I’m looking for the best UK stocks to add to my ISA Stocks and Shares for July. Here are three that are on my radar:
One of my FTSE 250 favorites
I think FTSE 250 food production and retail giant Associated British foods (LSE: ABF) could be a good buy before early July. New financial data is expected on July 1 and I expect sales to continue to soar.
ABF’s stock price fell the last time the company updated the market in April. Then investors took fright when they learned that pre-tax profits had halved in the six months leading up to February as income declined. However, sales have taken off since the rules for Covid-19 were relaxed, and the company has profited “recordâRevenue from its English and Welsh stores during the first week of reopening.
I think the latest financial statements will show that revenue has continued to skyrocket as well. Indeed, the sunny long term outlook for the fast fashion industry means that ABF is a UK stock that I would look to own for years to come. However, rising Covid-19 infection rates in its UK mainland could hurt its recent recovery in sales if lockdowns continue or may become more stringent.
Another best UK action for July
I’m also waiting for good news when Page group (LSE: PAGE) released second quarter numbers on July 14. The latest FTSE 250 recruiter update in April showed that trading continues to improve month over month, a trend that dates back to last spring. Indeed, in its last month of March, gross profits jumped 31% compared to the same month in 2020.
Research by Staffing Industry Consultants and Staffing Industry Analysts (or SIAs) illustrates how conditions in the recruiting industry have rebounded. They recently improved their forecast for the recruiting industry and now forecast a 12% increase in 2021. Revenue is also expected to increase 8% in 2022, according to the report.
However, there is reason to be careful. At current prices, PageGroup is trading at a futures price / earnings (P / E) ratio of approximately 28 times. Stocks that trade on high readings like this have an additional risk of falling in price if trade performance begins to slow.
British stock that I already own
As the owner of CVS Group (LSE: CVSG) sharing myself I’ll be interested to see what the next Vet Caregiver update on July 20 reveals. The latest update on UK healthcare stock at the end of April certainly thrilled investors as it improved its estimates for the entire year.
Demand for CVS’s services has benefited tremendously from soaring pet adoption rates during the pandemic. But don’t think the roaring business that the animal care specialist currently enjoys is a fad. Studies show that the amount people spend on caring for their pets was skyrocketing long before the Covid-19 crisis.
A chronic shortage of veterinary personnel could jeopardize CVS Group’s growth prospects. But I remain convinced that it should generate spectacular long-term growth and I am thinking of increasing my holdings.
The post 3 UK stocks that I would buy for my ISA Stocks and Shares in July appeared first on The Motley Fool UK.
Royston Wild owns shares of CVS Group. The Motley Fool UK recommended Associated British Foods. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of ideas makes us better investors.
Motley Fool United Kingdom 2021