Are these the best UK shares to watch in September 2024?

In autumn 2024, the UK’s economic landscape continues to deliver a mixed outlook. After the country slipped into a technical recession at the back of end of last year, the UK economy has now bounced back — with gross domestic product (GDP) rising by 0.5% since January.

For context, consumer price index (CPI) inflation fell, reaching its target figure of 2% in May, down from a high of 11.1% in October 2022. As a result, The Bank of England cut interest rates by 0.25 basis points to 5% on 2 August, the first rate cut there’s been in over 4 years.

Since then, inflation has risen to 2.2% as last years cheaper energy prices fall out of annual comparison. Whilst further interest rate cuts are likely in the coming months, there’s some concern inflation may continue to creep up. If this happens rate cuts will be less frequent and by fewer basis points.

Best UK shares to watch

Considering these issues, here are five UK shares we think are worth watching. These dividend, growth or value shares have been selected from recent market news. Always do your own research. Past performance is not a guide to future performance.

1. British American Tobacco

2. HSBC

3. Bloomsbury Publishing Group

4. hVIVO

5. Aviva

Top dividend stocks

British American Tobacco

British American Tobacco saw a 0.8% drop in revenue for the first half of this year, and sales of traditional cigarettes decreased by 2.6% as volumes in the US, their main market, are down 9% and the company fights to maintain their market share.

Despite the small, single figure drop in revenue and sales, the company has made no change to their full year guidance and expects to grow in the final half of the year, as they see the benefits of H1 investments and introduce new or improved new categories products onto the market.

However, these New Category products which helped to offset lower revenues from traditional combustibles, have come under increased scrutiny with the UK announcing a ban on disposable vapes and imposing a vape tax. Profit margins may be hit as this new legislation comes into place.

Following their recent H1 results shares were up 2.8%. Further gains are possible and the company’s substantial dividend of 58.88p per share is a key attraction.

Our analysts view the stock in a buy rating with a price target of 2865.00p, in the next 12-month period, up 3.83% from its current price.

Dividend yield: 8.54%

Dividend cover: 1.59

HSBC

During Q2 HSBC Holdings brought in a revenue of $16.5 billion, up 5% year-on-year. Profit before tax increased also increased and was up 7% reaching a total of $8.9 billion. This exceeded analyst expectations of $7.8 billion. Net interest remained flat.
The company’s strong performance can mostly be attributed to the Wealth and Investment Banking parts of the company and the fees they charge.

On top of this, HSBC have recently announced an interim dividend of $0.10 per share and a $3 billion share buyback.
As of 2 September current CFO Georges Elhedery will take over as CEO, as CEO Noel Quinn retires. Given the many years Georges Elhedery has worked for the bank, the markets have taken to this news positively, viewing this decision as a sign of continuity.

With global interest rates on their way down and the possibility of fresh tensions between the US and China, Georges Elhedery will face some difficult challenges within his first few months as CEO, and it’ll be interesting to see the impact this will have upon future dividend payments.

Our analysts have given the stock a buy rating with a price target of 797p in the next 12—month period.

Dividend yield: 7.06%

Dividend cover ratio: 1.89

Top growth stocks

Bloomsbury Publishing Group (LON: BME)

Publishing house Bloomsbury have reported a strong start to FY25 and remain on track to bring in pre-tax profits of £37.6 million and a revenue of £319.3 million by the end of the financial year. This is in line with market expectations.

Throughout the past 4 months, the company have seen high sales in a number of popular books, including the Harry Potter series, which has consistently provided revenue since it was first published 26 years ago.

Growth was also driven by Bloomsbury’s recent acquisition of Rowman & Littlefield’s academic publishing business, which has doubled Bloomsbury’s number of academic titles, making the publishing house one of the largest publishers in America.

Following these recent successes, the company has upped their revenue target for 2027/28 to £41 million as they anticipate further growth.

The stock is currently in a buy position with an average price target of 753p, up
5.76% from its current price.

hVIVO (LON:HVO)

The contract research orginisation responsible for flu camp hVIVO, has just reported its strongest H1 to date. The company brought in a revenue of £35.6 million, up 30.6% year-on-year. Earning margins have also increased reaching 24%, up from 19.1% the previous year.

Following this announcement the company has confirmed that they’re on track meet their full year guidance and bring in a revenue of £62 million. Annual EBITDA margins are also expected to be in line with market expectations.
Going forward, hVIVO anticipate that they’ll continue to grow and set a target revenue of £100 million by 2028.

Top value stocks

Aviva (Lon:AV)

Over the past 4 years, Insurance provider Aviva has delivered impressive returns for investors, due to its successful cost-cutting and rationalisation efforts.

Their strong performance has continued into 2024 as their H1 earnings reported a 14% increase in operating profit compared to the year before, reaching £875 million. The companies Wealth & Retirement and UK & Ireland General Insurance parts of the business drove the majority of this growth.

Aviva’s solvency II ratio 205% indicates the company has enough capital to meet its requirements.

With interest rates having peaked, Aviva’s solid dividend is likely to attract investors. Due to its strong performance, the company have increased its interim dividend by 7% to 11.9p per share.

Our analysts have given the stock a buy rating with a price target of 555p in the next 12—month period, up 11.86% from its current price.

How to invest or trade in UK shares with us

1. Learn more about UK shares

2. Open an account with us or practise on a demo

3. Select your opportunity

4. Choose your position size and manage your risk

5. Place your deal and monitor your trade

You can either invest in shares directly or trade using spread betting or CFDs to benefit from leverage.

Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.

Learn more about the differences between trading and investing here.

Top shares to watch summed up

The above five companies are just a small selection of top stocks to watch. Remember that any company can also fail and always do your own research.

Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.

*Based on revenue excluding FX (published financial statements, October 2021).