2 growth stocks I’d buy right now for 2018

With an impressive record of growth behind them and no sign of slowing down, these growth stocks look attractive to me.

| 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.

UK home builders have been on a tear in recent years, and if today’s results from Cairn Homes  (LSE: CRN) are anything to go by, a buoyant housing market isn’t just limited to this region. 

The Irish homebuilding firm today announced that for the year to 31 December, revenues increased significantly to €149m from €40.9m and the company is expected to report EBITDA for the full year of €15m at the high end, up a staggering 290% from the €3.8m reported for 2016. 

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

And it looks as if this growth trend is set to continue as according to today’s press release, the company is starting 2018 with a “with a strong forward sales pipeline with a net sales value of €134.3m…which underpins H1 2018 sales.” What’s more, CEO Michael Stanley is highly optimistic about the group’s future growth potential thanks to the “historical cost of our land bank” as well as the firm’s “focus on competitively priced houses and premium apartments.” 

Cheap growth

City analysts appear to agree with management’s outlook. Indeed, analysts have pencilled in revenues of €344m for full-year 2018, and a pre-tax profit of €58m, up five-fold from 2017’s predicted figure of €10m. Based on these numbers, analysts have the shares trading at a deeply discounted forward earnings multiple of 7.7, which to me seems too cheap for such a rapidly growing business. That’s why I’d buy the stock for 2018. 

One of a kind 

Shares in Abcam (LSE: ABC) have surged by more than 126% excluding dividends over the past five years, and despite this expansion, I believe that the company still has plenty of room left to grow (although my Foolish colleague Roland Head seems to disagree). 

Today the supplier of life science research tools reported a half-year trading update for the six months ended 31 December showing revenue growth of 11%. All product categories saw sales up “ahead of estimated underlying market growth rates.” 

Life sciences is a niche market, so those companies that have established a reputation for themselves have a substantial competitive advantage. And for Abcam, a business well-established in the specialist market of life science research tools this advantage isn’t going to disappear anytime soon. The company is investing heavily in improving its offering to customers, devoting funding to researching new devices and product lines for customers. This spending should help keep the firm ahead of competitors and ensure stable growth going forward. 

Growth through research 

City analysts are expecting the firm to report earnings per share growth of 19% for the year ending 30 June 2018 on a pre-tax profit for £75m. These figures might come in above expectations, however, as today the group warned that it will see a tax benefit of up to £7m due to changes in US tax law. 

Unfortunately, shares in Abcam are not cheap. They currently trade at a forward P/E of 34.6. Still, while most companies do not deserve such a lofty valuation, considering the firm’s substantial competitive advantage, and double-digit earnings growth, I believe that this is a premium worth paying. 

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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

A Rolls-Royce employee works on an engine
Investing Articles

In penny stock territory, is the Rolls-Royce share price set to soar?

The Rolls-Royce share price has sunk recently, falling into penny stock territory. But with flying hours recovering, is it too…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Lloyds shares drop 20% in 4 months. Should I buy now?

Lloyds shares have lost a fifth of their value since peaking on 17 January this year. But after rebounding from…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

As the stock market recovery stalls, should I wait to buy?

Has the stock market recovery run out of steam? If so, what does that mean for our writer's portfolio? Here…

Read more »

Diagonal chain made of zeros and ones. Cryptocurrency and mining.
Investing Articles

At 55p, is the Argo Blockchain (LON:ARB) share price too cheap to miss?

With a low P/E ratio and strong financial results, could the Bitcoin miner be good value for money?

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Here are 2 recession-proof FTSE stocks!

In the face of current economic uncertainty and fears of a looming recession, this Fool identifies two recession-proof FTSE stocks.

Read more »

British Pennies on a Pound Note
Investing Articles

Here is 1 penny stock primed to benefit from the construction boom!

Jabran Khan delves deeper into a penny stock that he believes could benefit from the construction boom, and explains why…

Read more »

Various denominations of notes in a pile
Investing Articles

Here is 1 top passive income stock to buy and hold!

Jabran Khan wants to boost his passive income stream through dividends and has identified this insurance giant as a way…

Read more »

Cheerful young businesspeople with laptop working in office
Investing Articles

These are the 5 worst ways to invest in stocks

It's all too easy to lose money when you don't really know how to invest in stocks. Here are the…

Read more »