2 UK Shares You Should Buy In December And Hold For Years
These top UK shares are scheduled to update the market in the coming days. Here I explain why their share prices could soar in December, and why I’d buy them today and hold them for the long haul.
Begbies Traynor Group
I believe demand for Begbies Traynor Group’s shares could rise after the release of half-year numbers on Tuesday, December 8. The insolvency practitioner’s share price has stabilised in recent months after slipping through the spring and summer. I reckon the stage could be set for this FTSE 250 firm to spring higher.
Massive financial support from the government has stopped the number of corporate insolvencies rocketing in the UK. But the number of firms unfortunately threatens to soar following the rollback of these programmes. It’s why City analysts reckon Begbies Traynor’s annual earnings will grow 5% this financial year (to April 2021) before exploding 32% in fiscal 2022.
Begbies Traynor said last month that revenues were up 10% in the six months to October, and that results for the full fiscal year would be “at least” in line with market expectations of the time. I wouldn’t be shocked to see the business lift those estimates, however, given the perilous state of the UK economy and the positive impact of the company’s recent acquisition strategy.
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Today Begbies Traynor trades on a forward price-to-earnings (P/E) ratio of 15 times. And it carries an inflation-smashing 3.5% dividend yield as well. I think these figures make this UK share worthy of serious attention.
I’d also buy GB Group ahead of its own financial release next Tuesday. The UK share trades on an elevated P/E ratio of 47 times for this fiscal year (which ends in March 2021). It boasts a modest 0.5% dividend yield as well. But these numbers wouldn’t put me off. Indeed, I think the prospect of exploding e-commerce volumes make it worthy of such a handsome premium.
GB Group offers identity and address verification services that allow retailers to get products to their customers. It has significant expertise in the growing area of fraud prevention. And the business has a broad geographical footprint with customers in more than 70 countries. It’s well placed to ride the global online shopping phenomenon, in other words.
The data giant said in October that organic revenues rose 10% during the six months to September. It also said that it expected revenues for the full fiscal year to be ahead of market consensus. I’m expecting GB Group to put more meat on the bones of this when that half-year report comes out next week. And I’m predicting confirmation that e-commerce-related trade has kept soaring at the start of the second half too. Online shopping volumes are expected to go from strength to strength during the 2020s. So I’d buy this share today and hold it for years.