Three winning stocks for a post-pandemic world
Professional investor Dan Lane of Freetrade selects three stocks that he thinks will keep their relevance in a changing world.
Speculating about the timing and magnitude of the British economic recovery this year is pointless – not because it doesn’t matter but because we have no control over it. Investors should bear in mind that the best companies are those using this time to ensure they can survive and even thrive despite the highly uncertain outlook for their businesses.
Managing liquidity and ensuring their relevance in a changing world will be important regardless of the scale of recovery. Here are some examples of the firms we think are eager to control their own destinies.
Unilever: an evolving leader
A real danger in 2021 is that we see the so-called post-2008 “expensive defensives” as backward-looking relics amid the scramble for technology stocks. Arguably, once the headline tech story starts to fade, the next question will be which firms can sustainably integrate tech into their models to boost their success or, at the very least, keep up with rivals and the wider market.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Unilever’s (LSE: ULVR) e-commerce revenues grew by 76% year-on-year in the last three months of 2020, according to its latest results. That means online sales made up 10% of total revenues. And while some firms are struggling to shift their whole proposition online (just ask the high-street fashion retailers) no-one is expecting digital Domestos. So the company might not be judged initially on its adoption of tech but it definitely knows its brands have to stay relevant in an online world. As long as it innovates and meets its consumers where and how they prefer, potential rivals should struggle to take market share from the Anglo-Dutch consumer-goods giant.
Games Workshop: shrugging off the pandemic
The pre-pandemic growth story at miniature-wargames manufacturer Games Workshop (LSE: GAW) is still intact. Lockdowns have encouraged people to take up new hobbies and given players plenty of time to paint their figurines. The firm has paid very close attention to its cash balances and, despite over 500 stores being closed, it has managed to keep up the trajectory shareholders have grown used to. A straightforward business model, committed user base, clear financials and a high return on capital employed (a key gauge of profitability) mean Games Workshop is still attractive to cautious long-term investors.
There’s a temptation to ignore stocks with higher valuations, such as Unilever or Games Workshop. But when a firm sets a promising course and takes its future into its own hands, what’s to stop it becoming even more expensive? Draw a line over Games Workshop’s V-shaped recovery and it’s as though the pandemic never happened.
Ascent Resources: an oil company worth exploring
The turnstile has stopped spinning and new management is in place at oil and gas explorer Ascent Resources (Aim: AST). A revised strategy and a higher-quality shareholder register in late 2020 could release significant value. The group became a basket case under the previous managers, not least thanks to a stand-off with the Slovenian government, but the new team has used 2020 to diversify and ensure the firm’s longevity doesn’t depend on just one project. Few rivals can boast assets like Ascent’s. With its Cuban operations in the pipeline and a more level-headed approach to negotiations with the Slovenian authorities, it’s worth another look.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Dan Lane is a senior analyst at investment platform Freetrade
-
How high earners could boost their pension by thousands and cut childcare costs
Salary sacrifice could boost your pension by thousands, while also helping you save on childcare costs. We delve into the numbers.
-
Monzo launches 11 ETFs via Blackrock to help savers invest
Monzo customers can now invest BlackRock's iShares ETF range via its banking app, making investing more accessible to millions
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
Resilient and profitable performers will excel in the era of deglobalisation
Opinion James Harries, co-manager, STS Global Income & Growth Trust, selects his favourite stocks as he shares where he'd put his money
-
The costly myth of “sell in May”
Opinion May 2025's strong returns for US stocks have once again shown that putting too much weight on seasonal patterns will only make investors poorer, says Max King
-
Vietnam: a high-growth market going cheap
Opinion The threat of tariffs has shaken Vietnamese stocks, but long-term prospects remain solid, says Max King
-
Who’s driving Tesla?
As Elon Musk steps back from government with his eyes on the stars, investors ask if he’s still behind the wheel at his electric-car maker.
-
Growth trends such as low-carbon grids and AI boost key infrastructure — how to invest
Opinion Richard Sem, partner, head of Europe, and portfolio manager at Pantheon Infrastructure, highlights three favourites as he shares where he'd put his money
-
Investment opportunities in the world of Coca-Cola
There is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.