2 Top UK Shares I’d Buy In January And Hold Until 2030
These two UK shares are set to release robust trading updates shortly. Here I explain why I’d buy them today and hold them for years to come.
Irish eyes are smiling
Many expected the economic impact of Covid-19 to have a devastating impact upon the housing market in the British Isles. So severe is the homes shortage in the UK and Ireland, however, that demand for newbuild properties continued to rip higher in 2020, and are likely to keep doing so in the new year.
It’s a phenomenon I expect Glenveagh Properties to mention when it releases its full-year trading statement on Wednesday, January 6. The Irish builder’s last update in early September certainly gave plenty of reason for cheer. It said that “continued strong demand from our private customers” helped private reservation rates whizz 213% higher in the third quarter.
The homes shortage that is powering profits at the likes of Glenveagh is here to stay. It’s why this particular builder recently increased its 2022 to 2024 production targets by 2,650 units. And it’s why I’d buy the Dublin firm and hold it through to the end of the decade at least. Today the firm trades on a low forward price-to-earnings (P/E) ratio of 2 times. And this makes it a steal in my book.
An e-commerce giant
THG Holdings (or The Hut Group as it’s more familiarly known) is another UK share worth keeping an eye on. The e-retailer is set to release fourth-quarter trading numbers on Tuesday, January 12. And I’m expecting it to announce that sales continued to detonate during the festive period.
In early December THG — whose brands include Zavvi, Christophe Robin and GLOSSYBOX — said that new active customers soared 74% year on year in November, to 1.7m, helped by Black Friday and Cyber Monday. Soaring customer demand across its divisions prompted it to supercharge its sales guidance for the fourth quarter of 2020, too. Growth of between 40% and 45% was now expected, it said, up from a previous estimate of 16% to 25%.
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I’m not just excited by the proven power of THG’s acquisition-led growth strategy, though. I’m also encouraged by the pace at which its THG Ingenuity online e-commerce platform is being adopted by online retailers and fast-moving consumer goods (or FMCG) companies all over the globe. New contracts for the use of its technology have been signed with Microsoft MSFT , Warner Bros and Jack Wills amongst others in recent months.
THG’s shares traded at 500p per share at the time of its IPO in September. They are already more than 60% more expensive and as I type are trading at new record highs around 805p. I reckon that upcoming trading statement of next week could provide the share price with a fresh dose of rocket fuel too.