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Top growth stocks! 2 cheap UK shares I’d buy in my ISA for 2021

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UK share prices have enjoyed a strong couple of months as news of a Covid-19 vaccine has boosted investor confidence.

It’s possible that we could be on the cusp of a new bull market. And I for one am looking for top British companies to buy for my Stocks and Shares ISA today. Let me talk you through two cheap UK shares I’m thinking of adding to my shares portfolio for 2021:

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Silver and golden colorful Christmas glitters showing the year 2021 on turquoise background.

A top UK share as house prices soar

Investors at MJ Gleeson (LSE: GLE) won’t have to wait long for exceptional profits growth. City boffins reckon annual earnings here will soar 402% in the current fiscal year ending June 2021. And as a consequence this UK share also trades on a low forward PEG ratio of 0.1.

It’s perhaps no great surprise that analysts are so bullish over the housebuilder’s earnings outlook. House prices in the UK are rising at their fastest rate for several years. And this small cap is opening sites at a record pace to capitalise on this fabulous trading landscape. It has opened 11 new building sites since the beginning of July and plans to have another 14 in operation by the end of the current fiscal year.

I believe that this UK share has all the tools to continue thriving too. On top of those encouraging build rates — it hopes to put up 2,000 new homes a year by the middle of 2022 — MJ Gleeson is making solid progress in lifting its prices in line with the broader market. Besides, the small cap can expect significant factors like low interest rates and government support via Help to Buy to keep buyer demand bubbling nicely well into the new decade.

That’s the spirit!

Profits at Stock Spirits Group (LSE: STCK) are also expected to rocket impressively this fiscal year. City experts reckon annual earnings will soar 104% in the 12 months to September 2021. This leaves it trading on a PEG ratio of 0.1. This UK share offers investors an added sweetener through its chunky 3.3% dividend yield too.

Stock Spirits sells the bulk of its vodka, brandy, and other drinks to the emerging markets of Central and Eastern Europe. It can expect demand for its products to keep rising too as wealth levels in these territories steadily grow. Its products also have the brand strength to overpower their rivals, too (its market share of the Polish vodka market sits at five-year highs around 32%).

And finally, Stock Spirits is the perfect buy for those fearful of a long and bumpy economic recovery in Europe. Manufacturers and retailers and alcohol are reliable profits generators during economic upturns and downturns. And this UK share’s latest financial update illustrates this point perfectly. Revenues here rose 6.9% in the fiscal year to September 2020 as volumes increased 1.8%. This was despite Covid-19 lockdowns hammering sales in the hospitality sector.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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Royston Wild 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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