Two UK stocks to buy after 2022

I was looking for UK stocks to buy in next year’s portfolio, targeting stocks with long-term growth potential. The two businesses really stand out to me as they are currently underestimated compared to their long-term potential.

I think both of these companies have a substantial competitive advantage and a strong business franchise. This should help take advantage of them as the economic recovery materializes.

Shares to buy in 2022

The first company on my list is an insurance group Hiscox (LSE: HSX).. The company has been suffering over the last 24 months due to an increase in claims from business interruption insurance policies.

These allegations forced the group to pay large amounts to its customers, weakened their balance sheets and reduced their ability to take advantage of higher premium rates across other markets.

However, this headwind should end soon as the company has resolved these issues and issued a new policy that excludes pandemic coverage. That way, you should be able to take advantage of the favorable tailwinds of the rest of the sector. These are the reasons I think this company will make a great addition to my UK equity portfolio in 2022.

Hiscox’s growth can accelerate once the shackles are removed. This may facilitate stock rerating.

However, companies are always exposed to insurance risk. Challenges such as losses from catastrophic catastrophes can hurt profitability and weaken your balance sheet. This is what I keep in mind.

UK stocks for growth

Other companies that I think are one of the best stocks to buy right now Great Portland Estate (LSE: GPOR).. This business owns a unique property in central London. Last year, the value of these real estate plummeted as the pandemic caused havoc in the real estate sector across the country.

However, the property value has begun to recover this year.Great Portland portfolio value increased by 2% 6 months until the end of September..

We also have new rental contracts with tenants. The average rent growth rate for these leases is almost 10%. This shows the quality of the portfolio and the growing demand for office space in the capital center.

Despite these attractive qualities, stocks are still trading below the net asset value of 796p per share.Given this rating gap, I Inventory in my portfolio.. I think the value of stocks will rise next year as the economy recovers.

A corporate headwind that we may face over the next 12 months is rising interest rates, which can increase debt costs. Additional pandemic limits can also hurt demand for new leases. This will undermine the company’s outlook from the pandemic and the potential for short-term recovery.

Rupert Hargreaves owns a stake in Great Portland Estates. The Motley Fool UK does not have a position in any of the shares mentioned. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, given the various insights, A better investor than us.