3 UK shares to buy

I’ve been looking for UK shares to buy from my portfolio. I’ve been concentrating on companies that may benefit from the economic recovery and are already showing signs of growth. 

Here are three stocks I’d buy that meet these goals. 

UK shares to buy 

The first company on my list is retailer Marks & Spencers (LSE: MKS). In the past, I’ve stayed away from this enterprise because it always seems to the in the middle of a turnaround, but it’s never turned. It now looks as if the latest plan is starting to yield results. 

The company recently informed the market it was upgrading its profits forecast for its current financial year off the back of better-than-expected trading. This is the first time the group has outperformed expectations for over a decade. 

There’s still plenty of work for the company to do, but the fact that customers are returning faster than expected is incredibly positive. It will provide much-needed cash flow to drive the rest of the group’s recovery. It’s trying to expand its digital operation, cut costs and boost its food business. 

Challenges it may face include cost inflation, competition from online peers and potentially higher taxes. But as Marks’ recovery continues, I’d buy the stock for my portfolio of UK shares. 

Digital revolution

Three years ago, newspaper publisher Reach (LSE: RCH) appeared to be facing a bleak future. Circulation volumes were declining, and so was advertising income. 

However, the organisation has managed to turn things around by investing heavily in its online news business. Digital advertising and other e-commerce strategies have helped the company expand its top and bottom lines, and it has returned to growth. 

That said, the online news industry is incredibly competitive. Reach may have been able to reverse its revenue decline, but keeping readers interested going forward is going to be another challenge altogether. 

Still, the recent boost in profitability has allowed the group to pay down debt and reward shareholders with a dividend. It’s now on a firmer financial footing than it has been for some time. 

These are the reasons why I’d buy the company for my portfolio of UK shares. 

Green revolution 

The final company I’d buy is public transport operator National Express (LSE: NEX). Throughout the pandemic, consumers have been advised to avoid public transport. This decimated the organisation’s revenues.

As customers return, growth should return too. And there’s a more substantial tailwind working in the background. 

Public transport is going to play a crucial part in decarbonising the UK’s transportation system. This suggests demand for National Express’s services will expand in the long run. Driving is also becoming more expensive, which may push more car owners to use public transport as well. 

These are the reasons why I’d buy this recovery stock for my portfolio of UK shares, although this might not be suitable for all investors.

National Express’s recovery is still in its early stages. Another lockdown could set the group’s recovery back months. Rising fuel and wage costs may also hinder its recovery. I’ll be keeping an eye on these risks as we advance.