Investor appetite for UK shares remains pretty sickly as the Covid-19 crisis rolls on. I, for one, haven’t stopped buying for my Stocks and Shares ISA though.
The key to successful investing is to buy stocks with a view to holding them for the long haul. And I plan to make terrific returns by buying UK shares that collapsed in value during the 2020 stock market crash. And then watching them soar in value as the global economy bounces back.
Ride the economic recovery
Here are three top UK shares I’m thinking of adding to my Stocks and Shares ISA. I reckon they could soar in price during the early stages of the economic recovery:
- I recently explained why a rebounding advertising market makes ITV a terrific stock for the early stage of the economic recovery. And the same can be said for its Scottish broadcasting cousin STV Group, another UK share that offers top value. Today, it changes hands on a forward price-to-earnings (P/E) ratio of 9 times while its dividend yield sits at a chunky 3%. I’d buy it today because of the huge investment it’s made in its digital operations too. Viewership and advertising revenues from its STV Player video on demand service is rocketing. Yet 97% of advertising impressions still come from its linear channel, suggesting its digital operation have plenty of growth potential.
- Sellers of consumer goods are also perfect UK shares to buy in tough times like these. Manufacturers of foods, household products and other indispensable goods allow profits to rise during good times and bad. The huge marketing budgets they burn through to create world-leading brands help earnings to stay afloat too. But firms like these also benefit from an overall rise in consumer spending power. This is why Irn Bru manufacturer AG Barr is a great buy for the economic recovery. A forward P/E ratio of 22 times means it doesn’t come cheap. But I think its exceptional stable of much-loved brands makes it worth every penny.
- Those seeking jaw-dropping value though, might want to give London’s quoted life insurance providers a close look instead. Like consumer goods manufacturers, these UK shares tend to receive a sharp profits uplift during the first stage of the economic recovery. And one such stock that’s caught my eye is RSA Insurance Group. This FTSE 100 company trades on a forward P/E ratio of just 10 times and offers a gigantic 6% dividend yield. RSA has a broad range of products and excellent brand power. This should allow it to maximise profits during the economic recovery.
Helping you get rich with UK shares
So what are you waiting for? The London stock market is packed with UK shares that investors can make a fortune with during the economic recovery. And The Motley Fool, with its packed library of exclusive reports, can help you make the most of this rare opportunity.