Investor confidence remains shattered following the stock market crash of 2020. The FTSE 100 and FTSE 250 continue to struggle for momentum. Demand for UK shares is unlikely to significantly pick up any time soon as Covid-19 rates steadily rise and investors fear another share market crash.
It hasn’t been bad news for all UK shares though. Plenty of London-quoted stocks have added value despite fears over the coronavirus, trade wars, Brexit and the like. And despite the uncertain economic outlook, there’s a good chance they could continue to rise in the near term and beyond.
3 top stocks I’d buy in my ISA
Here are three UK shares on my ISA watchlist following stunning price gains in 2020. I wouldn’t just buy them on the basis of more monster price rises in the weeks and months ahead though. I reckon they could help long-term investors like me make huge profits over the coming decade, at least:
- IT services play Idox has seen its shares rise 35% in value so far this year. Yet it still appears to be a steal on paper. The AIM company trades on a price-to-earnings growth (PEG) of 0.3 right now. The specialist software provider has continued to report ripping revenues growth despite the Covid-19 crisis. And its focus on the public sector should allow it to keep thriving despite the current economic downturn.
- Avon Rubber’s surged almost 90% in value in 2020, leaving it trading on an elevated forward price-to-earnings (P/E) ratio of 39 times. But the business — which builds protective masks for military and security services — is worth every inch of this premium valuation. It’s not just that its role as a major player in the defence sector provides excellent long-term earnings visibility. It’s that this UK share continues to stack up new business wins at a terrific rate. Just this week, it signed a fresh contract with the US Department of Defense to supply replacement filters for the M50 mask.
- A rocketing gold price has lifted Petropavlovsk’s share price 170% higher in the year to date. Yet the FTSE 250 gold miner still trades on a rock-bottom forward P/E ratio of 10 times. A backdrop of huge macroeconomic uncertainty and loose central bank policy should continue to push this FTSE 250 stock’s price higher. I’d buy the UK share on the back of its soaring production volumes too.
Get rich with UK shares
Petropavlovsk and those other soaring shares are just a few of the top-quality UK businesses I’m thinking of buying. There are plenty more excellent British stocks to be found in the The Motley Fool’s huge library of exclusive reports too. So don’t sit on the sidelines. You can still make a fortune from UK shares today, you just need to do a little research.