Top 3 UK retail stocks to add to your ISA in 2022
- UK retailers have had a good start to 2022.
- Most of them have upgraded their Q4 profits.
- We explain why Sainsbury’s. JD Sports and Tesco are good buys.
UK stocks have started 2022 well, with the FTSE 100 index jumping close to its all-time high. Some of its best-performing equities this year are in the hospitality, energy, and aviation sectors. In this article, we will look at some of the best UK retail stocks to add in your Individual Savings Account (ISA).
Sainsbury’s (LON: SBRY) is one of the leading British retailers. The company has a market capitalisation of over 6.2 billion pounds and hundreds of stores in the UK.
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Sainbury’s did well in 2021 as investors speculated that the company would become a viable acquisition target from some of the leading private equity companies. The speculation increased after the auction of Morrison’s, the third-biggest supermarket chain in the UK.
Sainsbury’s share price has done relatively well in 2022. It is trading at 287p, which is about 6.6% above the lowest level this year. The gains accelerated on Wednesday when the company issued a positive forward guidance.
The company said that it will report a higher profit than previously forecast after a strong Christmas holiday. It expects to make at least 720 million pounds in underlying profits.
JD Sports (LON: JD) is a leading British retailer that focuses on sports apparel. It is a leading seller of brands from companies like Nike, Adidas, and Under Armour. It has a market cap of over 11.2 billion pounds, making it one of the biggest retailers in the UK.
The JD sports share price has generally been positive this year. It initially jumped to a high of 228p on Tuesday and is currently trading at 218p.
The strong performance of the stock is mostly because of the company’s forward guidance. The firm said that it expects to make a bigger profit than expected. Precisely, it expects to report a profit of 875 million pounds for the final quarter of last year. That was a bigger guidance than expected.
Tesco (LON: TSCO) is the biggest retailer in the United Kingdom valued at over 20 billion pounds. The company has stores in most towns and suburbs in the UK.
Tesco’s scale makes it a good retailer because it is able to optimize its online sales. Also, it gives it a good bargaining power when negotiating with suppliers.
Like JD Sports and Sainsbury’s, Tesco had a great holiday season. The company boosted its forward guidance, pushing its stock price to a multi-year high. The strong returns and stability of Tesco make it a good UK retail stock to buy.