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Top British stocks for June

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We asked our freelance writers to share the top British stocks they’d buy this June. Here’s what they chose:


Alan Oscroft: Greencore

My pick is Greencore (LSE: GNC), the food-to-go specialist, whose share price plunged on interim results day. The company reported a £7.9m pre-tax loss for the first half, in a business still devastated by the Covid-19 pandemic. The market hated it.

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But Greencore expects to turn things round by the end of the year, and the liquidity is there. If the company can get back to 2019 earnings levels, we’d be looking at a P/E of around nine. I think that’s cheap. I rate Greencore a buy, and I’ve added it to my ISA shortlist.

Alan Oscroft has no position in Greencore.


Roland Head: IG Group Holdings

Online financial trading firm IG Group Holdings (LSE: IGG) has delivered a bumper performance over the last 12 months. Last year’s market crash was followed by a stock trading boom that’s seen the company’s profits double.

Markets are pricing in a return to more normal levels of trading over the coming year, and IG’s share price has been in retreat recently.

This sell-off has left IG shares trading on 13 times forecast earnings for the year ahead, with a dividend yield of 5%. Although IG faces some challenges this year, I think the stock offers good value at this level.

Roland Head owns shares of IG Group Holdings.


G A Chester: Fresnillo 

Silver and gold miner Fresnillo (LSE: FRES) recently reiterated its 2021 production guidance, despite continuing uncertainty presented by Covid-19 in Mexico. 

This FTSE 100 giant, with seven operating mines, is a low-cost producer and has a strong balance sheet. Furthermore, I think its pipeline of new mines and projects, together with a series of improvement programmes, bode well for the longer term. 

I reckon recent weakness in the share price is giving me an opportunity to buy in to the world’s largest primary silver producer at an attractive level. That the dividend yield is now above 2% is an added bonus. 

G A Chester has no position in Fresnillo. 


Harshil Patel: ITV 

ITV (LSE:ITV) looks well placed to benefit from a global economic recovery. Advertising revenues are rebounding from last year, and the majority of ITV’s shows are back in production.  

Several strategic and cost-cutting measures are on track. This is allowing ITV to invest in the acceleration of its strategy to become a digitally-focused media and entertainment company. 

ITV is a quality consumer cyclical stock that offers double-digit margins and return on capital. It’s cash generative and shares trade at an undemanding valuation. It also offers a forecasted dividend yield of 4%. Overall, I’d make it a top stock pick for June. 

Harshil Patel does not own shares in ITV.


Edward Sheldon: Experian

My top British stock for June is Experian (LSE: EXPN). It’s the world’s latest credit data company.

Experian posted a solid set of results for the year ended 31 March recently. For the year, revenue was up 7% on the back of strong demand for its analytics services while earnings per share were up 4%.

Looking ahead, the group said that it expects organic revenue growth in the range of 7% to 9% for FY2022. It noted that it had made a strong start to the year.

Experian is not the cheapest stock, and its valuation does add some risk to the investment case. Overall, however, I think the stock has a lot of appeal right now.

Edward Sheldon owns shares in Experian.


Kirsteen Mackay: Macfarlane 

Macfarlane (LSE:MACF) produces protective packaging for businesses. It mainly has a UK focus, with a growing presence in Europe. A sustained growth in ecommerce is increasing demand for packaging and Macfarlane counts both Hobbycraft and Halfords as customers. Then there’s the climate initiative increasing pressure for sustainable solutions, from which Macfarlane stands to benefit.  

The MACF share price has risen 88% in five years. It has a price-to-earnings ratio of 18, earnings per share are 6p and it doesn’t offer a dividend yield. I’d consider buying MACF shares as I think it has good growth opportunities ahead. 

Kirsteen Mackay has no position in Macfarlane.


Andy Ross: Sylvania Platinum  

Sylvania Platinum  (LSE: SLP), the South African platinum group metals miner has fallen from its year high. I think it’s a really great company and see the share price weakness as an opportunity. The company has a tailwind behind it because what it mines is very likely to be used in electric vehicle batteries in the future.  

On top of that, there is a belief amongst some investors that we might be in a commodities supercycle. Even if that’s not the case, I back the shares to do well. It’s a low cost miner, which should be good for margins.  

As always with a growing miner, there are risks to bear in mind. Notwithstanding that though, Sylvania Platinum is my top stock for June.  

Andy Ross does not own shares in Sylvania Platinum.  


Rupert Hargreaves: Glencore

Commodity prices have been ripping higher this year. For example, the price of copper is up around 29% year-to-date. I think Glencore (LSE: GLEN) could benefit from this trend.

Not only does the company produce commodities such as copper, but it also trades them.

This trading business can be highly profitable. As the world’s largest trading business, I expect the demand for Glencore’s services to increase in line with the rising demand for commodities.

The most considerable risk facing the company is the potential for a sudden fall in commodity prices. This could have the opposite effect on the business.

Rupert Hargreaves does not own shares in Glencore.


Manika Premsingh: Volex

Power cords and cable assembly solutions provider Volex (LSE: VLX) has more than doubled its share price in the past year, driven by positive stock market sentiment and its own robust performance. According to its latest trading update, full year revenue for the 52 weeks ending April 4, 2021 will be ahead of market expectations.

For this reason, I am looking forward to its results due in June. I’d also check details of its exploding demand from electric vehicle (EV) customers, which can be a potentially big growth driver for the future.

I would also look at the impact on debt from its acquisition of Turkey’s DE-KA, which may be risky, if high, at a time of continued economic uncertainty.

Manika Premsingh has no position in Volex.


Stuart Blair: Diageo

Diageo (LSE: DGE) is an alcoholic beverages company, with a portfolio of over 200 brands. Its share price has already recovered strongly since last year, and I believe further gains are likely.

Indeed, the company recently announced an improved profit forecast for 2021 and decided to restart its return of capital programme. As the company is now actively returning more money to the shareholders, it’s clearly in a strong financial position.

Diageo’s extensive product range and market-leading position should also help protect it against the risk of another economic slowdown. This is why Diageo is my top stock for June.

Stuart Blair owns shares in Diageo.


Christopher Ruane: Renalytix AI

I recently bought into Renalytix AI (LSE: RENX) despite its limited commercial history. I was impressed by prospective new business opportunities including a US government deal, as well as clinical study results.

The company specialises in kidney diagnostics. That is a significant market with resilient customer spending. The company’s AI-enabled technology gives it a compelling position. As revenues grow I expect Renalytix’s profits to benefit from the scaleability of its technology.

One risk is that competitors could develop their own solutions and reduce Renalytix’s competitive advantage. 

Christopher Ruane owns shares in Renalytix AI.


Royston Wild: Bloomsbury Publishing 

I reckon Bloomsbury Publishing (LSE: BMY) could be a top UK stock to load up on this June. In fact I’d get my skates on and buy it before the release of full-year results on Wednesday, 2 June. 

The Harry Potter publisher has a history of lifting its profits projections in recent times. And it was at it again last time it updated the market with a pre-close update in March. Bloomsbury has benefitted from the uptick in reading during Covid-19 lockdowns. But I reckon the company’s high-quality stable of titles — along with its foray into academic publishing — will keep the top line fizzing. 

Royston Wild does not own shares in Bloomsbury Publishing.


Dan Peeke: HSBC

My favourite UK share for June 2021 is HSBC (LSE:HSBA).

I mentioned in an article towards the end of April that HSBC’s price-to-book ratio was 0.6. It still is, and I think that’s a bargain. On top of this, the company is beginning to focus on its Asian ventures. This is where more than 80% of its 2019 profits came from, so I think that’s the perfect approach.  

The company’s withdrawal from the US and difficulty generating revenue thanks to low interest rates are setbacks, but I’m still confident that it’ll make a good long-term investment.

Dan Peeke doesn’t own shares in HSBC.


Paul Summers: BlackRock World Mining Trust

My top stock for June is the BlackRock World Mining Trust (LSE: BRWM). As it sounds, this invests in a basket of the biggest miners in the world. It also pays an attractive dividend (currently 3.3%). 

Naturally, investing in the cyclical commodities market won’t suit all investors. Some may also baulk at the 1% ongoing charge. Even so, this is arguably the least risky way of getting exposure to the huge demand for metals such as copper from electric vehicle manufacturers in the years ahead.  So, despite rising 80% in the last year alone, I think there’s more upside ahead. 

Paul Summers has no position in the BlackRock World Mining Trust


Nadia Yaqub: Premier Foods

I think things are turning around for Premier Foods (LSE: PFD). Its recent full-year results were impressive, which saw a strong increase in revenue and operating profit. Even net debt has fallen to a manageable position.

The key thing to note is the reinstatement of the dividend. The company will pay its first income payment in 13 years. Clearly the firm’s financial position is improving. It’s also ramping up growth with new product launches. I reckon this is a sign of good things to come and the stock could rise further.

Nadia Yaqub does not own shares in Premier Foods


Ben Hargreaves: Polymetal International 

With concerns over inflation causing a degree of volatility in the market, I think holding shares of a solid dividend earner like Polymetal International (LSE:POLY) is a good idea. At 5.7%, the dividend is healthy and the business itself is well-positioned, as a miner of precious metals.  

The bulk of the company’s revenue comes from gold mining and the price of the metal is currently up 11% over the last year. In addition, the company is in the top five silver producers worldwide whilst its price has increased 62% in the same time period. Though the company’s shares can fluctuate on the price of precious metals, I believe the strong dividend still provides an adequate cushion to make it a solid investment. 

Ben Hargreaves does not own shares in Polymetal International.


 

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The Motley Fool UK has recommended Bloomsbury Publishing, Diageo, Experian, Fresnillo, Greencore, HSBC Holdings, and ITV. 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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