UK share markets have received a serious pick-up in recent days. Buoyed by positive news on the coronavirus vaccines front the FTSE 100, for instance, has rocketed 15% since the beginning of November.
It’s possible that UK share prices could continue soaring for the remainder of the year too. Fresh testing of Pfizer and BioNTech’s vaccine contender that suggests a 95% protection rate helped British stocks gain more ground on Wednesday. It’s expected a slew of more positive updates on the hunt for a vaccine will be forthcoming in the days and weeks ahead.
Sure, UK share prices have recovered plenty of ground so far in November. But there remain plenty of top-quality stocks that continue to trade far too cheaply following the 2020 stock market crash. The FTSE 100 for instance remains a good 1,000 points off the 7,500-odd it was trading at on January 1.
This means the landscape is still ripe for long-term investors to go out and grab a bargain. I could make a mint with my Stocks and Shares ISA as these oversold stocks rebound in value during the economic recovery.
A UK share with 6% dividend yields
Bank of Georgia Group (LSE: BGEO) is one UK share I’m considering adding to my Stocks and Shares ISA today. At current prices it trades on a bargain-basement price-to-earnings (P/E) ratio of 5 times for 2021, reflecting City predictions that earnings will rebound 88% next year.
But this isn’t the only reason the banking giant is such a top value buy. Right now, the small-cap sports an enormous 6% dividend yield for next year too. Bank of Georgia has said the Eurasian nation’s economy has already begun rebounding and performed better than expected in quarter three. I reckon this UK share’s a great way to play the recovery too, helped by its huge ongoing investment in marketing and digital banking. The number of mobile transactions rocketed 29% in the third quarter from the prior three-month period.
One of my FTSE 100 favourites
Prudential (LSE: PRU) is another top UK share I’d buy for 2021. I already own this particular FTSE 100 stock in my Stocks and Shares ISA. However, its colossal share price fall this year would encourage me to buy some more. It trades on a P/E ratio of 9 times for next year because annual earnings are expected to rebound 7%. Prudential offers an inflation-beating 1.4% which provides an added sweetener.
Life insurance demand is often one of the fastest things to recover when economic conditions improve. However, this isn’t the chief reason why I’d buy this UK share right now.
I’d load up on Asia-focussed Prudential as financial product demand in emerging markets in particular is about to seriously take off. And this FTSE 100 stock has the brand power and the scale to ride this trend to its fullest. Swiss Re reckons developing market premiums will double through to 2029, with China becoming the world’s largest market by the middle of the 2030s. I reckon this UK share could make me seriously rich.
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Royston Wild owns shares of Prudential. The Motley Fool UK has recommended Prudential. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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