The 2020 stock market crash sent the share prices of many companies reeling. While some firms have thrived throughout the period of the pandemic, others have struggled, with their survival prospects hanging by a thread. In this setting, I’m going to take a look at the stocks that I think are among the best UK shares to buy now.
FTSE 100 champions
An appropriate place to begin the search is in the blue-chip FTSE 100 index. Full to the brim with well-established companies, the FTSE 100 contains numerous businesses with a strong international reputation. What’s more, owing to the nature of these large-cap companies, many are better positioned to whether the storm caused by the global pandemic.
Take consumer goods giants Unilever and Reckitt Benckiser, for example. Both are multinational companies with market-leading positions in their industry. As it happens, both sell products that are relied upon by consumers regardless of the prevailing economic conditions. As such, I think both are among the UK best shares to buy now, especially given the uncertain macroeconomic outlook.
FTSE 250 stalwarts
Moving down to the mid-cap FTSE 250 index, there are plenty of successful companies catching my eye. In particular, I’m impressed by those stocks that have performed well amidst the coronavirus pandemic and bleak economic conditions. While it’s no guarantee that they’ll continue to prosper, it’s a good indicator of the resilience of the underlying businesses.
For example, take a look at AO World and Games Workshop. Since the beginning of the year, their share prices are up 99% and 31% respectively. That’s despite the major sell-off that took place in March. Both companies have demonstrated the strength of their business models, boosted by their harnessing of online sales. I expect a bright future for both and consequently, I reckon they’re also some of the best UK shares to buy now.
Before moving on, I think the precious metals company Centamin is more than deserving of a mention. The gold miner has capitalised on soaring gold prices and has performed strongly on the production front. As well as boasting a healthy balance sheet, the company attracts a yield north of 5%. In my view, Centamin is a top buy for investors looking for a combination of share price growth and handsome dividend payments.
FTSE AIM 100 upcomers
UK stocks listed on the Alternative Investment Market (AIM) often possess explosive growth potential, albeit with the additional risk that comes with AIM’s lighter regulatory scrutiny. I have my eye on a handful that I think have a bright future outlook, despite the devastation caused by the pandemic on many businesses.
For instance, online fashion retailers Boohoo and ASOS have enjoyed a profitable few months in spite of poor trading conditions. Both saw their sales continue to thrive throughout the period of the pandemic, something that only a handful of retailers can say. Looking ahead, I think their strong business models will continue to present growth opportunities in the future.
Finally, take a look at biotechnology company Avacta, whose share price has rocketed 783% since mid-March. Despite being a loss-making company, I think Avacta has huge potential, something made clear by its positive developments since the outbreak of Covid-19.