10 UK shares I’d buy in 2021 to double my money

Pandemic-hit UK shares will see better times ahead as vaccines become available. Manika Premsingh is looking at 10 she thinks can double her money now. 

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The coronavirus vaccine is here, and so is a stock market rally. Big gainers from this are lockdown-impacted stocks. So far, however, their run-up has been hesitant. Share prices rise sharply one day, only to pull back the next. It’s quite possible that investors see price increases as a good time to exit affected UK shares.

If I wasn’t sure of their future, I’d sure cut my losses or sell off to break even or make a small profit. But with the future more predictable now, I think a steadier build up in these stocks can happen. In fact, I think there are at least three sectors and 10 stocks that can double my money if I buy today:

#1. Travel and related UK shares to benefit

Travel will benefit big time from widespread use of coronavirus tests and Covid-19 vaccines. Airlines like IAG, easyJet, and Wizz Air should be big beneficiaries from this. Suppliers to aviation, like Rolls-Royce should also benefit from demand increase. 

But it’s hardly just aviation that benefits. Companies related to road transport like Stagecoach and National Express will benefit too. As an investor in National Express, I have been watching this one stock with special interest. Despite not-half-bad updates, its share price has remained stubbornly low compared to where it started the year, because of a generally gloomy environment. I reckon this will change soon. Indeed, it’s already changing. If I had bought NEX two months ago, the UK share would have doubled my money already. 

#2. Hospitality to open its doors wide again

Increased travel goes hand-in-hand with improved fortunes for hospitality companies. It’s possible that some business travel has been permanently impacted by coronavirus. But it’s also true that much of it will return over time. UK shares like Whitbread, owner of business hotels Premier Inn, and InterContinental Hotels Group should benefit as a result. Much like in the case of NEX, Whitbread’s share price too has galloped fast. It has almost doubled in the last month alone. 

#3. Leisure and entertainment will be back in business

Leisure and entertainment stocks are also looking at better times ahead. Cruise operator Carnival will also continue to benefit. Its stock was the biggest FTSE 100 gainer yesterday, with the UK share’s price seeing an increase of 10%. I reckon that cruises may be slower to pick up, though, than more readily available entertainment options like cinemas. On Monday, I wrote about the FTSE 250 cinema chain, Cineworld, whose share price increase has been exceptionally sharp in the past month. I think there’s room for much more. 

I don’t think these companies’ financials are going to bounce back soon, though. Cinemas, for instance, are expected to open only in May 2021. Air travel demand is expected to come back to 2019 levels only in another three years. What I do expect, is improved performance from current levels. And even more than that, increased expectation of better performance. That will drive share prices up further, and quite likely double my money if I buy these UK shares today. 

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.

Manika Premsingh owns shares of easyJet and National Express Group. The Motley Fool UK has recommended InterContinental Hotels Group and Wizz Air Holdings. 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.

More on Investing Articles

Passive income text with pin graph chart on business table
Investing Articles

Yields of up to 7%! I’d consider boosting my income with these FTSE dividend stocks

The London market has some decent-looking dividend stocks right now, and I’m tempted by these two for growing income streams.

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

I’d put £20K in an ISA now to target a £1,900 monthly second income in future!

Christopher Ruane shares why he thinks a long-term approach to investing and careful selection of shares could help him build…

Read more »

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »