FTSE 100 shares: 2 UK growth shares I’d buy in 2021 and hold in an ISA forever

Royston Wild is put off by the uncertain economic outlook, but still wants to buy UK shares. Here are two top-quality FTSE 100 stocks he’d buy for his own ISA today.

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The outlook for the global economy remains as clear as mud. The Covid-19 crisis continues to intensify and fears over the economic recovery keep on growing. A lot of UK shares continue to tread on shaky ground, then.

Stock investors need to remain extremely careful. But they shouldn’t run for the hills. There are plenty of quality UK shares on course to deliver brilliant shareholder returns in 2021 and beyond. Here are two I’d happily buy for my Stocks and Shares ISA today:

#1: Just Eat Takeaway

The advent of new technology allowed the global takeaway market to balloon during the last decade. Lockdown restrictions in the wake of the Covid-19 outbreak have given the food delivery specialists an extra shot in the arm. It’s a phenomenon that Just Eat Takeaway (LSE: JET) illustrated in its financials last week.

Then it advised that orders growth accelerated for the third consecutive quarter between October and December. In that period orders in its UK territory rocketed an eye-popping 387% year on year, too. I’m confident that the UK stock will continue to thrive long after the pandemic has passed as well. Just Eat is increasing investment in marketing, logistics, and technologies to drive future growth, and is steadily ramping up the number and range of restaurants on its platform.

This is why City analysts reckon Just Eat will record earnings growth of 24% in 2021. They think profits will more or less double in the following 12 months too. This FTSE 100 business trades on a high forward price-to-earnings (P/E) ratio of around 105 times. But I think its bright long-term growth outlook merits such a mighty premium.

Screen of price moves in the FTSE 100

#2: Prudential

Life insurance colossus Prudential (LSE: PRU) is a UK share I already own in my Stocks and Shares ISA. And at current prices I’m temped to increase my holdings. As I type the FTSE 100 stock trades on a forward P/E ratio of just 12 times.

You might look at ‘The Pru’s’ earnings forecasts for the medium term and fail to be blown away. I wouldn’t blame you to be honest. For 2020 and 2021 City analysts are forecasting earnings growth of just 6% and 2% respectively. But don’t be put off by these meagre projections. The Asian life insurance market is going to soar in the coming decades as wealth levels grow and the continent’s rapidly-growing population steadily ages.

Management consultancy Oliver Wyman says that gross written premiums in Asia Pacific grew at a compound annual growth rate of 5% between 2008 and 2018, more than double the global rate of 2%. And premiums grew 10% in developing Asian regions like China, Indonesia, and the Philippines, regions in which The Pru has significant exposure.

The boffins at EY Club reckon that Asia will account for 50% of global gross written premiums by the end of this decade. And Prudential, with its industry-leading product ranges, its broad continental footprint, and its unbeatable reputation, is in the box seat to ride this theme. I plan to hold this UK stock for many years to come.

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.

Royston Wild owns shares of Prudential. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. and Prudential. 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.

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