Boohoo.Com plc isn’t the only three-bagger expected to deliver blockbuster growth

Boohoo.Com plc (LON: BOO) and this other growth stock could record stunning share price gains.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

In the last five years, the Boohoo.Com (LSE: BOO) share price has risen by 228%. That’s a stunning return for a company which has often been viewed as overpriced by many investors. However, it has continued to deliver improving sales figures in recent years, while acquisitions have created a more diverse and stronger business which could post high and yet sustainable growth numbers in the long run.

However, Boohoo is not the only three-bagger which could be worth a closer look right now. One growth stock reporting on Wednesday could have investment potential for the long run.

Improving performance

The company in question is healthcare-focused strategic marketing company Cello Group (LSE: CLL). It has risen by 236% during the last five years. Its first-half results showed that it is making encouraging progress with its strategy, having posted a rise in gross profit of 12.9% and an increase in like-for-like gross profit of 5.4%. Its expansion in the US is progressing well, and this could create further growth opportunities for the business in the long run.

Furthermore, the company’s acquisition of Defined Health in February provides it with an additional growth avenue. The integration process is progressing well, and the acquisition is already making a positive contribution to the company’s financial performance. With the business on target to meet expectations for the full year, it could become increasingly popular among investors and see further share price gains in future.

Growth potential

Both Cello and Boohoo could be worth buying at the present time. Of course, neither stock is particularly cheap, with the former trading on a price-to-earnings (P/E) ratio of 16.3, and the latter’s rating being 82.9. At first glance, this may suggest that they could be due a fall in the near future – especially if investors decide to take profits after their stunning gains.

However, in both cases the companies offer bright futures. This could propel their share prices even higher. For example, Boohoo is forecast to increase its bottom line by 36% in the current year. While this is a high rate of growth, it could prove to be sustainable over a multi-year time period due to the company’s global reach and its increasingly strong customer loyalty. Therefore, this could make its current valuation much easier to justify.


Certainly, companies with high ratings could be viewed as risky by some investors. Disappointment may hit their share prices harder than it would for a company with a more modest rating, since a relatively high proportion of their future potential is already priced-in by the market. However, companies with high growth potential are rarely cheap, and a premium may be deserved in both instances.

Therefore, while further share price gains may not be as great as those over recent years for Boohoo and Cello, both stocks appear to be worth buying for the long run.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens does not own shares in any of the companies mentioned. The Motley Fool UK has recommended Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

2 recession-resistant UK stocks I’d buy and hold for a decade!

Our writer details two UK stocks she believes could still continue to perform well in a recession and not feel…

Read more »

Back view of blue NIO EP9 electric vehicle
Investing Articles

Down 31% this year! Is now the moment to buy NIO stock?

NIO stock has moved sharply downwards in the past couple of months. Christopher Ruane likes the business potential -- but…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

2 dividend stocks I reckon could grow payouts for years to come!

This Fool is looking for dividend stocks and explains why these two picks could be primed to grow their payouts…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Should I buy, sell, or hold my Rolls-Royce shares at £3.50?

This Fool considers what he should do with his Rolls-Royce shares following the FTSE 100 company's excellent full-year results last…

Read more »

Couple working from home while daughter watches video on smartphone with headphones on
Investing Articles

With a spare £280, here’s how I’d start buying shares this March

Our writer reflects on what he has learnt on the stock market to explain how he would start buying shares…

Read more »

Businesswoman calculating finances in an office
Investing Articles

Are these expensive FTSE 100 stocks actually brilliant bargains?

Paul Summers takes a closer look at two FTSE 100 stocks that could recover strongly in time, despite already carrying…

Read more »

Investing Articles

What might the recent Aviva share price performance tell me as an investor?

Christopher Ruane looks at how the Aviva share price has performed over the past 12 months and considers whether he…

Read more »

Investing Articles

Down by a quarter, is the BT share price a steal?

The BT share price has more than halved in the past five years. What is holding it down -- and…

Read more »