UK share markets are back in retreat in Monday business. A fresh Covid-19 spike in China is the newest thing to fray investor nerves in what has proved to be a turbulent start to 2021.
The outlook for the global economy remains fraught with danger. But it wont stop me as a UK share investor from continuing to buy for my Stocks and Shares ISA. There are still plenty of stocks that should thrive in 2021 despite the ongoing Covid-19 crisis. Here are a couple Id happily buy for my own shares portfolio today.
#1. Naked Wines
The retail sector outlook remains pretty murky as weak economic conditions weigh on consumer confidence. But Naked Wines (LSE: WINE) is a UK share I’d happily invest in with my own hard-earned cash in an ISA.
The alcohol vendor has two significant feathers in its cap that should allow it to keep growing profits. Firstly, Naked Wines has a sophisticated online-only model that will allow it to latch on to rocketing e-commerce activity to the max. Indeed, the longer Covid-19 lockdowns last, the better this particular share is likely to fare.
Secondly, history shows us that sales of alcoholic drinks actually rise during periods of extreme economic and social upheaval. Fresh research from Mintel suggests that the alcoholic drinks sector grew at its fastest rate for a decade in 2020. Sales here rose 16.3% last year, it estimates, while broader UK consumer spending dropped around 15% year-on-year.
It’s a trend that Naked Wines has witnessed across all its markets of the UK, US and Australia. And it propelled revenues 80% higher at the business in the six months to September, latest financials showed. This UK share rocketed 200% in value in 2020, and I’m expecting it to soar again in 2021.
#2. Begbies Traynor
Insolvency specialist Begbies Traynor Group (LSE: BEG) rose by a much, much more modest 2% during the course of last year. But I think the market has missed a trick here. The insolvency services specialist released a string of very strong trading updates during the course of 2020. And I’m expecting trade to get a lot busier at this UK share as the domestic economy struggles.
Indeed, a report from the Federation of Small Businesses (or FSB) released today illustrates the catastrophe coming down the tracks for British business. The body predicts that a shocking 250,000 small businesses will fold in 2021. Its Small Business Index shows business confidence has plummeted amid a mix of Covid-19 pressure and Brexit disruption.
Latest financials from Begbies Traynor in December illustrated the growing strain on these companies. The UK share said that revenues were up 11% in the six months to October. And it reported an “increased order book of committed future insolvency revenue” too. This is one UK share that should remain robust despite the tough economic outlook.
Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.
Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.
The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.
But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of Naked Wines. 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.