In this article, we will look at the 11 Best UK Stocks to Buy Right Now.
On September 3, Peel Hunt’s Chief Economist Kallum Pickering appeared on CNBC to talk about the bond market sell-off in the UK and more.
He stated that the problem with the UK is two-fold: first, it has a bit more inflation in the near term than other advanced economies, so the market is pricing in some inflation risk.
Attributing this largely to policy errors and policy choices, he added that this has amplified concerns that the government does not have a compass pointing in the right direction when it comes to economic policy.
Furthermore, the UK market also has some structural issues, according to Pickering. He stated that while sterling is a reserve currency, it is only so sort of in name only, being the smallest of the four reserve currencies and not getting the exorbitant privilege you get with the dollar.
READ ALSO: 13 Best Automotive Stocks to Buy According to Hedge Funds and 10 Best Affordable Growth Stocks to Buy.
Therefore, one finds oneself in a world where it is possible to say “We can issue debt without a problem,” but at the same time dislike the price being paid for the debt. The price that we pay for debt then takes on the role of an economic problem, according to him.
Pickering stated that this is true across the advanced world, adding that just because you don’t have a crisis in the bond market does not mean that the interest rates are not exhibiting negative economic consequences.
With these trends in view, let’s look at the best UK stocks to buy right now.
Our Methodology
We used stock screeners to compile a list of top UK stocks and chose the top 11 most popular among hedge funds as of Q2 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on September 3.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best UK Stocks to Buy Right Now
11. Barclays PLC (NYSE:BCS)
Number of Hedge Fund Holders: 28
Barclays PLC (NYSE:BCS) is one of the best UK stocks to buy right now. On September 2, Morgan Stanley analyst Alvaro Serrano maintained a Buy rating on Barclays PLC (NYSE:BCS) and set a price target of £4.20.
Barclays PLC (NYSE:BCS) announced in its H1 2025 results that it delivered a 13.2% return on tangible equity (RoTE) and is on track to attain the objectives of its three-year plan, delivering structurally higher and more stable returns for its investors.
The company also announced £1.4 billion in total capital distributions to shareholders in respect of H1 2025.
Barclays PLC (NYSE:BCS) further reported that it delivered RoTE of 12.3% in fiscal Q2 2025, with year-on-year income rising by 14% and profit before tax by 28%.
Headquartered in London, Barclays PLC (NYSE:BCS) is a bank holding company that provides credit cards, retail banking, wealth management, and corporate and investment banking services.
Its operations are divided into the following segments: Barclays United Kingdom (UK), Barclays United Kingdom (UK) Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank, Barclays United States (US) Consumer Bank, and Head Office.
10. British American Tobacco plc (NYSE:BTI)
Number of Hedge Fund Holders: 29
British American Tobacco plc (NYSE:BTI) is one of the best UK stocks to buy right now. On September 2, RBC Capital downgraded British American Tobacco plc (NYSE:BTI) to Underperform from Sector Perform, raising the price target to 34,003 GBp from 3,000 GBp.
The firm told investors that profit expectations for British American Tobacco plc’s (NYSE:BTI) new categories are “seriously overblown.” It anticipates a lack of scale in the individual categories.
British American Tobacco plc (NYSE:BTI) is a holding company involved in the manufacture and distribution of tobacco products.
The company’s brands include Kent, Dunhill, Lucky Strike, and Pall Mall, and its operations are divided into the following geographical segments: United States, Asia-Pacific and Middle East (APME), Americas and Sub-Saharan Africa (AMSSA), and Europe and North Africa (ENA).
