Six cheap stocks set to thrive over the next 12 months

Over the next year, life in Britain will slowly return to normal, with shops opening, sporting events kicking off, and pent up spending unleashed.

It will not be a clean transition to normality but investors looking ahead at the sectors primed to thrive again, and even expand their market share, could be rewarded by picking the winners now before the crowd catches on.

Telegraph Money asked professional stock pickers which companies would perform best over a one-year period as lockdown goes from a gradual easing to being fully lifted. 

This is Part Two in a series looking at which stocks to own depending on your time horizon. Part One analysed stocks for the next six months. If you are new to investing, first take a look at our guide to buying stocks for the first time. 

Coats Group  

Lockdown has forced retail stores to close, and even when it gradually eases, footfall will be considerably lower than normal.

This means lower sales in the short term for Coats Group, one of world’s largest manufacturer and distributor of  raw materials used for clothing, like sewing thread for companies like Adidas and Under Armour.

However, there could be a sales boom when pent up demand is unleashed once lockdown is fully lifted, according to Charles Hall, of stock broker Peel Hunt.   

“Sales will be sharply lower in the short term as many of its customers have closed their stores. However, online sales are picking up and stores are starting to reopen,” he said.

He added that Coats will be in a stronger competitive position as clothing companies seek to reduce reliance on China in their supply chain.

“Over a year, it should gain more market share and benefit from a return to normal shopping patterns,” he said.

The share price has fallen 42pc this year and has not yet rebounded from April lows. 

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