Top UK Stocks Could Double Your Money
Are you a beginner into stock trading and looking to invest in the UK stock market? Maybe you're an investor that likes to stick to international stocks but are contemplating buying UK stocks? Will 2021 be a good year to invest in the UK stock market? What UK shares could be the best return on investment in 2021? Let’s take a look!
In this article, we’ll look at potentially some of the top 10 UK shares that could potentially double in value in 2021!
Best UK Shares That Could Double Your Capital
2020 was a hard year for the UK stock market and in turn for individual UK stocks.
The British trading market was seeming to be one of or if not the most unpopular trading market due to the devastating impact that the Coronavirus pandemic sprung upon us at the start of 2020.
Including the FTSE 100 index who suffered its worst year since 2008 as the UK index fell by almost 14.5%.
Having said that, the market started to come back towards the end of the year and is looking set to thrive back to some normality in 2021 along with many British stocks to gain back or establish their success.
Including the UK index, FTSE 100 who is on the rise through the start of 2021 so far.
So what are some of the British stocks set to potentially double your money in 2021 and beyond? Let’s take a look as we have chosen our top 10 UK stocks that could double your money.
So without further ado…
The Top 10 Best UK Stocks That Could Double Your Money in 2021:
- Lloyds Banking Group
- HSBC Holdings PLC
- BP PLC
- Barclays PLC
- Auto Trader Group PLC
- Taylor Wimpey Plc
- Barratt Developments
- BT Group
- Burberry Group PLC
Our list of 10 UK shares to buy that could double your money offers a mixture of diversity, strong past performances and a healthy positive potential future outlook for the leading brands.
10 UK Shares To Buy In 2021 Could Double in 2021:
1. Lloyds Banking Group PLC (LLOY)
The banking company Lloyds Banking Group comes in on the list of one of the 10 UK stocks that could potentially double your money. If not in the short-term then this stock is certainly one for the long-term investment.
Just like all sectors this year, the banking industry was also hit by the Covid-19 pandemic and it has had some destructive effects. But we believe that the challenges that Covid-19 brought to this banking company is only going to strengthen the brand moving forward.
On October 29th Lloyds released the company's third-quarter results which showed a different kind of results the leading bank is used to presenting.
The Q3 net income of £3.4 billion was down by 2% on the previous quarter 2, the company's other income of £1.0 billion was deemed to be impacted by lower customer activity levels and AMMR2 charge.
Along with the fact that there was significant inside selling of their shares within the brand over the past three months also showed a warning sign for the banking stock.
But on the big positive notes for the banking company LLOY reported a £3 billion net growth in mortgages in the companies Q3 period, which would of been boosted by the governments Stamp Duty Holiday scheme that came into effect to help support individuals dreams to enter the property market or for homeowners to have a fresh start.
The company also has a £3.5 billion increase in open mortgage book, a strong pipeline and 22% market share approvals. And has an improved statutory profit within Q3 with RoTE of 7.4%.
The company has a record digital customer engagement and satisfaction scores as of 2020 which has evidenced that their strategy is proving to work.
The strategic forward-thinking plans learned from the coronavirus pandemic has been confirmed by the brand that the strive forward will work in the brand’s favour.
The company's earnings have been forecast to grow 51.61% per year along with Lloyds sporting a healthy financial position with value along with future growth.
The company has been forecast by analysts with an average 1-year forecast of £0.14p up by 2.02% and a 2-year forecast of £0.21p up by 58.47%.
Alongside, the company currently has a 52-week range of 23.98 lowest to 58.50 Highest with an £0.04 earnings per share (EPS).
LLOY stock ROE is also considered to be strong as it has a forecast of 32.95%.
Lloyds Banking Group is also known to pay a dividend, to which if the dividend becomes stronger then this is also another benefit for this stock. As it stands Lloyds Banking Group’s dividend yield is 3.6%.
Moving forward, we believe Lloyds Banking Group is a stock that could look to give you the potential of doubling your money if not in the short-term than most certainly we believe the company will in the long-term investment.
2. HSBC Holdings plc (HSBA)
Sticking to the banking industry, HSBC Holdings comes next as a stock that could double your investment.
As it stands the UK has three vaccines currently being rolled out across the nation to help seize or prevent the coronavirus outbreak being as deadly moving into the future.
Which is why the banking industry is looking set to rebound, as these positive happenings move forward and the financial figures are set to look attractive.
HSBC Holdings has had a challenging year as shown in the companies reported Q3 results.
The company reported a decrease across various avenues including a reported profit after tax at $2.0 billion down 46% and the company's profit before tax was down by 36% to $3.1 billion. The company's international presence also took a hit across the board as the virus took speed.
Brexit has also played a slight factor in the brand’s reports but now that a deal has been agreed, this should stabilise the company's future prospects.
HSBC holds a good and healthy balance sheet considering the impacts 2020 has brought. The company also sports big room for growth as we head into 2021 and further.
Based on 19 analyst reports, they believe that HSBC’s future growth for the company is set to rise well and has given HSBC Holdings a forecasted annual earnings growth of 48.6% as the company becomes profitable within the green in the coming 3 years.
Although the company might hold a consensus rating of ‘Hold’ given by various research firms and analysts, that does not mean to say that this stock could not reach or exceed its potential this year and leading in the coming years.
‘With HSBC, you're not just buying stocks. You're also buying convenience, reliability, security and trust.’ - HSBC management.
3. Easyjet PLC (EZJ)
This year could be the year that the aviation industry starts to witness international travel being more frequent as we know it. Having said that, realistically, it is looking more mid-late 2021 that the aviation industry will see its operations moving more frequently.
As the UK is underway with the enrolment of vaccinating the nation, this is a step closer to this realistic dream for all aviation companies. Which is why Easyjet comes in as a stock that could double your money leading into the long-term.
In recent days, EZJ stock has obtained a loan of the value of $1.8 billion (1.4 billion) spread across 5 years in order to see them through the Covid-19 crisis as it reduces and manages its debit payouts along with boasting the company's balance sheet.
EZJ’s CEO Johan Lundgren spoke in a statement on the announcement of the loan for the brand and confirmed the company's positioning when the brand returns to the air.
“The loan facility, provided on commercial terms, reflects constructive and collaborative work between EasyJet, multiple banks and UK Export Finance. With our unmatched short haul network and trusted brand, EasyJet is well-positioned as customers return to the skies in 2021.”
As it stands Easyjet is already on the rise with its share price, although granted at times it does show volatility.
The airline company also has a 52-week average range of between 470.70 and 1,152,00 being the highest.
Future growth is what stands firm for this stock, which when you buy in this stock at the right price could look to give you great potential return.
Looking into the company's potential for future growth, is why we have chosen this stock to be a stock that could add significant value over the long-term as we are able to travel the skies again.
4. BP Plc (BP)
Over 2020 BP. stock has been unpopular across the board for investors and its current shareholders. But the oil and gas company could be going the right direction stepping into 2021 in light of the positive vaccine news bringing us all a step closer to normality.
Along with many of the impacts that coronavirus brought to many industries, for BP Plc It had big plans to halt production and halt a big sector who BP supplies and supplies their oil services to, the aviation industry.
Another area in which had a hard impact on the brand was the usage of cars being driven.
As stay at home measures were forced upon the world and only allowed essential travel being able to operate, this was another added downpoint for the company.
On top of fewer cars being on the road, electric vehicles are now deemed to be the future to travel as we lead into the coming years with our environmentally friendly ways, which could then make a huge impact on the stock going forward.
But in light of this, realistically the world needs oil whichever way you look at it and as it stands, most vehicles on the road today are still powered by fossil fuels.
So how can BP stock look to double your earnings in the future?
Although BP stock is heavily involved with the two sectors mentioned above, the company is also involved in other avenues as its main adjective is to deliver a diverse range of energy products around the globe to both businesses and individuals.
The company has also addressed that they are set to release new plans in reinventing BP in Spring 2021. As the new business model seeks to expand in the coming years as the brand has listened and adapted to the changes that have been frustrated upon them by the change in consumer demands, investors and governments.
BP’s CEO Bernard Looney, has given individuals a chance to see the ways in which the company is leading and set to carry on moving forward in the future. Looney has advised the company's strategic plans are mostly aimed at energy solutions of the future and advised that the company will be a different energy company as we hit 2030.
With lastly adding that the strategy which was released in 2020, is built around three main focus areas of activity and three sources of differentiation to amplify value.
As its stands the company's earnings are predicted to grow by 77.29% per year and has also been given an average 1 year earning per share forecast of £1.32 + 51% with it continuing to rise in the 3 years, the company's return on equity (ROE) also has been forecast in a good light over a 4 year period to 60.26%.
With the oil demand still being apparent and the company's new reinventing ways coming into play in Spring 2021, we believe BP. stock is a good potential stock that could boost your capital.
5. Barclays PLC (BARC)
The last financial service company to come on the list is Barclays PLC.
As the FTSE 100 is gaining momentum at the start of 2021, BARC is one stock that could potentially follow suit.
Barclays PLC is currently sporting a share price at 151.32 which at the close of play on 14th January was 152.86. A P/B (price-to-book) ratio of 0.4% which leads to believe that the stock is undervalued at present.
In the company's Q3 report the company shared some positive news along with some negative results, which in fairness investors were more than likely expecting given the impact Covid-19 has had across all industries.
In the Q3 report Barclays delivered a YTD Group profit before tax of £2.4 billion from Q3 2019 YTD, RoTE of 3.6% compared to Q3 1019 of 5.1% and the company’s earnings per share (EPS) at 7.6p in comparison to Q3 2019 10.4p.
The company also confirmed an income revenue of £5.6 billion which is down by 6% year-over-year.
Narrowing it down to the UK alone, the UK income is down by 12% to £4.7 billion year-over-year, a RoTE at 2.5% in comparison to 17.2% in Q3 2019, profit before tax, excluding was £300 million compared to £1,899 m in Q3.
The company saw a surge just like other banks witnessed in mortgages but Barclays saw RWAs (risk-weighted assets) increase to £76.2 billion from £74.9 billion in December 2019.
As for the bank's international presence, Barclays International income is currently up 11% to £12.4 in comparison to 2019.
So as you can see, Barclays have more room for growth as we head further into the year and beyond and as the company's earnings forecast is set to grow 40.85% per year as its been confirmed earnings have grown 12% in the past year.
Barclays recent performances, their outlook and their predicted forecasts prove that this UK banking stock could be a stock that could double your money, if in 2021 then in the long run.
6. Auto Trader Group PLC (AUTO)
The British automotive advertising business could be a good stock to look at in 2021 and for the long-term, as we are hopeful to slowly ease back to normality in light of the vaccination rollout.
As car showrooms close their doors across the nation in the nations 3rd national lockdown, Auto Trader is set to look at taking a loss as the company is implicating a free advertising service which could set the company back around £7 million in operating loss per month.
Having the big advantage of being the UK’s leading online car advertising platform, it's clear that this stock has a bumpy road ahead as we go through the uncertain 3rd lockdown with no clear light at the end of the tunnel.
But having said that, once confirmation comes of the end of the 3rd lockdown and as consumers spend time at home exploring and making the choice to look for a new vehicle or potentially multiple vehicles, this is going to boost the company's shares and will see the company's financial figures rise, it’s predicted.
In the company's latest quarterly financial report, most areas showed a decrease.
It was confirmed that the company's revenue was down by 37% to £118.2 million compared to £186.7 million in the first half of the year, trade revenue was down to £100.2 million, 38% compared to £161.8 million, which it was confirmed that the decline was from the company's own choice to allow customers to advertise for free during the lockdown periods between April-June to help and adapt to consumer needs.
The company's earnings per share (EPS) were also down 50% to 5.6p compared to the first half of the year at 11.1p.
Auto Trader also confirmed in April that the company placed 46 million shares which raised proceeds net of all fees to which confirmed it strengthened the company's balance sheet and liquidity position.
AUTO is currently showing an attractive PE ratio of 35%. The 52-week range average comes between 364.70 being its lowest and 609.80 being the highest price.
Auto Traders' comfortable financial position from its balance sheet, is a strong positive for the automotive brand as it could still be facing an up and down road ahead, especially as we are currently not sure as to when the end date will be for L3.
Having looked at AUTO stocks evidenced financial position, its past performance in the first half of 2020 and analysts giving a conscious ‘Hold’ rating, and its attractive PE ratio, brings us to this stock as one that has great potential to double your investment in 2021.
7. Taylor Wimpey (TW)
The housebuilding company Taylor Wimpey, released an early financial statement ahead of the company's March 2021 figures report.
From the announcement of the company's figures, it has changed analysts predictions on the stock with the Zacks Rank rating changing its consensus rating from a ‘Buy’ rating to a ‘Hold’.
Although, the company is in line with the market value and is set to hit the predicted 2021 forecasts.
From the company's yearly report released on the 14th January, the company confirmed a mixture of news as it showed total UK home completions decreased by 39% to 9,609 in 2020 due to the second lockdown period causing delayed production compared to 15,719 in 2019.
Cancellation rates were also above normal rates for the year at 20% compared to 2019 at 15%, but this is a huge impact that Covid-19 has put on the company but eventually balanced out towards the end of the year to 16%.
Lastly, the company confirmed they ended the year with a strong net cash sum of £719 million in comparison to £545.7 million net cash in 2019. But confirmed that whilst it leaves them in a strong position, the company's plans to evolve forward will see the cash amount decrease as they look to purchase further new land.
On another note, the company also confirmed that they expect to resume the paying of dividend payments starting with the 2020 dividend along with reviewing the special dividend in 2021 for paying out in 2022.
The recent results shown from the housing company show that there is still room for improvement as the coronavirus pandemic put a halt in the process of building within the second quarter.
The company ended the year with an order book valued at £2.68 billion up by £2.18billion at the end of December 2019. And as of December 16th, TW. started taking reservations under the Help to Buy scheme and up until 31st December 2020 has 650 reservations, set for completion in Q2 2021.
Although the company had a halt in production in 2020, the housing market has been given the green light to stay open and operate safely following Covid-19 safety measures. As the company plans to expand, this stock is one that could give more in the long-term outlook.
8. Barratt Developments plc (BDEV)
One of the largest property developers in the United Kingdom is also a stock that will see good earning potential in the future just like TW.
Granted, this stock is more of a long-term stock rather than short-term, as the economy strives to move forward it will see more individuals taking the leap in order to buy their first homes or have a change of scenery.
BDEV stock has been making good noise recently as has recently been given a readvised Zacks Rank rating of #2 ‘Buy’ for the stock from its previous ‘Hold’ position.
As the house demand boomed due to the Stamp Duty Holiday scheme the government put in place, Barratt Developments delivered a ‘better- than- expected’ second half of the year in 2020.
In the company's financial trading update report for 2020 announced recently, this stock is looking set to archive more success as we head forward and one to be a part of.
The company reported total forward sales (including JVs) at 31st December 2020 increased by 14.3% to 13,588 homes in comparison to 11,885 homes in 2019, at a value of £3,212.1million up by 19.4% on its previous year. And as it stands, Barratt Developments are over 90% forward sold for this financial year.
The company also confirmed that they are up by 9.2% in 2019 in regards to home completions as they delivered 9,077 in comparison to 8,314 in 2019.
The home developing company is set in a good position even more so, in light that the UK government is allowing property developers to continue to operate throughout the lockdown periods following all safety measures are in place.
Which is the company's solid focus moving forward as their sales offices are open by appointment only, construction is still proceeding under safety measures and investments are looking to be made in terms of land for the future.
Barratt Developments has a 52-week average range of 364.70 lowest to 878.40 at its highest and PE ratio of 17.84.
Another positive note for the property brand is their resuming of paying its dividend which will be confirmed in the company's February 4th 2021 interim results.
The company's healthy financial position including its P/E ratio looking promising, it’s drive for more success and the brand's reputation within the property market, we believe Barratt stock could give you good returns as the company moves into the future.
9. BT Group plc (BT)
The British multinational telecommunications company BT Group is looking like a good stock that could carry on blossoming in 2021 and could also earn you good earnings.
BT.A share price has risen well over the past two months and has a 52-week range of 97.86 at its lowest and 184.12 at its highest with a P/E ratio of 9.27%.
With these figures, the stock has been deemed to be undervalued for its potential.
There is a lot happening with BT Group at the moment. The company has confirmed plans to move forward in the new generation with the creation of a new technology digital unit, to push and lead its digital presence which will be effective from 1st April 2021. The new digital technology is set to focus on developing and delivering innovative products and services in areas such as data and healthcare.
Alongside the announcement for future prospects, the group has also had a shake up to its management as it was confirmed that Mike Sherman, Chief Strategy and Transformation Officer is leaving the BT Group.
The recent managerial news, the company’s strategic plans moving forward and the company’s financial outlook is evidence to how this stock could blossom over the coming years.
The stock has been given a consensus rating of ‘Hold’ by analysts at present with a consensus target price of £148.80 a potential upside of 5.83%.
The stock also has a dividend yield of 13.27%. However, due to the impact coronavirus had on many industries the company axed its dividend but looks to reinstate it in the coming year.
BT Group also has other avenues to be factored into the brand’s financial results including BT Consumer which holds the popular BT Sports channels which also draws in reasonable revenue broadcasting major sporting events. Again, due to the Covid-19 impact saw this avenue being hit hard. However, as 2021/2022 is looking hopefully this stream will also pick up the pace.
The company's earnings are forecast to grow 7.87% per year moving forward.
This FTSE 100 stock is looking to further invest in the future and it could pay off nicely in the long-term.
10. Burberry Group plc (BRBY)
The last stock to come on our chosen list of 10 UK stocks that could double in 2021 is Burberry Group Plc.
The leading iconic UK fashion brand who is headquartered in London draws in good attention and revenue from all over the world.
But in light of the coronavirus pandemic just like most fashion retailers the brand has taken a big hit. Granted, not as devastating a hit as we have witnessed store closers of some of the UK’s well-known brands such as the high profile well-established retail company Debenhams who has been in the industry for over 250 years.
Burberry Group has been hit hard during 2020 having to close its doors on many of its stores across the globe and had to solely look to rely on the company's digital online presence.
But the company has had some positivity amongst the negative aspects including the brands new and fresh designs which have been driven forward and became available online. The aim to bring the designs forward and make available online was to increase sales whilst the brand's physical presence of its retail stores remained closed, to which the new designs have gained positive feedback.
Moving forward with fashion, BRBY is looking like a strong contender looking to grow well with the brand's new fashion outlook. There is no doubt the new designs will draw in new consumers as their designs appeal to a wider range of individuals, along with carrying on its strong Asian demand.
Burberry Groups share price has a 52-week range between 1,085,00 being the lowest and 2,329,00 being the highest.
Along with earnings forecasted to grow 30.59% per year confirming that the company's earnings are set to grow strong between a 1-3 year period. The company's future ROE (return on equity) is also forecast to grow by 26.8%.
Although Burberry has had a challenging year, to say the least, the fashion stock is looking on the up as investors are already looking or adding this stock to their portfolio for growth earnings potential.
How To Invest In The Top 10 UK Shares?
Now you have an understanding and more of a thorough breakdown of what top 10 performing British stocks are that could doublein 2021 , now it’s time to look at how to become a part of their success.
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- 10 UK shares to buy that could double your money come with both positive outlooks but do pose their own risk factors.
- Auto Trader Group, HSBC, and Lloyds Bank are three of the top 10 UK shares could double in 2021. The two continue to show a lot of strength in the coming year.
- All of those 10 UK stocks offer a healthy financial health outlook along with future growth.
- Whilst the 10 UK stocks have a past history, it’s wise to research and have an understanding of how the company has performed in the past. As it does not always indicate this is the case for the stock in the future.
- Researching further into your chosen stocks is advised before investing.
- Lastly, there are no guarantees when investing in stock trading. Being sensible, wise and taking your time are the best elements to carry throughout your trading journey.
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Please Note: Past performance is not an indication of future performance. The value of investments can go down as well as up. Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. Trading Education shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information provided.