Looking for the best UK stocks to buy now? I’d avoid these like the plague

first_img See all posts by Paul Summers Paul Summers | Wednesday, 29th July, 2020 Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value, Tesco, and The Gym Group. 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. Forget the coronavirus — we at The Motley Fool UK firmly believe those buying the best UK stocks now and holding them for years (ideally decades) stand a great chance of becoming wealthy. The snag, of course, is having the skill to distinguish those that will make money from those that won’t. Then again, there are some sectors that simply scream ‘avoid‘ to me right now. Here are three that are unlikely to make you rich any time soon. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…No sweatOne set of businesses that I think will struggle more than most to recover will be gyms and fitness studios.If reports from the US are anything to go by, many people do not intend to renew their memberships post-lockdown. It would seem a lot have simply become accustomed to working out in the park or at home. Either that or they’ve recognised the futility of shelling out money on a regular basis for something they don’t use all that often. With job insecurity rising sharply as firms adapt to the ‘new normal’, gym memberships are also a luxury most of us would be willing to forgo.Of course, there will still be people who head back to their local gym, particularly those who miss the social and motivational aspects of a visit. Others will likely want to return in the winter months when the cold weather sets in. Then again, the possibility of a second wave coinciding with seasonal flu will surely make even the most dedicated gym bunny think twice.It may benefit from reduced competition if other operators go bust but I’d continue to give Gym Group — one option on the UK market — a wide berth for now.  High street falloutMany retailers were already finding things tough before the coronavirus arrived on these shores. The lockdown and stuttering recovery in sales seen since could prove the final nails in many coffins. Certain UK stocks should be absolutely fine, of course. Supermarket titans Tesco, Sainsbury’s and Morrisons for example. A business specialising in low-ticket staples, like B&M European Value, should also thrive in troubled times. If you’re going to buy a retailer that sells more discretionary goods, however, I’d avoid anything that doesn’t already have a strong online presence and bulletproof finances. And even if they do have these, it’s important to ask whether they can be more resilient than their peers given the hyper-competitive markets in which they operate.As such, I’d avoid stocks like Dixons Carphone and yes, even stalwart Marks and Spencer.Bumpy rideI don’t doubt that some airlines will adapt and recover from the coronavirus. Picking a winner at this stage, however, feels like a gamble. After all, the coronavirus story changes every day. This leads to huge volatility in stocks such as easyJet, Ryanair and IAG as investors struggle to accurately value them. There’s also the opportunity cost to consider. Why put your money to work in an industry that might not recover for 2-3 years? And can you stand the bumpy ride in the meantime?Investing is all about generating the best return from the amount of risk you’re prepared to take. The right airline stock could make you wealthy in time but I think this part of the market is only for the brave or recklessly bold right now.  Looking for the best UK stocks to buy now? I’d avoid these like the plague Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Addresslast_img

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