With lockdowns easing around the world and the UK government’s intention to open non-essential retail in June, certain shares have burst into life. There are some rich pickings out there. And the following are a few of the names I like the look of right now.
The housing market
One clear beneficiary of increased public activity is the housing market. You could go for marketplace provider Rightmove, but I’m keen on the housebuilding companies. You can choose between several on the London stock market, but I’d analyse the smaller operators, such as Redrow and Bellway.
Retailing
Outdoor markets in England will open from the first day of June, along with vehicle showrooms. And shopaholics will be delighted that the non-essential retail sector will be back open for business from 15 June. Shares have been responding well to the news.
You’ve plenty of choice in this sector, but I’d go for Kingfisher, Next and Fraser right now.
Healthcare
The healthcare sector’s been popular with investors throughout the crisis, and we’ve seen some delightful up-thrusts from firms such as AstraZeneca and Avacta. But I’d turn to the wider healthcare sector now and focus on Emis.
The company provides software and support services to GP practices, hospitals pharmacies, satellite healthcare centres and “across every major UK healthcare setting.”
Industrials
There’s plenty of choice in the industrial sector. But, for now, I’d zero in on stocks such as TI Fluid Systems, Mondi, XP Power and Howden Joinery. All should see their underlying businesses boosted by a resumption of general economic activity.
Financials
I’m reluctant to flirt with bank shares, such as Lloyds and Barclays, because they’ve been disappointing investors for so long. However, there are some interesting companies in the wider financial sector, such as spread-bet and CFD-provider IG.
Other sectors
Many sectors are warming up right now. For example, in agriculture, Ros Agro looks interesting. In the world of distribution, I reckon Bunzl is a great company. In infrastructure and construction, Keller has grabbed my attention recently. And, in the resources sector, I like the look of Sylvania Platinum.
These ideas are mere starting points and represent my own thoughts about the stock market right now. If you think these shares look interesting, it’s important you do your own thorough analysis and research before buying any shares.
And they’re not the only stocks that may be worth buying now. Why not trawl the market for yourself and see if you like the look of any other names? After thorough research, you may even be tempted to buy some of them.
For me, the best way of generating decent overall returns is to hold shares with a long-term horizon in mind. And I’d maximize my gains by holding them in a tax-efficient wrapper, such as a SIPP or an ISA.