3 of the top UK shares I’d buy for 2021 and beyond

Why I think these three top UK shares have the potential to deliver rock-solid growth in my portfolio. I’d buy and hold them for the next decade.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I think these three top UK shares have the potential to deliver rock-solid growth in my portfolio for 2021 and beyond.

IT infrastructure services

The FTSE 250’s Computacenter (LSE: CCC) provides information technology infrastructure services. The business has been expanding. And the company has a long record of balanced growth in revenues, earnings and operating cash flow.

The share price has risen by around 360% over the past 10 years. And I think that performance reflects the dependable nature of the steady growth in operations. Looking ahead, I reckon the firm has a good chance of performing well over the coming decade.

On 10 December, the company released an update describing good trading in the second, third and fourth quarters of the year. The outcome was better than the directors expected, so they upgraded the outlook. I’m always encouraged when a company upgrades its expectations.

City analysts expect a double-digit increase in earnings for full-year 2020 and a flat outcome next year. Meanwhile, with the share price near 2,300p, the forward-looking earnings multiple for 2021 is just below 20. I’d buy some of the shares and hold them for the long term.

Food

Also in the FTSE 250, UK food producer Cranswick (LSE: CWK) reported its half-year results in November. The strength of the business reflects in the way the company continued trading through the pandemic “without recourse to any government assistance.”

The company has delivered balanced growth in revenue, earnings, operating cash flow and the shareholder dividend over several years. And the share price has risen by just over 310% to reflect that progress over the past decade.

But I can see no reason why the business shouldn’t keep expanding over the coming years. Recently, for example, the company has been in discussions regarding a potential bolt-on acquisition. City analysts expect further incremental increases in the shareholder dividend for the current trading year to March 2021 and for the following year. And with the share price near 3,562p, the forward-looking earnings multiple is just over 19 for next year.

Cranswick is a quality business with a strong record of trading success and growth. I’d buy the stock and hold for the next chapter in the evolution of the enterprise.

Soft drinks

In the FTSE Small Cap index, I like soft drinks supplier AG Barr (LSE: BAG). The sector has defensive properties and the company’s brands such as Irn-Bru, Tizer and Rubicon support the business.

However, the Covid-19 pandemic and the lockdowns it brought, did affect profits. And the share price remains depressed from its levels in 2019. But I reckon the business is a strong candidate for surviving the crisis and for making a robust recovery as the pandemic fades.

With the share price near 505p, the forward-looking earnings multiple for the trading year to January 2022 is 21. But there’s potential for recovery and growth in earnings beyond next year and AG Barr has a strong balance sheet to help it weather the Covid storm. I’d buy some of the shares to hold through the coming turnaround and beyond for growth over the next decade or so.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended AG Barr. 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.

More on Investing Articles

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Just released: Share Advisor’s latest ‘Hold’ recommendation [PREMIUM PICKS]

In our Share Advisor newsletter service, we provide buy, sell, and hold guidance for our universe of recommendations.

Read more »

Investing Articles

Investing £5 a day could help me build a second income of £329 a month!

This Fool explains how £5 a day, or one less takeaway coffee, could help her build a monthly second income…

Read more »