The Motley Fool

2 top UK shares to buy in August

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Hand arranging wood block stacking as step stair on paper pink background
Image source: Getty Images

After some volatility this week in the FTSE 100 index, I’m already looking ahead to August (which isn’t that far away) for the top UK shares to buy. Even though the sell-off this week has rebounded, if we see a similar dip in a couple of weeks’ time, then I want to be ready and know which stocks to buy. After all, such dips can sometimes only stay for a couple of days, so I want to take advantage.

Protecting against a Covid-19 crash

The first UK share that’s a top pick in my eyes is Hikma Pharmaceuticals (LSE:HIK). It develops and manufactures a range of branded and non-branded generic medicines. This allows it to have various revenue lines open through different avenues, although like similar companies, it has to invest heavily in research and development.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

One clear factor that makes it an appealing UK share for me to own is the share price performance. It’s up almost 10% over the past month, with a gain of almost 20% over the past year. 

I think one key reason for the boost in the short term is the fact that Covid-related headlines have been getting more concerning. Issues with the Delta variant and the UK lifting all restrictions is causing some investors to look for safer stocks to buy. I think Hikma ticks this box.

Core operating profit jumped 11% last year, largely thanks to the emergency drugs that were sold to help Covid-19 patients. With higher infections being seen in the UK and globally, I’d imagine Hikma will see similar strong demand this year.

One risk with buying this share is that some of its areas of operation are sensitive to political instability. I’m particularly thinking of the MENA region. If any issues arise, distribution and continuity of business for Hikma could become strained.

A top UK mining share

The second top UK share I’m looking at for August is BHP Group (LSE:BHP). It’s primarily a mining company, and one of the largest in the world at that.

The share price has been on a decent run over the past month, up 8%. It’s up 28% over a longer one-year period. Like most miners, the movement in the price of the specific metals can impact the company performance.

Copper and iron ore are the two large operating areas for BHP. In the report covering the financial year to H1 2021, it showed that copper production was down 5% but iron ore production was up 2%. Within this were some strong levels. For example, Western Australia iron ore production hit record levels.

I think the outlook is good, with mines in Australia and Trinidad and Tobago coming on-line recently.

A risk here is that the company really needs to focus on minimising operational damages along the way. It’s currently still embroiled in damage payments for the burst Samarco dam incident in Brazil a few years back. This sum will be in the billions, and so such damages can really impact financial performance.

Overall, I think both UK shares are top picks for the upcoming month, and would look to buy both for my portfolio. 

Our #1 North American Stock For The ‘New-Age Space Race’

Billionaires like Jeff Bezos, Bill Gates, Elon Musk, and Mark Zuckerberg are already betting big money on the ‘new-age space race’, and for one very good reason…

…because this is an industry that according to Morgan Stanley could be worth $1 TRILLION by 2040.

But the problem is most of their investments are in private companies — meaning they’re largely off-limits for everyday investors.

Fortunately, our team of analysts have identified one little-known company that’s at the cutting-edge of the space industry, and is currently trading at what looks like a VERY reasonable valuation

for now.

That’s why I want to urge you to check out our premium research on this top North American space stock ASAP.

Simply click here to see find out how you can grab your copy today

jonathansmith1 has no position in any share mentioned. The Motley Fool UK has recommended Hikma Pharmaceuticals. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.