As investors fret about the latest lockdown and a second stock market crash, not every UK stock is suffering.
E-commerce has been the big winner from the pandemic, with many stocks surviving the stock market crash in relatively good shape. They may also benefit from lockdown 2.0, as the Government shuts more than 363,000 shops. I’d consider buying these two fast-growing UK shares that look better placed than most today.
People still have to eat in a pandemic, and if you are stuck at home, why not have the food brought to your door? Fast food delivery firm Just Eat Takeaway (LSE: JET) had fallen out of favour with investors before coronavirus, amid tough competition and concern over the wisdom of $7.3bn US acquisition Grubhub, but it’s flying again today.
Stock market crash survivor
The Just Eat Takeaway share price has recovered well from the March crash, jumping more than 50% from the lows of March. First-half earnings show demand surging in the spring lockdown, with revenues up 44% to €1bn. After years of rapid growth, and the Just Eat merger with Takeaway.com, the group is now a sizeable FTSE 100 company with a market cap of almost £13bn and international reach. Its latest results show the UK, Germany, Canada, Netherlands, Australia and Brazil performing particularly strongly.
The big question is whether it cracks America with Grubhub. If it does that, its share price could have much further to climb. Earnings are already forecast to rise 118% next year, and the pandemic is driving growth. You must be willing to pay a premium price though, in return for security against the next stock market crash.
Covid-19 has been a perfect storm for bricks and mortar fashion retailers. Shuttered stores, falling demand and squeezed incomes have wreaked havoc. Online fashion retailer ASOS (LSE: ASC) benefited from the first of these challenges and shrugged off the others, despite declining sales for formal and special occasion wear.
Its share price slumped to a low of 1,095p during the stock market crash in March, but today stands at a mighty 4,593p. That’s a rise of more than 300%.
I’d buy top stocks to retire early
Last month, ASOS reported picking up 3m million new customers this year, lifting its active base to a mighty 23.4m. Pre-tax profits jumped 329% to £142.1m. Sales both in the UK and internationally grew strongly. The big question now is how well disposable incomes among younger customers survive the expected jump in unemployment.
Despite the ASOS share price surge, it isn’t massively expensive, trading at 35 times forward earnings. It looks better placed to survive the next stock market crash than many UK shares and I would consider buying it as part of a balanced portfolio to get rich and retire early.
Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS and Just Eat Takeaway.com N.V. 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.