The Motley Fool

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

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.

Private investor buying UK shares at home
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.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

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.