In this article, we discuss the 5 best UK stocks to invest in now. In order to read our detailed analysis of these stocks and the latest market situation, go directly to 11 Best UK Stocks To Invest In Now.
5. Ferroglobe PLC (NASDAQ:GSM)
Number of Hedge Fund Holders: 28
Ferroglobe PLC (NASDAQ:GSM) is up next on our list of the best UK stocks to buy now. The firm provides specialty and silicon chemicals to a range of industries such as steelmaking, electronics, healthcare and personal care products.
Of the 924 hedge funds tracked by Insider Monkey, 28 held stakes in Ferroglobe PLC (NASDAQ:GSM) at the end of the fourth quarter with a combined value of $273.4 million. This shows growing investor confidence over the previous quarter where 24 hedge funds held $304.7 million worth of positions in the company.
On February 14, Seaport Global analyst Martin Englert initiated coverage of Ferroglobe PLC (NASDAQ:GSM) with a ‘Buy’ rating and set a $16 price target. The analyst sees the “historic run” in silicon and ferroalloys prices resulting in substantial improvement for the firm’s EBITDA and free cash flow in 2022. As of May 4, shares of Ferroglobe PLC (NASDAQ:GSM) have gained 56.67% in the last 12 months, and 2.49% in the year to date.
4. GlaxoSmithKline plc (NYSE:GSK)
Number of Hedge Fund Holders: 36
Then there’s GlaxoSmithKline plc (NYSE: GSK), a British pharmaceutical company founded in 1715 which offers a range of vaccines, medicines and health-related consumer products around the globe. As of May 4, GlaxoSmithKline plc (NYSE: GSK) has recorded a 19.44% jump in share price in the last 12 months, and an increase of 4.16% in the last 6 months.
On April 29, Barclays analyst Emily Field raised the firm’s price target on GlaxoSmithKline plc (NYSE: GSK) to £1,800 from £1,775 and maintained an ‘Equal Weight’ rating on the company shares.
GlaxoSmithKline plc (NYSE: GSK) in April said it expects a similar level of sales from its COVID-19 solutions in 2022 as in 2021, as a result of known binding agreements with governments. However these sales will be at a lesser profit contribution owing to increased sales of lower margin drug Xevudy.
For the first quarter of 2022, GlaxoSmithKline plc (NYSE: GSK) posted an EPS of $0.83, which beat estimates by $0.06. $12.27 billion in quarterly revenue signaled a jump of 18.6% from the year-ago quarter and also surpassed estimates by roughly $639 million.
Investor confidence in GlaxoSmithKline plc (NYSE: GSK) recorded an uptick at the end of the fourth quarter of 2021, where 36 hedge funds were long on the company shares, as opposed to 31 hedge funds a quarter earlier. Fisher Asset Management held a stake in GlaxoSmithKline plc (NYSE: GSK) exceeding $803 million in Q4 2021, making it the top shareholder of the firm.
3. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 41
With a market cap of more than $207 billion, Shell plc (NYSE:SHEL) is one of the largest energy firms in the world. As the globe gradually shifts towards green energy, Shell is well-positioned to continue its dominance in the market given its sizeable investments towards green initiatives. As of May 4, Shell plc (NYSE:SHEL) has recorded a 44.17% jump in share price in the last 12 months, and 24.09% in the last 6 months.
On April 19, JPMorgan analyst Christyan Malek maintained an ‘Overweight’ rating on Shell plc (NYSE:SHEL) shares and raised the firm’s price target to £2,850 from £2,700.
For the fourth quarter of 2021, Shell plc (NYSE:SHEL) posted revenue of $85.28 billion, which beat estimates by $26.62 billion and registered an increase of 93.87% year-on-year. EPS stood at $1.66, also exceeding analysts’ forecasts by $0.41.
Out of all the hedge funds tracked by Insider Monkey, 41 reported bullish bets on Shell plc (NYSE:SHEL) in Q4 2021 with aggregate stakes worth $2.63 billion. This shows a positive trend from the quarter before where 33 hedge funds held $2.05 billion worth of positions in the energy firm.
Goehring & Rozencwajg Associates, an investment firm, talked about many stocks in its Q3 2021 investor letter, and Shell plc (NYSE:SHEL) was one of them. Here is what the fund said:
“Royal Dutch Shell’s ESG challenges continue unabated. A Dutch court ruled in May that Shell plc (NYSE:SHEL) must cut its CO2 output by 45% by 2030 to align their policies with the Paris Climate Accord. In a statement issued after the verdict, a Shell plc (NYSE:SHEL) spokesperson acknowledged that “urgent action is needed on climate change and the company is accelerating efforts to reduce emissions.” If the pressure from the Dutch court system was not enough, an activist shareholder has proposed breaking the company apart to address ESG concerns. On October 27th, Third Point Management announced the following.
“If Shell plc (NYSE:SHEL) pursues this type of strategy it would probably lead to an acceleration of carbon dioxide reduction. […] Breaking Shell into two operating units would create a standalone legacy energy business (upstream, refining, and chemicals) that could slow capex beyond what is has already promised, sell assets, and prioritize return of cash to shareholder which can be reallocated into low-carbon areas of the market.”
2. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 42
AstraZeneca PLC (NASDAQ: AZN) is up next on our list of the best UK stocks to buy now. It is headquartered in Cambridge, United Kingdom and develops a range of pharmaceutical products used around the globe. The firm is also the manufacturer of one of the most well-known Covid-19 vaccines available for use around the world, and boasts an impressive pipeline of approved or under-trial drugs that bode very well for its future prospects.
Morgan Stanley analyst Mark Purcell on April 21 raised the firm’s price target on AstraZeneca PLC (NASDAQ:AZN) to £11,100 from £10,200 and maintained an Overweight rating on the company shares. As of May 4, shares of the firm have jumped 24.49% in the last 12 months and 12.97% in the year to date.
42 hedge funds reported holding stakes in AstraZeneca PLC (NASDAQ:AZN) at the end of the fourth quarter, up from 41 hedge funds a quarter ago. The largest Q4 2021 stakeholder in the biopharmaceutical firm was Fisher Asset Management with a $1.17 billion stake consisting of more than 20 million shares.
1. Linde plc (NYSE:LIN)
Number of Hedge Fund Holders: 45
Linde plc (NYSE:LIN) ranks first on our list of the best UK stocks to buy. It is the largest industrial gas producer in the world, and offers atmospheric gasses to a range of industries such as energy, manufacturing, healthcare, food, and chemicals, among others. The company has long-term contracts with clients around the world with clauses for inflation protection, and is set to enjoy steady growth as climate change concerns and the Russia-Ukraine crisis increases demand for its products.
On April 5, UBS analyst Andrew Stott maintained a ‘Buy’ rating on Linde plc (NYSE:LIN) shares, and raised the price target to €345 from €335.
For the first quarter of 2022, Linde plc (NYSE:LIN) posted an EPS of $2.93, which was above consensus estimates by $0.16. The company raked in $8.21 billion in revenue for the quarter, outperforming estimates by $73.3 million.
As of the end of the fourth quarter of 2021, 45 hedge funds held positions in Linde plc (NYSE:LIN) with a collective price tag of $4.6 billion. Ian Simm’s Impax Asset Management was the largest shareholder of the firm at the end of Q4 2021, with 2.98 million shares worth more than $1 billion.
You can also take a look at 10 Best Growth Stocks To Buy Now and 17 Largest Fintech Companies in the World
