UK shares to buy now: 2 I’d choose

first_img Christopher Ruane | Tuesday, 23rd March, 2021 | More on: ULVR VCT FREE REPORT: Why this £5 stock could be set to surge 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. christopherruane owns shares of Unilever. The Motley Fool UK has recommended Unilever and Victrex. 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. UK shares to buy now: 2 I’d choose Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Enter Your Email Address Our 6 ‘Best Buys Now’ Shares See all posts by Christopher Ruane I’ve been looking for ways to deploy a little spare cash. Scanning the markets for UK shares to buy now, below are two I’d consider buying.I explain why I like the shares. I also mention why I’d act now on these possible investments, rather than wait.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…A global giantWhen hunting for shares to buy, I often draw inspiration from investing guru Warren Buffett.From its collection of well-known brands to its strong cash generation, Unilever (LSE: ULVR) demonstrates many of the characteristics of the types of business Buffett loves to own. In fact he tried to buy the company in 2017. That bid valued the company at around £115bn.Today, Unilever’s market cap is under £107bn. In other words, I can buy a slice of the company on the stock market cheaper than Buffett offered to pay four years ago!Since then, not everything has gone in the company’s favour. Its international exposure means sterling weakness can work against it. While the pandemic has seen some cleaning brands boom, Unilever’s diversified portfolio means it has seen less consistent growth. Its home care divisional revenue actually slipped 0.6% last year, for example.Long-term prospectsSo why would I choose these as UK shares to buy now for my portfolio? I think the broad mix of brands at different price levels will help the company continue to ride the wave of economic growth in markets like China and Indonesia.The shares have only added 3% in the past year. They’re more than 15% down from where they stood in October before vaccines were approved.I think that sell-off has been overdone. Unilever’s prospects look bright to me regardless of how or when the pandemic dies out.I’d pick these UK shares to buy nowI’d also consider Victrex (LSE: VCT). This chemicals producer has a business moat thanks to its specialist technology. For example, its range of “PEEK” polymers is the market leader and has applications across a range of industries. The manufacturer’s output has global appeal, which explains why Victrex exports 98% of all production.Last month, it reported first-quarter results. Revenue was up 1% on the prior year.The company’s highly cash generative business model means it doesn’t carry any long-term debt. In fact, it had £84m of net cash at the end of the year. Some of that is ringfenced for expansion in China. The company plans to spend heavily this year on facility construction there. That costs money, although hopefully it will aid future growth.Although 2021 has started well, the company warned it still expects to turn in a weaker performance in the first half overall than it managed last year. That may help to explain the 11% drop in the share price so far this year. Any further demand drops could dent the share price more.The current price-to-earnings ratio of 33 still looks high to me. But the company has a sustainable competitive advantage and diverse end markets. Longer term, the shares are up 9% over the past year.That’s why I see them as UK shares to buy now. The recent share price drop has created a more agreeable entry point to what I see as a quality buy-and-hold pick. Image source: Getty Images Simply click below to discover how you can take advantage of this.last_img read more