I think these FTSE 100 and FTSE 250 shares are among the hottest growth stocks to buy today. It’s why I’ve already snapped them up in my Stocks and Shares ISA.
Here’s why I reckon they will help me build impressive long-term wealth.
Bunzl
Bunzl (LSE:BNZL) isn’t the kind of share that will ever deliver spectacular earnings growth. But for investors seeking reliable profits improvement almost every year, this company may be hard to beat.
I bought it myself for its reputation as a SWAN (‘sleep well at night’) stock. The wide range of essential products it sells across a variety of industries — including the ultra-defensive healthcare and food sectors — allows it to grow earnings even during tough times.
Bunzl also has a brilliant record of success when it comes to acquisitions, giving it extra strength to grow the bottom line. The Footsie firm has around 150 different businesses under its umbrella. And its strong balance sheet gives it plenty of firepower to keep growing its operational and global footprint.
Today Bunzl shares trade on a forward P/E ratio of around 15.4 times. This is a little ahead of the FTSE 100 average of 11 times. However, the support services business trades around the mid-point range for its sector, suggesting that it offers reasonable value today.
Chart created by TradingView. Also shows the forward P/E ratios of (in descending order) Sysco Corp, Sodexo, 3M and Amcor.
Bunzl will have to keep peddling hard to keep a lid on costs. But all things considered I expect it to remain an impressive growth share. So do City analysts: they currently expect earnings to rise 1% and 3% in 2024 and 2025, respectively.
Games Workshop
While Bunzl is a ‘slow and steady’ selection, tabletop gaming specialist Games Workshop (LSE:GAW) is anything but.
The FTSE 250 company has seen its share price soar an incredible 1,280% in just five years. I’m convinced it will be a proud member of the FTSE 100 by the end of the decade.
Best known for its Warhammer 40,000 gaming system, the business designs, manufactures and sells gaming systems and associated miniatures. It has built a worldwide community of fans who spend small fortunes to build, paint, and then battle with their armies.
While this is a specialist hobby, it’s a fast growing (and highly lucrative) one that Games Workshop is a market leader in. As the company has expanded its global presence revenues have grown at an impressive rate, as the chart below shows.
Chart created with TradingView.
As an investor (and Warhammer fan) I’m especially excited by plans to bring its intellectual property to the screen. It’s in talks with Amazon to make programmes and films, a move that could turbocharge interest in its models and generate huge revenues in its own right.
City brokers think earnings here will rise 7% in this current financial year (to May 2024). A 6% rise is forecast for FY25 too. I think it’s a top potential buy despite the ongoing threat that 3D printing poses to demand for its expensive model sets.
