What Are The Best UK Shares To Buy For 2023? 10 You Must Know!

Each of these stocks has lots of potential in 2023 and beyond

Last Updated December 20th 2022
26 Min Read

Searching for the best shares to buy for 2023 in the UK? Need shares that analysts have rated a buy or higher? Or are you in need of undervalued shares that have lots of growth potential? You have come to the right place! Our 10 top UK shares for 2023 all have the potential to give you a good ROI.

UK shares had an impressive run in 2021, and it's not over yet!

However, the markets started 2023 with a lot of volatility, so don't let yourself get too excited just yet--we're sure there will be more exciting times waiting as the year proceeds.

For most of 2021, UK shares were gaining upside momentum, driven by the easy money policies of 2020. However, towards the end of the year, Central Banks including the Bank of England signaled an end to the easy money era through increased interest rates.

The Bank of England specifically announced that the effects of the Covid pandemic on the economy were significant, leading to higher inflation rates than expected. The Bank added that raising interest rates will help bring inflation down over time.

That said, the UK is one of the strongest economies in the world. As such, it is likely to manage the post-pandemic recovery better than most economies. This makes UK stocks among the best to bet on as the world economy readjusts.

This article will explore the best UK shares to buy in 2023. We have narrowed it down to 10 stocks with the most potential in 2023. We will also help you understand how to buy UK shares.

Top 10 Best UK Shares For 2023!

Here are the 10 best UK shares to buy for 2023:

  1. BT Group (BT)
  2. Sage Group (SGE)
  3. Bunzl (BNZL)
  4. Kingfisher (KGF)
  5. Land Securities Group (LAND)
  6. Imperial Brands (IMB)
  7. Segro (SGRO)
  8. Hikma Pharmaceuticals (HIK)
  9. Standard Chartered (STAN)
  10. B&M European Value Retail S.A. (BME)

You can buy all of these top stocks, as well as many others, at eToro and pay 0% fees!

How To Choose The Best UK Shares For 2023?

To choose the best UK shares for 2023, you need to know about the British economy and policies.

The UK is an international leader in several different industries. They excel in IT Services and Media, but they also have their weaknesses. In essence, you need to understand how different UK companies measure up and their potential before investing.

To make sure that your investment pays off, you need to invest in high potential UK shares.

The first step in investing wisely is ensuring the company will be profitable and grow its value over time.

When researching a company's growth another thing to look out for is its revenue. You might also want to explore whether they've been acquiring new subsidiaries or developing other strategies that signal successful business practices.

You need to identify what makes your company different from other businesses in the same industry. What does it offer consumers that they can't find anywhere else?

You can never be too careful when it comes to investments. You'll want to make sure that any stock you invest in has a good reputation and isn't involved with shady practices or controversies like fraud before making your decision!

Bottom-line is that you need to research as much as you can.

The Best UK Shares To Buy For 2023

1. BT Group (BT) - Can it reach GBP 202 this year? 

BT Group, a multinational company that provides communications products and services in multiple countries all over the globe. Like other major telecom companies, BT is a dividend payer. Due to the high market volatility in 2023, dividend-paying stocks have become a favourite among investors.

However, it’s not just dividends that put BT among the best UK shares to buy for 2023. BT's internal fundamentals are pretty strong too. For starters, BT has seen insiders take an interest in the stock in recent months. In 2021, BT Group CEO who also doubles up as executive director, Philip Jansen, bought £2 million worth of BT stock. 

One of the most prominent institutional investors in BT, Altice, has also been angling for more shares of BT. Altice founder Patrick Drahi has increased efforts to take over British telecommunications company BT Group, by buying a bigger stake of the company. Drahi's push is premised on the company's expansion of broadband services, which is expected to drive up value in the medium term.

Analysts are pretty bullish on BT stock too. BT is currently trading at GBP 192.05, and the average analyst target is GBP 202.94.

With such a strong confluence of fundamentals and analyst expectations, it is not surprising that BT Group is among the best UK Shares to buy for 2023.

Have you considered buying shares in BT Group (BT)?

2. Sage Group (SGE) - Analysts have given it a Target Price of GBP 836.25

With offices worldwide, The Sage Group is a multinational enterprise that provides technology solutions to small businesses. They offer cloud-based accounting software and financial management services for both big companies and startups.

Sage has been on a consistent uptrend since 2021, and it is still gaining upside momentum. Sage is up by 13% in the last three months, making it one of the best-performing stocks in the FTSE 100.

Besides its strong performance, Sage makes it to the list of best UK Shares to buy in 2023 for its fundamentals. Sage has been investing heavily in cloud solutions, a market expected to record a CAGR of 16.3% up to 2026.

Sage’s operating profit fell 10% in the 2021 financial year to $461 million (£343 million). Sage attributed this to heavy investments into their cloud offering, which ate its profit margins. However, considering that the cloud is a growth market, this investment could see Sage stock perform well in 2023.

Analysts are pretty bullish on Sage, too, with the average target price now standing at GBP 836.25. That's quite a high target considering that Sage is currently trading at GBP 789.80.

Have you considered buying shares in Sage Group (SGE)?

3. Bunzl (BNZL) – Is a Target Price of GBP 2.83 realistic?

Bunzl is a multinational distribution company. Bunzl offers a range of products that can be used in food service and takeout environments. From packaging for fresh foods like produce or meats to disposable liners, their inventory will help companies in the food distribution business reach more customers.

In a highly volatile market for equities and other assets, Bunzl makes it to the list of best UK shares to buy for 2023 because it is a dividend-paying stock. This not only means that it has potential for capital growth but is also a fundamentally strong stock. This means it can preserve value even if the market underperforms.

Analysts are pretty bullish on Bunzl too. As per Zack's rating system, Bunzl has a buy rating. According to Zack's rating, Bunzl is a great company to invest in because it has been ranked among the top 20% for rewarding investors with good returns. The Zacks Rank #2 means that this stock will give you a higher ROI than most other stocks.

Overall, analysts expect Bunzl to trade at GBP 2.83, up from its current price of GBP 2.70.

Have you considered buying shares in Bunzl (BNZL)?

4. Kingfisher (KGF) – Analysts expect it to hit GBP 358.88 this year

Kingfisher is a company that offers home improvement products and services in the UK, and globally. It also has various other businesses such as property investment for those who want to make money off their homes by renting them, among other related services.

Kingfisher has benefited immensely from the property boom that started in 2020. Despite the central bank signals to an end to the pandemic of easy money, the UK property market looks pretty strong. This makes Kingfisher one of the best UK shares to buy for 2023.

Besides operating in a growing market, and recording massive growth in value, analysts still believe that Kingfisher is highly undervalued at current prices. Using the discounted cash flow method, analysts believe that Kingfisher is undervalued by up to 39%.

The same is evident in the relatively high consensus estimate for Kingfisher. The average analyst expectation for Kingfisher stock is GBP 358.88. That's pretty high considering that Kingfisher is currently trading a GBP 317.10.

Combining strong fundamentals and a bullish analyst outlook, there is every reason to believe that Kingfisher is one of the best stocks to buy for 2023.

Have you considered buying shares in Kingfisher (KGF)?

Read Also: 10 UK Shares To Buy In 2023 That Could Double Your Money

5. Land Securities Group (LAND) – Can LAND hit GBP 831.60 this year?

Land Securities Group is a company that specializes in developing properties for both commercial and residential use. They have been one of the most successful companies when it comes to their ability to generate income from investments. They were among the first companies that switched overall operations into REIT status back in 2007.

Like Kingfisher, Land Securities Group has got a boost from the UK property boom that started in 2020. With the UK property market still looking strong, Land Securities Group prospects look pretty good in 2023.

However, it is not just about the positive outlook in the broader market, internal fundamentals point to LAND as a good stock to buy for 2023, too. Insiders have been loading up on LAND over the last couple of months.  All through 2021, insiders bought £500k worth of LAND stock. The biggest insider purchase was by CEO and Executive Director Mark Allan, who bought £312k worth of the stock.

Analysts are pretty bullish on LAND stock, too. LAND has an analyst consensus estimate of BUY. The average analyst price target for LAND currently stands at GBP 831.60 against its current price of GBP 784.60.

With the fundamentals sound and optimism high, LAND is without a doubt one of the best UK shares to buy for 2023. 

Have you considered buying shares in Land Securities Group (LAND)?

6. Imperial Brands (IMB) – GBP 1.956 could be tested this year

Imperial Brands is a global player in the tobacco industry. They produce and sell their products across six continents, making it one of the most international companies. The primary reason why Imperial Brands is one of the best UK shares to buy for 2023 is its high dividends.

Not only does Imperial Brands pay a high dividend, but it also recently announced that it was increasing the amount that it pays out in dividends. Imperial Brands announced in November that it would be increasing dividends to £0.48, which would take the dividend yield to 8.8%.

Besides its high dividend rate, Imperial Brands is a pretty safe stock to hold now that inflation fears are high and interest rates could be going up. That's because the products that Imperial Brands sells have inelastic demand. This means even if the economy were to slow down, Imperial Brands could still perform well in 2023.

Analysts are quite bullish on Imperial Brands too. Imperial Brands has an analyst consensus rating of 2.3 which means it's a buy. The price expectations are pretty high too. The average consensus target for Imperial Brands is GBP 1.956. That's pretty high considering that Imperial Brands is currently trading at GBP 1.753.

All these factors make Imperial Brands one of the best UK shares to buy for 2023.

Have you considered buying shares in Imperial Brands (IMB)?

7. Segro (SGRO) – Can Segro hit GBP 1408.75 this year?

SEGRO is a UK-based real estate investment trust that invests in warehouses and light industrial properties. The company owns or manages 8 million square meters (88 thousand sq. ft.) worth over £13 billion.

Like other companies in the real estate market, Segro has performed well over the last two years. However, it is not just its presence in UK real estate that makes Segro one of the best UK stocks to buy for 2023.

Besides its presence in UK real estate, there is much more to love about Segro. Segro is currently in a drive to expand its operations to meet customer needs and grow revenues. 

Back in December, Segro announced that it had bought a portfolio of offices on the Bath Road, Slough for a total of £425 million. The acquisition gave Segro access to 89 thousand sq. m on 39 acres with an average yield of 4.6%. This means Segro is likely to record higher revenues going forward. By extension, this means a higher value for the company.

Besides the growing intrinsic value, analysts are pretty bullish on Segro too. Segro is currently trading at GBP 1,225, while analysts have given it a target of GBP 1408.75. This is a pretty high target and a good reason why the best UK stocks to buy for 2023.

Have you considered buying shares in Segro (SGRO)?

Check Out: Best Blue Chip Stocks UK In 2023

8. Hikma Pharmaceuticals (HIK) – A series of good news makes the GBP 30.72 price target achievable

Hikma Pharmaceuticals is a company that manufactures and markets generic, branded as well as in-licensed products. They have various delivery forms for patients, such as solid formulas/ Semi liquids and liquid injectables.

Hikma Pharmaceuticals has a lot going on this year that it can't miss among the list of best UK stocks to buy for 2023. For starters, Hikma Pharmaceuticals has started the year with a strategic acquisition.

The company recently announced that it has agreed to buy off the Canadian assets of Teligent for $45.75 million. The deal will be completed within Q1 of 2023. This is a big deal as it increases Hikma's short- to medium-term earnings potential.

On top of that, Hikma Pharmaceutical's investment arm is also leading a funding round for Nuvoair, a top digital health company. Nuvolari said it would use the money to expand its platform and team, to launch new clinical services. This is a big deal as it provides Hikma with value growth if its investment in Nuvoair turns out to be a success.

Hikma is also getting into a new line of business that could open up a new revenue stream in 2023 and beyond. Hikma's new sterile compounding business is focused on providing high-quality, ready-to-use medications that are designed to the individual needs of patients in America.

Besides such strategic investments, Hikma Pharmaceuticals has gotten some pretty good ratings from analysts. Hikma has a rating of 1.7, which means it is a strong buy. Analysts also expect Hikma to hit GBP 30.72 in 2023. That's pretty high when compared to its current price of GBP 27.73.

For all these reasons, Hikma Pharmaceuticals is without a doubt one of the best UK shares to buy for 2023. The odds are in its favour.  

Have you considered buying shares in Hikma Pharmaceuticals (HIK)?

9. Standard Chartered (STAN) – Is a Target Price of GBP 500 realistic?

Standard Chartered is one of the biggest banks not just in the UK but globally. Like other UK banks, Standard Chartered is expected to benefit immensely from a rising interest rates environment. The Bank of England and Central Banks in all major economies have announced that they intend to raise rates to help deal with the growing risk of inflation. Being a major UK bank, Standard Chartered is one of the best UK shares to buy in 2023.

Besides, Standard Chartered has been making moves that could help cut its cost in the medium term. For instance, since the pandemic started, Standard Chartered shifted 99% of its operations in South Africa into the digital sphere. The company stated that by 2025, the bank hopes to have at least 10 million customers and intends to leverage technology to drive growth.

Analysts have a pretty bullish outlook for Standard Chartered as well. The analyst consensus estimate for Standard Chartered is 2.1, which means it is a buy. Analysts also expect the stock to trade at over GBP 500, which is pretty high when compared to its current price of GBP 487.90.

With the banking industry expected to outperform the broader market this year, Standard Chartered is undoubtedly one of the best UK stocks to buy for 2023.

Have you considered buying shares in Standard Chartered (STAN)?

10. B&M European Value Retail S.A. (BME) – Analysts aim for GBP 632.67

The B&M European Value Retail S.A., which operates general merchandise and grocery stores in the United Kingdom and France under its Babou or Heron Foods brands has seen rapid growth over recent years. It now boasts 656 stores total.

B&M makes it to the list of the best UK stocks to buy for 2023 due to its strong fundamentals. With inflation pushing prices higher, B&M is likely to keep drawing new clients looking to do their shopping on a budget.

Analysts also believe that B&M is pretty undervalued at current prices. Using the two-step Discounted Cash Flow method, analysts believe that B&M is trading at a 9.8% discount. Considering how volatile the markets are at the moment, that's pretty huge and makes B&M one of the best UK stocks to buy now for a mix of safety and growth.

Analyst price predictions for B&M are pretty high too. They have given B&M an average price target of GBP 632.67. That's quite high considering that it is currently trading at GBP 545.80.

Have you considered buying shares in B&M European Value Retail S.A. (BME)?

Conclusion: What Are The Best UK Shares For 2023?

It is difficult to figure out, considering that everyone has different expectations from the stock market.

That said, with interest rates set to go up, things could get pretty volatile for UK shares in 2023. However, the stocks we have discussed above could outperform the market. Nonetheless, not everything we have mentioned in our list will fit the kind of trader you are.

High potential stocks for 2023 are mostly in real estate, tech services, and retail. If you have been in the market for a long time, you already know the potential these stocks present to investors.

However, if you are new to the markets, there is a possibility that you know very little about these stocks. Either way, you are safe because we have made sure to compile a list of potentially high ROI stocks regardless of your knowledge of the markets.

However, it would help if you still considered a risk level you are comfortable with. If you are a high-risk, high-return investor, you can consider B&M. Retail has lots of potential for growth, but it has its risks due to the rising inflation and the possibility of economic slowdown.

If tech and the potential it presents is what you find attractive, then you would find Sage pretty attractive.

For an investor that wants an element of stability and growth, real estate companies could be the best for you. The real estate market has been quite strong since 2020 and is likely to remain robust all through 2023.

Telcom and tobacco companies also offer good prospects for growth and stability throughout 2023. Their product demand is unlikely to be unaffected regardless of short-term economic changes. For this reason, BT Group and Imperial Brands are likely to be good bets for risk-averse investors in 2023.

On the other hand, if you are purely seeking value growth, and don't care so much about things like dividends, then Hikma Pharmaceuticals could be a pretty good bet. The stock has a lot going on in terms of product development and strategic investments. 

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How Can I Buy UK Shares?

Easy. Buying UK shares is a lot simpler today than it was in the past. As long as you have the following, you can get set up and trading in a matter of minutes:

Valid identification.

A sensible amount of money to trade.

An internet connection.

A willingness to learn.

If you want to buy UK shares in one of the companies listed above, you will need to use an online stock broker.

Step 1: Set up an account with a reputable broker

When we say, ‘reputable broker’, we mean one that is regulated! You can usually find this information at the very bottom of the broker’s page.

Typically, it will include the company’s full name, the organisation they are regulated by and their reference number.

Ideally, if you want to trade UK shares, you will want a UK-based broker because they will be able to offer you a more diverse range of UK shares and diversity is important if you want to profit and avoid risk.

And so, you should look for a broker that is regulated by the FCA (Financial Conduct Authority). 

Don’t just go with the first broker you come across, research them and learn what they offer. Look at the different account types, the market access they provide, platform they use and educational materials.

And as a rule of thumb, ignore the bonuses and other glitzy stuff. What you really want is a solid broker that doesn’t have to offer you a bonus because it’s known to be good enough already. 

Making decisions on such details may lead you to overlook more important things, such as fees and market access.

Once you’ve chosen a broker, you will need to set up an account and may need to submit some identification to prove who you are.

Ideally, even if your broker doesn’t request this at first, it is good to get this out of the way because you might need it to withdraw funds and it will be frustrating if they prevent you because you haven’t proven who you are.

Step 2: Make a deposit

Almost all brokers require you to make a deposit to finish setting up your account (though, some allow you to set up without a deposit).

Typically, they will have a minimum acceptable deposit which is typically not very much. Either way, you will want to deposit an amount that will allow you to trade effectively.

An important rule: don’t deposit money you need to survive! Keep that to the side. Only use money you are comfortable with losing if worse comes to worst. 

Step 3: Research the shares you want to buy

While there is a high chance that you probably already know which shares you want to buy, it is important to have some goals set up in regards to when you should enter and exit the market.

To do this you need to learn about the shares’ history (note how we looked into that for all the shares listed in this article above) and identify what potential they have, which can then inform you when to get in and out of the market.

When you are finally ready to start trading with the shares you want to buy, it is super important that you have a risk management strategy in place.

A great rule that many traders stick to is only invest between 1-2% of your trading account (the money you deposited in the previous step) in any trade.

Why do this?

Because your trading account will last longer, you will mitigate risk and you will stand a greater chance of compounding your earnings.

Great! Now you’re finally trading UK shares!

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