2 brilliant UK shares I’d buy today

The FTSE 100 has had a strong year. Nonetheless, I still see plenty of value in UK shares right now. 

While this year has produced spells of volatility, that’s inevitable in the stock market. Looking at the bigger picture, I think UK equities could be primed to soar in the years ahead. 

The FTSE 100 currently has an average price-to-earnings (P/E) ratio of 11. That’s lower than its historical average of between 14 and 15. 

I especially like the look of these two. If I had the cash, I’d add them to my portfolio today. 

JD Sports Fashion

First is JD Sports Fashion (LSE: JD.). Its shares have disappointed this year. They’re down 3.7%. That said, the stock is up 16.2% in the last six months and 14.3% in the last month. After a poor start to the year, it is gaining good momentum. 

Even despite that rise, I still think the stock looks like good value for money. It trades on a P/E ratio of 14.8. That’s considerably less than it’s historical average of 23. 

Its share price had a poor start to the year due to tough trading conditions. Sales had experienced a major downturn and as such the firm issued a profit warning. Spooked investors rushed to offload their shares. In the months to come, this will continue to be a threat to the firm as consumers watch their spending habits and trading conditions remain difficult. 

However, looking past that, I think JD Sports Fashion could thrive over the long run. To start, interest rate cuts should lead to a pick up in spending. What’s more, the company has been making solid progress with its plans for expansion. It is aiming to open 200 stores this year and has also begun to focus more on international expansion. As part of this, it recently acquired US company Hibbett earlier this year, which has over 1,100 stores across the pond. 

NatWest

Unlike JD Sports Fashion, NatWest (LSE: NWG) has had a brilliant year. The stock has been on a tear. Year to date, it’s up 55.9%. 

That blows the FTSE 100’s return out of the water. However, even after rising, I think its shares still look cheap. 

They now trade on a P/E of 7.1. In my eyes, for a business of NatWest’s quality, that looks dirt cheap. Its forward P/E is 7.8. 

I also like NatWest for the passive income on offer. Its dividend yield sits at 5%, covered over two times by earnings. Last year, the bank upped its payout by 26% to 17p per share. 

I’ve also been impressed by its performance in recent times. Profit for the second quarter climbed by over 25% to £1.3bn. In its latest update, NatWest also announced it had acquired a portfolio of prime UK residential mortgages from Metro Bank for £2.5bn. 

The largest threat I see to the firm is falling interest rates. While they’ll boost investor sentiment, they’ll shrink NatWest’s margins, which will dent its profits. 

But with momentum on its side, as well as its low valuation, I like the look of NatWest. 

The post 2 brilliant UK shares I’d buy today appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.