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I think these 2 FTSE 100 UK shares could double in the new bull market

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I reckon there are a handful of FTSE 100 UK shares that could double in the new bull market. These companies might suffer further uncertainty in the near term, but I reckon their size and strong balance sheets should help them prosper in the long run. 

FTSE 100 UK shares

One of the top companies on my list is International Consolidated Airlines (LSE: IAG). The coronavirus pandemic has caused significant issues at this business. The owner of British Airways and other airlines has had most of its fleet grounded for the majority of 2020. To put it another way, IAG’s sales have vanished. Unfortunately, it’s still had to pay suppliers, employees, and creditors. 

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As a result, the group is expected to report a substantial loss for 2020. However, I think it’s one of the best FTSE 100 UK shares to buy now for its long-term potential. Before the crisis, IAG was one of the most profitable and well-run airline organisations. The pandemic has interrupted growth, but the BA parent has fared much better than many of its competitors

I think this means the company is in a strong position to stage a recovery in 2021 and beyond. IAG may also be able to capture market share from weaker competitors, which would improve its growth trajectory. 

As such, with the stock continuing to trade 50% below the level at which it began the year, I reckon it could double or even triple in the years ahead as the recovery gets underway. 

Cruise sector growth 

I’ve owned cruise operator Carnival (LSE: CCL) in the past, and I’m considering owning it again as the company recovers from the pandemic. 

Carnival has been forced to mothball most of its vessels this year. Like IAG, this has meant the company has faced the nightmare scenario of sales falling to zero but costs staying high. 

Luckily, Carnival was also like IAG in the way it entered the crisis. The group had a relatively healthy balance sheet and a good reputation with customers. 

Therefore, it’s been able to borrow billions from lenders to keep the lights on. Customers have also been happy to accept tokens for new voyages rather than cash refunds from the business. This has helped alleviate pressure on Carnival’s balance sheet. 

These qualities are the key reasons why I think this is one of the best FTSE 100 UK shares to own in the new bull market. Carnival is projected to lose money until 2022 at the earliest. Still, in the past, the organisation has reported operating profit margins of around 20%. This tells me that when sales return to growth, the group may have the potential to produce substantial total returns for investors.

That’s why I’m considering taking the plunge and buying back into this business ahead of its recovery. With considerable potential total returns on offer, I think it may be sensible to act sooner rather than later. 

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Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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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