The Covid-19 crisis is worsening across large parts of the globe. And this is putting the economic recovery in danger.
I don’t think now is the time for UK share investors to run for the hills, though. Sad though the situation is, there are plenty of British stocks I think could experience a demand spike in 2022, even when the crisis eases. Here are three top stocks I’m thinking of buying right now.
A top e-commerce stock
The worsening public health emergency could boost demand for the services of UK shares like DX Group (LSE: DX) considerably. Data from fellow courier ParcelHero has shown that late online gift deliveries for Christmas jumped 17% this week as shoppers deserted physical retail. I expect this trend to continue, whether or not the Government announces formal lockdowns.
E-commerce was on course to continue growing solidly even without this fresh Covid-19 surge. Indeed, I’ve previously backed DX Group to thrive as retailers invest heavily in their online operations to attract customers and consumer technology improves. DX’s latest financials showed revenues up 16% year-on-year in the financial year to June 2021. I’d buy this penny stock even though profits could suffer if the economic slowdown hits broader consumer confidence.
Thinking outside the box
I think Parsley Box Group (LSE: MEAL) has a few tricks up its sleeve that could help it thrive during the ongoing pandemic. Its role as a food retailer should serve it well as people will need to eat whatever happens. Its deliver-to-your-door model should boost sales as people avoid physical retail too. This could be particularly valuable given its focus on making meals for elderly people. This is the demographic for which shielding is particularly important during the pandemic.
My main concern for Parsley Box is the huge competition posed by established online grocery giants Tesco and Sainsbury. I’m still convinced though that it could deliver decent shareholder returns as Britain’s rapidly-ageing population offers ample opportunities for growth.
Playing the video games boom
A long and bumpy road out of Covid-19 could also give video games demand a shot in the arm. Sales of recreational software ballooned during recent lockdowns and many developers saw revenues soar. This is why I think Team17 Group (LSE: TM17) could be an intelligent stock for me to buy right now. The studio saw record first-half sales and profits earlier in 2021.
But like Parsley Box, Team17 also operates in a congested industry. A quick look on Amazon will show there’s no shortage of video games all vying for players’ attention. However, the success of titles like Overcooked! and Worms Rumble show that this UK share has the formula to compete with some of the world’s biggest studios. And the outlook for the games industry looks pretty rosy beyond the short-to-medium term too. Analysts at Mordor Intelligence think the global games industry will grow to be worth $314.4bn by 2026. That compares with the $173.7bn it was valued at last year.