In this article, we discuss 5 best UK stocks to buy now. If you want to see more stocks in this selection, click 11 Best UK Stocks To Buy Now.
5. Ferguson plc (NYSE:FERG)
Number of Hedge Fund Holders: 32
Ferguson plc (NYSE:FERG) was founded in 1887 and is headquartered in Wokingham, the United Kingdom. The company distributes plumbing and heating products in the United States and Canada. On October 13, Ferguson plc (NYSE:FERG) announced a series of financing transactions to increase its liquidity by $800 million to fund general corporate expenses. Ferguson plc (NYSE:FERG) is one of the top UK stocks to monitor.
JPMorgan analyst Elodie Rall on September 30 maintained an Overweight rating on Ferguson plc (NYSE:FERG) but lowered the firm’s price target on the shares to 12,500 GBp from 13,200 GBp.
Among the hedge funds tracked by Insider Monkey, Brian Ashford-Russell and Tim Woolley’s Polar Capital is the largest stakeholder of Ferguson plc (NYSE:FERG), with a position worth over $4 billion. Overall, at the end of the second quarter of 2022, 32 hedge funds were long Ferguson plc (NYSE:FERG), up from 18 funds in the preceding quarter.
4. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 39
Shell plc (NYSE:SHEL) is a London-based energy and petrochemical company, selling crude oil, natural gas, and natural gas liquids in Europe, Asia, Oceania, Africa, the United States, and the rest of the Americas. On October 27, Shell plc (NYSE:SHEL) declared a $0.50 per ADS quarterly dividend, in line with previous. The dividend is payable on December 15, to shareholders of record on November 11. The company also announced $4 billion in share buybacks and posted market-beating Q3 2022 financial results. Shell plc (NYSE:SHEL) is one of the best UK stocks to invest in.
On October 13, investment advisory JPMorgan maintained an Overweight rating on Shell plc (NYSE:SHEL) but trimmed the price target on the shares to 2,900 GBp from 3,000 GBp. Analyst Christyan Malek issued the ratings update.
According to Insider Monkey’s data, 39 hedge funds held stakes worth $3.46 billion in Shell plc (NYSE:SHEL) at the end of Q2 2022, compared to 37 funds in the prior quarter worth $5.6 billion. Ken Fisher’s Fisher Asset Management featured as the largest stakeholder of the company, with 20.25 million shares valued at more than $1 billion.
Here is what Harding Loevner International Equity Fund has to say about Shell plc (NYSE:SHEL) in its Q1 2022 investor letter:
“While risks of unforeseen consequences arising from the Ukraine conflict are high, on this front we are cautiously optimistic that China will work hard to maintain its neutrality in a credible way, as it is a huge beneficiary of trade with the rest of the world, especially the rich developed nations. We think it likely that China, along with India, will continue to buy oil and gas from Russia (just as Europe, at least for now, plans to keep its gas pipelines open), and do not expect that fact to alter China’s trade relations with the West much. Nevertheless, we must contemplate that our optimism is misplaced on the importance of membership in the global network of exchange. If our central and optimistic case—admittedly an educated guess—is wrong, then we’d need to greatly modify our views of which companies in our opportunity set will face new barriers to profitable growth, and which might stand to benefit, relatively, from a further receding of globalization. (Global trade, after all, has never matched the peak share of GDP it reached in 2008, before the Global Financial Crisis.) We’d expect such a world to be less efficient, as the cold logic of comparative advantage is demoted as a determinant of which goods or services are produced and where. That would lead to a less prosperous world, since exploiting comparative advantage is a cornerstone of wealth creation. If regional blocs began to raise limits on the movement of capital as well as goods, we’d need to parse which of our multinational companies were at risk of declining sales from increasingly hostile, siloed countries. Royal Dutch Shell (NYSE:SHEL) has found its Siberian oil and gas joint venture assets stranded by the combination of sanctions and the public opprobrium of Russia’s actions.”
3. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 47
AstraZeneca PLC (NASDAQ:AZN) is a Cambridge-based company focused on the discovery, development, and commercialization of prescription medicines. On October 27, AstraZeneca PLC (NASDAQ:AZN) announced that its medicine Ultomiris lowered the risk of relapse by 98.6%, compared to placebo, in patients with a type of central nervous system disorder in a phase 3 trial. AstraZeneca PLC (NASDAQ:AZN) is one of the premier UK stocks to consider.
On October 19, Berenberg analyst Luisa Hector reiterated a Buy recommendation on AstraZeneca PLC (NASDAQ:AZN) but reduced the price target on the stock to 118 GBp from 120 GBp.
According to Insider Monkey’s data, 47 hedge funds were long AstraZeneca PLC (NASDAQ:AZN) at the end of the second quarter of 2022, compared to 45 funds in the prior quarter. Rajiv Jain’s GQG Partners is one of the biggest stakeholders of the company, with 18.7 million shares worth $1.2 billion.
Here is what Baron Funds specifically said about AstraZeneca PLC (NASDAQ:AZN) in its Q3 2022 investor letter:
“AstraZeneca PLC (NASDAQ:AZN) is a global pharmaceutical company focused on oncology, respiratory, cardiovascular, and metabolism drugs. Despite incremental positive news flow, shares were hurt by the broader flight out of European stocks and the decline in the British Pound that started late in the quarter. We retain conviction in AstraZeneca given its best-in-class growth profile combined with its strong pipeline and commercial launch characteristics. We highlight breast cancer drugs Enhertu and Dato-DXd as two promising near-term opportunities.”
2. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 48
Linde plc (NYSE:LIN) was founded in 1879 and is based in Woking, the United Kingdom. It is an industrial gas and engineering company, offering atmospheric gasses, process gasses, electronic gasses, specialty gasses, and acetylene. On October 24, Linde plc (NYSE:LIN) declared a quarterly dividend of $1.17 per share, in line with previous. The dividend is payable on December 16, to shareholders of the company as of December 2. After posting market-beating Q3 results, the company raised full-year 2022 adjusted EPS guidance to $11.93-$12.03 from the earlier outlook of $11.73-$11.93 and an $11.91 consensus, representing a 12% to 13% growth year-over-year.
On October 17, Societe Generale analyst Peter Clark assigned a Buy rating to Linde plc (NYSE:LIN) but lowered the price target on the stock to $370 from $400. The analyst expects earnings “reliability” ahead but trimmed the price target to factor in the “correcting stock markets.”
According to Insider Monkey’s data, 48 hedge funds were long Linde plc (NYSE:LIN) at the end of the second quarter of 2022, compared to 54 funds in the last quarter. Ian Simm’s Impax Asset Management is the leading stakeholder of the company, with 2.8 million shares worth $813.6 million.
Here is what ClearBridge International Growth EAFE Portfolio has to say about Linde plc (NYSE:LIN) in its Q2 2022 investor letter:
“The replacement of demand for Russian gas with green hydrogen positions Linde (NYSE:LIN) well. Green hydrogen, made by using renewable energy to split water into its basic elements, hydrogen and oxygen, and subsequently cleanly burn the hydrogen as fuel, is seen as key to lowering emissions in hard-to-decarbonize industries such as steel and cement, as well as transport. In 2021 Linde announced a long-term agreement to provide European semiconductor maker Infineon (OTCQX:IFNNY) with onsite production and storage of green hydrogen for the company’s site in Villach, Austria. Securing a clean, domestic source of energy for semiconductor manufacturing appears strategic today amid heightened concerns of reliable supply from Taiwan.”
1. Willis Towers Watson Public Limited Company (NASDAQ:WTW)
Number of Hedge Fund Holders: 50
Willis Towers Watson Public Limited Company (NASDAQ:WTW) operates as an advisory, broking, and solutions firm worldwide. The company offers actuarial support, plan design, administrative services, health and group benefit programs, and benefits outsourcing services. Willis Towers Watson Public Limited Company (NASDAQ:WTW) paid a $0.82 per share quarterly dividend to shareholders on October 17. It is one of the best UK stocks to invest in.
On October 13, Piper Sandler analyst Paul Newsome upgraded Willis Towers Watson Public Limited Company (NASDAQ:WTW) to Overweight from Neutral with an unchanged price target of $250. The analyst attributed the upgrade to the firm’s valuation, as the stock is notably trading below the price target. He also thinks Willis Towers Watson Public Limited Company (NASDAQ:WTW)’s organic growth and cost saving initiatives could improve in the second half of the year “as management is publicly under pressure to deliver.”
According to Insider Monkey’s data, 50 hedge funds were long Willis Towers Watson Public Limited Company (NASDAQ:WTW) at the end of June 2022, compared to 49 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 4.8 million shares worth $953.4 million.
Here is what Artisan Partners specifically said about Willis Towers Watson Public Limited Company (NASDAQ:WTW) in its Q3 2022 investor letter:
“Willis Towers Watson Public Limited Company (NASDAQ:WTW) shares rose 2% in the quarter. This modest increase made it one of our best performers during a difficult quarter. Absent significant news, the business continues to benefit from a hard insurance market. Results are still lagging peers, but the management team seems to be making progress in closing the gap. In the meantime, the company is returning significant amounts of capital to shareholders. Over the past eight months, it has repurchased $4 billion in stock and reduced the share count by 15%. And there is more on the way. This is a good business in a fantastic industry trading at 12X normalized earnings . We believe it is worth much more.”
You can also take a look at 10 Best International Dividend Stocks To Buy and 10 Best TSX Stocks To Buy.
