The Covid-19 outbreak has created huge problems for the global economy that will likely linger for years to come. The profits outlooks of many UK shares have taken an almighty battering and balance sheets have come under extreme pressure. With infection rates still surging, stock investors need to be extremely careful before taking the plunge.
That’s not to say we should stop investing altogether, though. There are still plenty of UK shares that could make us a fortune in the short-to-medium term.
3 of the best
Here are three top UK shares I’m thinking of adding to my own Stocks and Shares ISA today:
- Soaring video game sales make Codemasters Group Holdings a highly attractive growth share, in my opinion. Games demand has rocketed in recent years and has received an extra lift from recent Covid-19 lockdown measures. This helped the UK share’s revenues double between April and September, to £80.5m. But it’s not the only reason, as the launch of popular titles like Project Cars 3 also drove turnover. Codemasters can rely on its strong back catalogue to attract the attention of gamers and keep pushing sales skywards for years to come, too. City analysts reckon earnings here will soar 134% in the current fiscal year (to March 2021).
- As a Unilever investor, I was encouraged by recent comments from executives at Procter and Gamble. They implied that strong demand for cleaning and personal hygiene products is here to stay following the Covid-19 outbreak. With heavyweight labels like Lifebuoy soap, Persil washing powder, and Domestos bleach it’s a phenomenon that FTSE 100-listed Unilever is well placed to exploit. The UK share enjoyed a better-than-expected 4% rise in underlying revenues during quarter three, a performance built in large part on “elevated levels of growth for hand and home hygiene products”. I think Unilever’s a brilliant pick for investors like me, seeking growth shares in this uncertain economic climate. It’s one that I intend to hold forever.
- Surging demand for self-storage is another white-hot trend that could make UK share investors rich in the 2020s. Britain has the largest self-storage market in Europe and Safestore Holdings is the biggest operator with around 160 stores. The company continues to aggressively expand to maximise its profits opportunities too. Latest financials showed turnover rose 5% in the third quarter at constant currencies. And supportive long-term trends surrounding births, deaths, divorces, and house moves, to name just a handful, suggest that the revenues should keep on rolling in. Broker forecasts suggest that Safestore’s annual earnings will rise 12% in the year ending October 2020 and a further 5% in financial 2021.
Getting rich with UK shares
Safestore et al are just a few of the top growth stocks that should deliver exceptional shareholder returns despite the economic downturn. There are stacks and stacks of other UK shares like these, that I think could boost my chances of getting seriously rich during the 2020s.
Royston Wild owns shares of Unilever. The Motley Fool UK has recommended Unilever. 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.