The Motley Fool

5 UK shares I think could double

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.

Twenty pound notes in back pocket of jeans
Image source: Getty Images.

Every year, some UK shares double in price. It can be frustrating, looking back and seeing well-known names that have done so well but in which one didn’t invest. I have been sifting through the UK stock market lately. Here are five shares I think could double from their current price.

Shares poised for recovery

While many shares recovered ground lost in 2020, a lot of stocks are yet to approach their pre-pandemic levels.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Take Lloyds for example. The bank has reported decent results in its latest quarter, showing a recovery from the pandemic impacts. The dividend ban imposed by the Bank of England has been lifted, which could lead to payouts in 2021. Yet Lloyds continues to languish around 35p. I recently bought into these UK shares, which I think can double once the markets feel comfortable that banking has not been holed below the waterline by the crisis.

Speaking of waterlines, maritime contractor Babcock is another name I have bought on sustained weakness. Not only has it stayed profitable throughout the pandemic – albeit at a reduced level – it also has a strong forward order book. With clients such as the Royal Navy, I expect the company to stage a strong recovery. Its shares did rally strongly in November but have fallen again since then. I see now as a good time to buy the name, which if it doubled would still sit below its price a year ago.

A slightly more contrarian pick among UK shares is Photo-Me. Lockdowns and reduced retail footfall have heavily hit the company, whose machines are often located in retail areas. There’s more to the company than its eponymous photo machines, though. In fact it has been reducing its estate of underperforming machines, while ramping up its business of laundromats. I like that business strategy. Meanwhile, its chief executive has bought heavily this year, on dozens of occasions. Trading about half down on where it stood last January, I think this is another UK share that could double so it’s on my watchlist.

These UK shares are growth stories

As well as value plays, I think there are some growth shares which could double. I picked digital ad agency S4 Capital as my share of the year. So far in January, its acquisition trail has included signing on two American agencies. This week it announced a new merger in China. With growing critical mass, I see an agreeable future for S4 Capital. Its shares more than doubled in 2020. I believe they can double again from here.

Longer term, I am looking into pizza chain Domino’s Pizza. The high street pizza purveyor trades at around the same price it did five years ago. But it has changed a lot in the interim, exiting less profitable European businesses. Its core UK and Irish business continues to perform well, with lockdowns providing more custom. The company is on a long journey of streamlining its business and focussing on its best market. Since I’m a patient investor, I think it is worth a closer look.

Is this little-known company the next ‘Monster’ IPO?

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.

Click here to see how you can get a copy of this report for yourself today

christopherruane owns shares of Babcock International Group, Lloyds Banking Group, and S4 Capital plc. The Motley Fool UK has recommended Domino's Pizza and Lloyds Banking Group. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.