5 UK Growth Stocks That Could Make You Richer In September
These companies are growing fast, and their stock prices are heavily discounted
The COVID-19 pandemic created an air of uncertainty in 2020 and saw value stocks outperform growth stocks. This is a trend that has persisted for the better part of 2021 as well.
However, with vaccination rates in the UK now at over 50%, confidence in the stock markets is on a rebound. This has seen investor interest in riskier but higher growth stocks increase.
Confidence in the market is also driven by the fact that the Bank of England is unlikely to raise interest rates in 2021. The Bank has indicated that it could raise interest rates in 2022.
Even then, it is unlikely to be something so drastic that it tampers with the optimism in the broader market. As such, there is a lot of upside potential for growth stocks.
In this environment, several UK growth shares look pretty good at current prices. These stocks have the potential to make investors richer in September and for the rest of the year.
5 UK Growth Stocks That Could Make You Richer In September
BP (BP) is among the best-performing companies in the LSE this year. Despite being hit hard by the effects of the Covid-19 pandemic, this company has consistently strived to remain afloat and is emerging as one of the most promising corporations this year.
The BP company recently announced its plan to continue growing its energy production in the renewable energy sector. It is set to get to about 50 gigawatts of renewable energy by the end of this decade. A lot of industries are now moving towards green energy with a focus on sustainability and environmental conservation. Stimulating its renewable energy production in line with this is thus a brilliant move that will see the company’s stocks rise in value in a short while.
Despite the dip in demand for petroleum products as the business world stalled due to the Covid-19 pandemic, BP still improved in its third-quarter, registering a loss of $0.5 billion compared to $16.8 billion in the second.
Despite still being a loss, it is a massive environment that indicates a lot of hope going to the end of 2021 as the company works towards the production of renewable energy, and as the world’s economy gears to getting back to normalcy now that vaccines against the pandemic have been developed.
As you consider which companies to include in your portfolio in 2021, BP should be among those you should consider.
Another UK growth stock that can help investors build wealth in September and beyond is Rightmove (RMV).
Rightmove is the UK’s top property portal. Despite the pandemic hitting the country’s economy hard, property inquisitions have surged as people had time to reconsider their options while confined in their homes.
The UK government also recently made a significant announcement concerning the property market. The government has put a stamp duty holiday in place in which buyers will be in a position to buy homes worth up to £500,000 without paying stamp duty charges.
This announcement has lifted a serious weight off property buyers motivating even potential first-time buyers. As a result, it has stimulated RMV stocks that have seen demand for houses soar hence the traffic on their website.
The government decided to give this holiday in a bid to help pump back money into the country’s economy. House prices have now soared about 7% due to increased demand, but the purchases are still going up despite the hike.
Rightmove company is one of the top 5 UK growth shares that could make you richer.
3. JD Sports Fashion
JD (JD) is a British sports fashion retail company that has seen its stocks beat the odds of a devastating business year due to the Covid-19 pandemic. Despite the effects of this pandemic biting the retail industry, this company has continued performing against the tide.
JD now boasts of over 600 stores across the world and has a strong digital presence. The announcement by the UK government to lift the local lockdown and the extensive vaccination campaign that is going on in the country has played a big role in pushing the good performance of this company.
Looking back at its performance over the previous year, JD stock price has recorded a low of £608 but has since risen to £1000. This increase marks a more than 146% rise and is set to go even higher. The company currently has a market capitalization of about £10.4 billion and will rise as the stock price continues with its bullish trend.
There has been a lot of online activity as people work from home due to Covid-19 containment measures. Even with the country on the verge of returning to normal, this trend looks like it will continue. JD stock stands out as one of the top 5 UK growth stocks for this month.
4. Hotel Chocolat
Hotel Chocolat (HOTC) is another of the top 5 UK growth shares.
The Hotel Chocolat stock is one of the best-performing companies in the LSE at the moment and one that you should put into consideration.
The Hotel Chocolat company has shown positive growth over the year and is sustaining the growth very well. Currently, the company has more than 160 stores all over the country and a strong online presence. The company is also enjoying the benefit of having its plantation hence reducing the costs of production significantly.
Hotel Chocolat is quickly taking over the beverage market, especially with its popular indulgent hot chocolates. They are offering both takeaway and home delivery services. This move has seen a lot of people shift their preferences from top coffee brands like star bucks to these hot chocolates.
Hotel Chocolat's in-store sales had spiked up 14% at the start of this year but dipped again due to Covid-19 economic effects. However, this dip has been countered by their online sales that have increased by more than 150%. With a market cap of approximately £518 million and a share stock price of £378, this company has seen an increase of 5.28% recently. It is worth add in a stock portfolio.
5. B&M European Value Retail SA
To round out this list of UK growth stocks that can make you richer in September and beyond is B&M (BME).
B&M is a UK retail company that has sustained its business throughout the Covind-19 pandemic. This company has several established many brands, including Heron Foods and Babou, a French retail store.
With a market capitalization of £5.61 billion and a share price of £560, B&M's shares are very promising, recording 0.064% in the last 24 hours. It has been listed as one of the most stable and the lowest companies in terms of share price volatility. Currently, the store has more than 657 stores and is growing at a very fast rate. B&M is aiming to add more stores with a target of about 950 stores.
During the pandemic, the stores have seen long lines despite the harsh economic times and have significantly increased their sales. B&M is among the most popular retailer brand in the UK, with more than 84% of its sales coming from stores in the UK. The rest come from its international stores, mainly in Europe.
During the year, the BME stock price has seen a low of £450 and a high of £612 and continues to rise. This UK growth stock should be part of your portfolio.
Despite these stocks showing a bullish trend, it is always important to research before investing in any stock. Make sure you get as much information as possible before settling on any investment option. It is also wise to diversify your investments to mitigate risks since these stocks are also volatile.
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