With that in mind, I’ve spotted two stocks that seem like no-brainer buying opportunities, even if I only had as little as £100 to invest. Let’s take a look.

One of the best UK shares to buy now?

XP Power (LSE:XPP) has had a tough run of late, with the share price tumbling by over 60% in the last 12 months.

As a quick reminder, the business is an electronics components manufacturer that works directly within the engineering, medical, and semiconductor manufacturing industries. So it shouldn’t be surprising that the disruptions to global supply chains have created many headwinds for this business.

Revenue growth has stalled while the order book and lead times continue to build. Sourcing raw materials is proving to be challenging. Even more so, given its manufacturing facilities are located in China, where strict Covid-19 policies are still in effect. To add more fuel to the fire, its competitor Comet Technologies accused XP Power of stealing trade secrets which a US jury awarded $40m in damages against the firm.

With all that in mind, watching these UK shares get sold off isn’t all that shocking. But while these developments are frustrating, the long-term strategy of this business ultimately remains uncompromised. At least, that’s what I think.

Management is still proceeding with its facility expansions to bolster manufacturing capacity once supply chain disruptions have ended. It has £189.2m in liquidity to work with versus only £105.8m in short-term liabilities. And while the $40m legal bill isn’t a pretty sight, it’s ultimately a one-time expense.

In the short-term, further volatility in the XP Power share price may continue. But as a long-term investment, this looks like a no-brainer buy for my portfolio, despite the risks.

Stock Pick #2

Another British business hit hard recently is Howden Joinery (LSE:HWDN). Shares of the UK kitchen materials supplier have tumbled nearly 40% over the last 12 months. And it’s not difficult to understand why.

With consumer spending for discretionary items like home renovation steadily declining and the house building industry beginning to slow, many investors expect Howden Joinery to follow suit.

But looking at the latest results, it seems someone forgot to tell the company. Because revenue continues to grow by double-digits, profit margins are climbing despite inflationary pressures, and the firm is capturing greater market share through expanding its depot network.

Management has admitted that if the housing market or consumer sentiment continues to suffer, maintaining its current momentum could prove challenging. This is obviously a significant risk to consider before making an investment decision.

Yet, with a P/E ratio of just 10 and a tasty 3.4% dividend yield, these UK shares look like a bargain, in my eyes. That’s why I added them to my income portfolio last week.

Today, I’m revealing three examples occupying spots on my buy list.

Games Workshop

I already own stock in fantasy figure maker Games Workshop (LSE: GAW) and I’m looking to add more.

Like most listed companies, the owner of the Warhammer 40,000 brand is having a nasty 2022. Shares are down almost 30% year-to-date as stock markets fret over, well, pretty much everything.

I don’t see this situation changing immediately. Like other retailers, Games could suffer as its legion of fanatical followers understandably prioritise paying their bills. For this reason, the next update we receive from the FTSE 250 member could make for tough reading.

For someone with a longer timeline however, I think a price-to-earnings (P/E) ratio of a little under 19 is already great value, relative to the quality of the underlying business. Attractions here include big margins, a seriously-strong balance sheet, a dominant position in a niche market and plenty of scope to push its valuable IP in new directions.

XP Power

Next on my buy list is power solutions provider XP Power (LSE: XPP). It’s another firm that’s been heavily rejected in 2022 with shares tumbling nearly 65%. Again, I wonder if the market has become overly pessimistic here.

Now don’t get me wrong, things are pretty grim at XP Power. Revenue growth has been held back by component shortages and a resurgence of Covid-19 in China. A rapidly rising debt pile is not something I like to see either.

Once again however, I suspect this is already reflected in the price. A P/E of 10 could prove wonderful value when the good times return. And given just how important the company’s products are, I think the chances of this happening are pretty high. It already had a record order book of £285m going into the second half of 2022.

In the meantime, there’s a 5.2% dividend yield for me to re-invest back into the market (and, potentially, the very company this cash originated from).

Fevertree Drinks

A third growth stock I’m looking to invest in is premium tonic water purveyor Fevertree Drinks (LSE: FEVR). Shares have crashed almost 70% in 2022 through a toxic mix of increasing costs, labour shortages across the pond and less glass being available.

Are any of these headwinds permanent? I don’t think so. And that’s where my Foolish instincts kick in. Ignoring the share price movement, I reckon this remains a great company with a strong premium brand that’s quickly developing a following in the US.

But there’s a problem. Fevertree shares change hands at a P/E of 40. At face value, that’s (very) punchy considering margins have been squeezed hard in recent years. And as purse strings tighten, a bad 2022 could easily turn into an equally tricky 2023.

On the flip side, Fevertree boasts strong finances to weather the storm. And when energy prices do calm down and discretionary income bounces back, I can see drinkers pushing the boat out once again.

Will I buy before then? I just might!

Out of charge

Singapore-based XP Power (LSE: XPP) develops and manufactures critical power control solutions for the IT, Healthcare and Semiconductor Manufacturing Equipment sectors. Once upon a time, it also helped power my portfolio to new heights. Sensing that the valuation was looking frothy (and having held for quite a while), I sold my holding for a lovely profit. Since then, the shares have tumbled.

Luck or skill? Probably a lot more of the former. Having halved in 2022 alone, however, I’m tempted to get involved again.

Multiple headwinds

Monday’s half-year results contained a few chinks of light. Order intake rose 23% to a little over £193m and demand for its products “remains strong” with a record order book.

However, XP Power’s revenue (£123.6m) actually fell back by 1% from the same period in 2021 once exchange rates were taken into account.

There wasn’t just one headwind. Over the six months, XP faced “industry-wide component shortages, a five-week Covid-19 lockdown in China, and extended component lead-times“. Throw in rampant inflation and you’ve got a pretty toxic mix.

As a result of all this, the company isn’t quite sure what to expect in terms of full-year numbers. I’m also a little worried that net debt has now “risen substantially” to £102m.

Nice price

As important as it is to take these issues seriously (and recognise that the share price could go lower), I think a lot is already priced in here. As I type, XP Power’s price-to-earnings (P/E) ratio has now fallen back to 13. That’s attractive for a market leader with quality hallmarks, with usually strong fundamentals and with customers that tend to stick around.

The interim dividend was also maintained, suggesting that management believes these pressures are temporary.

I would have no issue starting to re-buy a position now for the long term

Another bargain stock

A second bargain stock in my view is medical tech giant Smith & Nephew (LSE: SN).

This may seem like a controversial pick. The company’s shares have performed poorly in recent times. In fact, things are so bad that the FTSE 100 member’s valuation has now dipped below where it was back in March 2020 when the first UK lockdown was ordered.

What’s behind all this? Again, there’s not just one reason. Surging inflation and supply chain issues have reduced margins. However, a lot of elective surgery has also been postponed due to pressures on resources since Covid-19 first arrived.

Long-term hold

It’s clear new CEO Deepak Nath has got a challenge on his hands. Consequently, I don’t expect Smith & Nephew shares to rocket any time soon.

Notwithstanding this, I maintain that this could eventually prove to be a solid holding once normality returns — whatever that looks like. An ageing global population should be a significant growth driver, especially for its Orthopaedics and Trauma division that specialises in supplying knee and hip implants.

Considering its price/earnings-to-growth (PEG ratio) now comes in around one, I’d be comfortable buying the shares today.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Begbies Traynor Group 

What it does: Begbies Traynor provides financial services for companies in distress. The firm is a specialist in corporate insolvency. 

By Royston Wild. The outlook for the UK economy is getting gloomier as inflation accelerates. National output shrank in March, latest data shows, and recessionary risks are rising. It means that counter-cyclical share Begbies Traynor Group (LSE: BEG) could be a top stock for me to buy this June. 

A mix of economic deterioration and the withdrawal of government furlough support is driving corporate insolvencies through the roof. The cash crunch facing British business looks set to intensify, too, as lending conditions get tougher.  

A study from the Federation of Small Businesses shows that banks are “pulling up the drawbridge” to firms seeking capital. Indeed, just 19% of companies surveyed described the availability of credit as “good” in quarter one. This was the lowest figure since 2016. 

In this climate I think demand for Begbies Traynor’s financial services could soar. City analysts think the stock’s earnings will rise 10% in the 12 months to April 2023. I believe this estimate could be revised upwards as the fiscal year progresses. 

Royston Wild does not own shares in Begbies Traynor Group. 

XP Power

What it does: XP Power is a designer and manufacturer of power converters for the global electronics industry.

By Zaven Boyrazian. With Covid-19 creating plenty of disruptions for manufacturing businesses like XP Power (LSE:XPP), it’s not surprising to see the stock suffer by nearly 40% over the last 12 months. However, these issues are ultimately short term. Meanwhile, demand for the group’s products continues to climb, especially from semiconductor manufacturing companies.

Looking at the latest quarterly results, revenue grew by a meagre 8%, courtesy of the aforementioned disruptions. But the order book stands at a record £260m. And with a new manufacturing facility now under construction, the firm’s order capacity is set to expand considerably over the next few years.

In my opinion, this places XP Power in a favourable position to secure long-term growth. And that’s why, alongside the accolade of being my preferred stock for June, the recent tumble in share price looks like a great buying opportunity for my portfolio today.

Zaven Boyrazian does not own shares in XP Power.

Aviva

What it does: Aviva is a UK company offering a range of insurance and wealth management services

By Alan Oscroft: Aviva (LSE:AV) has been restructuring itself for several years, disposing of non-core businesses and cutting costs. As a result of that, it has had the cash to return a total of £4.75bn to shareholders, directly and via share buyback. The company now plans to pay progressive dividends yielding better than 7% this year and next.

Aviva is not out of the woods yet, after recording an earnings fall in 2021. The financial sector is also facing an uncertain outlook in today’s economic climate. But Q1 figures in May showed solid progress.

On balance, I think Aviva has all but turned the corner. But I don’t think the share price has caught up yet. Now Aviva has all but completed its capital return, investors can focus on future of the restructured company.

I’m hoping June could be the start of a renewed bull run. I’m holding, and might even buy more.

Alan Oscroft owns shares in Aviva.

Tritax Big Box REIT

What it does: Tritax Big Box REIT is a real estate investment trust that owns a portfolio of logistics warehouses.

By Edward Sheldon, CFA. Tritax Big Box REIT (LSE: BBOX) shares pulled back in late April (after e-commerce giant Amazon announced that it has a surplus of warehouse space) and I believe this has created a buying opportunity.

One reason I’m bullish here is that in the company’s recent first-quarter results, management advised that demand for new logistics space remains “very strong” and that the group is well-placed to capitalise on the high level of demand through its development pipeline. It added that it is handling inflation through active management of open market rent reviews, along with inflation-linked leases.

Another reason is that since the share price has fallen, eight company insiders, including the Chairman, have stepped up to buy stock. This indicates that those within the company expect the share price to rebound.

Now, BBOX does have a relatively high valuation. This adds some risk. If future results are disappointing, the stock could underperform.

Overall, however, I believe the long-term risk/reward proposition here is attractive enough to name the stock as my favourite for June.

Edward Sheldon owns shares in Tritax Big Box REIT and Amazon

Games Workshop

What it does: Games Workshop designs and manufactures miniatures and games. It sells these through various retail channels.

By Stephen Wright. Games Workshop (LSE: GAW) is a stock that I’d very much like to own in my portfolio. The company has a loyal and committed customer base, with good intellectual property rights protecting its business. It also has a balance sheet that instils confidence in me, having more cash than debt.

The company is in an interesting place at the moment. I think that high inflation and rising interest rates are likely to put pressure on businesses in this sector. But Games Workshop’s unique product should, in my view, see them through.

At the stock level, I’ll be looking to exploit any weakness in June to start building out a position. I think it’s important to be disciplined about overpaying, but I think there could be an opportunity here to acquire a great business at a reasonable price.

Stephen Wright does not own shares in Games Workshop

Abrdn

What it does: Abrdn is a global investment management company, managing a wide range of assets for its clients. 

By Michelle Freeman. It may seem counter-intuitive to pick Abrdn (LSE:ABDN) as my top stock for June. After all, its core business model is its fee-based investment offerings, opposite to the Motley Fool line of thinking. 

But you see, it’s not difficult to make money in a long bull market. However, a good strategy is priceless when it comes to navigating choppier investment waters. That’s why I think the recent run of doom and gloom news on investment markets will see a lot of retail investors willing to pay a little more for investment advice. 

With the share price remaining down over 25% year-to-date, I see plenty of long-term upside potential. That’s backed up by a majority of analysts holding buy targets above today’s price. 

And when you throw in that very tasty +7% dividend yield, it makes it a whole lot easier to stay the course through the ongoing market volatility.

Michelle Freeman does not own shares in Abrdn.

Associated British Foods 

What it does: ABF is the owner of retailer Primark and four food production businesses in grocery, sugar, ingredients and agriculture 

By G A Chester. Associated British Foods (LSE: ABF) is out of favour with the market. Indeed, you have to go back almost a decade to find the share price as low as its current level. 

Primark suffered during the pandemic, but the group remained profitable thanks to its food businesses enjoying strong demand. Primark has since recovered well, and food sales have continued to grow. 

However, like a lot of companies, ABF is now seeing significant inflationary pressures in raw materials, supply chains and energy. These costs will negatively impact the group’s profit margins. Notwithstanding the headwinds, management’s outlook for the year is for “significant progress in adjusted operating profit and adjusted earnings per share.” 

There’s a risk management’s expectations could prove over-optimistic, because the economic backdrop is so uncertain. Nevertheless, with the share price and valuation at multi-year lows, I think I’m looking at a rare opportunity to buy into a high-quality enterprise. 

G A Chester does not own shares in Associated British Foods 

Games Workshop

What it does: Games Workshop designs, manufactures, and sells fantasy miniatures and related products

By Paul Summers. Rather than move into cheaper but inferior value stocks at a time when investor interest in them might be peaking, I think the current market volatility offers me a wonderful opportunity to buy some of the UK’s best growth stocks at knock-down prices. One example is Games Workshop (LSE: GAW). 

As I type, shares are down over 30% year-to-date and almost 45% off their 52-week high. This brings the price-to-earnings ratio down to 18 – mightily attractive considering the high margins and massive returns on capital Games usually posts.

Sure, spending on hobbies will likely be reduced as the cost of living gallops higher. However, I reckon the sheer popularity of its products and loyalty of its customers means business should recover strongly once the clouds have passed. 

So long as I’m prepared for hold for more than a few months, building a position in this stock in June could prove lucrative.

Paul Summers does not own shares in Games Workshop

Associated British Foods

What it does: Associated British Foods is a highly diversified business. It is the owner of a number of leading brands including: Primark, Silver Spoon and Kingsmill. It also produces a number of food ingredients including sugar beet and flour.

By Andrew Mackie. Associated British Foods (LSE:ABF)’s share price is now trading at levels not seen since the stock market crash of March 2020. Here’s why it’s my top stock for June.

However, to my mind, the business is in a lot stronger position than during Covid. Yes, Primark has been forced to raise prices on a number of autumn items due to rising input costs. But all its stores are trading and revenue growth remains strong. Its no-frills brand will likely resonate well amongst increasingly cost-conscious consumers, particularly in the run up to the holiday season.

But ABF is a lot more than just Primark. The business continues to invest heavily in its grocery brands. Twinings, for example, recently enhanced its offering in the lucrative wellbeing teas market.

I am also excited about its agriculture division which produces animal feeds for pig, poultry and dairy. As food security becomes an increasingly important consideration, yield sustainability and environmentally-friendly practices will favour innovative businesses such as ABF.

Andrew Mackie owns shares in Associated British Foods.

JD Sports Fashion

What it does: JD Sports Fashion is a retail chain specialising in sports, fashion and outdoors brands, with a large digital commerce footprint.

By Christopher Ruane. The retailer JD Sports Fashion (LSE: JD) is known for low prices — but lately that has been true for the company’s shares as well as its shoes.

Over the past 12 months the JD Sports share price has tumbled 35%. But I think that fall is overdone and see a buying opportunity for my portfolio. The company expects to report its annual results in June. I reckon that could lead investors to reconsider the share price.

JD has said that headline profits before tax and exceptional items for last year are expected to come in at £940m. It thinks that 2023 will be at least as good, although a worldwide shortage of certain types of footwear is one risk to revenues and profits. With a market capitalisation of £6.2bn, I think the company looks cheap given its strong performance and attractive business outlook, making it my top stock for June.

Christopher Ruane owns shares in JD Sports.

Anglo American

What it does: Anglo American is a mining firm operating across the globe. It mines diamonds and platinum group metals (PGMs), together with copper, iron ore, and nickel.

By Andrew Woods. Anglo American (LSE:AAL) posted bumper pre-tax profits in 2021 of $17.6bn, up from $5.4bn the previous year. The company has recently been benefiting from historically high metal prices. These higher prices have been largely caused by the reopening of economies after the pandemic. Furthermore, the situation in Ukraine has heightened supply concerns and the overall trend of rising metal prices could be here to stay for a while yet.

The firm also recently signed a memorandum of understanding with EDF Renewables. This will develop solutions to make Anglo American’s South Africa operations run on 100% renewable energy. This is part of an effort by the business to make its mining operations more environmentally friendly.

While iron ore production declined for the first three months of 2022, the diversity of Anglo American’s business may continue to allow it to reap the benefits of surging demand for base metals, not to mention rising revenue from growing diamond sales in the US. 

Andrew Woods does not own shares in Anglo American

Computacenter

What it does: Computacenter supplies IT hardware and services to large corporate and public sector organisations.

By Roland Head. FTSE 250 group Computacenter (LSE: CCC) has a long history of steady growth. Sales have doubled to £6.7bn since 2012, while Computacenter’s annual profit has tripled to £185m over the same period.

Demand surged through the pandemic due to work-from-home and ecommerce demand. Although growth has eased in 2022, Computacenter management still expect to report “a year of further progress”. This tells me that another increase in annual profits is expected.

The main risk I can see is that an economic slowdown in 2022/23 could hit demand and cause Computacenter to miss a year or two of growth. However, I think the company’s share price already reflects a cautious view.

Computacenter is highly profitable and ended last year with net cash of £95m. The stock’s forecast price/earnings ratio of 15 times is at the lower end of its historical range. I think the shares look decent value at this level.

Roland Head does not own shares in Computacenter.

Burberry

What it does: Burberry is a British luxury fashion brand that design and distributes ready-to-wear items. These include trench coats, leather goods, footwear, fashion accessories, eyewear, fragrances, and cosmetics.

By John Choong. Having seen a 15% decline this year, the Burberry (LSE:BRBY) share price could be on the verge of a rebound this summer. As a luxury brand, many of Burberry’s goods hedge against inflation. This was evident in its latest earnings results, as its profitability hit an eight-year high. The company makes the bulk of its revenue from China, and it’s been capitalising on the uptake in luxury consumer spending within the region. In fact, the British firm opened a flagship store in Shanghai recently.

Although I expect the next trading update to post bitter numbers as a result of the recent lockdown in Shanghai, I remain optimistic for the FTSE 100 firm’s long-term prospects. I believe that sales figures will rebound along with its share price once restrictions come to an end, and that a sour trading update for Q1 could present a buying opportunity for the stock in June.

John Choong does not own shares in Burberry.

Royston Wild: BAE Systems 

The BAE Systems (LSE: BA) share price lifted off in February as tragic events in Ukraine unfolded, and it’s stayed strong since then. The war in Eastern Europe illustrates the tense geopolitical backdrop that I think will support sustained and strong demand for BAE Systems’ defence products. 

In fact, BAE Systems has grown earnings in four of the past five years as global arms spending has risen. The only reversal came in 2020 when Covid-19 disruptions hit the bottom line. City analysts expect profits to keep heading northwards this year, and next too, as the West bumps up arms spending in light of recent events.

I think BAE Systems could be a particularly strong performer in May too as rising fears over rampant inflation boost demand for safe-haven shares like defence companies. 

Royston Wild does not own shares in BAE Systems.

Zaven Boyrazian: Alpha FX Group

Alpha FX (LSE:AFX) is a financial services group specialising in currency risk management and alternative banking solutions. The firm helps businesses mitigate foreign exchange risk while simultaneously enabling almost instant enterprise-scale international transactions – something not possible with archaic methods like wire transfers.

Corporate banks offer similar solutions and are a significant source of competition. However, these are often prohibitively expensive. By charging on a per-transaction basis, Alpha FX enables its clients to overcome this barrier to entry.

With an impressive track record of double-digit growth and its 2022 performance continuing to impress, I think it’s time to add more shares to my portfolio today.

Zaven Boyrazian owns shares in Alpha FX

Edward Sheldon: Smith & Nephew

My top British stock for May is Smith & Nephew (LSE: SN). It’s a healthcare company that specialises in joint replacement systems.

There are a couple of reasons I like the look of Smith & Nephew right now. One is that there’s a huge joint replacement backlog globally at the moment due to Covid-19. So, the company appears to be well positioned for growth in the years ahead.

Another is that the healthcare sector tends to be quite defensive in nature. So, the stock could hold up relatively well if we see a recession.

It’s worth pointing out that Smith & Nephew shares are not cheap. So, this adds a bit of risk. All things considered though, I see a lot of potential here.

Edward Sheldon owns shares in Smith & Nephew.

Stephen Wright: London Stock Exchange Group

I think that my top stock for May is one of the best companies in the UK. It combines a core business that has virtually no competition with other operations that have high margins, low costs, and generate huge returns.

The stock is London Stock Exchange Group (LSE:LSEG). The company operates the exchanges on which financial market transactions take place. These have high barriers to entry. But the company also has various other operations, including data, fixed income trading, and clearing services.

Stephen Wright does not own London Stock Exchange Group.

Michelle Freeman: Wizz Air

It’s no surprise to anyone that airline shares have had a rough time over the last two years. But with Wizz Air (LSE: WIZZ) down over 30% since the start of the year, I think its shares look potentially oversold compared to others. 

Yes, Wizz has more exposure to those Eastern European travel destinations that are impacted from the on-going war. But it has been diversifying its network and increasing capacity recently, including picking up more Gatwick slots from Norwegian.  

With the WTTC reporting triple-digit growth compared to last year, I wouldn’t be at all surprised to see the share price benefit accordingly. 

Michelle Freeman does not own shares in Wizz Air.

Andrew Mackie: Anglo American

My top stock for May is Anglo American (LSE: AAL). This may seem like a strange choice, given the 20% share price fall in the three days following a disappointing Q1 production report.

However, I would look beyond the headlines. At the moment, a lot of miners are suffering with high input costs, particularly diesel, Covid-related absences and production issues. However, all this is likely to do is push up prices even further.

The business remains a cash-generating machine, with a dividend policy of returning 40% of underlying earnings to shareholders.

For me, the commodities cycle is still very much in its early innings. With such a diversified portfolio, the sell-off has presented a good entry point for long-term investors.

Andrew Mackie does not own shares in Anglo American.

Andrew Woods: Tullow Oil

Tullow Oil (LSE: TLW) is an oil and gas exploration and production firm. It operates globally, but it has larger operations in Ghana and Kenya in Africa, and Guyana in South America.

The pandemic hit the business hard, resulting in a $1.2bn pre-tax loss in 2020. It recovered, however, to post a $200m pre-tax profit the following year.

In March, it increased its stake in two oil fields in Ghana, potentially increasing production by 4,000 barrels of oil per day. With oil prices at high levels, I think this firm could be a top stock for me in May.  

Andrew Woods has no position in Tullow Oil.

Paul Summers: XP Power

Having once made a big profit on the stock, I’m starting to think about buying XP Power (LSE: XPP) again. The share price of the critical power solutions provider has tumbled in the last few months due to a resurgence of Covid-19 in Asia, higher costs, and limited component supply.

Despite these headwinds, business is ticking along nicely. XP had a record order book of roughly £260m moving into Q2.

The valuation of 17 times forecast earnings looks pretty reasonable to me. There’s also a well-covered dividend to keep investors happy while the dark clouds pass. 

Paul Summers has no position in XP Power

John Choong: Dunelm

Dunelm (LSE: DNLM) was predicted to falter after Covid restrictions were lifted. But its most recent earnings report showed a 25% increase in its profits, with total sales up 10.6% year over year. Additionally, Dunelm has managed to maintain healthy margins of 10.8% whilst boasting a stellar balance sheet with zero debt.

Although its stock has taken a plummet due to disappointing retail sales figures, the fine print proves that the British retailer remains immune for the time-being, as household goods stores saw a 2.6% increase in sales. This is backed up by Dunelm’s own numbers, with an 8.5% increase in active customer growth.

John Choong has no position in Dunelm.

Roland Head: Redrow

I am picking FTSE 250 housebuilder Redrow (LSE: RDW) as my top stock for May. I think that shares in this founder-backed group could offer impressive value.

The risk of a UK economic slowdown is the main concern here. That could hit sales. But recent trading updates have not suggested any slowdown in demand for new housing.

In Redrow’s latest results, the company increased its sales and profit guidance for 2022 and said that profit margins were rising despite higher costs.

With the stock trading on six times earnings and offering a 6% dividend yield, I think Redrow offers excellent value.

Roland Head does not own shares in Redrow.

G A Chester: Integrafin Holdings 

Integrafin Holdings (LSE: IHP) owns Transact, one of the largest independent platforms serving UK financial advisors and their clients. It may not be as well-known as direct-to-consumer operator Hargreaves Lansdown, but it has a strong record of growth. 

Revenue has increased at a compound annual rate of 12% over the last four years and earnings have advanced at a rate of 14%. Negative market movements in asset prices are a risk, and wage inflation is also currently a friction. 

Nevertheless, after recent share-price weakness, and with a tailwind of structural growth in the UK wealth-management market, Integrafin looks a quality business on sale cheap. 

G A Chester has no position in Integrafin Holdings. 

Alan Oscroft: Kingfisher

At around the 250p mark, DIY specialist Kingfisher (LSE: KGF) looks cheap to me. The owner of B&Q and Screwfix staged a strong pandemic comeback. But that’s reversed in 2022, for a 30% fall over the past 12 months. The shares are now on a trailing P/E of only around seven, with dividend yields above 3.5%.

My main concern is that free cash flow for 2021-22 fell sharply. With net debt of £1.6bn, that could bite. But the company is buying up its own shares right now. I’d do the same.

Alan Oscroft has no position in Kingfisher.

Fallen star

Let’s not beat about the bush — investors in fast fashion firm ASOS (LSE: ASC) have endured an appalling time of late. Partly due to the rotation away from growth-focused, lockdown winners into value stocks, the share price has tanked 25% in 2022 so far. In the last year, the former market darling’s value has dropped nearly 70%!

Personally, I see this as an opportunity. ASOS still has many attractive qualities, including a growing portfolio of brands and great international growth prospects.  

This is not to say that the share price capitulation isn’t completely unwarranted. ASOS has faced multiple headwinds in recent times, including higher costs and supply chain constraints. The former isn’t exactly great considering margins at this sort of business will never be sky-high. UK-based online clothing retailers have also seen increased competition from overseas rivals such as China-based Shein. Oh, and the big rise in the cost of living isn’t helping any retailer. 

Still, I think these concerns are now starting to be reflected in the valuation. At 21 times forecast earnings, ASOS still isn’t ‘cheap’ in the conventional sense but it’s far more attractively priced than it used to be. The move to the main market from the less-regulated AIM might also help to entice new investors.

Assuming inflation will eventually loosen its grip, I consider the £1.75bn cap a firm ‘buy’ for me at these levels. Half-year numbers are due not long after the ISA deadline passes.

Power up

A second growth stock I’ve got on my watchlist is XP Power (LSE: XPP). This is a company I’ve actually held within my Stocks and Shares ISA before (and made a very nice profit on). Since then, however, the shares have tumbled.

XPP’s valuation is now almost 30% below where it stood this time last year. Is the actual business really 30% less valuable though? I don’t think it is. XP is a leading developer of critical power control solutions for a number of sectors. Once on board, clients rarely leave. It therefore has a bit more earnings visibility than some in the market. 

Speaking of which, it’s worth mentioning this month’s full-year results. Despite multiple headwinds including pandemic lockdowns and component shortages, the company managed to grow revenue by 3% in 2021 (to £240.3m). I think that’s actually quite impressive considering that trade from healthcare customers has inevitably moderated following huge demand in 2020. XP Power also started 2022 with a record order book of £217m. 

Having been caught up in the general market sell-off, the shares now trade on 17 times forecast earnings. The 2.8% dividend, nicely covered by expected profit, is the cherry on top.

Like ASOS, I believe XP will recover in time. Of course, there’s no such thing as absolute certainty and the fact that Covid-19 infections in Asia are on the rise again is not great news for this Singapore-based business. Hence, I would never allow my Stocks and Shares ISA to be overly invested in a particular sector, including this one.

But with the April deadline fast approaching, what are the best UK shares for me to buy in my ISA right now? Let’s explore.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Profiting with pizza

Domino’s Pizza Group (LSE:DOM) has been on quite a run. Since the start of 2019, shares are up over 50%, thanks to impressive growth in pizza sales. The pandemic certainly helped in that regard. But the momentum has since continued.

And now that management has resolved its long-standing franchisee conflict, growth might be about to accelerate even faster. Or at least, that’s the impression I got when the firm announced its £1.9bn sales target versus £1.5bn today.

A good chunk of this growth can be attributed to the continued digital transformation of the group. But of course, that does create a potential vulnerability. Suppose a successful cyber attack takes its systems offline, even for a short time? In that case, it could lead to a substantial loss of orders to competitors. Nonetheless, with its shares falling by 20% since the start of 2022, courtesy of market volatility, the UK business looks like a bargain buy for my portfolio.

UK shares fuelling the renewable energy era

With global warming becoming an ever more present threat, the world has begun making the necessary shift towards renewables. But to achieve this ambitious transition, a lot of raw materials are going to be needed, especially essentials such as battery metals including cobalt and vanadium.

This has created quite the tailwind for UK mining shares. And while there are plenty to choose from, my personal favourite is Anglo Pacific Group (LSE:APF). The royalties business provides the funding for larger mining firms to establish drilling sites in exchange for a portion of the extracted materials.

This approach has proven to be significantly more profitable, with operating margins currently standing at over 45%. It’s obviously still susceptible to the risks of fluctuating commodity prices. However, with a diversified portfolio consisting of essential renewable energy metals, I think the stock could be perfectly positioned to deliver long-term growth potential to shareholders. Even more so when considering it’s still trading at a 20% discount to pre-pandemic levels despite superior financial performance.

The small-cap behind modern technology

With the world’s dependence on technology growing even bigger, XP Power (LSE:XPP) is currently enjoying a pretty massive tailwind. The group is a designer and manufacturer of electronic components for equipment used throughout the industrial engineering, healthcare, and semiconductor industries.

The latter is particularly exciting as supply chain disruptions are currently driving substantial investments into this space. That’s obviously a highly lucrative opportunity and has so far resulted in a 46% jump in its semiconductor division revenue last year.

However, it’s not without its flaws. With 80% of revenue originating from its factories in China and Vietnam, the UK shares have recently been under a lot of pandemic related pressure in that region of the world. But while this problem may continue to plague the business in 2022, it’s ultimately a short-term issue. That’s why the stock’s recent 32% tumble since the start of the year looks like an excellent buying opportunity for my portfolio today.

Indeed, I have put together a list of stocks I would like to buy if they suddenly fall in value. And there is one stock I would like to buy more than any other on the London market. 

Potential acquisition for a stock market crash

I believe one of the most underappreciated companies on the London market is XP Power (LSE: XPP).  This business designs, manufactures and sells electrical transformers. These are relatively unexciting components, but they perform an essential function. 

Specifically, XP’s products convert power from the electricity grid into the appropriate form of energy the equipment requires to function.

Demand for these products has grown steadily over the past decade. Still, the outlook for the industry is changing rapidly as green energy takes over an increasing share of the electricity infrastructure. 

Green energy uses a different form of power from traditional power. As a result, the demand for electricity transformers is growing. XP’s order book is already starting to reflect this expansion. The company ended its 2021 financial year with a record order book, providing excellent revenue visibility for 2022.

What’s more, the organisation’s revenues grew 10% on a constant currency basis last year. That is particularly impressive because the company benefited from a significant uplift in revenues in the pandemic due to rising sales of healthcare equipment. 

Investing for growth

Management plans to capitalise on the pandemic windfall by investing in new manufacturing capacity for the year ahead. These plans suggest XP’s sales and profits could grow substantially as the business rises to meet the challenge of its record order backlog.

This potential is the reason why I would acquire its shares in the event of a stock market crash. XP has developed a niche in its market, and it looks as if its customers are fighting for the company’s capacity. 

That said, the business does face some significant headwinds. These include rising cost inflation and supply change challenges. The company has already warned that both of these issues are having a substantial impact on its ability to fulfil orders. I will be keeping an eye on these risks as we advance. 

Still, with a growing order backlog, I think the enterprise can navigate these issues. At the time of writing, the stock supports a dividend yield of 1.6% and is trading at a forward price-to-earnings (P/E) ratio of 22.6.

Considering the company’s potential, I do not think this ratio is that expensive. If it falls further in a stock market crash, I think this stock could be a no-brainer buy for my portfolio, considering the factors outlined above. 

The best UK robotics share to buy now?

Ocado (LSE:OCDO) is best known for being an online grocery business. Yet management has begun switching strategies, investing heavily in its robotics division. The company has developed a proprietary warehouse automation system, where a fleet of robots autonomously prepares online orders for delivery.

The bulk of its revenue is still generated through selling groceries via its website. But given time, the robotics division could quickly become the dominant income stream. After all, current forecasts predict the warehouse automation industry will be worth around $30bn (£22bn) by 2026! That’s nearly double today’s market size. And Ocado has so far only captured around 3% of this.

To me, this looks like an exceptional growth opportunity. But there are considerable risks. Other players within this place, such as AutoStore, offer a similar warehouse automation solution. This rising level of competition could undercut the UK share’s growth capabilities, especially if Ocado is unable to keep up with technological innovation.

Nevertheless, I remain cautiously optimistic about Ocado’s future potential, given the success seen so far. And that’s why it’s on my best shares to buy now list.

Making millions from semiconductors

According to Fortune Business Insights, the semiconductor industry is expected to reach a staggering market size of $803bn (£598bn) by 2028. It’s hardly surprising given the explosive demand originating from the automotive and technology industries.

But while there are many ways to invest in this space, XP Power (LSE:XPP) looks like the most promising, in my opinion. The company is a leading provider of electrical components for equipment throughout the industrial engineering, healthcare, and, more excitingly, semiconductor industry. 

As it stands, it has captured around 0.1% of this potential market. Yet looking at the latest annual report, that may soon change because revenue from this division alone has grown by an average of 46% annually over the last five years. And comparing this momentum to more recent performance, it seems this growth rate is accelerating because, in 2020, it jumped to a staggering 86%!

Despite this impressive display, these UK shares only trade at a P/E ratio of 24. To me, that looks cheap.

There are some caveats to be aware of. As with Ocado, the market opportunity hasn’t gone unnoticed. As XP Power ramps up its expansion into China, it’s having to contend with numerous local competitors. Suppose the competition can outmanoeuvre XP Power with their superior knowledge of the culture. In that case, the UK company and its share price could struggle to climb. But, I feel this is a risk worth taking.

Final thoughts

Reaching a million-pound portfolio through these investments will take time, especially if I’m starting from scratch. Many things have to go right for this strategy to work, and therefore success is far from guaranteed. But in my opinion, these two UK shares are the best option for me to achieve this goal.

Stuart Blair: National Express 

Although the National Express Group (LSE: NEX) share price has managed to make a decent recovery from 2020’s stock market crash, it is still far below its pre-pandemic price.

But the coach operator is starting to see a pick-up in demand, and its businesses in both Spain and North America have managed to re-reach profitability. This has meant that in Q3 of 2021, revenues were up to 83% on the same period as 2019. I believe that the recovery will continue into 2022, especially as things hopefully return to full normality.

As a more eco-friendly way of travelling than cars, I also believe that National Express is well positioned to combat climate change for the future. This will hopefully be met with increased demand, helping to boost revenues and profitability.

Accordingly, despite the continual risks posed by Covid, I will be adding more National Express shares to my portfolio in 2022, hoping that its post-pandemic recovery can continue. The prospect of a returning dividend is another factor that gives me optimism.

Stuart Blair owns shares in National Express Group.

Rupert Hargreaves: XP Power

My top stock for 2022 is XP Power (LSE: XPP). I think this company offers one of the best ways to invest in the global economic recovery and green energy transition.

The group designs and produces power transformers, including AC-DC power supplies and DC-DC converters. As renewable energy generation capacity expands, it seems likely the demand for these transformers will rise substantially.

Renewable energy sources such as solar and wind produce DC power, but most homes and businesses are wired for AC currents. Therefore, power transformers — such as those produced by XP — are becoming an integral part of the energy system.

Unfortunately, the company is not the only firm in the space. It faces competition from other corporations around the world. This is the biggest challenge facing the enterprise.

Still, despite this risk, I would acquire the stock for my portfolio today. I am excited by its growth potential and its intellectual property portfolio, which could have significant value to a potential acquirer. I would not rule out a possible acquisition as the race for green energy heats up.

Rupert Hargreaves does not own shares in XP Power.

James Reynolds: Darktrace

Darktrace (LSE: DARK) has been in the headlines a lot since it first went public earlier in 2021. It saw some of the most volatile price action of any UK company, pushing it quickly up into the FTSE 100. But what goes up must come down, so the saying goes, and sentiment seems to have soured on Darktrace since the share price corrected in late 2021.

Irrespective of this, sales and revenue have remained strong, and the company is projected to grow by a further 38% over the next year. It seems that customers are eager for the service.

Cybersecurity is proving vital for the modern world. More than 88% of US businesses suffered a data breach in 2020 and one was successfully hacked every 16 seconds. Darktrace is providing adaptive security on a subscription model, which I believe will come to serve it well over the long term. The longer a customer uses Darktrace, the more entrenched it will become in that customer’s IT ecosystem.

The Omicron flash crash pushed the share price to its lowest point since July. For as long as it remains low, it looks to me like the perfect time to buy.

James Reynolds does not own shares in Darktrace.

Edward Sheldon: Volex

My top stock for 2022 is Volex (LSE: VLX). It’s an AIM-listed manufacturing company that specialises in power cords and cables. Its products are used across a number of markets including the electric vehicle (EV), data centre, and healthcare industries.

There are several reasons I’m bullish on Volex. One is that the company is seeing very strong growth in its EV component segment. For the 26 weeks to 3 October 2021, EV market sales were up 210% to $45m, boosted by the global rollout of EV charging stations. I expect growth here to remain strong in 2022 as charging stations continue to be installed around the world.  

Another reason I’m bullish here is that the company looks well placed to benefit from the recovery of the healthcare industry. Covid-19 placed a tremendous amount of pressure on healthcare systems in 2020 and 2021, resulting in lower spending on medical technology. In 2022, I’m expecting spending to bounce back as hospitals move to address the backlogs that have built up during the pandemic.

There are risks to consider here, of course. One is supply chain issues. Another is competition from rivals.

Overall, however, I think this stock looks very attractive at its current valuation.

Edward Sheldon owns shares in Volex.

Niki Jerath: Rolls-Royce

The share price of Rolls-Royce Holdings (LSE:RR) has been volatile in 2021, but it’s worth remembering that prior to the Omicron mini-crash in November, the stock was trading near a 12-month high. This reflects the newfound positivity around the business following the pandemic.  

I could be wrong, but it wouldn’t surprise me if the share price got to 180p next year. 

First, it used the pandemic as an opportunity to cut costs and shore up its balance sheet. Second, it has now secured UK Government backing for its small nuclear reactor business. Third, its P/E ratio is very low. It’s one of the lowest in the FTSE 100. I feel it could be substantially undervalued.  

The biggest risk to the business may be if airlines do not recover. Despite the Omicron scare, I hope that in 2022 air travel will increase substantially. The core business is still building and maintaining aircraft engines and is likely to benefit if it does.  

Rolls Royce is still a bastion of British industry and a byword for quality. I am largely optimistic for the stock going into 2022.

Niki Jerath does not own shares in Rolls-Royce.

Dan Appleby: Games Workshop

The Games Workshop (LSE: GAW) share price has been volatile this year. At one point it was sitting at an all-time high, which meant the company was almost knocking on the door of the FTSE 100 index. But as I write today, the stock has fallen by 17% on a year-to-date basis.

The share price weakness came after a trading update in which management said the company had seen pressure on freight costs. This is a key risk to consider for next year as Games Workshop continues to grow internationally.

I view the current supply chain issues as temporary, though. Management also said that sales continue to grow, which I think is key. This is because the previous year marked a major release of its flagship game. The fact that sales have grown again makes me think the company has excellent momentum heading into 2022.

With an expanding customer base and greater use of its intellectual property through licensing deals, I view the recent weakness as a buying opportunity. I expect Games Workshop stock to outperform in 2022.

Dan Appleby owns shares in Games Workshop.

Zaven Boyrazian: XP Power

2021 has been quite a tumultuous year for investors. Disruptions have been commonplace throughout most industries, with the pandemic wreaking havoc across supply chains. But despite this, the world is still shifting into a new technological era.

Renewable energy, robotics, and 5G telecommunications are just some sectors that have received enormous levels of new investment. And that’s something that has dramatically benefited XP Power (LSE:XPP).

The firm manufactures power converters for electrical appliances. That may not sound particularly exciting. But the technology is a core component for machines in the industrial, healthcare and even semi-conductor industries. In fact, revenue generated from the latter sector alone surged by 86% in 2020!

As encouraging as this level of growth may be, it doesn’t come risk-free. The electronics industry is highly competitive, with relatively low barriers to entry for low-voltage solutions. As such, the group may struggle to retain its pricing power for some of its products in the future.

Having said that, XP Power seems to be faring well against its competitors so far. And with the demand likely to keep rising for the foreseeable future, XP Power is my top stock for 2022.

Zaven Boyrazian does not own shares in XP Power.

Christopher Ruane:  Safestore

Although it had a stellar run in 2021, I reckon there continues to be substantial upside in Safestore (LSE: SAFE). I recently opened a position in the self-storage operator after watching its performance from afar for a while. Self-storage demand has grown in the UK but, based on the US market as a comparison, there continues to be significant space for growth. As a proven operator with an established brand, I reckon Safestore can be one of the beneficiaries of that.

One of the reasons I think the shares could continue to climb in 2022 is their relatively low valuation. Even after hitting an all-time high in December 2021, the shares still traded at a price-to-earnings ratio of around 12. I regard that as cheap for a company with Safestore’s growth prospects. Its most recent quarterly revenue grew 19% compared to the prior year.

Risks include any drop off in demand for self-storage, and the relatively low barriers to entry in the industry. That could lead to more price competition and hurt profits. For now, though, I am optimistic about the outlook for Safestore stock in 2022.

Christopher Ruane owns shares in Safestore.

Nathan Marks: JD Wetherspoon

Following a bleak period for pubs, the market cap of JD Wetherspoon (LSE:JDW) has almost halved since December 2019. After two years of disruptions and suffering, Wetherspoon is my stock pick for 2022 based on optimism of an economic recovery.

Covid-19, supply chain disruptions and inflation could unfortunately persist. However, Wetherspoon has a strong brand name, loyal following and a pre-pandemic history of steady sales growth. It has long been a solidly run business and can thrive again as we hopefully leave the pandemic behind us. If we can avoid any lockdowns or tightening of restrictions, there are more headwinds for the pub chain. Specifically, a 5% cut to the tax on pulled pints. That is the largest beer duty cut in 50 years and could help offset rising input costs, keeping prices low. And with a focus on affordable food and drink, it could continue to attract customers even if inflation rises further.

I think the stock looks cheap at the time of writing, trading at under 900p per share following fears of the spread of the Omicron variant. With the right market conditions, though, the share price could test the 1,600p level not seen since January 2020. Cheers to that!

Nathan Marks does not own shares in JD Wetherspoon.

G A Chester: Whitbread 

I think Premier Inn owner Whitbread (LSE: WTB) has outstanding growth prospects for 2022 and beyond. It still has plenty of scope for growth on home soil, but also has a huge opportunity to replicate its UK success in Germany. 

The pandemic has taken capacity out of the market, and with surviving competitors more financially constrained, Whitbread can take advantage. The company also believes it’s “better placed than most to deal with the challenging operating and inflationary environment (wages, utilities).” 

Reporting on the six months to 26 August, management said Premier Inn’s recovery was ahead of expectations. It trumpeted a “significant market outperformance” in the UK and “expansion continuing at pace” in Germany. 

There’s a risk pandemic developments over the coming months could yet set back the recovery and hold back Whitbread’s share price. But with management “confident on the return to pre-pandemic UK profit margins” at some point, and “confident in our ability to execute acquisitions at good returns in Germany,” the stock is currently at the top of my shopping list for 2022. 

G A Chester has no position in Whitbread.

Harshil Patel: Diageo

My top stock for 2022 is global drinks giant Diageo (LSE:DGE). It has a long history of building successful drinks brands around the world. It owns a collection of over 200 brands, including highly successful names such as Johnnie Walker, Smirnoff and Guinness.

I think 2022 could be full of many uncertainties. As such, I’d like to own strong, stable and relatively defensive businesses. I’d say that Diageo fulfils these criteria.

It also benefits from several trends that could make it a long-term winner. Rising populations and incomes in several developing countries are sources of growth. In addition, Diageo expects an extra 550m consumers to come of age this decade.

Diageo is also relatively counter-cyclical, so it should perform reasonably well whether the economy is strong or weak. With so many uncertainties regarding the pandemic, I certainly value this characteristic. That said, it will need to look after its brands to maintain popularity. Competition is strong so it will need to stay alert to maintain its pricing.

Overall, Diageo is a quality, defensive consumer company. And I’d be more than happy owning it in 2022.

Harshil Patel does not own shares in Diageo.

Royston Wild: SSE 

There’s never a perfect time to buy shares. There are always some economic, political or social problem that’s threatens to sink global stock markets. It’s my opinion, though, that the litany of risks as we head into 2022 — from the enduring public health emergency and rocketing inflation to the rapidly slowing Chinese economy — mean investors like me probably need to be extra careful right now. 

This is why I think SSE (LSE: SSE) could be a top stock to buy for next year. Electricity’s one of those essential commodities that remains in high demand irrespective of broader economic conditions. Therefore power generators like SSE can expect revenues to remain stable in 2022 even if the world economy goes for a bath. 

I also like SSE from a long-term perspective. The FTSE 100 firm has made green energy a cornerstone of its growth strategy and it plans to treble output from renewable sources between 2019 and the end of this decade. This should pay off handsomely as low-carbon electricity gains in popularity. I’d think SSE’s a top stock to buy for 2022 despite the unreliable nature of wind power and the subsequent danger this poses to the energy producer’s top line.

Royston Wild does not own shares in SSE.

Roland Head: Centrica

Gas prices and energy supplier failures have made headlines in 2021. I reckon that British Gas owner Centrica (LSE: CNA) could be one of the biggest winners from this crisis

Unlike smaller rivals, Centrica has a solid balance sheet and has hedged its supply contracts to make sure it doesn’t lose money on price-capped deals with consumers.

By taking on the customers of failed firms such as People’s Energy, British Gas has also been able to add more than 400,000 new domestic customers. This has helped to reverse the customer outflows seen in recent years.

As one of the largest players in the utility sector, Centrica is helping to shape new rules aimed at preventing a repeat of supplier failures we’ve seen in 2021.

I expect larger firms such as British Gas to emerge stronger from this crisis. Indeed, I expect economies of scale and value-added services such as boiler maintenance drive a return to growth.

Centrica shares are currently trading on less than 10 times 2022 forecast earnings and offer a forecast yield of 4.6%. I can see plenty of room for further share price gains, supported by higher profits.

Roland Head does not own shares in Centrica.