The Motley Fool

Top stocks for 2021! 2 UK shares I reckon will EXPLODE in value this year

Image source: Getty Images

UK share markets are back in retreat in Monday business. A fresh Covid-19 spike in China is the newest thing to fray investor nerves in what has proved to be a turbulent start to 2021.

The outlook for the global economy remains fraught with danger. But it wont stop me as a UK share investor from continuing to buy for my Stocks and Shares ISA. There are still plenty of stocks that should thrive in 2021 despite the ongoing Covid-19 crisis. Here are a couple Id happily buy for my own shares portfolio today.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

#1. Naked Wines

The retail sector outlook remains pretty murky as weak economic conditions weigh on consumer confidence. But Naked Wines (LSE: WINE) is a UK share I’d happily invest in with my own hard-earned cash in an ISA.

The alcohol vendor has two significant feathers in its cap that should allow it to keep growing profits. Firstly, Naked Wines has a sophisticated online-only model that will allow it to latch on to rocketing e-commerce activity to the max. Indeed, the longer Covid-19 lockdowns last, the better this particular share is likely to fare.

Secondly, history shows us that sales of alcoholic drinks actually rise during periods of extreme economic and social upheaval. Fresh research from Mintel suggests that the alcoholic drinks sector grew at its fastest rate for a decade in 2020. Sales here rose 16.3% last year, it estimates, while broader UK consumer spending dropped around 15% year-on-year.

It’s a trend that Naked Wines has witnessed across all its markets of the UK, US and Australia. And it propelled revenues 80% higher at the business in the six months to September, latest financials showed. This UK share rocketed 200% in value in 2020, and I’m expecting it to soar again in 2021.

#2. Begbies Traynor

Insolvency specialist Begbies Traynor Group (LSE: BEG) rose by a much, much more modest 2% during the course of last year. But I think the market has missed a trick here. The insolvency services specialist released a string of very strong trading updates during the course of 2020. And I’m expecting trade to get a lot busier at this UK share as the domestic economy struggles.

Indeed, a report from the Federation of Small Businesses (or FSB) released today illustrates the catastrophe coming down the tracks for British business. The body predicts that a shocking 250,000 small businesses will fold in 2021. Its Small Business Index shows business confidence has plummeted amid a mix of Covid-19 pressure and Brexit disruption.

Latest financials from Begbies Traynor in December illustrated the growing strain on these companies. The UK share said that revenues were up 11% in the six months to October. And it reported an “increased order book of committed future insolvency revenue” too. This is one UK share that should remain robust despite the tough economic outlook.

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.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of Naked Wines. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.