As we head into autumn, I’ve been eyeing global markets to see what UK shares look attractive this month. There are plenty of moving parts right now. Tariff uncertainty remains a key driver of sentiment, while concerns about the US Federal Reserve’s next steps continue to weigh heavily on investor confidence.
For UK investors, this mix of uncertainty and opportunity creates fertile ground. I’ve picked out three UK shares that I think strike an interesting balance between growth potential and defensive appeal.
The Fresnillo (LSE: FRES) share price gained a hefty 30% in August as gold and silver prices surged. That kind of jump is difficult to ignore. With investors increasingly looking for safe-haven assets amid uncertainty around US Federal Reserve policy, this trend looks like it could continue.
Fresnillo is no small operation. It’s the world’s largest producer of silver from ore and Mexico’s second-largest gold miner. Revenue is up 35% year on year to £3bn, while earnings climbed an impressive 78.5%.
That said, valuation is becoming a concern. With a forward price-to-earnings (P/E) ratio of 19.4, the stock isn’t exactly cheap. If gold and silver prices were to retreat sharply, the Fresnillo share price would likely come back down just as quickly.
Still, in an uncertain global environment, I think the attraction of safe-haven assets means Fresnillo is worth considering.
Tritax Big Box (LSE: BBOX) is a real estate investment trust (REIT) specialising in warehouses and logistics. It may not sound exciting, but the future looks increasingly bright for this niche sector. Rising demand for data centre facilities is expected to give earnings a healthy boost, while easing interest rates are helping property valuations recover.
At today’s prices, it trades at around a 20% discount to net asset value (NAV). On top of that, it offers a dividend yield of 5.7%.
However, Tritax is vulnerable to property cycles and much of its revenue relies on a few large clients. Losing one large client could seriously dent its profits.
But it does have a strong land bank that benefits from favourable logistics market dynamics. I think it’s worth considering as a means to tap into local AI-related growth without chasing speculative US tech stocks.
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For something a little different, Agronomics has been catching my eye. This penny stock is an investment group specialising in cellular agriculture — think lab-grown meat and animal-free dairy products. It’s an ambitious bet on what could become a transformative industry.