Keeping an eye on what other investors are doing can be helpful in terms of generating investment ideas. With this in mind, today I’ll be taking a look at the five most bought UK stocks – based on the number of deals placed – on the Hargreaves Lansdown platform last week.
Are these the UK stocks worth buying right now?
International Consolidated Airlines Group
The most bought UK stock was British Airways owner International Consolidated Airlines Group. Its share price is down significantly this year due to Covid-19. Clearly, many investors believe the airline stock will rebound.
Would I buy shares in IAG? Not at the moment. In my view, there’s just too much uncertainty.
I’ll point out I flew with BA last week. It felt pretty safe. But I can’t help thinking there will be further complications for airlines in the near future. For example, more countries could be added to the UK’s quarantine list. IAG has said it will take until 2023 for passenger demand to recover to 2019 levels.
Ultimately, I agree with Warren Buffett who says that the “world has changed” for airlines.
The second most bought UK stock last week was the ever-popular Lloyds Bank. Lloyds’ share price has also taken a battering this year.
Could Lloyds shares rebound? I think it’s possible if the UK economy recovers from Covid-19. However, realistically, a share price recovery could take a while. I own shares its shares but it’s not a stock I’d rush to buy today.
In third place was oil major BP. This is another popular UK stock. BP issued an interesting update last week which made it very clear it’ll be focusing heavily on low carbon energy in the future. Within 10 years, the company aims to have an integrated portfolio of low carbon technologies, including renewables, bioenergy, and early positions in hydrogen and carbon capture, utilisation, and storage (CCUS).
This is the right move for the company, in my view, as sustainability is now much more of a focus. However, this transition isn’t going to happen overnight. So, once again, I wouldn’t rush to buy the stock.
I’ll also point out that BP cut its dividend by 50% last week. I predicted its dividend cut this year back in June. So the stock now has less appeal from an income perspective.
In fourth place was another airline stock, easyJet.
Like IAG, I’d give this stock a miss. In my opinion, there’s just too much uncertainty associated with Covid-19 to warrant buying airline stocks at present.
Finally, the fifth most bought UK stock last week was online fashion retailer Boohoo.
Now this is a stock I’d buy right now. Boohoo shares have taken a beating in the last few months, due to problems at clothing factories linked to the company. I believe the business can bounce back though. Boohoo’s brands remain hugely popular and, in today’s digital world, the company is well-placed for growth.
I’d buy this growth stock today while it’s out of favour.
The post Here are the 5 most bought UK stocks on Hargreaves Lansdown last week. I’d only buy one of them appeared first on The Motley Fool UK.
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Edward Sheldon owns shares in Hargreaves Lansdown, Lloyds Bank and Boohoo Group. The Motley Fool UK has recommended boohoo group, Hargreaves Lansdown, and Lloyds Banking 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.
Motley Fool UK 2020