Business & Investment

UK stocks: 2 stocks to buy after 2021

It’s still January, so it’s a good time to check UK stocks. I would like to make sure that my investment portfolio is in good shape for the future of 2021.

Part of my strategy for identifying valuable UK stocks is to focus on companies with strong brands and online presence.The two on my radar Next (LSE: NXT) And Hut group (LSE: THG).. That’s why I’m looking at them.

# 1-Next

Most people run a mile from the retail store, but Next seems to have worked Good During a coronavirus pandemic.

The company has retail stores, but 50% of its revenue comes from online sales. Next was able to make up for lost revenue online while the store was closed. E-commerce is a big part of retailers’ strategies and we expect it to continue to grow.

Retailers offer a wide variety of products and I think they have a very strong brand. Overseas sales are also increasing. This shows that there is an international demand for Next products available. I hope the company will take advantage of this international opportunity. This should be a plus for stocks.

The stores remain closed, but NEXT does not ignore them. In fact, it did a good job of managing the store’s real estate. Shops are usually shorter and have more favorable leases than their peers. Next stores also focus on retail stores outside the city center, which were strong during the pandemic.

The latest information on recent Christmas deals was that home, loungewear and sportswear were strong and strong. It even predicts a year-end reduction of £ 487m in net debt. For all these reasons, I am positive about Next’s long-term outlook.

# 2 – The Hut Group

Not many UK stocks listed in London Stock Exchange Through an initial public offering (IPO) in 2020. However, The Hut Group did that in September, making it the UK’s largest technology IPO and the largest London listing ever since. Royal mail Equities have been doing well since then, and we expect this to continue until 2021.

The Hut Group has three divisions, two of which are THG Nutrition and THG Beauty. These two segments operate a variety of wellness, sports nutrition and beauty brands. MyProtein, LookFantastic And GlossyBox.. Most of the THG brands are in-house. In short, these sales are more profitable than third-party brands.

The third division, THG Ingenuity, uses its software to develop and operate third-party e-commerce websites. Ingenuity’s list of reputable partners includes: Nestle, PZ Cussons And L’Occitane.

I think the true jewel of the crown is the Ingenuity software. This sector has great growth potential.The software business model is Amazon It’s a web services solution, but it’s much smaller and focused solely on e-commerce space.

Christmas Transaction update It was strong and showed growth in all areas of the business. The Hut Group is currently reinvesting its revenue from IPOs, especially by acquiring companies within the US beauty sector to grow its business.

So what do you think the future of this stock will be? I believe many of the same things will grow the brand and further commercialize the Ingenuity platform. For these reasons, I’m buying The Hut Group shares today.


Nadia Yaqub does not have a position in any of the shares mentioned. John Mackey, CEO of Whole Foods Market, a subsidiary of Amazon, is a member of The Motley Fool’s Board of Directors. Motley Fool UK owns shares in Amazon and recommends Amazon. Motley Fool UK owns a stake in Next and recommends the following options: A $ 1920 call on the Long Amazon in January 2022 and a $ 1940 call on the Amazon in January 2022. 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, by considering different insights, Better investors than us.



UK stocks: 2 stocks to buy after 2021

https://www.fool.co.uk/investing/2021/01/15/uk-shares-2-stocks-id-buy-for-2021-and-beyond/ UK stocks: 2 stocks to buy after 2021

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