Top 10 stocks to buy now in the UK.12 min read

The nature of the stock market means that there are always exciting new moves every day, creating unlimited opportunities to generate positive profits. However, with so many moving parts and many companies to consider, it can sometimes be difficult to decide on the best investment to make.

Don’t worry; we’ve done all the research and determined the best stocks to buy now, with our in-depth analysis covering the month of March and beyond.

Later in this section, we’ll break down each of the top 10 stocks, giving you all the information you need to make an attractive investment and an informed decision.

If you want to buy any of these stocks now, we recommend using eToro or any trading app that you see fit, as you will avoid paying commissions and can set up an account in minutes.

Top 10 Stocks to buy 

Lloyds Banking Group (LLOY)

  • Sector: Bank
  • Current price: $2.31 
  • Market value: $40.28 billion
  • Dividend income: 4.30%
  • Cumulative profitability in the year: -17.35%

Lloyds is one of the biggest banks in the UK, operating a large number of branches and ATMs in England and Wales. Lloyds offers a full range of banking services and also operates in Scotland through the offices of the Bank of Scotland. Shares of the company fell at the start of 2022, although the recent earnings announcement has raised some optimism.

First, Lloyds reported a pre-tax profit of £968 million, up £170 million from the same period in 2020. In addition, the bank announced a share buyback program to return up to £2 billion to shareholders. The market received these items well, increasing Lloyds stock by more than 6%.

Going forward, the COVID-19 slowdown could positively impact consumer credit levels, leading to increased revenue for Lloyds. Additionally, the property market continues to grow, which is great as Lloyds is one of the largest mortgage lenders in the UK. Overall, the signals look promising for Lloyds, which is why the stock is currently the best choice in the market.

Exxon Mobil Corporation (XOM)

  • Industry: Integrated oil and gas
  • Current price: $84.09
  • Market value: $356 billion
  • Dividend income: 4.19%
  • YTD Profitability: +32.34%

Exxon Mobil Corporation, commonly known as ExxonMobil, is a major oil and gas company and one of the largest annual revenue companies in the world. ExxonMobil is one of the top major oil companies and operates in crude oil, natural gas, petrochemical, and other sectors. Shares of the company are up more than 46% from December lows, largely due to oil’s performance.

A quick look at the oil chart will show that the price has risen sharply recently and is now at a level not seen since 2008. This is great news for ExxonMobil, as it means the company is generating more revenue per barrel of oil. It also produces, given the current situation in Russia, the oil supply could be further reduced, which could further increase the price.

ExxonMobil’s fourth-quarter 2021 results showed a profit of $8.9 billion, the highest in six years. Additionally, ExxonMobil has added more ships to its operations, producing more oil and generating more revenue. Overall, ExxonMobil appears to be in a prime position to take advantage of these oil prices, making XOM stocks a great way to gain exposure to this profitable sector.

Rolls-Royce Holdings (RR)

  • Industry: Aerospace and Defense
  • Current price: 88.21 cents
  • Market value: 9,990 million USD
  • Dividend Income: N/A
  • Return of the year: -30.59%

Rolls-Royce Holdings is a defence and aerospace company that manufactures, designs, and sells power systems for a variety of industries, primarily aviation. While Rolls-Royce is probably best known for its state-of-the-art cars, Rolls-Royce makes the most money from the service contracts that come with the sale of aircraft engines. Therefore, RR stocks were quite volatile due to travel restrictions due to COVID-19.

The company makes more money each time the engine is used, so Rolls-Royce’s revenue will be affected if the planes are grounded. However, now that travel restrictions seem to be a thing of the past, we should see an increase in service revenues. Company executives seem optimistic about it, as the latest business update saw Rolls-Royce’s free cash flow guide valued at more than £2billion.

Finally, Rolls-Royce also has a number of major defence contracts and recently partnered with the US Air Force on a £1.9 billion contract. Ultimately, this will protect the company from any risk of additional defaults related to COVID-19, as this contract will continue regardless.

Zillow Group (Z)

  • Industry: content and information on the Internet
  • Current price: $50.30
  • Market value: $12.92 billion
  • Dividend Income: N/A
  • Cumulative profitability in the year: -20.67%

Zillow is a digital real estate marketplace founded by two former Microsoft excos. The company has had a difficult year after closing its buy I segment at the end of 2021. However, Zillow shares are now trading at a huge discount to last year’s price, leaving room for a possible recovery.

The fourth quarter 2021 figures saw a significant increase in revenue compared to the fourth quarter 2020, although this could largely be attributed to Zillow’s real estate portfolio sales. Real estate revenue from helping clients list their properties increased by 14%. The strategy of operating as a real estate app appears to be working, with many analysts raising price expectations for Zillow.

Zillow executives aim to generate annual revenue of $5 billion per year by 2025, which would be more than double the company’s current annual revenue. The company certainly appears to be on track for this, as Zillow is selling off its real estate portfolio much faster than expected, helping its strategy materialize in early 2022.

Barclays PLC (BARC) 

  • Sector: Bank
  • Current price: 152.06
  • Market value: £25.48 billion
  • Dividend yield: 3.80%
  • Cumulative profitability during the year: -22.68%

Barclays is a London-based London bank listed on the LSE and NYSE. Although Barclays is headquartered in the UK, the company has over 4,500 subsidiaries in around 55 countries. The share price of Barclays’ has risen admirably since the outbreak of COVID-19 and is now at the same level as in May 2018.

Because Barclays has both retail and investment banking operations, increased spending associated with the reopening of savings has helped the company’s results. Also, there is strong speculation that the Central Bank will soon raise interest rates. Ultimately, this will escalate the level of interest earned on loans, which will greatly contribute to the company’s revenue.

Digging a little deeper, the company’s P/E ratio of 5.59 suggests the stock price may still be a bit undervalued. Additionally, Barclays’ 3.80% dividend yield will provide investors with a solid level of passive income, with payments made twice a year. Overall, Barclays appears to have a supportive monetary policy for the foreseeable future, making it a great stock to keep your portfolio in check.

Barrick Gold Corporation (GOLD)

  • Sector: Gold
  • Current price: $24.20
  • Market value: $42.13 billion
  • Dividend Income: N/A
  • YTD Profitability: +30.53%

As its name suggests, Barrick Gold Corporation is a gold and copper mining company. The company has 16 offices in 13 countries and is headquartered in Toronto, Canada. Barrick Gold is second only to Newmont Corporation when it comes to the largest gold mining companies in the world. However, the company appears to be gaining ground in this rivalry.

First of all, the price of gold is now incredibly high, reaching $1,983 per ounce at the time of writing. To put that into perspective, it’s been up to over 17% since July 2021, which is a sizable amount when it comes to the value of gold. Unsurprisingly, this greatly benefits Barrick Gold, as it means the company earns more revenue from its products.

Barrick Gold also recently announced a $1 billion share buyback program with its Q4 2021 earnings release. Adjusted EPS was $0.35, far beating analysts’ expectations. Due to the likelihood that investors will continue to use gold as a safe haven, the price of gold may continue to rise, making Barrick Gold a great investment opportunity.

BP Plc (BP) 

  • Industry: oil and gas
  • Current price: 353.00p
  • Market value: £68.37 billion
  • Dividend income: 4.20%
  • YTD Profitability: +0.57%

They are one of the largest oil and gas companies in the world and is based in London, England. The company operates in various industry segments, such as exploration, mining, refining and marketing. Shares are down about 15% from the February high, providing an attractive buying opportunity.

In February, BP released its 2021 results, noting that the company made a staggering $12.8 billion profit for the year. This is all the more impressive considering that BP suffered a substantial loss in 2020, and investors immediately snapped up the shares in response. In addition, BP also reduced its debt level for the seventh consecutive quarter, putting the company in a solid financial position.

Although BP is such a well-known company, the shares still seem to be trading at a discount. BP’s forward P/E ratio is now 6.69, while the price-to-sales ratio is just 0.66. These values ​​underscore that stocks may be undervalued, meaning now may be the perfect time to add them to your portfolio.

Atlassian Corporation (TEAM)

  • Industry: Technology
  • Current price: $254.37
  • Market value: $64,480 million
  • Dividend Income: N/A
  • Cumulative profitability during the year: -27.41%

Atlassian is an Australian software company that supplies products to various software companies. The company uses a software-as-a-service (SaaS) model, similar to Adobe, which allows it to generate a reliable revenue stream. Due to the range of its services, it has performed well in the market, reaching an all-time high in October 2021.

Although the company’s shares have recently fallen, Atlassian’s second-quarter fiscal results have been attractive. EPS and revenue figures far exceeded analysts’ expectations, with sales up 37% from the second quarter of 2021. However, the company continues to lose money, although the losses have slowed considerably since the beginning, at the same time last year.

Another reason Atlassian shares rose in earnings was the value of the company’s free cash flow. The company made $197.5 million in FCF, which equates to a 29% margin in FCF. Overall, while Atlassian is still growing and not yet profitable by GAAP, the company is moving in the right direction, making it an excellent growth stock to consider in your portfolio.

Palantir Technologies (PLTR)

  • Industry: Technology
  • Current price: $11.50
  • Market value: $22.24 billion
  • Dividend Income: N/A
  • Cumulative running time: -37.99%

Palantir Technologies is another company you should consider adding to your portfolio. They are a software company that focuses mainly on “Big Data”. Much of Palantir’s revenue comes from contracts with the US government, although the company now has a strong presence in the private sector.

Shares have fallen around 52% since November 2021, although this offers the opportunity to invest at low prices. Palantir Gotham and Palantir Foundry, the company’s two data platforms, have use cases for various scenarios, including COVID-19 vaccination. While the intricacies of Palantir’s contract with the US government are kept under wraps, the finances have been staggering.

Although Palantir is not yet profitable, the business generated $320 million in free cash flow in the first three quarters of 2021, a change of $600 million from the negative numbers seen in 2020. Company executives are optimistic about the future, with an expected increase in annual revenue by 30% by 2025. Finally, with a price-to-sell ratio of 17.65, PLTR shares look more attractive in terms of value, offering a valid opportunity for risk-seeking investors.

Zynga Inc (ZNGA) 

  • Industry: electronic games and multimedia
  • Current price: $9.07
  • Market value: 10,280 million USD
  • Dividend Income: N/A
  • YTD Profitability: +38.76%

Zynga is an American game developer that focuses on social and mobile games. The firm is known for FarmVille, which has seen huge success with its launch on Facebook. Although its shares had a tough few months, they rose more than 53% in early January on the exciting news of the merger.

This news refers to Take-Two Interactive, the giant of video game production, which announces that it will buy Zynga for 9.86 dollars per share. This transaction is estimated to be worth approximately $12.7 billion in total, with shareholders receiving cash payments and Take-Two shares once the acquisition is complete. This is exciting news, as Take-Two announced recently that a new Grand Theft Auto game, which is the company’s biggest franchise, is in development.

Finally, it presents a unique market opportunity, as investors can gain exposure to short-term price increases in Zynga shares before benefiting from long-term growth after the acquisition closes. Although the company is not yet 100% complete, the acquisition of Zynga shares can now provide exposure to the development of this video game conglomerate for years to come.

How to buy the best stock now

If you want to buy shares of any of the companies I have mentioned in this article, you will need to create an account with a trusted trading platform. There are so many options to choose from these days, which can make the decision-making quite complicated!

eToro offers the best way to buy stocks today, thanks to the platform’s low minimum deposit and 0% commission structure. With that in mind, let’s look at the four short steps you need to take to trade with eToro:

Step 1: Open an eToro account

Go to the eToro website and click on “Register Now”. You will be asked to provide a valid email address and choose a username and password. Once you have done this, click on “Create an account”.

Step 2: Verify your account

As eToro is heavily regulated, new users must be verified before they can trade. To do this, click on the “Complete Profile” button in your account dashboard and provide the necessary personal information. To verify your account, you will also need to provide proof of identity (a copy of your driver’s license or passport) and proof of address (a copy of your bank statement or utility bill).

Step 3: Fund your account

The minimum deposit on eToro is just $10 (£7.37), which is one of the lowest in the industry. Deposits are completely free, and eToro accepts the following deposit methods:

  • Credit card
  • Debit card
  • Bank Transfer
  • PayPal
  • Skrill
  • Neteller
  • Klarna
  • Trustly

Step 4: Buy shares

Once you have funded your account, you are ready to trade! Click on the search bar and enter the name of the company you wish to invest in.

Simply enter the amount of money you wish to invest (minimum $10) in the deposit box. Then decide if you want to implement a stop loss/take profit level or if you want to use leverage. When you are satisfied with everything, click on “Open Trade”.

The best UK stock to buy today: the verdict

As this guide points out, there is currently a diverse selection of stocks on the market that are in an excellent position to invest. Our top choice at the moment, Lloyds, is experiencing strong growth, with more innovations on the horizon. The signs look great for this title. Additionally, companies such as Kinder Morgan, Zillow and Dutch Bros. are constantly improving their products to keep up with the times, which is an important factor when it comes to generating profits.