UK shares to buy: 3 growth stocks

These growth stocks could be some of the best UK shares to buy says this Fool who would buy all three for his portfolio today.

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I think some of the best UK shares to buy today could be growth stocks. I reckon these shares could benefit from economic growth over the next few years and their own improving fundamentals. 

With that in mind, here are three growth stocks I would buy today. 

UK shares to buy

The first company on my list is banknote printer De La Rue (LSE: DLAR).

This company is a turnaround story. It is forking out significant amounts of cash to cut costs, which should drive profit margins higher. It will spend £16m to reduce expenses by £36m at its currency division, and it is also investing heavily to bulk up its authentication business. This division has suffered delayed orders due to Covid-19, but management wants to take sales from £69m to £100m. 

These growth targets are the primary reasons why I would buy the shares as part of my portfolio of growth stocks.

The main challenges the company faces are an enormous pension deficit and a large amount of net debt. Both of these will be a drag on the business for the next few years, but I reckon its growth could offset these headwinds. 

Growth stocks 

I think St. James’s Place (LSE: STJ) is also one of the best UK shares to buy today. I have been watching this company for the past few years, and during this time, it has continually outperformed.

The wealth management firm has gradually grabbed market share from larger competitors, and its customers are clearly happy with the offering it provides.

The company’s latest trading update reported that gross client inflows for the five months to the end of May were around 23% higher than the corresponding period in 2020. 

The firm has been able to grab market share so far, but this may not last. St. James’s is still a small enterprise compared to the likes of investment giants such as Vanguard. Fighting off these larger corporations could be a considerable challenge for the business. If it lets its guard down, the group could lose the battle.

Nonetheless, based on the firm’s potential, I’d buy the equity for my portfolio of growth stocks. 

Growth and income 

The final company on my list of UK shares to buy is Pearson (LSE: PSON). City analysts believe the publishing and education group will report double-digit annual earnings growth over the next few years.

Of course, these are just forecasts at this stage, but I believe they illustrate the opportunity ahead of the business. The company reported overall sales growth of 5% in its first quarter, with its global online learning business leading the charge, registering growth of 25%.

As well as the company’s growth potential, it’s also an attractive income stock with a dividend yield of 2.3% at the time of writing. 

Pearson’s business has suffered significantly throughout the pandemic, which suggests it is at risk of further coronavirus waves. If there is more disruption in the year ahead, the City’s growth projections may turn out to be nothing more than hot air. 

Even after taking this risk into account, I would buy the stock for my portfolio of growth shares right now. 

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.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Pearson. 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.

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