It’s clear that the Covid-19 crisis will pose huge challenges for the global economy for years to come. It means, by extension, that UK share investors need to be careful before taking the plunge. Even some of the biggest British companies are vulnerable to a slump in the global economy.
The coronavirus outbreak doesn’t mean that stock investors can’t still make exceptional returns in the years ahead, though. Many UK shares offer a wide margin of safety at current low prices, too, providing peace of mind to even the most nervous investors. There are plenty of London-quoted stocks whose robust balance sheets should help them ride out the global recession.
3 great stocks for ISA investors
Many eagle-eyed investors have, in fact identified a number of UK shares which should thrive in a post-Covid-19 world. We’re talking about online retailers, for example, and those involved further down the e-commerce chain. Many IT service providers are also great picks like those that offer cloud computing solutions to the growing number of home workers. The list goes on.
Give me a few minutes to talk about three of these top growth stocks that are on my personal ISA watchlist:
- Reckitt Benckiser Group is an ideal UK share for risk-averse investors to buy. The exceptional brand power of essential household products like Dettol disinfectants and Harpic bleach drive earnings higher even during recessions. Rising hygiene standards following the Covid-19 breakout have boosted demand for the FTSE 100 firm’s products like these, too. And this is a trend that’s here to stay as people the world over try to protect themselves against future pandemics.
- Hargreaves Lansdown is a FTSE 100 firm whose profits will likely rise as an indirect consequence of Covid-19. Why? Well more Bank of England interest rate cuts have reduced the returns on offer from traditional savings accounts to a pitteance. This means that financial services providers like this UK share will become more and more popular as Britons seek out decent returns on their savings.
- Softcat’s in great shape to profit from the rise of homeworking, too. This IT giant doesn’t just offer cloud computing infrastructure to remote workers. It also provides others services like data management and cyber security which should spike in popularity as flexible working becomes the norm. Oh, and this tech play partners with some of the world’s biggest blue chips, providing it with solid near-term visibility too.
Becoming financially independent with UK shares
These are just a few of the exceptional UK shares that should thrive in a post-Covid-19 landscape. And The Motley Fool’s huge catalogue of exclusive reports and special articles can help you find even more. Many of these shares trade at rock-bottom prices following the 2020 stock market crash. They could help you make a fortune once share prices rebound and possibly even help you achieve financial independence.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown and Softcat. 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.