A sudden downturn in the UK economy could scupper growth forecasts over at penny stock Staffline Group. But for the time being, things look extremely bright for the British jobs recruitment sector. A study by Aviva suggests that a massive 70% of UK workers are seeking to change their careers next year, City AM reported.
Staffline, which also provides staff training services, has big opportunities next year to train up Britain’s workforce to address big skills shortages. The strong jobs market has prompted the penny stock to increase its profits expectations in recent months. I think this trend could well continue into 2022 and I’d buy Staffline to ride this theme.
A retail penny stock I’d buy
A buoyant housing market and strong spending on home improvements has helped to lift trading at Topps Tiles recently. I’m expecting sales to continue rising strongly at the retailer well into 2022 too. The buoyant state of homes demand continues to command plenty of attention in the press. The bright outlook for the home improvements industry less so. A report by Volkswagen in late summer suggested that two-thirds of homeowners are planning to improve their properties in the 12 months to late July next year, spending a total of £135bn.
All this bodes well for Topps Tiles. Competition is intense in the retailer’s markets. Still, I think the firm’s market leading proposition could help it to offset this problem.
I’m also thinking of buying Triple Point Social Housing REIT for my shares portfolio today. This dirt-cheap UK share provides social housing for adults with special needs, a market tipped for strong growth over the next decade. Experts at the London School of Economics think the number of specialised supported housing units for adults will need to rise by almost 200,000 between 2015 and 2030.
I think Triple Point is a great example of how investors like me can potentially make money through responsible investing. Today the company offers a splendid 5.6% dividend yield for 2022. Compare that to the broader 3.5% forward average for UK shares. I’d buy the property play despite the threat of rising material costs to its construction budgets.
A great electric vehicle stock
I also think Pendragon could be a great electric vehicle stock for me to buy today. Sales of plug-in vehicles in the UK are soaring as concerns over the environment grow. According to the Society of Motor Manufacturers and Traders (SMMT) such vehicles account for 16.6% of all new car sales in 2021. British car retailers like Pendragon are well placed to capitalise on this trend.
Broadly speaking, stocks that are exposed to the car industry are suffering as supply issues hit production levels and consequently stocks at dealerships. However, Pendragon’s used car operations could help profits at group level remain resilient despite this threat. As a long-term investor there’s a lot I’m excited about with this dirt-cheap UK share.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Pendragon. 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.