The best UK stocks to buy in February 2024

UK stocks have had a difficult start to the year. The FTSE 100 index has retreated by more than 1% this year while its American peers like the Nasdaq 100 and S&P 500 indices have surged to a record high. 

Most companies in the index have retreated this year, with the top laggards being JD Sports, Ocado, Endeavour Mining, and Airtel Africa. All these stocks have fallen by more than 15%. This article will look at some of the best UK stocks to buy in February.

Flutter Entertainment

Flutter Entertainment (LON: FLTR) share price has jumped by over 16% this year, making it the best-performing company in the FTSE 100 index. This surge happened after the company completed its listing in New York, where it expects to get a better valuation. Historically, companies listed in the UK always trade at a discount to their American peers.

Flutter Entertainment is also considering changing its primary listing to the New York one, a move that will see it removed from the FTSE 100 index. Still, Flutter is a good investment in February for three main reasons.

First, the company has a large presence in the United States, where its Fanduel business has a substantial market share. It is still a bigger brand than DraftKings, a publicly traded company valued at over $18 billion. Therefore, Flutter will likely do well because of the upcoming Super Bowl event.

Second, the company will likely do well as investors watch the ongoing transition of the company from the UK to the US. Finally, Flutter is still one of the biggest companies in an industry that is growing exponentially internationally. 

Sage Group

Sage Group (LON: SGE) has silently grown to become one of the best-performing FTSE 100 companies. Its stock has surged by more than 150% from its lowest point in 2020. The FTSE 100 index has barely risen in this period. 

Sage has grown because of its strong revenue and profitability growth. It also has a sticky business model where customers rarely shift to its competitors. Also, while it is a British company, it still makes most of its money around the world. 

Sage stock has stalled recently but a look at its weekly chart shows that it has formed a bullish flag pattern, which is a popular continuation pattern. Therefore, there is a likelihood that the stock will bounce back ahead of its earnings in March.

Wise PLC

Wise (LON: WISE) is another important British company that has the potential to bounce back in February. Like Sage, the stock has stalled recently as some investors start taking profits since it was up by more than 183% from its lowest point during the pandemic. 

Wise, one of the biggest British fintech companies, has more room to run as the number of customers and transactions rise. Most importantly, it is benefiting from the ongoing interest rates environment since it has billions in customer deposits. 

The likely catalyst for the Wise share price in February will be a corporate presentation at the Goldman Sachs European Technology Conference on Feb 21st,