With the stock market constantly fluctuating, keeping up with popular shares to watch can be easier said than done. After all, there’s so much to consider when investing in a stock.
In this edition of our monthly stock market analysis, we are going to look at some of the best shares UK to watch in 2022 – with our analysis covering August 8th to August 11th.
Updated data and YTD returns are as of August 11th, 2022.
Before we take a closer look at some of the best shares today UK to consider adding to your watchlist, presented below are several of the top 100 most active stocks in the UK and the US – as measured by trade volume on Yahoo Finance:
- Battle Infinity (IBAT)
- Advanced Micro Devices (AMD)
- DraftKings (DKNG)
- Lyft (LYFT)
- Amazon (AMZN)
- Ford (F)
- Vodafone Group (VOD)
- Roblox Corporation (RBLX)
- Glencore (GLEN)
- PayPal Holdings (PYPL)
August 8th to August 11th: One of the most popular assets that has caught the market’s attention in recent weeks is Battle Infinity. It’s important to note that Battle Infinity is not a stock like the other assets on this list. Instead, it is a brand new crypto project within the metaverse-gaming space that allows players to generate income through ‘play-to-earn’ (P2E) mechanisms.
These mechanisms are built into Battle Infinity’s fantasy sports league, dubbed the ‘IBAT Premier League’. Users can connect their crypto wallets to this ecosystem and construct a team of players – each of which is structured as an NFT token. Points are scored based on each player’s real-world performance, with users who score the most points able to rise in the rankings.
Higher rankings result in more rewards, which are distributed in IBAT – Battle Infinity’s native BEP-20 token. Furthermore, since all players within the IBAT Premier League are structured as NFTs, this provides scope for a self-sustaining secondary market to blossom.
Aside from the IBAT Premier League, Battle Infinity’s ecosystem also contains an innovative staking service, a P2E gaming store, a token swapping protocol, and even a built-in NFT marketplace. Users can even create avatars and wander the ‘Battle Arena’, which is Battle Infinity’s rich virtual world.
Battle Infinity is still in development at the time of writing, although it has already generated tremendous buzz from investors. Battle Infinity’s token presale began on July 11th and was scheduled to last for 90 days – although sold out in a matter of weeks due to investor demand.
Each IBAT token was priced at $0.0015 during the presale, allowing investors to purchase tokens using Binance Coin (BNB). Now that the presale has concluded, investors are getting ready for Battle Infinity’s PancakeSwap listing, which is scheduled for the coming weeks.
Overall, this investment product has undoubtedly gotten traders buzzing – meaning it’s certainly an alternative to the best shares UK to watch, which we will discuss below.
August 8th to August 11th: Advanced Micro Devices (commonly referred to as AMD) is a US-based semiconductor company that operates in the business and consumer markets. AMD produces many products, including microprocessors, motherboards, GPUs, and more. The company’s shares are up 37% since July’s lows, now trading just below $100.
The positivity around AMD can be attributed to the company’s Q2 2022 earnings report, which was better than expected. Revenue reached $6.55bn in Q2, which equated to year-over-year growth of 70%. However, the most significant change was seen in the data centre division, as sales were up an impressive 83%.
Data centres are heavily involved in the cloud-computing sector, which is seen as a huge growth area for AMD. With rival Intel faltering somewhat, AMD (and Nvidia) could be in line to capitalise. Although some areas of AMD’s business didn’t grow as fast as analysts expected, the optimism around the company is beginning to recover.
August 8th to August 11th: DraftKings is a US-based sports betting company best known for its ‘fantasy sports’ offerings. After beginning to expand in mid-2018, DraftKings now offers betting services in an array of US states and became a publicly-traded company in April 2020. DKNG shares are currently trading around $17.96 and are up over 30% in the last week.
Much of this increase can be attributed to better-than-expected Q2 2022 trading results, which the company released last Friday. Revenue increased by 57% compared to the same period in 2021, whilst average revenue per player jumped by 30%. The company also expanded into Canada during this period, contributing to these impressive figures.
DraftKings’ net loss also dropped compared to Q2 2021, which came as a welcome surprise to analysts. These positive financials prompted DraftKings’ management team to raise its full-year guidance for revenue and EBITDA. With DraftKings continuing to enter new markets and the NFL season right around the corner, the company’s insiders appear highly optimistic about its future.
August 8th to August 11th: Lyft is a ridesharing company that operates in the US and Canada. Like Uber, Lyft offers various services, including vehicle hire, electric scooters, food delivery, and bicycle-sharing. LYFT shares are now trading above the $20 level, following a 63% increase since late July.
Like many other US companies, Lyft surprised investors (and the market) with an upbeat Q2 2022 earnings report. The company’s revenue increased by 30% compared to Q2 2021, driven by more airport trips and a higher number of active riders. Drivers’ earnings per active hour also increased by 18%, making Lyft a more appealing company to work for.
Lyft also beat the consensus estimates for adjusted EBITDA, which came in more than 3x higher than expected. These strong financials prompted management to forecast that revenue will reach over $1 billion in Q3 2021, representing yearly growth of over 20%. Now that Lyft is experiencing similar demand to the pre-pandemic period, the company’s shares are beginning to rebound from July’s lows.
August 8th to August 11th: Amazon needs no introduction, as the e-commerce giant has become a household name over the past two decades. Although Amazon made its name through online shopping, the company has expanded into various niches in the past few years, such as cloud computing and streaming. AMZN shares are trading around the $120 level, although they have been consolidating for weeks.
Anticipation is building around Amazon’s Q2 2022 trading results, which will be released after market close on July 28th. Amazon made an unexpected loss during Q1 2022, which was attributed to adverse macroeconomic conditions. Investors will be hoping this is remedied when results arrive this week.
Consensus analyst estimates have Amazon’s adjusted EPS forecasted at $0.12, which would be around 84% lower than Q2 2021. Revenue is expected to come in at $119 billion – although this is an increase, it still represents decelerating growth. The reason behind this forecast is rising costs which may eat into profits, along with a lack of direction in the broader economy.
August 8th to August 11th: Ford is a US-based automobile manufacturer founded in 1903. Large-scale manufacturing was pioneered by Ford, which has helped solidify the company as one of the largest automobile producers in the world. The F share price is quoted at $14.69 – up 37% from July’s lows.
Shareholders were pleased with Ford’s Q2 2022 results, which prompted some bullish price movement. Revenue increased 50% compared to Q1 2022, helped by an easing of supply chain issues. This also helped drive EBIT to $3.7 billion – over 3x higher than the previous year.
Ford’s executives have estimated that EBIT for the entirety of 2022 will be between $11.5 billion and $12.5 billion, representing solid growth from 2021. These strong forecasts also prompted Ford to raise its dividend by 50%. Finally, Ford’s team even reiterated their focus on electric vehicles (EVs), which is a high-growth sector.
August 8th to August 11th: Vodafone is a UK-based telecommunications company that offers services worldwide. The company employs over 95,000 people and provides telecom services to both individual and corporate clients. VOD shares are trading at around 125p at the time of writing, following an 8% increase in recent weeks.
Vodafone recently released its full-year results for its fiscal 2022, which were viewed favourably by investors. Revenue grew by 4% compared to FY2021, whilst EPS increased exponentially. Although net debt increased slightly, Vodafone’s adjusted free cash flow also followed suit.
Vodafone is also popular with investors due to its high dividend yield, which stands at over 6%. This is higher than the FTSE 100 average and provides a reason for passive income investors to consider VOD shares. Finally, given that telecoms firm e& recently bought a 9.8% stake in the company, there’s scope for Vodafone to shore up its long-term strategy and expand even further internationally.
August 8th to August 11th: Roblox Corporation is the company behind the super-popular Roblox game platform that has grown exponentially since launching in 2006. However, much of the platform’s growth came during the height of the COVID-19 pandemic, when it had over 160 million monthly active users (MAU). However, Roblox Corporation has struggled since, and shares are now 66% below November 2021’s all-time highs.
Having said that, RBLX shares have rallied since late June and are up 103% since that point. Some of this price increase can be attributed to the increasingly positive sentiment from leading analysts – with one MKM Partner analyst opting to increase his price target to $40. The basis for this was that Roblox’s sales were gathering pace at a rate that nobody expected.
Roblox also recently announced that its daily active users (DAU) were up 17% compared to last year, which is impressive considering the removal of COVID-19 restrictions. However, management expects full-year revenue to grow at just 4.4% compared to 2021, which has dampened expectations somewhat.
August 8th to August 11th: Glencore is a colossal commodity company based in Switzerland and the UK. The company produces various products, including zinc, copper, grain, and oil. GLEN shares have been on a bull run since September 2021 and are up 60% since that point.
Glencore is currently benefitting from high commodity prices, driven by the uncertainty surrounding the Russia/Ukraine conflict. These countries produce huge volumes of commodities (primarily nickel), meaning the supply has halted – driving up the price. This directly benefits Glencore, as the company can generate more revenue for the same amount of produce.
Over the past year, the company also shaved off more than $5bn of debt, with earnings rising by 84% during fiscal 2021. Glencore’s dividend yield currently sits at 2.85%.
August 8th to August 11th: Concluding our list of the best shares to watch right now is PayPal. PayPal is known worldwide as the US-based financial services company that was the first to bring digital payments into the mainstream. The PYPL share price is up over 44% in the past five weeks, driven by a solid earnings report.
PayPal’s Q2 2022 report was better than expected, as net revenue soared to $6.8 billion – a 9% increase from Q2 2021. Although adjusted EPS came in at $0.93, which was lower than the previous year’s EPS figure, it was still significantly higher than consensus estimates.
Total payment volume (TPV) increased by 9% compared to Q1 2021, whilst the company added another 400,000 clients during the quarter. Transactions per account also increased, which is a crucial metric for PayPal. These results prompted management to raise full-year adjusted EPS guidance to an upper limit of $3.97 – which caused a bullish surge in the PYPL share price.
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It was another positive week for the US equity market, as all three major indices ended in the green. This positive sentiment can be attributed to stellar earnings from many leading US companies.
However, UK equity markets didn’t fare as well last week, with the FTSE 100 and FTSE All-Share both ending in the red. Investors were fearful after the Bank of England made a stark warning about a potential recession, leading to muted trading.
- S&P 500: +0.52%
- NASDAQ Composite: +2.19%
- Dow Jones: +0.01%
- FTSE 100: -0.16%
- FTSE All-Share: -0.24%
Although the following shares didn’t feature in the list of best shares today UK to watch, they are consistently featured on Yahoo Finance’s ‘Trending Tickers‘ page:
- Blackberry: Blackberry has been at the front of Reddit’s meme stock craze.
- Johnson & Johnson: The stock has lost significant ground in recent weeks due to manufacturing issues and the pause on distribution over fears that the vaccine could cause blood clots in some people. The Johnson & Johnson vaccine is one of the first one-shot vaccines developed for COVID-19 and as manufacturing capacity ramps up, the shot could be the prime weapon against COVID-19 around the world. Plus, the US government is likely to recommend a second dose of the shot.
If you want to buy shares in one of the companies listed above, you will need to use an online stock broker. There are many brokers to choose from, although it’s best to partner with a platform that is FCA-regulated and offers both UK and US-based equities. With that in mind, the steps below will show you how to invest in one of the most popular shares today, all from your laptop, tablet, or smartphone.
Open a Trading Account
Head over to your broker’s homepage and opt to sign up. You’ll likely be asked to enter your name and email address, before creating a username and a password for your login credentials.
Verify your Account
FCA-regulated brokers will ask you to verify your identity by uploading proof of ID (e.g. passport) and proof of address (e.g. bank statement). Once these documents are checked, you’ll be notified by your broker.
You will now be asked to deposit some funds. Most UK brokers accept one (or more) of the following methods:
- Debit Card
- Credit Card
- UK Bank Transfer
You may also need to meet a minimum deposit amount or pay a conversion fee, although this will vary depending on the platform.
Once your account has been funded, you can then buy one of the best shares UK to watch. If you know which of the above companies you wish to buy shares in, simply enter it into the search box and opt to trade it.
You’ll then be presented with an order box, in which you can enter your desired investment amount. Most brokers will have a minimum investment amount, so it’s important to research this beforehand. You can then opt for a stop-loss or take-profit level, if you wish, before confirming the trade.
Investing in the equity market can be tricky – especially if you are a complete newcomer. However, there are some tried and tested methods to find the best shares UK to invest in for your personal situation. These methods are presented and discussed below:
When trying to find the best shares to buy now for your unique investment goals, one of the most popular approaches is to conduct fundamental analysis. This involves finding a stock’s ‘intrinsic value’, which may differ from the stock’s current value in the market. If a company’s intrinsic value is higher than its current share price, the stock can be considered ‘undervalued’.
There are numerous ways to find a stock’s intrinsic value, such as looking at macroeconomic factors, industry trends, the company’s management, and so on. One popular method is to analyse the broader market and then narrow the focus down to the company itself, looking at all of the ‘micro’ elements that make up its value.
You may even wish to use the company’s financials to determine its fundamental value. This could involve reviewing its balance sheet and income statement to determine whether the company is financially sound. Finally, metrics such as P/E ratio and EPS can also be a great way to understand whether a stock is undervalued or overvalued.
Technical analysis is another great way to find the best shares to buy today for your own personal situation. Unlike fundamental analysis, which attempts to find the stock’s current ‘intrinsic value’, technical analysis is more forward-focused. This means that the analysis looks at previous price movements to predict future price movements.
Many of the best shares to buy in 2022 noted in leading publications like The Telegraph will likely have been derived through technical analysis, in conjunction with other mechanisms. Technical analysis often involves using indicators, such as RSI and MACD, which attempt to determine when a stock will make a push upwards or downwards.
Equity analysts who work for leading investment firms tend to provide their recommendations of the best shares to invest in based on their own skills and expertise within the stock market. Analysts will often offer 12-month price targets for a company’s shares and provide a ‘recommendation’, which can be one of the following:
Ultimately, the analyst’s picks for the best shares to buy today will be based on their own research and analysis of the stock – so opinions can vary depending on the source. Thus, although these ratings can be helpful, it’s best to use them in conjunction with other types of analysis.
Finally, you can also find the best shares to buy now for your investment goals by staying on top of market news. The equity market is ever-changing, with certain news events affecting investor sentiment. Events such as interest rate announcements can have a considerable impact, as they affect a company’s profits – and therefore, its appeal to investors.
Trading around news events can also be challenging, as market volatility can sometimes render technical analysis inaccurate. However, risk-seeking traders may also thrive in these environments, as volatility can often offer scope to generate positive returns when trading effectively.
As you’ll now know, most of the most highly-traded shares are based in the US. This is because the US economy is roaring back as it reaches high vaccination rates against COVID-19. AMD, Amazon, Ford, and others are expecting a solid second half of the year. In addition, Vodafone Group is seen by many as one of the best shares today UK to keep tabs on, due to its strong and stable characteristics.
One of the most popular assets on the market right now is Battle Infinity. Although Battle Infinity is not a stock, like the other entries on our list, it still represents an in-demand investment product that has generated significant hype from investors. Battle Infinity’s presale has just sold out ahead of schedule, due to investor demand, with a PancakeSwap listing set for the near future.