3 top UK shares to buy for August

Private investor buying UK shares at home

I think the following UK shares are all top stocks to buy for August. Let me explain why.

A top FTSE 100 stock to buy

WPP (LSE: WPP) could be one of the best FTSE 100 stocks to buy next month. The UK media share is due to release half-year results on Thursday, 5 August. And recent newsflow suggests to me that a barnstorming release could be in the works that could send its share price soaring. After all, excellent trading news from IPG lifted WPP’s industry rival to its most expensive for around 20 years last week.

The Footsie advertising agency really has the wind in its sails right now. Marketing budgets are rising at a tremendous pace as the world vaccinates itself out of the Covid-19 crisis. And so demand for WPP’s services is growing strongly.

Most recent financials in May showed the company’s like-for-like sales rise 6.3% between January and March. While WPP operates in massively-competitive markets, I think its scale, and an improved focus on digital media, should still deliver big profits in the near term and thereafter.

macro shot of computer monitor with FTSE 100 stock market data in trading application

Another great UK share for August

Halfords Group (LSE: HFD) is one of many UK shares which is suffering from severe supply chain issues right now. A combination of global container shortages, Covid-19 travel restrictions and Brexit trade rules are causing havoc for many British companies. This FTSE 250 firm admitted that “acute” supply pressures at its Cycling division are affecting its trading outlook.

Despite these problems, I’d still buy Halfords for my Stocks and Shares ISA. Cycling in the UK is enjoying a boom right now, with leisure cycling up 60% over the past two years in certain places. It’s a phenomenon which this one-stop-shop for bikes, cycling accessories and cycle servicing is well-placed to exploit. I expect the popularity of pedal power to keep growing too, as awareness around the environment and personal health grow.

Huge government investment in cycling infrastructure and schemes like Cycle to Work, which allow workers to buy bikes and accessories at a lower cost, will also keep sales at Halfords rising nicely.

Power play

Demand for renewable energy stocks is soaring as responsible investing becomes increasingly popular. One UK share I’m thinking of buying to ride this theme is power station builder ContourGlobal (LSE: GLO).

This FTSE 250 company has commented that “we see our future in renewable energy and low-carbon thermal production” and in recent years has committed to no longer constructing coal-fired plants.

ContourGlobal currently operates 85 renewable energy assets across Europe and Latin America. And I’m expecting its geographic footprint to grow as it services the rising power needs of an increasing global population.

I think it’s a top UK stock to buy despite a broad range of significant project execution risks that can cause delays and unexpected costs.

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Royston Wild 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.