In this article, we discuss 5 best UK stocks to buy now. If you want to see some more UK stocks, click 11 Best UK Stocks to Buy Now.
5. Ferroglobe PLC (NASDAQ:GSM)
Number of Hedge Fund Holders: 28
Ferroglobe PLC (NASDAQ:GSM) was incorporated in 2015 and is headquartered in London. The company offers ferroalloys, silicone chemicals, and specialty metals in the United States, Europe, and international markets. In 2021, Ferroglobe PLC (NASDAQ:GSM)’s revenue for the year came in at $1.7 billion, compared to $1.1 billion in the last year.
On March 3, Ferroglobe PLC (NASDAQ:GSM) climbed 14.1% to a five-month high after the company announced adjusted Q4 earnings per share of $0.23, recovering from losses in the third quarter and the same quarter last year. The Q4 2021 revenue increased 33% from the previous quarter and 78% year-over-year to $569.8 million, owing to higher shipments and elevated prices across the company’s product line.
Seaport Global analyst Martin Englert initiated coverage of Ferroglobe PLC (NASDAQ:GSM) on February 14 with a Buy rating and a $16 price target. The “historic run” in silicon and ferroalloys prices should lead to significant improvement in Ferroglobe PLC (NASDAQ:GSM)’s 2022 EBITDA and free cash flow, the analyst told investors in a bullish thesis.
According to the fourth quarter database of Insider Monkey, 28 hedge funds held long positions in Ferroglobe PLC (NASDAQ:GSM), up from 24 funds in the earlier quarter. The total stakes owned in Q4 amounted to $273.3 million.
4. LivaNova PLC (NASDAQ:LIVN)
Number of Hedge Fund Holders: 31
LivaNova PLC (NASDAQ:LIVN) is a London-based medical device company catering mainly to neuromodulation and cardiac patients. The company distributes its products to neurologists, neurosurgeons, and other healthcare providers. On April 5, Wolfe Research analyst Mike Polark initiated coverage of LivaNova PLC (NASDAQ:LIVN) with an Outperform rating and a $95 price target.
The stock has gained close to 12% in the last month. LivaNova PLC (NASDAQ:LIVN)’s revenue for 2021 came in at over $1 billion, compared to $934.2 million in the previous year. The net income in 2021 also gained over 61% from 2020.
According to Insider Monkey’s Q4 data, 31 hedge funds were bullish on LivaNova PLC (NASDAQ:LIVN), with combined stakes worth $1.2 billion. Harris Associates owned the leading position in the company, with 3.8 million shares valued at $334.2 million.
Here is what Diamond Hill Small Cap Fund has to say about LivaNova PLC (NASDAQ:LIVN) in its Q3 2021 investor letter:
“Our health care holdings were negative in aggregate, but outpaced index peers, which boosted relative performance along with our below-benchmark positioning on an individual holdings’ basis, we exited global medical technology company LivaNova as shares approached our estimate of intrinsic value.”
3. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 42
AstraZeneca PLC (NASDAQ:AZN) was incorporated in 1992 and is headquartered in Cambridge, United Kingdom. The company commercially distributes prescription medicines, therapies, and vaccines for therapeutic focus areas such as oncology, cardiovascular, gastrointestinal, infection, neuroscience, respiratory, and inflammation.
AstraZeneca PLC (NASDAQ:AZN)’s 2021 revenue stood at $37.4 billion, compared to $24.3 billion in the prior year. The net income in 2021 grew to $3.1 billion from $1.2 billion in 2020.
On February 10, AstraZeneca PLC (NASDAQ:AZN) declared a second interim dividend of $1.97 per share, increasing the full-year dividend per share to $2.87. The dividend was distributed on March 28, to shareholders of the company as of February 25.
Credit Suisse analyst Dominic Lunn on April 8 reiterated an Outperform rating on AstraZeneca PLC (NASDAQ:AZN) and raised the firm’s price target to 11,000 GBp from 9,000 GBp.
Among the hedge funds tracked by Insider Monkey, 42 funds were bullish on AstraZeneca PLC (NASDAQ:AZN) at the end of December 2021, holding stakes in the company valued at $3.8 billion. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with a position worth $1.17 billion.
2. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 45
Linde plc (NYSE:LIN) is a global multinational chemical company that specializes in industrial and medical gasses, air separation, physical plant engineering, and logistics services.
Linde plc (NYSE:LIN) announced on February 28 a share repurchase program of up to $10 billion in common stock. The maximum share capital repurchase amount will be 15% of outstanding shares and the program expires on July 31, 2024. The company also declared a quarterly dividend per share of $1.17, a 10% increase from its earlier dividend of $1.06. The dividend was paid on March 25, to shareholders of record on March 11.
The full-year revenue in 2021 stood at $30.7 billion, up from the 2020 revenue of $27.2 billion. Linde plc (NYSE:LIN)’s net income in 2021 also increased as compared to the prior year, from $2.4 billion to $3.8 billion.
On April 5, UBS analyst Andrew Stott maintained a Buy rating on Linde plc (NYSE:LIN) and raised the firm’s price target on the stock to €345 from €335.
According to Insider Monkey’s fourth quarter database, 45 hedge funds placed long bets on Linde plc (NYSE:LIN), with collective stakes equaling $4.6 billion. Impax Asset Management is the leading shareholder of the company, with approximately $3 million shares worth over $1 billion.
1. Farfetch Limited (NYSE:FTCH)
Number of Hedge Fund Holders: 47
Farfetch Limited (NYSE:FTCH) is a London-based online marketplace for luxury clothes, shoes, accessories, and jewelry, with products available from over 700 global brands. Farfetch Limited (NYSE:FTCH) also offers a mobile application that can be accessed in multiple languages.
Jefferies analyst Ashley Helgans noted that Farfetch Limited (NYSE:FTCH)’s partnership with Neiman Marcus embodies the company’s capacity to monetize its platform beyond the luxury marketplace and expand sales across recurring revenue channels with higher margins. With the shares down 50% year-to-date and “multi-year growth drivers,” present levels of Farfetch Limited (NYSE:FTCH) reflect a “compelling” entry point, the analyst told investors in a research note. She kept a Buy rating on the shares with a $25 price target on April 6.
The company’s revenue in 2021 stood at $2.25 billion, up from $1.6 billion in the earlier year. The 2021 net income of $1.46 billion sharply rebounded from 2020, when the company posted a loss of $3.3 billion.
According to Insider Monkey’s Q4 data, 47 hedge funds were bullish on Farfetch Limited (NYSE:FTCH), with combined stakes exceeding $2 billion. Stephen Mandel’s Lone Pine Capital held the biggest position in the company, owning 24.4 million shares worth $817 million.
Here is what RiverPark Large Growth Fund has to say about Farfetch Limited (NYSE:FTCH) in its Q4 2021 investor letter:
“Farfetch: FTCH shares struggled in 2H21 as consumer behavior remains hard to forecast, supply chain disruptions continue to be elevated, and Apple’s App Tracking Transparency changes make customer outreach difficult and more expensive. Despite these headwinds, which we believe to be transitory, Farfetch still reported 28% gross merchandise volume growth, 33% revenue growth, and 43% gross profit growth.
In March, we had established a small position in this leading online luxury fashion retail platform. The company is benefitting from the secular trends of growing ecommerce, the global market for personal luxury goods, and emerging market growth, particularly in China. Luxury fashion has much lower online penetration than general ecommerce, and Farfetch is differentiated because it has developed long standing relationships with image conscious luxury product companies. Because of this focus, Farfetch has both higher average order values and higher take rates relative to peers, driving higher gross margins. We believe the company can grow revenue and EBITDA more than 20% and 50% per year, respectively, for the foreseeable future. With its extremely low capital needs—capital expenditures were less than 2% of revenue last year—we expect the company’s free cash flow to grow even faster.”
You can also take a look at 10 Dividend Growth Stocks Popular on Robinhood and 10 Safe Stocks To Invest in For The Long-Term in 2022.
