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Should I buy these 2 UK shares in a Stocks and Shares ISA in February?

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UK share markets continue to struggle to turn in a strong recovery as the Covid-19 crisis rolls on. Take the FTSE 100 for instance. After a false start to 2021, buying interest on Britain’s premier share index remains quite insipid.

This broad risk-aversion is a crying shame in my opinion. This is because there are plenty of UK shares that should deliver terrific shareholder returns, regardless of the ongoing pandemic.

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Housing market headaches

I don’t fancy investing my hard-earned cash in Foxtons (LSE: FOXT) though. The stamp duty holiday has helped drive house prices to the stars during the Covid-19 crisis. It’s possible that the scheme could be extended beyond March to stop homebuyer demand falling off a cliff too. But the government is so far resisting calls for a lengthening of the scheme, posing a huge threat to Britain’s estate agents.

A new report by the Royal Institution of Chartered Surveyors (RICS) shows how the housing market is already beginning to freeze up. It showed new buyer enquiries in January falling for the first time since mid-2020. New listings and sales also dropped off last month, RICS said.

Fresh Covid-19 lockdowns have hit sales in recent weeks, along with the imminent expiry of the stamp duty holiday. And conditions at UK shares like Foxtons are likely to remain tough as the British economy struggles and mortgage lenders keep low-deposit products off the market. This explains why City analysts expect this estate agent to remain loss-making in 2021.

A UK share I’d rather buy in my ISA

I’d be much happier to buy GB Group (LSE: GBG) for my Stocks and Shares ISA today. I already have exposure to the e-commerce segment thanks to my holdings in box-maker DS Smith and warehouse and logistics specialist Tritax Big Box. But Royal Mail’s impressive trading update last week has whetted my appetite for more plays on the online shopping theme. The courier said that it had enjoyed its best-ever quarterly performance for parcels at the end of 2020.

Man using credit card and smartphone for purchasing goods online.

GB Group provides address and identity verification services to help e-tailers and product manufacturers get their parcels to their customers. It’s therefore thriving as more and more parcels wing their way across the globe. This UK share has a whopping 20,000 clients spanning some 70 countries.

Latest financials showed adjusted operating profit soared almost 25% in the six months to September. And I expect demand for GB Group’s services to keep rising thanks to the twin pillars of e-commerce and the growing threat of fraud.

Be warned, though, that a bumpy economic recovery could hit consumer spending levels and consequently parcels traffic. GB Group could also suffer if tough conditions prompt clients to postpone making investment decisions. And the UK share’s high valuation could prompt a sharp share price drop if trading does indeed begin to disappoint. Today GB Group trades on a forward price-to-earnings (P/E) ratio of 45 times.

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Royston Wild owns shares of DS Smith and Tritax Big Box REIT. The Motley Fool UK has recommended DS Smith and Tritax Big Box REIT. 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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