Here are what I think could prove to be some of the best UK shares to buy this August.
Playing the property market
Data concerning the UK homes market continues to confound expectations. According to HM Revenues and Customs, the number of home sales in Britain soared to record peaks of 213,120 in June. This all bodes well for UK construction share Bellway which is slated to release fresh trading numbers on Tuesday, 10 August.
It’s true that the soon-to-be-withdrawn stamp duty holiday has helped fuel the homebuyer stampede. But a flurry of other factors, like mortgage rate wars, low interest rates, and other government purchase incentives, have helped fuel the craze. And I’m tipping these drivers to supercharge sales at UK shares like Bellway for a long time to come. I’d buy the company despite the threat posed by a shortage of building materials to its construction rates.
Good to go
Bakkavor Group is a top stock whose profits could soar during the economic reopening. As one of the UK’s leading ‘food to go’ manufacturers, demand for its edible goods will pick up again as people return to work and generally get out and about again.
Indeed, the company’s like-for-like sales leapt 16.1% year-on-year during the three months to June as government restrictions were rolled back. I like this UK share from a long-term point of view too as it grows it presence in the gigantic US and Chinese marketplaces. Remember though, fresh Covid-19 lockdowns during the ongoing public health emergency would damage Bakkavor’s recovery.
Another top UK share
The ongoing health crisis has led many of us to re-evaluate our lives in some shape or form. One change which people have either begun to embrace, or are about to, revolve around our careers, as a recent Microsoft study shows. A whopping 41% of the global workforce is likely to consider leaving their current employer inside the next 12 months, according to the US software giant.
Naturally, this bodes well for recruitment companies like SThree. This is a UK share I particularly like because of its pivot towards the fast-growing science, technology, engineering and mathematics (better known as STEM) disciplines. I’d buy the stock despite the fierce competition it faces in terms of both clients and candidates.
Expensive but exceptional
The reopening of the UK economy bodes particularly well for AG Barr, maker of Scotland’s favourite soft drink Irn-Bru. In fact, I’d buy this UK beverages share before it releases first-half trading numbers on Tuesday, 3 August. In recent days, Barr predicted that profit for the fiscal year to January 2022 would be better than expectations. This is thanks to robust customer restocking and underlying brand momentum of late.
I think upcoming commentary due in the next fortnight could facilitate fresh share price gains. Though do bear in mind that the business trades on a forward price-to-earnings (P/E) ratio of 22 times. Such a meaty valuation could prompt a price correction if trade begins to slow.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended AG Barr. 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.