Determining the best UK shares to buy now is clearly very subjective. However, they’re likely to include those businesses that have solid financial and market positions. Not to mention attractive prices.
Over time, such businesses could produce impressive returns ahead of the wider stock market. They may even allow an investor to significantly improve their financial position in the coming years so they can enjoy greater financial freedom.
The best UK shares to buy now could have recovery potential
HSBC and Taylor Wimpey could be among the best UK shares to buy now. Both companies have experienced major disruption from the events of 2020. However, they appear to have solid financial positions to see them through short-term challenges. It could also allow them to benefit from a likely economic recovery in 2021 and beyond.
Furthermore, Taylor Wimpey could experience favourable operating conditions over the next few years. Low interest rates and a lack of supply of housing in the UK means that demand for new homes may remain at high levels. With the company having a large land bank following its capital raising and investment this year, it could be in a strong position to take advantage of it.
HSBC could produce impressive growth relative to other UK shares as it benefits from an improving economic outlook in Asia. China in particular appears to have been negatively impacted to a lesser extent than European or North American economies. This may have a positive impact on the Asian economy’s prospects for 2021.
Furthermore, HSBC is cutting costs in order to improve its overall efficiency. It’s also pivoting to stronger growth areas under a recently revised strategy.
Improving industry-wide outlooks
Other FTSE 100 companies that could be among the best UK shares to buy now are AstraZeneca and Segro. They’re both set to experience increasing demand for their services in the coming years due to industry-wide growth trends being present.
For example, AstraZeneca could capitalise on global demographic trends that include an ageing population. The company is forecast to post earnings growth of 22% next year, as disruption from coronavirus is due to recede. This makes its price-to-earnings (P/E) ratio of 26 seem relatively attractive. Certainly given its defensive profile, strong pipeline of new drugs and sound financial position.
Segro is expected to experience high demand for its warehouses in the coming years. The rising popularity of e-commerce means there may be an imbalance between demand and supply across such assets in the UK. This may provide the business with a resilient income during what may prove to be an uncertain period for the wider economy.
As such, its price-to-book (P/B) ratio of 1.3 appears to offer good value for money relative to other UK shares at a time when many industries face weaker growth prospects.