Investing in growth stocks is one of the best ways to secure good fortune. It is always important to choose stocks with continuous growth in their earnings per share (EPS) to gain good profits. Since the market is experiencing a sell-off, this is the right time to buy stocks with growth potential. We have compiled the list of 5 growth UK stocks to buy hand-over-fist right now.
It is difficult to find companies that are growing fast and generating profit. However, here are the top 5 shares that still deliver fortune-creating returns for investors with their tremendous growth potential.
- A good F-score indicates that Calnex could be the best growth stock to buy now for future returns.
- The significant growth in its EPS makes BOO a potential growth stock to buy now.
- The Team 17 stock is expected to rise higher with the mobile gaming industry becoming extremely popular each passing day.
- With all its technical indicators pointing towards a strong buy action, this is the right time to buy AFX.
- If CCC stock continues to maintain its growth, it could be one of the most profitable investment options for investors now.
1. Calnex Solutions (CLX)
Calnex Solutions has a profit-rich track record and seems to be a good stock to buy right now.
London-listed telecommunication equipment company, Calnex Solutions, has been enjoying a great period recently as its earnings have been rising faster than most of the other companies. According to their recent report, the company has not experienced any negative impact on its ability to manufacture and ship products so far, even amidst the industry-wide uncertainty concerning the continuing global semiconductor shortage.
The company revealed that it was trading as expected and is confident of delivering a positive outcome for the year, meeting the market expectations.
What Drives CLX Stock’s Growth?
The Paragon-Neo, or the latest enhancements to Calnex’s Lab Sync platform, has brought in a lot of attention to the company. In the first few months, customers started placing encouraging levels of pre-orders ahead of the launch later in the year. The platform has also gained tremendous interest from the market, boosting the popularity of Calnex.
Other recent product developments included the improvement of its Field Sync platform. It was enhanced with a unique ability to test 5G networks alongside the 3G and 4G support that is already available. As telecom operators struggle to maintain their new 5G networks, the improvement would drive more users to it.
Why Is Calnex The Best Growth Stock To Buy Now?
One of the significant quality metrics for Calnex Solutions that makes it a potential growth stock is that it passes 7 out of the 9 financial tests in the Piotroski F-Score. F-score is nothing but a world-class accounting-based checklist for determining which stocks have an improving financial health trend. Therefore, a good F-score means that the company has vital signs of quality and growth.
Moreover, Calnex also received a Gold standard accreditation from investors in People earlier this year. This reflects the recognition of Calnex as the best institution in people management excellence.
2. Boohoo Group (BOO)
Boohoo Group's earnings per share (EPS) growth has been surging higher, making this a good time to buy BOO.
Boohoo Group operates as an online fashion retailer in the United Kingdom, the United States, and internationally. The company has a vast market. It designs, sources, markets, and sells clothing, shoes, accessories, and beauty products for people of the 16 to 40 age group.
What Makes BOO A Potential Growth Stock?
A company’s stock price will eventually become higher when its EPS keeps increasing for a longer period. Boohoo Group has seen a growth of 39% in its annual EPS over the past three years, making it a potential growth stock to buy now. Moreover, the company also had several insider buyings, indicating that those closest to the firm have confidence that the stock price will perform well.
BOO’s Increasing Revenue Growth
BOO stock has been showing tremendous revenue growth. In the fiscal year 2021, the revenue of Boohoo increased by 41% year on year, making BOO one of the top growth UK stocks to buy hand over fist right now. It was mainly fueled by the strong growth in almost all regions and brands. The company also has been highly profitable over the past five years, exposing the consistency of its growth.
Yet another reason that boosted the price of BOO stock is its recent acquisition. Earlier this year, the company announced its plans to acquire all of the e-commerce and digital assets and intellectual property rights. Apart from this, several acquisitions over the past year have also helped in pushing the price of BOO stock to new highs. Therefore if you are looking for stocks with good returns, Boohoo Groups could be a profitable investment option.
3. Team17 (TM17)
Thanks to the rampant growth in mobile gaming, Team17 has had a great run on the stock market, making TM17 a good buy now.
The mobile gaming industry has been growing at a terrific pace over the past few decades. Team17 is a company that makes games for all the major consoles as well as PCs. It is one of the best players in the fast-growing mobile gaming market. It also has a prolific IP portfolio that includes income-driving franchises such as Worms, The Escapists, and Overcooked. Its product pipeline is tightly packed with a wide array of gamer favourites, increasing its users and eventually the price of TM17 stock.
The Growth Of TM17 Stock
Team17 has had a good run in the stock market over the past few years. The stock is up by a notable 20% over the last three months. Moreover, the stock price also received a significant boost from the Covid-19 lockdowns and the increasing demand for gaming. TM17 had a tremendous rally over the years and is more than triple in value since it was listed in 2018. The stock continues to attract industry-wide recognition for its video games. It has also received the MCV Indie Publisher of the Year award in 2020.
Moreover, Team17 has a strong focus on life cycle management, enticing users to stick with games for a longer period. The firm does this by adding more downloadable content (DLC) that enables the company to gain more revenue from games that have already been released.
Team17 - A Stock With High Quality and Strong Momentum
Good quality stocks are always resilient and can compound investment returns over time. And when it is combined with solid momentum in price and earnings, it beats expectations. Team17 scores really well in some significant financial and technical measures, positioning itself as a stock with both high quality and strong momentum.
A significant quality metric for Team17 is its 5-year Return on Capital Employed (ROCE), which is 17.4%. Double-digit ROCE’s are always a sign that companies can grow profitably in the coming years. Therefore, with a good business model, a robust IP, and many loyal customers, Team17 is one of the top growth stocks to buy now.
4. Alpha FX (AFX)
With the consistent growth in its stock price in the past three years, Alpha FX Group is now one of the most profitable long-term investment options.
Alpha FX Group has positioned itself as one of the growing companies within the finance sector for quite some time now. The company continues to display its potential to bring steady value generation. Alpha FX is a company that is connected to foreign exchange services. It has both Corporate and Institutional segments for operation. The AFX stock has gained 4.5%, hitting a new all-time high after reporting a 90% growth in its first-half revenues.
Factors That Boosted AFX Revenue And Price
A broad recovery in client activity post lockdown was one key aspect that boosted the growth in AFX revenues. Apart from that, the company has also started seeing continuous growth from new territories, pushing the value of AFX stock even higher.
Moreover, an added benefit of operational gearing also resulted in profit growing faster than revenue. This happens when a business has a high proportion of fixed costs. The costs are consumed across a higher revenue base, increasing profits and pushing the value of AFX higher. Thanks to its consistently strong performance, Alpha FX is one of the top growth stocks worth adding to investor watchlists.
Reasons to Buy AFX Now
The EPS growth is an impressive growth measure for any company. One of the qualities that make AFX a good buy now for investors is its increase in earnings per share. Alpha FX Group has recorded a significant 31% increase in its compound EPS over the past three years. The continuously growing revenue is yet another reason to buy AFX stock now. Even amidst the market suffering from pos-pandemic challenges, AFX has managed to maintain stable growth.
5. Computacenter (CCC)
CCC is an excellent growth stock with massive potential for the future.
Computacenter is a leading independent provider of IT infrastructure services in Europe.
It assists both corporate and government clients from offices throughout the UK, Germany, Austria, France, and Luxembourg. The company has a wide range of expertise and covers technology sourcing, infrastructure integration, and managed services.
CCC Stock's Growth Over Years
The stock price of Computacenter has been in an uptrend over the past few years. As most of its industrial clients are fully operational now, the company’s operations in Germany have shown good strength compared to the second quarter of last year. Moreover, the company’s EPS has also shown a growth of 26% each year, compound, over three years.
Why Invest In CCC?
Stocks like Computacenter are an excellent long-term investment option. One key reason for the growth of CCC price is that insiders have a notable investment in the stock. Moreover, the company earlier this year said that it expects profit for the first half to climb up, showcasing a stellar performance in the second quarter.
Since it has been robust throughout the first half of 2021, trading strongly across all of its major geographies, the CCC stocks seem to be a good growth stock to buy now for future profit.
If you are looking for the best stocks, search no more because here are the top 5 growth stocks to buy hand-over-fist right now. What makes these stocks worth buying is their strength to resist competitive threats and generate tremendous profits over the years. However, it is always advised to begin your investment journey after doing your due diligence.
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