I’m hunting for some of the best UK stocks to buy for my Stocks and Shares ISA this June. Here are two I think could deliver handsome returns in the near term and beyond.
A FTSE 100 favourite
I’d happily buy B&M European Value Retail (LSE: BME) for my ISA next month. Britons’ love of a good bargain helped propel the low-cost retailer into the FTSE 100 during the autumn. And I’m expecting full-year financials released on June 3 to confirm that trading has remained strong.
Recent news from B&M suggests to me that this could be one of the best retail stocks to buy today. The business increased its earnings expectations for the fiscal year to March 2021 a couple of months back thanks to “strong” trading during the final quarter. I’m expecting sales to have remained robust as well since then as the successful coronavirus vaccine programme has encouraged Britons to get out and about again and wander through B&M’s doors at the expense of online retailers.
That being said, remember that B&M’s lack of e-commerce operations could weigh on earnings growth in the longer term. The online shopping segment ballooned in the 2010s, and the recent public health emergency has hastened the adoption of internet shopping by new users and increased online activity from existing surfers. Still, I like B&M’s massively-popular, value-led proposition and expect its store expansion programme to deliver handsome rewards. Indeed, the company announced it was accelerating its site-opening drive back in September following strong recent trading.
One of the best leisure stocks to buy
I think Everyman Media Group (LSE: EMAN) could be another of the best stocks to buy next month. Cineworld’s latest trading update this week revealed how moviegoers have returned to its cinemas in their droves following the recent lockdown easing. I think luxury cinema operator Everyman could put out cheery news too when it releases its own trading update soon.
Cineworld’s share price spiked after releasing that encouraging commentary recently. Yet Everyman’s has remained static in the days following the release. I think the market could have missed a trick here. I’d certainly rather buy the latter’s shares instead of Cineworld’s. I think the higher-end experience that it offers — where visitors can dine and catch indie movies alongside more mainstream films — gives it a clear purpose to exist in the streaming age of Netflix and Amazon Prime. And Everyman doesn’t have the colossal debt pile that Cineworld does.
A word of warning, though: a fresh flaring up of Covid-19 cases, and the subsequent risk of cinemas being closed again, isn’t the only risk that Everyman faces. Box office sales are dependent on the quality and the popularity of the movies being shown. A weak release slate could have a huge negative impact on this UK share’s bottom line.
