The stock market is always changing and evolving, and so are the opportunities for investors. Whether you are looking for growth, value, income, or stability, there are plenty of stocks that can suit your needs and goals. However, finding the best stocks to buy can be challenging, especially in uncertain times like these. That’s why we have done the research for you and compiled a list of the top 10 best stocks to buy now in the UK for 2024.

Top 10 Best Stocks to Buy Now in the UK for 2024

These are the stocks that we believe have strong fundamentals, competitive advantages, attractive valuations, and promising prospects for the future. Of course, you should always do your own due diligence and consult a financial advisor before making any investment decisions. Here are our picks for the best stocks to buy now in the UK for 2024:

1. Lloyds (LON:LLOY)

Lloyds is the UK’s largest mortgage provider and commercial bank by number of customers, and operates a number of subsidiaries that include Lloyds, Halifax, Bank of Scotland, and Scottish Widows. Lloyds has been recovering well from the impact of the Covid-19 pandemic, as it reported a strong increase in profits, revenues, and dividends in the first half of 2021. The bank also benefited from lower impairment charges, higher net interest margin, and improved cost efficiency. Lloyds is trading below its tangible net asset value, which means that the market is undervaluing its assets and earnings potential. Lloyds also has a robust capital position, with a common equity tier 1 ratio of 16.7%, well above the regulatory requirement. Lloyds is expected to grow its earnings by 25% in 2022 and 9% in 2023, according to analysts’ estimates. The bank also offers a generous dividend yield of 4.5%, which is expected to increase to 5.4% in 2023. Lloyds is a solid and stable bank that can provide both growth and income for investors.

2. Barclays (LON:BARC)

Barclays is a British universal bank and is known to be part of the big five banks in the UK. It is also the largest investment bank in the UK and Europe, with a retail and commercial banking arm. Barclays has been performing well in both its segments, as it reported a record profit of £5 billion in the first half of 2021, up 178% from the same period last year. The bank also increased its dividend and announced a £500 million share buyback program. Barclays has a low cost-to-income ratio of 57%, which is the lowest among the FTSE 100 banks. This means that the bank is efficient and profitable, and can reinvest its earnings for future growth. Barclays is also trading at a low price-to-earnings ratio of 8.5, which is well below the sector average of 12.6. Barclays has a strong growth potential in the medium term, as it benefits from the economic recovery, the diversification of its business, and the digital transformation of its operations.

3. easyJet (LON:EZJ)

easyJet is a low-cost British airline. It is the second-largest budget airline in Europe, behind Ryanair, in number of passengers flown. easyJet has been one of the hardest-hit stocks by the Covid-19 pandemic, as travel restrictions and lockdowns severely affected its business. However, the company has been resilient and adaptive, as it raised £5.5 billion in liquidity, reduced its costs, and maintained a high customer satisfaction. easyJet is also well-positioned to benefit from the reopening of travel, as it has a strong brand, a loyal customer base, and a flexible network. easyJet is undervalued compared to its peers, as it trades at a low price-to-sales ratio of 1.2, while Ryanair trades at 4.9. easyJet also has a strong balance sheet, with a net debt-to-equity ratio of 0.8, while Ryanair has a net cash position. easyJet is a high-quality airline that can offer a significant upside for investors.

4. Marks and Spencer (LON:MKS)

Founded in 1884, Marks and Spencer is one of the UK’s oldest and most iconic companies. The business is renowned for being a clothing, food and home retailer. Marks and Spencer has been undergoing a transformation in recent years, as it focused on improving its online presence, enhancing its product quality and innovation, and partnering with Ocado for its food delivery service. Marks and Spencer has been showing signs of recovery, as it reported a 2.6% increase in revenue and a 26.6% increase in operating profit in the first half of 2021. The company also reinstated its dividend and increased its full-year guidance. Marks and Spencer is trading at a low price-to-earnings ratio of 11.9, which is below the sector average of 15.9. Marks and Spencer also has a high return on equity of 18.4%, which indicates that the company is efficient and profitable. Marks and Spencer is a ‘inflation-resistant’ retailer that can continue to grow from strength to strength.

5. Tesco (LON:TSCO)

Tesco is Britain’s largest retailer and supermarket. While it is renowned for selling groceries, it also sells numerous other discretionary products. Tesco has been delivering strong results, as it reported a 1.3% increase in revenue and a 27.3% increase in operating profit in the first half of 2021. The company also increased its dividend by 23.1% and announced a £500 million share buyback program. Tesco has a dominant market share of 27.3% in the UK grocery sector, which gives it a competitive edge over its rivals. Tesco also has a loyal customer base, with over 20 million Clubcard members. Tesco is trading at a fair price-to-earnings ratio of 15.8, which is in line with the sector average of 15.9. Tesco also offers a attractive dividend yield of 4.2%, which is expected to grow to 4.7% in 2023. Tesco is a reliable and resilient retailer that can provide both growth and income for investors.

6. AJ Bell (LON:AJB)

AJ Bell is one of the UK’s top online brokerages and specialises in providing investment management and advisory services to retail investors. AJ Bell has been growing rapidly, as it reported a 21.1% increase in revenue and a 29.4% increase in profit before tax in the year ended 30 September 2021. The company also increased its dividend by 31.1% and announced a special dividend of 3.5 pence per share. AJ Bell has a large and growing customer base, with over 368,000 customers and £70.4 billion of assets under administration. AJ Bell also has a high customer retention rate of 95.5%, which indicates that the company has a strong brand and reputation. AJ Bell is trading at a high price-to-earnings ratio of 46.9, which reflects its premium valuation and growth potential. AJ Bell also offers a decent dividend yield of 1.6%, which is expected to increase to 1.8% in 2023. AJ Bell is a leading and innovative online brokerage that can benefit from the increasing demand for investment services.

7. British American Tobacco (LON:BATS)

British American Tobacco is one of the world’s largest tobacco companies, with a portfolio of brands that include Dunhill, Lucky Strike, Pall Mall, and Rothmans. British American Tobacco has been diversifying its business, as it increased its revenue from non-combustible products, such as vaping and oral nicotine, by 50.2% in the first half of 2021. The company also maintained its revenue from combustible products, despite the decline in cigarette volumes. British American Tobacco has a high operating margin of 38.8%, which indicates that the company is profitable and efficient. British American Tobacco is trading at a low price-to-earnings ratio of 8.9, which is well below the sector average of 14. British American Tobacco also offers a high dividend yield of 7.8%, which is expected to increase to 8.4% in 2023. British American Tobacco is a stable and defensive stock that can provide both value and income for investors.

8. Apple (NASDAQ:AAPL)

Apple is one of the world’s most valuable and influential companies, with a portfolio of products and services that include the iPhone, iPad, Mac, Apple Watch, AirPods, Apple TV, Apple Music, iCloud, and Apple Pay. Apple has been delivering stellar results, as it reported a 36.4% increase in revenue and a 62.8% increase in earnings per share in the fiscal year ended 25 September 2021. The company also increased its dividend by 7.3% and announced a $90 billion share repurchase program. Apple has a loyal and growing customer base, with over 1 billion active iPhone users and over 700 million paid subscriptions. Apple also has a strong competitive advantage, as it benefits from its ecosystem, innovation, brand, and quality. Apple is trading at a high price-to-earnings ratio of 28.8, which reflects its premium valuation and growth potential. Apple also offers a modest dividend yield of 0.6%, which is expected to increase to

0.7% in 2023. Apple is a high-quality and innovative company that can offer a significant upside for investors.

9. AstraZeneca (LON:AZN)

AstraZeneca is a British-Swedish pharmaceutical and biotechnology company, with a focus on oncology, cardiovascular, renal, metabolism, respiratory, and immunology. AstraZeneca has been developing and delivering breakthrough medicines, as it reported a 17% increase in revenue and a 40% increase in earnings per share in the first half of 2021. The company also increased its dividend by 4.2% and announced a $1 billion share buyback program. AstraZeneca has a strong pipeline of new drugs, with over 170 projects in development and over 40 in late-stage trials. AstraZeneca also has a leading role in the Covid-19 vaccine, as it has supplied over 1.2 billion doses to over 170 countries. AstraZeneca is trading at a fair price-to-earnings ratio of 18.5, which is in line with the sector average of 18.6. AstraZeneca also offers a attractive dividend yield of 2.8%, which is expected to increase to 3.1% in 2023. AstraZeneca is a leading and innovative pharmaceutical company that can benefit from the increasing demand for healthcare.

10. Unilever (LON:ULVR)

Unilever is a British-Dutch consumer goods company, with a portfolio of brands that include Dove, Lipton, Ben & Jerry’s, Knorr, Hellmann’s, and Axe. Unilever has been growing its sales and profits, as it reported a 5.4% increase in underlying sales growth and a 10% increase in underlying earnings per share in the first half of 2021. The company also increased its dividend by 4.1% and announced a €3 billion share buyback program. Unilever has a diversified and resilient business, with over 400 brands in over 190 countries. Unilever also has a strong focus on sustainability, as it aims to achieve net zero emissions by 2039 and halve its environmental impact by 2030. Unilever is trading at a reasonable price-to-earnings ratio of 21.9, which is below the sector average of 23.1. Unilever also offers a generous dividend yield of 3.5%, which is expected to increase to 3.8% in 2023. Unilever is a reliable and responsible consumer goods company that can provide both growth and income for investors.

Conclusion

These are our top 10 best stocks to buy now in the UK for 2024. We believe that these stocks have strong fundamentals, competitive advantages, attractive valuations, and promising prospects for the future. However, you should always do your own research and consult a financial advisor before making any investment decisions. Investing in the stock market involves risks and uncertainties, and past performance is not indicative of future results. We hope that this article has been helpful and informative for you. Happy investing!

Most Asked Questions and Answers

Here are some of the most asked questions and answers about the best stocks to buy now in the UK for 2024:

Q: How do I buy stocks in the UK?

A: There are several ways to buy stocks in the UK, such as using an online brokerage, a financial advisor, or a robo-advisor. Online brokerages are platforms that allow you to buy and sell stocks yourself, with low fees and commissions. Financial advisors are professionals who can provide you with personalised advice and guidance, but they may charge higher fees and commissions. Robo-advisors are automated services that use algorithms and artificial intelligence to create and manage your portfolio, with low fees and minimal human intervention.

Q: What are the best sectors to invest in the UK for 2024?

A: There is no definitive answer to this question, as different sectors may perform differently depending on various factors, such as the economic cycle, consumer trends, technological innovations, and geopolitical events. However, some of the sectors that may have strong growth potential in the UK for 2024 are:

• Technology: Technology is a sector that is constantly evolving and innovating, creating new products and services that can improve the lives of people and businesses. Technology companies can benefit from the increasing demand for digitalisation, cloud computing, e-commerce, cybersecurity, artificial intelligence, and 5G.
• Healthcare: Healthcare is a sector that is essential and resilient, providing products and services that can enhance the health and well-being of people and animals. Healthcare companies can benefit from the increasing demand for healthcare, especially in the wake of the Covid-19 pandemic, as well as the ageing population, the rising prevalence of chronic diseases, and the advancement of biotechnology and medical devices.
• Consumer Goods: Consumer goods is a sector that is diversified and stable, offering products and services that can satisfy the needs and wants of consumers. Consumer goods companies can benefit from the increasing disposable income, the changing consumer preferences, the growing middle class, and the emergence of new markets.

Q: What are the risks of investing in the stock market?

A: Investing in the stock market involves risks and uncertainties, and there is no guarantee that you will make money or avoid losses. Some of the common risks of investing in the stock market are:

• Market Risk: Market risk is the risk that the entire market or a specific sector will decline, affecting the value of your investments. Market risk can be caused by various factors, such as economic downturns, political instability, natural disasters, or global events.
• Company Risk: Company risk is the risk that a specific company will perform poorly, affecting the value of your investments. Company risk can be caused by various factors, such as poor management, low-quality products or services, legal issues, or competitive pressures.
• Liquidity Risk: Liquidity risk is the risk that you will not be able to buy or sell your investments quickly or easily, affecting the value of your investments. Liquidity risk can be caused by various factors, such as low trading volume, high volatility, or market disruptions.

Q: How do I diversify my portfolio?

A: Diversification is a strategy that involves investing in a variety of assets, sectors, regions, and styles, to reduce the overall risk and volatility of your portfolio. Diversification can help you to achieve a balance between risk and return, and to cope with different market conditions. Some of the ways to diversify your portfolio are:

• Asset Allocation: Asset allocation is the process of deciding how much of your portfolio to invest in different asset classes, such as stocks, bonds, cash, or alternative investments. Asset allocation can help you to match your portfolio with your risk tolerance, time horizon, and financial goals.
• Sector Diversification: Sector diversification is the process of investing in different sectors of the economy, such as technology, healthcare, consumer goods, or energy. Sector diversification can help you to capture the growth potential of different industries, and to hedge against the downturns of specific sectors.
• Geographic Diversification: Geographic diversification is the process of investing in different regions or countries of the world, such as the UK, the US, Europe, Asia, or emerging markets. Geographic diversification can help you to access the opportunities and risks of different markets, and to reduce the impact of currency fluctuations.

Q: How do I evaluate a stock?

A: Evaluating a stock is the process of analysing the financial performance, competitive position, and future prospects of a company, to determine its intrinsic value and potential return. Evaluating a stock can help you to decide whether to buy, hold, or sell a stock, and to compare different stocks. Some of the methods and metrics to evaluate a stock are:

• Fundamental Analysis: Fundamental analysis is the method of evaluating a stock based on the company’s financial statements, such as the income statement, the balance sheet, and the cash flow statement. Fundamental analysis can help you to assess the profitability, efficiency, liquidity, solvency, and growth of a company. Some of the metrics to use for fundamental analysis are earnings per share, revenue, net income, operating margin, return on equity, debt-to-equity ratio, and free cash flow.
• Technical Analysis: Technical analysis is the method of evaluating a stock based on the price and volume movements of the stock, using charts, patterns, indicators, and trends. Technical analysis can help you to identify the supply and demand, the momentum, the support and resistance, and the sentiment of a stock. Some of the metrics to use for technical analysis are moving averages, relative strength index, stochastic oscillator, and Bollinger bands.
• Valuation Ratios: Valuation ratios are the metrics that compare the price of a stock to its earnings, sales, book value, or cash flow, to determine whether a stock is overvalued or undervalued. Valuation ratios can help you to estimate the fair value and the expected return of a stock. Some of the metrics to use for valuation ratios are price-to-earnings ratio, price-to-sales ratio, price-to-book ratio, and price-to-free-cash-flow ratio.

Q: How do I research a stock?

A: Researching a stock is the process of gathering and analysing information about a company, its industry, and its market, to make informed and rational investment decisions. Researching a stock can help you to understand the strengths, weaknesses, opportunities, and threats of a company, and to identify the trends and factors that can affect its performance. Some of the sources and tools to use for researching a stock are:

• Company Website: The company website is the official source of information about a company, its products and services,