Should I Buy These 5 UK Shares?


As Great Britain tentatively moves out of recession territory, there are a mess of attractively priced stocks to consider. Harvey Jones of The Motley Fool UK surveys a few of the best-known names.

Shopping for shares isn't easy...there's so much on offer these days! I feel spoilt for choice. Here are five stocks I've added to my basket lately, but should I buy them?

Full Steam Reverse
When I asked whether I should buy Admiral (London: ADM) three weeks ago, the UK motor insurer was sailing ahead in full pomp, its share price up 35% this year to £11.56. That turned out to be the high watermark for the stock, which has since sprung a leak and dipped 9% to £10.56.

I said the time to buy Admiral Group is on one of its regular dips, and now we have one. Should I steam in?

The company reported a 2% drop in turnover, to £570 million, in the three months to September 30, and analysts fear Admiral's earnings growth could continue to slow. Given the news, a price-to-earnings ratio of 12 for a motor insurer looks toppy, especially now.

The dip leaves Admiral on a yield of 3.4%, which I can't get too excited about either. This isn't the time to climb aboard.

Shopping at Sainsbury's
Fool users questioned my preference for Sainsbury's (London: SBRY) over Tesco (TESO) when I compared the two supermarkets.