorts of vehicles command compared with their petrol and diesel equivalents.
One of the best stocks to buy for the EV market?
That said, the cost of buying an average EV has fallen of late. And prices are tipped to keep dropping as well. This bodes well for future demand for these greener vehicles and by extension take-up of TI Fluid Systems’ product. Researcher BloombergNEF suggests that electric cars will actually be cheaper to produce that those running on fossil fuels by 2027. This is great news for TI Fluid systems as hybrid and battery-only cars require more fluid-handling content than vehicles with internal combustion engines.
All of this explains why City analysts think earnings at TI Fluid Systems will soar 677% in 2021 and 32% next year. This could be one of the best stocks to buy for the fast-growing EV market. And it’s one I’d happily buy today and hold for at least 10 years. That’s even though the industry it operates in is fierce and success in securing contracts with OEMs isn’t a given. That’s a big risk for the firm. And it’s a danger that could worsen if its technologies fail to keep pace with those of its rivals.
Royston Wild 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.