With the outlook for the economy improving, I’ve been searching for UK shares to buy right now for my portfolio. Here are three companies I’d buy today.
The past 12 months have been a rough period for ITV (LSE: ITV). The broadcasting and production company saw revenues plunge in the first half of last year. Its full-year results showed a high single-digit decline in revenues for 2020.
However, the company’s same update noted that advertising revenues jumped in the fourth quarter of last year. What’s more, the group’s production arm is winning big contracts from businesses worldwide. I think this suggests the organisation is in line for a strong performance in 2021. That’s why I would buy the stock today.
That said, while ITV looks set for a strong 2021, the company faces multiple risks. The streaming giants are spending billions more on content, and consumers might not stay at home when the lockdown lifts. That could make it harder for the group to sell advertising space, slowing its recovery. These risks and challenges are worth considering.
Shares to buy right now
One of the UK shares that seem to have profited more than others throughout the pandemic has been Royal Mail (LSE: RMG). This company has benefited from the e-commerce boom we’ve seen over the past 12 months. Quick thinking by management has helped the group capitalise on this trend. Last year the group deployed parcel post boxes, launched an at-home parcel pick-up service, and other tools to help consumers and businesses.
As a result of these initiatives, the company’s profitability has surpassed expectations. I believe these challenges have changed the group for the better and put it in an excellent position to continue to grow in the years ahead. That’s why I would buy the stock for my portfolio today.
But this business isn’t without its risks. The firm has a bad reputation when it comes to worker relations. It has also struggled with high costs and regulations in the past. These challenges haven’t gone away. Royal Mail’s growth is only masking the underlying problems. This is something I want to keep an eye on going forward. Even though I think this is one of the best shares to buy now, it still has its challenges.
Income and growth
The final business on my list of the best UK shares to buy now is Regional REIT (LSE: RGL). This company owns and operates commercial property outside the M25. It primarily owns warehouses and office space.
Over the past 12 months, investors have been deserting companies like Regional, due to their exposure to commercial property, which has taken a hammering in the pandemic. However so far, it has been able to avoid large losses. Levels of rent collection have remained high and so have occupancy rates. I would buy this stock as a way to capitalise on the UK economic recovery, but it’s not going to be suitable for all investors.
Regional has managed to navigate the hostile commercial property market until this point, but that does not guarantee the company will continue to outperform the market. If the economic environment deteriorates, it could suffer from a wave of tenant losses and defaults, ultimately impacting net asset value.
Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028 — more than double what it is today!
And with that kind of growth, this North American company stands to be the biggest winner.
Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…
We think it has the potential to become the next famous tech success story.
In fact, we think it could become as big… or even BIGGER than Shopify.
Rupert Hargreaves owns shares in ITV and Regional REIT. The Motley Fool UK has recommended ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.