In one of our recent articles I explored what growth stocks are and why they are my favourite type of asset. At least in my current stage of investing. Throughout this article , we’ll be looking at the top ten best UK growth stocks that could potentially double or triple your money over the next five years.

What are Growth Stocks

Growth stocks are shares which have a high potential for rapid growth over time beating typical indexes or investment trust returns. They can be divided into two types: those with strong earnings growth (which is also known as ‘earnings-per-share growth’) and those with strong price appreciation (also known as ‘price-to-earnings ratio growth’).

Both types of growth stock are attractive because they offer investors the opportunity to make more money than if you had invested in an index fund. However, there are often higher risks associated with these type of stocks. To learn more about growth stocks checkout our blog post below

What are Growth Stocks and What Makes Them Different?

There are growth stocks in many stock markets but today I will be focusing on UK based companiess.

When it comes to growth stocks, or any stocks as a matter of fact, it is important that you carry out your due diligence and research the companies will. My picks in this article are purely my own opinion and are not to be taken as financial advise.

My Favourite UK Growth Stocks

1. S4 Capital

S4 Capital is a company based in London that has been around since 2016. It specialises in providing capital for businesses that need funding but don’t have access to traditional bank loans. The company provides its clients with short term loans ranging from £5,000 up to £100 million.

The company currently has a market cap of £2 billion and trades on the AIM market. Its main competitors include Funding Circle, which was founded in 2011 and has a market cap of just under £3 billion.

2. Boohoo

Boohoo is another company that offers fashion products such as clothing and accessories. The company was established in 2006 and now operates across Europe, Asia, North America and Australia. Its headquarters are located in London.

The company has a market cap of approximately £1 billion and trades on the LSE. Its main competitor is ASOS, which was founded in 2000 and has a market cap worth nearly £12 billion.

3. Asos

Asos is yet another online retailer that sells clothes, shoes and other fashion items. Founded in 2000, the company is headquartered in London and operates in more than 20 countries worldwide. Asos is currently valued at £1.4 billion and trades on the New York Stock Exchange.

4. Ceres Power Holdings

Ceres Power Holdings is a renewable energy company that focuses on developing wind farms and solar power plants in the United Kingdom. The company was founded in 2001 and is headquartered in London. It has a market cap of roughly £1.2 billion and trades on both the AIM and the LSE markets.

It is one of the fastest growing companies in the UK. In 2017 alone, it grew by almost 50%. Its main competitors include Innogy, which was founded in 1999 and has a market cap valuation of £7.8 billion.

5. Hochschild Mining

Hochschild Mining is a mining company that focuses on copper, zinc and lead operations in South Africa. The company was founded back in 1885 and is headquartered in Johannesburg. It has a market capitalisation of £550 million.

6. Calnex Solutions

Calnex Solutions is a software development company that develops cloud-based solutions for business. The company was founded way back in 1994 and is headquartered in Edinburgh. It has a market value of £150 million and trades on the LSE.

7. Impax Asset Management 

Impax Asset Management is an investment management firm that specializes in investing in private equity funds. The company was founded over 30 years ago and is headquartered in London and Dublin. It has a market valuation of £2.4 billion and trades in the

8. Focusrite

Focusrite is a manufacturer of audio recording equipment. The company was founded all the way back in 1985 and is headquartered in Leeds. It has a marketcap of £500 million. The company makes professional audio recording equipment including microphones, headphones, mixers, speakers, sound cards and cables.

9. AJ Bell

AJ Bell is a financial services provider that offers a wide range of investments including stocks, bonds, ETFs (exchange traded funds), and commodities. The company was founded more than 100 years ago and is headquartered out of Birmingham. It has a

10. Beyond Meat

So a bit of a caveat with this one. Beyond Meat is not a UK based company. They are listed on the nasdaq so you must have access to USA based stocks to invest in this company. However, the reason I have included them in this list is that I believe they will have a big impact on the UK.

I personally have started to notice Beyond Meat products showing up in more in more places from McDonalds to certain supermarkets. Beyond Meat is a great pick for an environmentally friendly and sustainable invested although like many other growth stocks, it could be a long time before Beyond Meat further dominates the food industry due to the higher costs to produce plant based meats.

Summary

Hopefully, this list has gave you an idea of some growth stocks on the market that you can look into. I am not a financial advisor and everything in my blog is based on my opinions; do not take this as financial advise. I will continue to do more stock pick lists in the future for different markets. If there are any stock picks you are interested in seeing on the blog then let me know in the comment section below.

If you have enjoyed this blog post please share it with your friends! If you want to leave any feedback then as mentioned, you can do that in the comment section below or by contacting me directly on Twitter @portfolio_hub_

Thanks for Reading 😁

FAQ

What are Growth Stocks?

In a nutshell, growth stocks are publicly-listed companies that are expected to outperform the wider markets. This might include companies operating in the same sector or industry, or a benchmark index like the FTSE 100.

Source: (buyshares.co.uk)

Why do some traders invest in Growth Stocks?

Put simply, people invest in high-growth stock because they think the underlying stock price is likely to grow over time. More specifically, there is an expectation that the shares will increase in value at a much faster rate than the market average. This is usually because you are investing in a company while it is still young. In other cases, the company might be behind a product or service that is yet to fully take off. Recently with Deliveroo’s reports of sales doubling since lockdown, many are looking at how to buy deliveroo shares, anticipating that this growth will continue to expand

Source: (buyshares.co.uk)