2020 has been an interesting year for UK shares. The pandemic caused major worldwide disruptions to several industries, while other sectors thrived under lockdown conditions. For example, companies like Cineworld have seen their share price slashed by over 70%, whereas online retailer Ocado’s share price is almost up by 70%!
The announcement of multiple vaccines marks the light at the end of the tunnel. And although the pandemic may be over next year, I believe it has created a permanent shift in societal habits. I think this shift could present an excellent opportunity for investors like me. Here are six shares I’m keeping on my watchlist right now:
UK biotech is more critical than ever!
The biotech industry is big, and rightfully so. Biological-based drugs are proving themselves to be highly effective compared to their chemical-based counterparts.
Gene and cell therapies are looking especially promising as a means of treating advanced illnesses such as Parkinson’s and even Covid-19 itself.
But what use is treating these diseases if you can’t diagnose them? Antibody blood testing has long been the gold standard for diagnosing diseases. But the supply of antibodies is unable to keep up with the demand, causing their value to skyrocket.
That’s why I think shares of UK companies Oxford Biomedica and Bioventix are perfectly positioned to create explosive growth in 2021 and beyond.
UK gaming shares are churning out profits!
With everyone stuck at home, people have been turning to entertainment source like video games to pass the time. So much so, that the average time spent playing games increased by 16% over the past nine months.
Lockdown may soon come to a close, and undoubtedly player activity will experience a decline. But the pandemic has most definitely exposed new players to the entertainment source. Given how fun video games can be, I think there is a high chance they won’t stop playing just because it’s safe to go outside again.
The pandemic has only accelerated the growth of the video game industry with UK-based company Keywords Studios reaping full benefits. Frontier Developments is also getting ready for some pretty substantial launches early next year. Put together both UK shares are set to generate quite a bit of extra cash flow, and of course, profit.
UK e-commerce shares are on the rise!
Much like the gaming sector, e-commerce has greatly benefited – for lack of a better word – from the pandemic.
Before the lockdown, online shopping represented less than 20% of total UK sales. This figure jumped to over 30% in May. Needless to say, even with the rise of e-commerce giants like Amazon, most of the market remains untapped!
But how does a business drive traffic to their websites? And where do they store all their products yet to be sold? That’s where dotDigital and Warehouse REIT come into play.
One firm offers bespoke automated marketing solutions to attract and retain customers. At the same time, the other provides affordable warehousing facilities for businesses of all sizes.
Collectively, I believe all six of these UK shares are well-placed to grow at double-digit rates throughout 2021 and beyond, easily doubling my money over the long term.