Super growth stocks I’d buy for February (and for 2019)

These hot growth stocks are worth checking out right now, argues Royston Wild.

| 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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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 a recent article I looked at three big dividend payers whose share prices could explode and keep on charging as 2019 progresses.

Here I’m running the rule over three terrific growth stocks to buy as well. Come and take a look.

In good health

Spire Healthcare Group (LSE: SPI) is a company that City brokers are predicting big things for. A 20% earnings bump is predicted for 2019, a figure that also leaves it dealing on a dirt-cheap forward P/E ratio of 9.9 times.

This figure is well inside the widely-regarded bargain benchmark of 10 times and not indicative of Spire’s exceptional profits potential as Britain’s ageing population likely drives demand for its private hospital care in the years ahead.

The business may have disappointed in mid-January when it announced that revenues growth would prove elusive in 2018, but signs of stronger trading in the second half have helped investor appetite to recover following an initial blip. And signs of further progress on this front, allied with news on its cost-reduction strategy when it announces full-year results on Thursday, February 28, could help its share price to continue rising.

A dependable earnings grower

Macfarlane Group (LSE: MACF) may not be expected to deliver the same sort of profits growth in 2019 as Spire. It’s expected to report a more modest 10% rise, but this is a projection that’s still not to be sniffed at.

Besides, the long record of earnings growth that the protective packaging giant has delivered over many years makes it worthy of attention from growth hunters. Particularly so as it deals on a prospective earnings multiple of just 11.7 times despite this pedigree.

Indeed, I reckon this low rating may give its share price licence to charge when full-year results are distributed on February 21. If November’s last update is anything to go by we could be in for a treat — back then, Macfarlane said that a sales jump of 13% during January-October meant that pre-tax profits were “well above” the levels of a year earlier.

Profits to double?

If you’re only interested in stocks predicted to report spectacular earnings growth in the near term, then Hochschild Mining (LSE: HOC) might be more to your liking.

City analysts expect the business to report a 94% earnings rise in 2019 because of the bright outlook for precious metal prices. I reckon bullion values could gain further traction in February alone as key macroeconomic and geopolitical issues, like a fresh US government shutdown and additional bickering over Brexit, threaten to blow up, a scenario that would drag the gold producers higher too.

Hochschild managed to raise production for six years on the spin, but total gold and silver output is predicted to fall this year, to 457,000 gold equivalent ounces and 37m silver equivalent ounces respectively. The long-term outlook remains robust as the Peruvian digger ramps up development of its assets like Inmaculada. In my opinion a forward PEG ratio of 0.3 times is exceptional value for a share with such compelling growth prospects.

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.

Royston Wild has no position in any of the shares 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

Investing Articles

Some passive income ideas really are simple. Here’s one!

Christopher Ruane explains why he likes to stick to the tried and tested when hunting for possible passive income ideas…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

5 Warren Buffett investing habits that could help build wealth in 2025!

Warren Buffett's been investing successfully for many decades. Our writer shares a handful of his approaches that he'll be using…

Read more »

Investing Articles

Can investors consider buying £1 for 60p with this FTSE 250 investment trust?

Harbourvest Global Private Equity's a FTSE 250 private equity firm trading at 60% of its NAV. And investors are pushing…

Read more »

Young Woman Drives Car With Dog in Back Seat
Investing Articles

2 UK shares investors should consider keeping on a tight leash

These UK shares seem to have robust long-term tailwinds, but they’re also tackling headwinds that could result in less-than-impressive investment…

Read more »

Frustrated young white male looking disconsolate while sat on his sofa holding a beer
Investing Articles

This FTSE 100 stock’s down 21% since I bought! Have I made a BIG mistake?

FTSE 100 stocks are supposed to be less volatile. But our writer recently purchased one that’s making him question this…

Read more »

Engineer Project Manager Talks With Scientist working on Computer
Investing Articles

Will the stock market rise in 2025, and how high could it go?

The stock market's up by double digits, but can it maintain its momentum in 2025? And which stocks should investors…

Read more »

Investing For Beginners

If an investor puts £750 a month in a Stocks and Shares ISA, here’s what they could have in 10 years

Edward Sheldon looks at how Stocks and Shares ISAs can help build wealth and also highlights some investment strategies to…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

1 US penny stock I’m avoiding like the plague

This medical penny stock's trying to capture a $100bn market opportunity after recently receiving FDA approval. But personally, I’m not…

Read more »