The UK stock market has been strong this year, but is slowing down as the summer holidays approach. However, these three companies don’t seem to be losing any steam.
wise
wise (LSE: WISE) rose to fame nearly a decade ago when it began life as Transferwise, a low-cost international money transfer service. Foreign workers in the UK jumped at the opportunity to send money back to their home countries for a fraction of the fees charged by typical high street banks. The company has since restructured into a fully-fledged online bank offering savings accounts, debit cards and business banking.
The company reported full-year 2024 results earlier this month, reporting 46% revenue growth from the prior year and earnings per share (EPS) that beat analyst expectations by 14%. Despite the strong results, the stock price fell 17% following the report.
That’s because management said it expects growth to slow to 15% to 20% next year, a big drop from last year’s 31% growth. But that doesn’t necessarily mean the stock will fall; between July 2022 and July 2023, the stock rose by more than 100%.
Can it replicate this performance again? It’s hard to say, but at current price levels it’s a stock worth considering.
Games Workshop
of Games Workshop (LSE:GAW) offers a unique service with little competition and a loyal fanbase: it sells board games and miniature figurines from popular fantasy games. Warhammer 40,000.
Shares soared 13% this week after the company released a strong earnings report: The company expects licensing revenue to grow 20%, pre-tax profits to rise 17%, and revenues to grow 10% this year. Of course, these numbers are not guaranteed, but they seem to have caught investors’ attention.
It’s surprising that these products are still so popular in today’s increasingly online world. But consumer habits can easily change, and a recession would threaten the company’s profits. The company sells expensive premium products, so customers are unlikely to prioritize them when cash is tight.
Another concern is the stock price. Currently, the stock price is quite high, so further growth this year may be limited. However, given the highly engaged fan base and the strong potential of the intellectual property, future prospects may be promising.
Hikma Pharmaceuticals
of Hikma Pharmaceuticals (LSE:HIK) shares fell sharply in the second half of 2021, but are up 67% since the second half of 2022. This growth is noteworthy. Deutsche Bank and City The stock has been rated a “buy.”
However, the company is exposed to the risk of stiff competition from the pharmaceutical industry. Also, the company is primarily focused on the generic drug market in the Middle East and North Africa (MENA), a region that is exposed to the risk of geopolitical turmoil, which could affect the company’s profits.
The stock is also trading at a higher-than-average price-to-earnings ratio of 29.3, so the stock may be a bit pricey right now. But the company seems to be doing well. It recently acquired $135 million of rival Xellia’s assets, including a facility in Ohio. The acquisition highlights the company’s strong expansion goals and will help it develop its US operations.
Of course not. Pfizer or AstraZeneca However, it is worth considering as a more diverse option in the pharmaceutical industry.
The article UK stock market is brimming with hidden value: Here are some hot stocks to consider in July appeared first on The Motley Fool UK
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Mark Hartley owns shares of AstraZeneca. Motley Fool UK recommends AstraZeneca, Games Workshop Group, Hikma Pharmaceuticals, and Wise. Views expressed on companies mentioned in this article are those of the author and may differ from official recommendations we make in subscription services such as Share Advisor, Hidden Winners or Pro. At Motley Fool we believe considering a diverse range of insights makes us better investors.
Motley Fool UK 2024
