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).
9. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 31
Rio Tinto Group (NYSE:RIO) is one of the best UK stocks to buy right now. On August 27, RBC Capital analyst Ben Davis maintained a Hold rating on Rio Tinto Group (NYSE:RIO) and set a price target of £48.00.
Rio Tinto Group (NYSE:RIO) reported resilient results for the first half of 2025, with an underlying EBITDA of $11.5 billion and operating cash flow of $6.9 billion.
The results came despite a 13% lower iron ore price, reflecting the increasing contribution from the company’s copper and aluminum businesses, along with the solid recovery of its Pilbara operations from the four cyclones in the first quarter.
Rio Tinto Group (NYSE:RIO) explores, mines, and processes mineral resources. Its operations are divided into the following business segments: Iron Ore, Aluminum, Copper, and Minerals.
8. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 35
Diageo plc (NYSE:DEO) is one of the best UK stocks to buy right now. On August 13, Kepler Capital analyst Richard Withagen maintained a Buy rating on Diageo plc (NYSE:DEO) and set a price target of p2,700.00.
Similarly, Evercore ISI also maintained a Buy rating on the stock on August 7, setting a £25.00 price target.
However, Deutsche Bank lowered the firm’s price target on Diageo plc (NYSE:DEO) to 2,020 GBp from 2,060 GBp on August 8, keeping a Hold rating on the shares.
Diageo plc’s (NYSE:DEO) median price target of $109.88 implies an upside of 17.15% from current levels.
Diageo plc (NYSE:DEO) produces and distributes alcoholic beverages. Its brands include Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Ciroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Casamigos, Tanqueray, and Guinness.
The company’s operations are divided into the following geographical segments: North America, Europe, Asia Pacific, Latin America and Caribbean, Africa, and Corporate and Other.
7. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 36
GSK plc (NYSE:GSK) is one of the best UK stocks to buy right now. On September 2, TD Cowen analyst Steve Scala maintained a Hold rating on GSK plc (NYSE:GSK) and set a price target of $45.00.
The analyst based the rating on the company’s market positioning and strategic outlook, stating that GSK plc’s (NYSE:GSK) ambitious sales target of £40 billion by 2031 primarily depends on its present market offerings with more than half of the expected sales are projected to come from already available products.
While this provides some stability, the analyst opined that this reliance on existing products brings in a degree of uncertainty, given the market dynamics and competitive landscape.
Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global healthcare and biopharmaceutical corporation that develops and distributes a range of vaccines, medications, and consumer health items. It is based in the United Kingdom and has over 20 vaccines in its portfolio, positioning it as a leader in vaccines, immunology, and respiratory therapies. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer in addition to other drugs.
6. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 41
Arm Holdings plc (NASDAQ:ARM) is one of the best UK stocks to buy right now. On August 27, Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating on Arm Holdings plc (NASDAQ:ARM) and set a price target of $180.00.
Arm Holdings plc (NASDAQ:ARM) announced its fiscal Q1 2026 results on July 30, reporting record revenue and exceeding the $1 billion quarterly revenue milestone for the second consecutive quarter.
It also delivered the second-best revenue quarter ever, with royalty revenue rising 25% year-over-year to $585 million. The growth was supported by the rising adoption of the Armv9 architecture, a growing number of chips based on Arm Compute Subsystems (CSS), and the use of Arm-based chips in datacenters.
Arm Holdings plc (NASDAQ:ARM) is involved in the licensing, research, marketing, and development of microprocessors, graphics processing units, system IP, physical IP, and associated systems IP, software, and tools. The company operates through the United Kingdom, the United States, and Other Countries geographical segments.
5. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Number of Hedge Fund Holders: 44
Willis Towers Watson Public Limited Company (NASDAQ:WTW) is one of the best UK stocks to buy right now. In a report released on August 22, TD Cowen maintained a Buy rating on Willis Towers Watson Public Limited Company (NASDAQ:WTW), setting a price target of $408.00.
In addition to TD Cowen, Morgan Stanley analyst Bob Huang also gave a rating update for Willis Towers Watson Public Limited Company (NASDAQ:WTW) on August 18, raising the firm’s price target on the stock to $345 from $335 while keeping an Equal Weight rating on the shares.
The analyst told investors that the firm is updating its price targets on Property & Casualty Insurance stocks under its coverage after Q2 results.
Willis Towers Watson Public Limited Company (NASDAQ:WTW) provides advisory, broking, and solutions services, with operations divided into the following segments: Health, Wealth, and Career (HCW), Risk and Broking (R&B), and Corporate and Other.
4. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 44
Shell plc (NYSE:SHEL) is one of the best UK stocks to buy right now. On August 28, J.P. Morgan analyst Matthew Lofting maintained a Buy rating on Shell plc (NYSE:SHEL) and set a price target of £30.00.
Shell plc (NYSE:SHEL) reported its fiscal Q2 2025 earnings on July 31, reporting adjusted earnings of $4.3 billion despite lower trading contribution in a weaker margin environment.
It also delivered a robust CFFO of $11.9 billion, bolstered by strong operational performance that allowed the commencement of another $3.5 billion share buyback program for the next three months.
Shell plc (NYSE:SHEL) further reported that its 2025 cash capex outlook remains unchanged at $20 – $22 billion.
Headquartered in London, Shell plc (NYSE:SHEL) produces oil and natural gas. The company’s operations are divided into the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. It takes the 13th spot on our list of the best cheap stocks for beginners to buy now.
3. BP p.l.c. (NYSE:BP)
Number of Hedge Fund Holders: 46
BP p.l.c. (NYSE:BP) is one of the best UK stocks to buy right now. On August 28, RBC Capital analyst Biraj Borkhataria maintained a Hold rating on BP p.l.c. (NYSE:BP) and set a price target of £4.70.
BP p.l.c. (NYSE:BP) reported its fiscal Q2 2025 results on August 5, exhibiting strong operations performance. Underlying RC profit for the quarter reached $2.4 billion, while operating cash flow was $6.3 billion.
BP p.l.c. (NYSE:BP) announced plans to enhance its portfolio and progress divestments, with 5 major project start-ups and 10 exploration discoveries year-to-date.
The company also announced a fiscal Q2 2025 dividend per ordinary share of 8.32 cents, along with $750 million share buyback for the quarter.
Headquartered in London, United Kingdom, BP p.l.c. (NYSE:BP) is an integrated oil and gas company that provides carbon products and services. Its operations are divided into the Gas and Low Carbon Energy, Oil Production and Operations, and Customers and Products segments.
2. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 48
AstraZeneca PLC (NASDAQ:AZN) is one of the best UK stocks to buy right now. On September 1, Goldman Sachs analyst Rajan Sharma maintained a bullish stance on AstraZeneca PLC (NASDAQ:AZN), giving the stock a Buy rating with a $97 price target.
The analyst based the rating on the company’s growth potential and solid market position, stating that AstraZeneca PLC (NASDAQ:AZN) has a robust pipeline of innovative drugs, especially in the cardiovascular and oncology segments, positioning the company for sustained revenue growth.
Sharma added that strategic acquisitions and partnerships have allowed AstraZeneca PLC (NASDAQ:AZN) to boost its research capabilities and expand its product offerings, giving the company a competitive edge in the pharmaceutical industry.
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians. AstraZeneca PLC (NASDAQ:AZN) distributes its products and services through local representative offices and distributors.
1. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 77
Linde plc (NYSE:LIN) is one of the best UK stocks to buy right now. On August 20, Berenberg raised the firm’s price target on Linde plc (NYSE:LIN) to $515 from $505 while keeping a Buy rating on the shares.
The rating update came after the Q2 earnings report, with the firm stating that Linde plc (NYSE:LIN) has exhibited resilience against headwinds to global industrial production with pricing.
In another report released on August 17, Sebastian Bray from Berenberg Bank also maintained a Buy rating on Linde plc (NYSE:LIN), setting a price target of $515.00.
Linde plc (NYSE:LIN) is a global industrial gases and engineering company that builds and designs equipment producing industrial gases. It also offers gas production and processing services, including natural gas plants, olefin plants, hydrogen and synthesis gas plants, air separation plants, and more.
The company’s primary products are atmospheric gases and process gases, and its operations are divided into the following reportable segments: Americas, EMEA APAC and Engineering.
While we acknowledge the potential of LIN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LIN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
