In a recent article I explained why I’m thinking like Warren Buffett and buying UK shares for the new bull market. Here are three more top British stocks I’m considering adding to my ISA.
A FTSE 100 share for the new bull market
The WPP (LSE: WPP) share price has risen strongly in recent times, up 60% in value during the past year as advertising spending has markedly improved. And I think the FTSE 100 ad agency could have a lot further to run as market conditions improve.
Fellow agency GroupM, in fact, recently revised up its advertising growth forecasts thanks to the stronger-than-expected recovery. It now predicts growth of 22% in the gigantic US marketplace in 2021, and growth of 24% in WPP’s home territory of the UK. And GroupM took the red pen to its previous medium-term forecasts too. It expects ad spending in the US of $279bn this year to rocket to $388bn by 2026.
That doesn’t mean that traditional ad agencies like WPP will have everything their own way. Companies are increasingly bringing their marketing activities in house, while consultancies are also grabbing a slice of the action. That said, I still think the FTSE 100 firm has the clout and the expertise to keep winning lots of business and thus to deliver big profits during the new bull market.
A UK retail giant
I think that ASOS (LSE: ASC) is another great UK share for any bull market. Consumer spending is already booming in its core British marketplace and activity is likely to climb in its other territories as broader economic conditions improve. Meanwhile, the company’s online-only model will allow it to benefit from the ongoing e-commerce explosion.
There is danger that ‘fast fashion’ specialists like this could fall out favour with shoppers as environmental concerns grow, however. A recent report showed that almost half of clothing products added to some fast fashion websites contained just 1% of recycled material. UK shares like this may have to spend a fortune to address this imbalance or face the prospect of disappointing sales.
Watch the profits flow
I have myself invested in TI Fluid Systems (LSE: TIFS) to make money during the new bull market. This is because spending on cars tends to rise sharply during the early stage of economic recoveries. It’s a phenomenon that this manufacturer of fluid carrying systems is well placed to exploit.
Profits at TI Fluid Systems could take a whack if parts shortages elsewhere affect broader car production rates. Chinese auto sales dropped for the first time in 14 months in May due to a mass deficit of microchips. Parts shortfalls notwithstanding, I think this UK engineering share has plenty to look forward to, and particularly as demand for electric vehicles goes from strength to strength. TI Fluids is doubling-down on designing and manufacturing its fluid systems for battery- and hybrid-powered vehicles to ride this trend.