Editorial

5 UK Stocks That Are Worth Investing

Investing in some good stock can make your fortune. However, picking up such stocks is a daunting task. It requires lots of research and analysis. Thus, to help you out, we have listed the top 5 stocks in the United Kingdom, which have huge potential. Nevertheless, we are not a financial advisor, so we suggesting checking a few things about the companies before investing would be the best strategy.

Ocado

This was one of the very early food delivery businesses in the UK that’s been going from strength to strength. They are quite unusual because they’re the only major one that doesn’t have physical stores as well. They’ve been partnering with some supermarkets for some of the products—for instance, Waitrose and Morrisons. The food and grocery delivery business is transforming an industry. This is the future. It can optimize its delivery network much better than supermarkets because it doesn’t have supermarkets to serve.

Their market cap is 16 billion pounds which are high for a company that’s been loss-making for quite some time. They haven’t been shown to be profit-making except Q4. The company posted a gross profit of 597 million pounds in 2019 and a massive gross profit of 362 million pounds for the second half of 2020. Its recent results declared on 9th February 2021 showed 35% retail revenue growth, making Ocado Retail the fastest growing business in the UK, despite reporting a loss of 44 million pounds before taxes. We are suggesting this stock because we see a future in this industry. The growth in revenue and customer base will surely increase in the future.

888 Holdings

Many of you might be familiar with this company. 888 is among the most popular and reliable online gaming platforms. That’s not all. It offered one of the first online casinos in 1997. This Gibraltar-based digital gaming provider company has shown massive growth in the last few years. They have diversified their services to provide qualitative experience to the customers. 888poker, 888casino, 888sport, and Wink Bingo are the premium products of 888 holdings. Its online poker platform 888poker, in particular, has attracted millions of players worldwide, resulting in the exponential growth in the revenue of the company. It is the reason behind the surge in the price of 888 Holdings’ stock price. This company’s future seems promising as more and more new players are joining its online poker and other gambling services.

Their H1 2020 revenue increased 37% from the previous assessment year. Their report also showed a considerable growth of 56%, and the current scenarios suggest that its account books will show more growth in the following years. With a market capital of 1.17 billion pounds and a P/E ratio of 25, this could be one of the best stocks to invest in.

Team17

Team17 is a video game company. They’ve been around for a long time. Their first game, called Worms, was released 25 years ago, and it continues to be one of the most popular arcade games ever. They are continuing to innovate. They have been releasing games that are incredibly popular across different platforms, from Nintendo Switch to mobile phones. This is the market where big money is made. Mobile gaming is the future as it appeals to a large number of people and big companies.

Recently, they’ve got to release titles like Overcooked and The Escapists. And a few days ago, Team17 has bought” Golf with Your Friends” for 12 million pounds.  At a market cap of 920 million pounds, their share price might seem expensive with a P/E ratio of 48. But we expect more positive news from the company as it continues to do better with what they do. Their profit margin is 27, with a net income of 31%, which is quite good. Their growth for the last four accounts was 43% year on year, with h1 2020 up 28% in the same period in 2019. Their cash is up to 50 million pounds.

Ashtead Group

You might not have heard about this company, but they are in FTSE 100. They operate about 1200 different stores across the UK, US, and Canada under their Sunbelt Rentals brand. Their business is to rent industrial equipment, mainly to the construction industry and other types of industries. Its business is incredibly robust, and we think that this industry will be growing massively over the coming years and potentially decades. The world is changing rapidly, and construction work is never going to stop. It creates infrastructure and jobs. Companies like Ashtead are the backbone of the construction business, and their boom is expected for sure.

In 2020, they had 5 billion pounds worth of revenue, generating a net income of 740 million pounds. This is a 15 margin which is incredibly solid for this type of business. The company’s revenue is going by about 10 per year over the last few years. Plus, their long-term debt is reducing. The P/E ratio of 30 for a market cap of 18.78 billion pounds is something that cannot be ignored.

Games Workshop Group

This also might seem random to some people, but this is an FTSE 250 company. They have some incredible numbers behind them. Their business is based on miniature war games that they’re very well known for. They’ve managed to expand from video games, card games through to full-blown movies. The latest six-month results show an operating profit of 92 million pounds on revenues of 187 million. This is a massive margin for companies whose incomes are continuing to grow.

Their share price seems to agree with our estimations of where this company can go as they continue delving into these new markets and growing their presence in those markets. Their share price went up by 50% over the last year and is about 20 times what it was just five years ago. The P/E ratio is on the high end at 40 for a market cap of 3.24 billion pounds. However, for a business that is considered to be super resilient over the decades and has a huge following of fans, we see great potential in this stock

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