These two under-the-radar high-growth UK companies look to me to be among the best shares to buy now.
A best share to buy now
First up is Warehouse REIT (LSE: WHR). The company invests in and manages electronic commerce, urban, and last-mile industrial warehouse assets in the UK. As such, its well positioned to continue benefitting from the growth of e-commerce. Statistics show there is still plenty of room for e-commerce to grow in the UK, so that should support real estate investment trusts like Warehouse REIT.
Past growth has been very strong. Revenue went from £6.6m to £30.1m between just 2018 and 2020. I think management will achieve strong future growth because of the market they are in and the tailwind from increasing e-commerce. Indeed, revenues are projected to reach £52m in 2023. So the market certainly expects strong growth.
As well as having exceptional growth, Warehouse REIT, as a real estate investment trust, is also good for income. It currently has a dividend yield of 4.3%.
There’s a risk that e-commerce might slow down as lockdown lifts, which could hit the share prices of warehousing companies. Also, retailers with a large high street presence, but which also sell online and therefore by Warehouse REIT customers, may struggle financially and not pay rent. Overall, though, I think Warehouse REIT is one of the best shares I could buy right now.
A high-risk/high-reward possibility
Another best share I could buy right now is the natural resources company Jubilee Metals (LSE: JLP). It’s a mining-exploration-to-metal development company focused on platinum group elements (PGE) and nickel.
Like other mining and natural resources companies, the shares are very cheap right now. It trades on a forward P/E of just five. The price to earnings growth ratio, favoured by growth investors like Jim Slater, is just 0.1. Again, that indicates that the Jubilee Metals share price is very cheap. It’s also good to see consistent strong revenue and earnings per share growth.
As with any natural resources company there’s a risk around prices falling and its hard to differentiate at all. It’s a very cyclical industry and shares in mining companies have done very well. The recent crack down in China on iron ore prices could spread to other metals and cause investors to worry about the future prospects of companies like Jubilee Metals. That would hit its share price.
Overall, though, I think the company is doing very well operationally. This should feed through into improving financial performance. It recently announced it had entered into a further long-term, more-than-10 years life-of-mine PGM feed supply agreement with a chrome mining customer. Given processing is how Jubilee makes its money, this is a positive development and follows on from other agreements.
On balance, the shares seem very cheap and I think Jubilee Metals could be one of the best small-cap shares for me to buy right now.
