Stock market crash: 3 UK growth shares I’d buy hand over fist if the selling continues

Paul Summers is looking for great UK shares to buy in this market crash. Here are three growth stocks he’s tracking very closely.

| 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.

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.

I’m not enjoying the amount of red I’m seeing on my screen right now. Then again, I’ve been around the block enough times to know that stock market crashes like the one we’re experiencing are temporary.

Instead of hiding behind the sofa, I’ve been looking for great UK shares to snap up. Here are three I’d be keen to buy if things get really scary. 

CVS Group

Many investors (including myself) are drawn to invest in glitzy themes such as electric cars and robotics. That said, I think there’s one fantastic part of the market that’s easy to overlook, namely pet care. This is why I’m following the movements of CVS Group (LSE: CVSG) very closely. 

CVS provides veterinary services and, based on Thursday’s trading update, is doing very well indeed. Trading over the second half of 2021 was “comfortably in line with full-year expectations” with revenue climbing 11.4% on the previous year.

The mid-cap was also bullish on its outlook, saying that demand remains buoyant due to “increased ownership” and “the humanisation of pets“. 

The shares have fallen almost 11% in 2022, at the time of writing, but still change hands for almost 24 times earnings. That’s a little more than I’d like to pay, hence why I’m keeping my powder dry for now. If the sell-off continues however, I’ll be buying the stock quicker than a cockapoo chases a squirrel.

Bytes Technology

Another UK growth stock I’d have no issue in taking a nibble at eventually is Bytes Technology (LSE: BYIT).

Last year proved to be a hugely successful one for the software, security, and cloud services specialist. Back in October, it revealed increases of 13.7% and 19% in revenue and operating profit respectively in the six months to the end of August. 

As more corporate clients recognise the importance of updating their IT systems, I don’t think this kind of momentum is in danger of reversing soon.   

Stock in Bytes has declined 21% in value so far this year. Like CVS Group however, they still aren’t cheap enough to get me buying just yet (31 times earnings).

Then again, this is not the sort of business that will likely trade on a ‘cheap’ valuation. Returns on capital employed — what a company gets back for the money it puts in — are some of the highest I’ve been able to find.

I think shares will only fall so far before they rebound strongly.

Treatt

A final growth stock that takes my fancy is ingredients supplier Treatt (LSE: TET). This is another company enjoying robust trading. On Friday, it reported making “a good start” to its new financial year.

Notwithstanding this, it did caution investors that pre-tax profit would likely revert to being more weighted to the second half. This is due to the seasonality of drinks consumption in the Northern Hemisphere. 

Since any business needs to keep moving and raising its game, I’m encouraged by Treatt’s ongoing R&D spend. New headquarters are also expected to give the company “substantial extra capacity” to continue growing in the years ahead. As a Foolish investor, that’s the sort of long-term focus I’m drawn to.

Unfortunately, the valuation — an eye-watering 38 times earnings — is still too rich for me.  So while Treatt’s shares are already down 14% this year, I’d prefer to snap up this growth stock when/if markets really start to panic.

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.

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Treatt. 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

Light bulb with growing tree.
Investing Articles

This FTSE share has tripled in five years. Could it move higher?

The price of this FTSE AIM share has been heading downwards, but is still much higher than five years ago.…

Read more »

Investing Articles

Nvidia shares could reach $1,000 in 2024

Up 100 times since 2016 and yet Nvidia shares still might be cheap! Read on to find out whether our…

Read more »

Investing Articles

Should I take advantage of the rising easyJet share price to buy it in an ISA today?

The easyJet share price has jetted back into the FTS 100 as it recovers from the pandemic and Harvey Jones…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

2 FTSE 100 stocks to buy for a ‘technical recession’

Not all stocks are well suited to a recessionary environment, but here are two FTSE 100 titans that our writer…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

Here’s why the Haleon share price jumped 6% higher today

As the Haleon share price rises, our writer considers whether he should add this consumer healthcare stock to his portfolio.

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Last-minute ISA buys! 2 dirt-cheap dividend stocks I’d grab before April’s deadline

Aviva and Greencoat UK Wind shares look stunningly cheap at current prices. Here Royston Wild explains why he's looking to…

Read more »

Young happy white woman loading groceries into the back of her car
Investing Articles

Should I buy, as the Ocado share price perks up on FY results?

The Ocado share price is steady, as the online retail giant reports a big fall in 2023 losses. Is it…

Read more »

Illustration of flames over a black background
Investing Articles

Here’s another top buy from the FTSE 250 I’m considering

Oliver Rodzianko considers this FTSE 250 company a stellar choice for his portfolio. It's on his growth watchlist; so let's…

Read more »