Are you new to UK stocks but want to get in and grow your capital? Or maybe you are a seasoned global investor who is bullish on the UK economy? Whichever kind of investor you are, the core questions remain the same, will 2023 be good for UK stocks? What UK shares will give a good ROI in 2023?
Well, read on because this article has all the answers you need.
We take an in-depth look at some of the top 10 UK stocks that could easily double your money in 2023!
Best UK Shares That Could Double Your Money
The year 2021 has been a promising one for UK stocks. Save for late November, when the Omicron scare led to a dip, the overall trajectory for the FTSE 100, and other indices has been up.
With vaccine rates higher than ever before in the UK, economic activity could return to pre-pandemic levels in 2023. This means fundamentally strong stocks have good prospects going into 2023.
Now that you know where the UK economy is going let’s look at 10 UK stocks that could double your money in 2023.
The Top 10 Best UK Stocks That Could Double Your Money In 2023:
- Persimmon
- Bellway
- CVS Group
- Just Eat
- Kape Technologies
- Watches of Switzerland
- The Gym Group
- The Character Group
- Focusrite Plc
- Kainos Group
10 UK Stocks To Buy In 2023
1. Persimmon (PSN)
Top of the list of UK stocks that can double your money in 2023 is residential construction company; Persimmon (PSN).
The macro-environment favours this stock, with UK home prices on a steady growth path since 2020.
Per the latest UK residential home sales data, November 2021 recorded the strongest growth this quarter. Home price growth rose to 10% in November, up from 9.9% in October.
The underlying demand is substantial considering that home prices are rising despite the stamp duty waiver, which was a key driver to this market in 2020, coming to an end.
For companies like Persimmon, rising home prices mean stronger revenue growth and higher valuations.
While demand is likely to soften, as indicated by mortgage data from the bank of England, supply chain issues are likely to keep the market hot in 2023. Besides, the economy is slowly moving towards pre-pandemic levels, which means overall consumer demand will rise over time. Based on these factors, Persimmon could easily double in price in 2023.
Persimmon’s technical indicators also point to a stock that can double from its current price levels.
Persimmon has been making higher lows over the last couple of months. This indicates that investors are bullish and that every dip is being bought up.
PSN is currently on an uptrend after a dip that saw it test a low of GBP 2477 back in April. If it sustains its current upside momentum, the key resistance level to watch would be GBP 3275. If this resistance is broken, PSN could easily double by 2023.
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2. Bellway (BWY)
Still, on the UK residential real estate market, Bellway (BWY) stands out as a stock with a high potential to double your money in 2023.
Like Persimmon, Bellway is likely to get a boost from the strong demand for residential houses in the UK at the moment.
In fact, of all the UK residential home market players, Bellway has leaped the most benefits from the prevailing macro-environment.
Back in October, Bellway announced that in the financial year ending July 31st, 2021, pre-tax profits shot up by 102.4% to hit £479 million. Bellway also reported that revenues shot up by 40.3% in the same period.
These strong profitability numbers indicate that Bellway has capitalized on the prevailing environment to the maximum. Given that the factors driving the UK home market will still be there in 2023, investors can expect BWY to be among the top UK stock performers in 2023.
Confidence in BWY as an investment is also boosted by the fact that insiders have been buying up shares. In 2020, Bellway Insiders increased their holdings by 24%. This indicates that those most in the know about Bellway are bullish on its prospects.
The charts also paint the picture of BWY as a high potential stock.
Bellway has been in a correction over the past few months. However, it has been in the green through December after bouncing off a 3-year support level at GBP 3067.
With the real estate market expected to remain strong in 2023, BWY could sustain this upside momentum and possibly break the GBP 3646 resistance in early 2023. If this resistance is broken, BWY could double your money in 2023.
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Read Also: How To Buy Growth Stocks UK
3. CVS Group (CVSG)
Due to the pandemic social welfare spending and low-interest rates that have prevailed since 2008, inflation fears are high.
In all major economies including the UK, prices have been going up, and Central Banks are still considering the best way forward.
Consumer cyclicals like CVS Group (CVSG) tend to outperform the market in an inflationary environment. CVS operates an online pet pharmacy and offers a wide variety of veterinary services. These are services that pet owners need, irrespective of how high prices go.
Evidence of CVSG’s potential in an inflationary environment is in its price action all through 2020/21. In this period, CVS has been in an uptrend with a slight correction in November and the first few days of December. However, it is gaining momentum again.
As long as inflationary fears remain high going into 2023, CVSG will likely keep attracting investors, especially institutional (smart) money.
This makes the early December dip a perfect entry point for investors looking for a UK share that can double money in 2023.
Confirmation of such potential would be a push through September’s high of GBP 2830.
Besides favorable macro-factors and positive price action, CVS Group has experienced a lot of insider buying this year. Over the last 12-months, CVS Group's non-executive chairman bought £90k worth of shares, making it the most significant purchase so far. In the same period, no insiders have sold. It’s an indicator that those who know CVS Group best are bullish on its prospects.
CVS Group’s income statement points to strength. Quarterly revenue growth stands at 30.10%. This is strong by any industry measures and an indicator that demand for CVS products is strong.
CVS Group’s balance sheet is strong, especially as indicated by its current ratio and cash flow numbers. With a current ratio of 1.03 and levered free cash flows of £46.19 million, CVS Group easily comes across as a stable company.
A combination of these fundamentals and high buying volumes point to CVSG doubling your money in 2023 or at some point in the foreseeable future.
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4. Just Eat (JET)
Still, on consumer discretionary UK stocks that could double your money in 2023, Just Eat (JET) comes off among the top. Just Eat is an online food delivery company, a market segment that got a huge boost after the lockdowns of 2020.
With e-commerce now on an accelerated growth trajectory, food delivery companies like Just Eat are set to grow. That’s regardless of whether there is inflation or not.
The best part about Just Eat is that it is trading at yearly lows. JET has been on an accelerated selloff since October. This has a lot to do with the move by the E.U. to declare riders for online apps as employees.
While the move by the E.U. is set to add to the costs of digital delivery companies, there are multiple ways these companies could adapt, one of them being automation (driverless cars).
Besides, the move by the E.U. has also created clarity, and digital companies can now figure out new strategies to remain in operation. This is evident in the move by Just Eat to welcome the new regulations.
Just Eat stated that the new regulations create clarity, and level the field for all industry players. This indicates that Just Eat is ready to run under the new regulations, which is a plus to its long-term growth.
Internal company fundamentals are pretty strong too. JET’s quarterly revenue growth rate stands at 161.90%. This indicates strong demand and is a reason to be bullish on this stock.
The above factors make JET’s current price of GBP 4226.5 a perfect entry point in anticipation of a rebound in 2023. If bullish momentum rises and JET retest its October 2020 highs of GBP 10054.0, it would effectively have doubled in value.
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5. Kape Technologies (KAPE)
Cybersecurity has become a major concern for organizations globally. This presents a massive opportunity for companies in the Cybersecurity space, such as Kape Technologies (KAPE).
Kape Technologies operates in two divisions through which it creates and distributes cybersecurity solutions. It has made significant strides in this market, one of the latest being the purchase of ExpressVPN.
Besides giving Kape Technologies a wider presence in the market, the deal gave Kape access to an already existing market. Kape announced that it got an extra 3 million customers through the deal. Kape management also said that the deal made the company a big player in the premium consumer market.
Kape Technologies has some pretty solid internal fundamentals too. Its quarterly revenue growth rate of 61.90%, which is quite high by any standards. It is an indicator that there is strong demand for Kape’s products.
Cash flows are high too, indicating that Kape Technologies has the resources to run its operations easily. Given that it is a software company with low fixed costs, high positive cash flows mean Kape can take advantage of market opportunities with ease.
With Kape Technologies' strong market standing, the stock has performed well all through 2021.
However, over the last 3-months, it has hit strong resistance at GBP 425. If Kape pushes through this resistance and its market share keeps growing, doubling your money in 2023 is possible.
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Check Out: 3 UK Stocks That Could Double By 2025
6. Watches of Switzerland (WOSG)
The luxury goods market is set for a major comeback as the world leaves the worst of the pandemic behind it. This means times could be good for luxury goods companies like Watches of Switzerland (WOSG).
Watches of Switzerland already has the edge over most of its competitors. This has a lot to do with its strategic bet on the American market. While most luxury companies have been focused on the Chinese market, Watches of Switzerland bet on American purchasing power, and the same is paying off.
For the six months ending October 2021, Watches of Switzerland reported that sales rose by 45%. The sales figures were so high that they beat those reported in the pre-covid-19 era. This indicates that Watches of Switzerland’s core clientele has largely been unaffected by COVID-19.
Watches of Switzerland's strong sales all through the pandemic have also reflected in its share price. WOSG went public in 2019, and the stock has tripled in value this year. Looking ahead, WOSG has a very high potential to double your money.
The charts give a much clearer idea of where WOSG could go in 2023. WOSG has been on an uptrend since April 2020. While it made new highs in early December, WOSG has been correcting over the last few days.
However, bears have been unable to clear its gains so far in the month. Buying volumes are also on the rise, indicating that bulls are still in control. With the macro-environment getting better for WOSG, there is a good chance that it could double in value in 2023.
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7. The Gym Group (GYM)
The COVID-19 pandemic has seen many people take workouts more seriously. This spells good tidings for fitness companies like The Gym Group (GYM).
While releasing its half-year results in September, The Gym Group announced that membership numbers had shot up since the lockdowns were eased up in April. Breaking down the numbers, The Gym Group announced that by June, its membership stood at 730k, up from 547k back in February.
The Gym Group has also been on an expansion path this year. While releasing half-year results for 2021, GYM management also announced that it had opened seven gyms, and more are in the pipeline. By 2023, The Gym Group intends to open an additional 40 gyms.
Essentially, this means by 2023; The Gym Group will have much higher revenues than it has in 2021. This translates to higher revenues, and by extension, a potentially higher stock price.
The charts also paint GYM as a potentially big gainer in 2023. GYM has been bullish throughout December and has formed a bullish engulfing pattern. This is an indicator that bulls are retaking control after the correction in October and November.
If GYM closes December above November’s high of GBP 295.0, it would be an indicator that bullish momentum is on the rise. In such a scenario, and with the expansion plan in place, GYM doubling your money in 2023 is plausible.
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8. The Character Group (CCT)
The Character Group (CCT) has been gaining bullish momentum since October when it hit strong multi-year support at GBP 500.
In December, upside momentum has risen, and CCT is close to canceling the September losses. If CCT closes December above September’s high of GBP 710, it would indicate that bulls are firmly in control. In such a scenario, The Character Group could double your money in 2023.
Several fundamental factors could trigger a CCT rally in 2023. The Character Group operates in the toys market, a market that tends to perform well regardless of the market's direction. With inflation fears high, and the Omicron variant of the coronavirus roaming around, investors are likely to be looking into stocks that offer growth and stability.
The Character Group has both because it operates in a relatively inelastic market and is a dividend-paying stock. This could see it draw in more investors and drive up the demand.
The Character Group’s books paint the picture of stable, potential growth stocks too. CCT has a quarterly growth rate of 44.10%, an indicator of strong demand for its products.
Its balance sheet paints a picture of stability too. The Character Group has a current ratio of 2.08, which means it can cater to all its debt obligations without putting a strain on its resources.
The Character Group also has pretty high cash flows too. Operating cash flows stand at £23.18 million, while levered free cash flows stand at £16.25 million. This means it has the resources to sustain operations and easily take advantage of emerging opportunities comfortably.
With a combination of a strong balance sheet and growing demand, it is not hard to see why CCT is a UK stock that could double your money in 2023.
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9. Focusrite Plc (TUNE)
Music hardware and software company Focusrite (TUNE) recently saw analysts raise its revenue forecast for 2023. Three market analysts now expect Focusrite to record revenues of £178 million within 2023. This would be an increase of 2.1% from its revenues of 2021. This is a sign of strong demand and a reason to watch TUNE as a UK stock that could double your money in 2023.
Considering how well TUNE has performed so far, hitting these 2023 revenue targets could see it easily double in value by 2023. This is a stock that is up by over 900% in the last 5-years, which means 100% gains within a year are within reach.
Aside from its growing revenues, Focusrite also comes up as a company that makes efficient use of its resources. This is evident in its Return on Capital Employed (ROCE), which stands at 47%. This is much higher than the industry average of 9.1%.
Focusrite ratio of current liabilities relative to total assets has also been going down. This indicates that it is relying less on creditors to finance its operations. With interest rates likely to go up in 2023, Focusrite is one of the companies that would be cushioned from the adverse effects of such a move.
From its current price action, there is a good chance that TUNE could double in 2023. After a minor dip in September and October, the stock has formed a bullish continuation pattern. It opened December above November’s high, indicating that bulls are in control.
If it maintains this momentum going into 2023, the chances of TUNE doubling your money are pretty high.
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10. Kainos Group (KNOS)
With the cloud services and data markets on a growth trajectory, tech companies like Kainos (KNOS) could double your money in 2023. Kainos is already one of the best stock performers in the last 5-years, after recording gains of 883%.
Kainos’s books paint the picture of a company that is on a growth path. The quarterly revenue rate of 32.70% indicates a company with strong product demand and operating in a high growth market. This means investors can expect KNOS to keep recording strong growth going into 2023, which will reflect in its stock price.
Kainos price action also points to more upside potential going into 2023. KNOS is currently in a bullish continuation pattern. This follows a decline in selling volumes after a November and early December correction.
If bulls push Kainos through November’s high of GBP 2100, it would indicate that the bullish continuation pattern is complete. KNOS could easily double your money in 2023 or within the foreseeable future in such a scenario.
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How To Invest In The Top 10 UK Shares
At this point, you have a good idea of which UK shares could double your money in 2023. The next step is to know how to buy.
This is the easiest part of all because the quality of stockbrokers has gotten better over the years.
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Key Takeaways
- The 10 UK shares discussed above can double your money, but they have risks.
- Persimmon, Bellway, and CVS Group are among the top UK shares that could double your money in 2023.
- All 10 UK shares have a bright future in revenue and value growth.
- While all 10 UK shares have strong prospects, it is good to do your research to understand the market better.
- Remember, investments carry no guarantees. Be prudent when investing in the stock markets.
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