Key Points
- What you need is to identify high-quality companies, buy their stocks and hold them for the long term.
These days, you do not have to be an investment guru or have loads of money to invest. The internet is open to everyone who needs information. You can buy a fractionst, and the different assets to invest in.
The best part is that the stock market is an asset class where you can invest any amount of money, and still win. Most stocks are structured in such a way that you can buy a fraction of a stock and make money from it.
With just £100, here are top UK growth stocks that you can consider getting a stake.
Evraz (EVR)
In the past year, EVRAZ plc (EVR) has been a top performer. Its stock has improved by 77.59% in the past year. Evraz is a British multinational mining and steel-making company whose headquarters are in London, United Kingdom (UK). This company runs its operations in several countries including Russia, Italy, South Africa, the United States, Canada, and Kazakhstan among others. This company is listed on the London Stock Exchange and is part of the FTSE 100 Index.
Evraz’s 2020 record looks impressive. It had a net income of £858 million, operating income of £1.671 billion, and revenues of £9.514 billion. The company's current market capitalization is £8.51 billion, has a dividend yield of 13.11%, and a price-to-earnings (P/E) ratio of 7.53. Its 52-week high is 707.6 GBX, while its low for the same period is 319 GBX.
So, what makes this stock a good buy if you have £100? First, the current price of this stock is 579 GBX. At this price, you get about five shares and remain with enough money to buy stocks from two other companies. This stock is bound to grow as the steel demand continues going up. Companies in this industry have had a boom as others were closing down. All indicators show that the price of steel will keep going up steeply since the supply is still limited, while the world economy is opening up.
The company made close to a billion pounds last year even as most economies shut down. With most economies including the UK opening up, you can expect that the company will continue growing in value. It also has a high current ratio which means it can comfortably borrow more capital for expansion as the world economy opens up.
As noted earlier, this stock improved by 77% in the last year, and by 272% in the last five years. It shows that it is a good option to invest in both the short and long term.
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Lloyds Banking (LLOY)
Lloyds Banking (LLOY) is another great stock to bet £100 on today. The stock is up by 95% in the past year, and it’s gaining.
Looking ahead, banking stocks are likely to keep performing well, and it’s all thanks to the signals that the Bank of England is giving.
The BoE has announced that while it expects inflation to grow by 4%, it is not in a hurry to raise interest rates. This means borrowing rates both by corporates and consumers are likely to shoot up in the short to medium term.
Besides an improving macro-environment, Lloyd’s internal fundamentals are getting better.
The company recently launched a £300 million house building fund in England. It’s part of its mission to become the biggest landlord in the U.K. Once this mission becomes a success, it will have a ripple effect on its intrinsic value, and by extension, its stock price.
The bank is also coming up with an innovative way to interact with customers in Scotland.
Alongside the Bank of Scotland and Halifax, the bank will soon be launching contactless limits for its Scottish clients.
Starting in October, the bank’s clients will be in a position to increase their contactless card limits from £45 to £100. This was in response to customer feedback, which means customer loyalty is likely to go up, which is good for long-term growth.
From a look at its books, it is quite evident that Lloyds is doing something right. This is quite evident in its quarterly revenue growth figures of 253.60%. It also has a pretty high-profit margin. The bank has a profit margin of 32.31%, which is high by any industry standards.
With the moves it is currently taking to improve on customer service and grow its presence in the real estate rental market, these numbers are likely to grow.
It’s a stock that could double or triple a £100 investment in the long run.
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British Petroleum (BP)
Lastly, you can consider having a stock from the energy industry. Such stocks will give growth, value, and high dividends on investment. The world's economy runs on their backdrop as they provide the fuel with which to run all industries in the world.
In this particular case, British Petroleum Oil Company would fit well into your portfolio. It is not just another oil company, but one that has great potential and that can give you a decent profit. In the last year, this stock has recorded a growth of 39%. It has had a consistent bullish trend throughout the year too and with the world economy reopening again, it could maintain this trend.
BP p.l.c. (BP) is among the seven largest oil and gas companies in the world. It deals not only in oil and gas but also in renewable energy. As most industries strive to move towards renewable and green energy, BP is keeping up with this trend by expanding its green energy production. It has plans to generate about 50 gigawatts of this type of energy by 2030. The company’s stock has since grown in value following this move.
Its books also read growth now and in the future. BP has a market capitalization of £63.6 billion and total assets of about £196.3 billion. It is liquid enough to fund its expansion programs and further add value to the company.
Currently, BP's stock price stands at £18.9. This price is low enough to enable you to buy a couple of shares for just £100. Going by its current trend, BP stock is one that you should have in your portfolio.
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