I’ve been looking for UK shares to buy for my portfolio that are benefiting from the economic recovery.
Three companies stand out as having reported better-than-expected growth in recent months. So I’d buy all three stocks listed below for my portfolio today.
UK shares to buy: tech champion
The first company is one of the UK’s few tech champions. Trustpilot (LSE: TRST) manages the online review site of the same name.
In a world where scammers are increasingly active and trying to take advantage of consumers, a trusted, well-known review service like Trustpilot is becoming increasingly invaluable to provide consumers with unbiased advice.
This demand is showing through in the company’s results. According to a recent trading update, Trustpilot expects to report total revenue of $62m for the first half of its 2021 financial year, representing growth of 31%.
I think this growth is only likely to continue as the e-commerce market expands.
That said, the company’s growth isn’t guaranteed. It faces risks such as competition and trust. Fake reviews on the site could decimate its relationship with consumers.
Despite these risks, I would buy the stock for my portfolio today.
Another firm that sits on my list is construction retailer Wickes (LSE: WIX). According to this company’s latest trading update, total group sales in the 21 weeks to the 22 May jumped 45.7% year-on-year, and by 23.1% on a two-year basis against the equivalent pre-pandemic period in 2019.
These numbers appear to show that the company’s registering solid growth and isn’t just experiencing a post-pandemic bounce.
Still, the group could experience some headwinds as we advance if consumers move from spending money on home improvement products to splashing out on reopened experiences, such as restaurants. If the property market also suffers a slowdown, this could lead to a fall in demand for Wickes products.
However, considering its position in the market and its recent growth, I’d buy the stock today.
Turn around opportunity
As well as the companies outlined above, I think Reach (LSE: RCH) is also one of the best UK shares to buy now. I think the stock has turnaround potential. That’s why I’d buy it today.
But it might not be suitable for all investors. Indeed, the newspaper publisher faces some structural challenges, including the persistent decline in circulation.
So far, management has been able to navigate the decline by moving operations online. For the four months to the 25 April, digital revenue grew 35%, with total print revenue down 10.4% and circulation down by 7.9%. Overall revenues declined just 3.1% as a result.
While I’m well aware the company will continue to face challenges, I think its turnaround is bearing fruit. That’s why I’d buy the stock for my portfolio today, although I intend to keep a close eye on its progress.
If the turnaround starts to stutter, that could be a sign it’s time to sell.
Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.