3 UK shares I’d buy with £1,000

Rupert Hargreaves highlights three UK shares with impressive growth credentials, which he’d buy with £1,000 today for the long term.

| 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.

Graph Falling Down in Front Of United Kingdom Flag

Image source: Getty Images

If I had £1,000 to invest in UK shares today, I’d buy a portfolio of growth stocks. So here are three companies I’d add without hesitation.

UK shares I’d buy

The first I’d buy with an investment of £1k is Boohoo (LSE: BBO). This fast-fashion business is profiting from the continuing rise of online retail, and it seems to be a well-managed enterprise. It has a strong balance sheet and has been using the pandemic to swoop on struggling peers, buying up growth at a low price. 

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

If the company can continue to remain relevant with customers and buy additional growth without overpaying, I think this could make an excellent investment for the next few years.

That said, if management does start to overpay on acquisitions and misread key fashion trends, growth could come to a sudden halt. The list of retail businesses that have collapsed over the past decade is extensive. Boohoo needs to work flat out to make sure it doesn’t go the same way. 

Growth investment

I think the trends that have become clear over the past 12 months will accelerate. In my opinion, that also bodes well for gaming developer Frontier (LSE: FDEV).

One group of analysts believes this company could report earnings growth of as much as 60% in 2022. A slew of game releases, such as F1 simulation and ED Odyssey, could help drive this growth. Frontier’s portfolio of existing titles provides solid foundations from which to grow as well. 

These are the reasons why I would buy this company for my £1,000 portfolio. I believe it is one of the best UK shares to own because it’s one of the few ways investors can plug into the booming gaming market.

In the UK, at least, there aren’t many other options of high-profile gaming companies achieving such impressive growth rates. 

Still, this business doesn’t come without its risks. The stock is currently changing hands at a forward P/E of more than 44. That doesn’t leave much room for error, in my opinion. If Frontier’s growth fails to live up to expectations, this valuation implies the stock could drop substantially. 

Changing for the future

Magazine publisher Future (LSE: FUTR) has taken a relatively old business model and put a twenty-first-century spin on it. The company has built a portfolio of specialist magazines and used the data derived from these publications to help bolster its advertising business.

This has created a virtuous cycle, where the cash generation from old titles helps fund new acquisitions, which generates more cash flow, which funds new purchases… and so on. By using this strategy, the company’s net profit is expected to hit £140m by 2022. That’s up from a loss of -£1.3m in 2015. 

Of course, these are just projections at this stage. Future’s growth isn’t guaranteed. The online advertising market is incredibly competitive. As such, if revenues come under pressure, the company may not be able to fund its acquisitions. This may bring growth shuddering to a halt. 

Despite this significant challenge, I’d buy the stock for my portfolio of UK shares today. 

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.

Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.

But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before!

Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended boohoo group and Frontier Developments. 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.

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 considered, so you should consider taking independent financial advice.

More on Investing Articles

Young woman with face mask using mobile phone and buying groceries in the supermarket during virus pandemic.
Investing Articles

Down over 80%, is the boohoo share price a steal?

The boohoo share price has lost over four fifths of its value in one year. Our writer explains why he's…

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing Articles

Here’s why I’ll buy this FTSE 250 growth stock next month

Andrew Woods likes this FTSE 250 growth stock and thinks it would be a good addition to his portfolio as…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

3 signs that shares could be set for a new bull market

Stock markets are cyclical, and investors go through phases of buying and selling. How can we best deal with the…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

How I plan to make passive income with just £3 a day

There are multiple ways to make passive income in 2022, but our writer considers a popular method that involves dividend…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

Lloyds shares are down 10% in 2022. What next?

Lloyds shares have dropped by almost a tenth so far in 2022. But the bank is in good shape to…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How to aim to use the Warren Buffett method to make a million, starting today

Why do investors love Warren Buffett so much? His 3.6 million percent investment return since 1965 probably has a lot…

Read more »

Various denominations of notes in a pile
Investing Articles

3 big income stocks hiding in plain sight

There are plenty of high-paying income stocks flying under the radar right now. Paul Summers offers three examples he likes.

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

2 FTSE 100 shares I’m buying in July

Andrew Woods wonders whether these two FTSE 100 shares could bring growth to his portfolio and if he should add…

Read more »