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What are the best UK shares to buy now?

With the stock market sending prices crashing, Saima Naveed has spotted two companies that she believes are the best UK shares to buy now.

by | Last updated 26 Nov, 2022 | Get financial insights

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Stock investing is not everyone’s cup of tea. Since money is involved, there is a lot to consider before committing to any form of share dealing. On the London Stock Exchange, the list of the best UK shares to buy now is never a constant. It’s always changing. Therefore, I believe careful scrutiny is required every time investors plan on putting money into the stock market.

With that in mind, I found two businesses in the United Kingdom that I believe could be the best UK shares to buy now in my Stocks and Shares ISA.

Mining for investing returns

Glencore (LSE:GLEN) is one of the world’s largest global diversified natural resource companies with a presence across 35 countries. The firm has benefitted hugely from the high commodity prices, driven by the uncertainty surrounding the tragic Russia/Ukraine conflict. So much so that company’s share price performance chart is a sight for sore eyes.

After a slow 2020, the UK stock picked up pace in November. Since then, shares have been on a bullish run, rising as much as 179%! And this upward trajectory continues with its year-to-date returns standing at around 19%.

For its 2021 fiscal year, the company reported an 84% increase in earnings. Consequently, management was able to sure up the balance sheet, wiping out over $5bn of debt from its books. Needless to say, that’s a promising trait to have as a potential investment. But it’s not all sunshine and rainbows.

Like all mining stocks, Glencore is at the mercy of constantly fluctuating material prices. And since operations have fixed costs, if the value of its metals drops, so does its profitability. In fact, iron ore and copper prices have already started to stumble on fears of a looming recession. Another risk factor worth mentioning is the group’s reputational problems. This currently includes allegations of kickbacks for Iraqi Oil, corruption, and increased pollution in Zambia.

But ignoring the ESG aspects of this business, Glencore is no less than a gold mine as per its financials, in my eyes. Hence why it’s part of my personal list of best stocks to buy now in the UK.

One of the best UK shares to buy now?

Games Workshop (LSE:GAW) is the company behind the popular Warhammer franchise. The Nottingham-based fantasy war-game operator has faced a lot of investor backlash due to the bearish trend since the last quarter of 2021. In fact, the UK share has declined by roughly 44% since hitting its peak. Moreover, the year-to-date performance shows a 32% decline. In my opinion, after a prolonged bullish run, the stock was heading towards a trend reversal.

No doubt, these figures are disappointing. But as an investor, I always look at the bigger long-term picture when making an investment decision. The group’s record of earnings growth is something that maintains my confidence.

For its 2021 fiscal year, the gaming stock reported a 30% revenue growth and a 69% surge in pre-tax profits. One year later and this growth has ground to a halt. There are undoubtedly several factors at play, including a drop in consumer spending as inflation and interest rates heat up. But it’s also worth pointing out that the pandemic created an exceptional positive environment for the business resulting in very tough comparables.

Therefore, even though there may be rocky times ahead, I still see a bright long-term future for this business. And now, with a double-digit discount, this business has made it onto my list of best UK shares to buy now for my portfolio.

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Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and therefore may differ from the opinions of analysts in The Money Cog Premium services.

Written By

Saima Naveed

Saima spent the early days of her career advancing the finance office of a prominent manufacturing business. After taking a sabbatical, she decided to use her expert knowledge and apply it to the stock market. Now, 10 years later, she manages a substantial portfolio built using detailed and thorough analysis.

Outside The Money Cog, Saima is an avid supporter of empowering women in the workplace. She is currently working very closely with Women of Wonders Pakistan to help other women achieve their career goals.

Current Holdings

PSX: CENERGY, PSX: FFL, PSX: PCAL, PSX: PKGS, PSX: SHEZ, PSX: SIEM

Edited & Fact Checked By
Zaven Boyrazian MSc

Zaven has worked in several industries throughout his career, from aircraft factories to game development studios. He has been actively investing in the stock market for the better part of a decade, managing over $1 million across multiple portfolios.

Specializing in corporate valuation, Zaven employs a modern take on the principles set out by Benjamin Graham to find new opportunities at fair prices.

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