Here are two of the top UK stocks that I think are great stocks to buy in July.
Watch this place
Recent news from Swiss Watches Group (LSE: WOSG) was pretty spectacular. This leads me to believe the luxury retailer might be a wise buy ahead of the Thursday, July 8 annual financial results.
The introduction of the Covid-19 closures and the subsequent closure of its stores could not prevent the increase in revenues over the past fiscal year. In fact, at Â£ 905.1million, sales in the 12 months to April 2021 have jumped 13% to peak expectations. In addition, revenues climbed 82% in the last three months of the fiscal year with the reopening of its stores.
It is said that buyers of big-ticket items prefer to see their purchases in the flesh before flashing the plastic. But Watches of Switzerland’s tremendous performance goes against this idea. Online sales climbed 121% year-over-year in fiscal 2021. And they also climbed 218% in the last three months of the period.
Now Watches of Switzerland shares are not cheap. This UK retail stock is trading a whopping 34 times forward price / earnings (P / E) ratio. This is the kind of high valuation that could cause the share price to drop significantly if demand for its Rolex, Omega and other luxury watches are starting to decline. However, I still think the company is a great buy, given the great strides they are making in the fast growing e-commerce arena, as well as in the United States.
Another British stock to buy
I am also tempted to invest in Group of knights (LSE: KGH) before the publication of the annual results on Wednesday July 14. The last time the legal services provider updated the market, it predicted that revenues for the 12 months through April would exceed expectations thanks to “good organic growth“in the second half.
Knights Group is a British action with the bit between its teeth and its core business running at full speed. Although I wouldn’t just buy the company in anticipation of a sunny follow-up to the most recent May release. The legal giant remains extremely active on the acquisition trail to generate supreme long-term profit growth. This month he sealed the takeover of Sheffield-based business lawyers Keebles. And he has his reticle trained on more M&A targets.
Managing Director David Beech recently said that the company âplans to selectively execute an attractive acquisition pipeline during the current year“, Adding that the medium and long term impact of Covid-19 has increased âThe group’s acquisition opportunities in the highly fragmented legal services market outside London. “
Analysts in the city believe Knights Group’s annual profits will rise 25% in 2022. That leaves the UK supporting stock trading at a forward PEG ratio of just 0.7. It is true that an acquisition-driven growth strategy like Knights Group creates additional risks. Costs can rise unexpectedly and income contributions can disappoint newly purchased assets. But I still think the company is a top UK stock to buy and especially at recent prices.
The 2 best UK stocks to buy in July appeared first on The Motley Fool UK.
Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK has no position in any of the stocks mentioned. 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