Best AIM stocks to consider buying in March

We asked our writers to share their best AIM-listed stocks to buy in March, featuring a double nomination for one company…

| More on:
View of Tower Bridge in Autumn

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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.

We asked our freelance writers to share their top ideas for stocks listed on the Alternative Investment Market (AIM) to buy with investors — here’s what they said for March!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Pensana

What it does: Pensana is a rare earths miner planning to reduce China’s stranglehold in the market for these critical minerals.

By Mark Tovey. Pensana (LSE:PRE) has a mixed rare earth sulphate mine in Angola. When ore is extracted from such mines, there are only two options: send it to Australia or China to be processed. The latter country currently controls 85% of rare earths processing. This matters because neodymium, lanthanum, and other metals in the rare earths family are essential to electric vehicles, wind turbines, and smartphones.

Pensana’s plan is to challenge China’s dominance by setting up a processing facility in the Humber Freeport, northern England. It won £4m of UK government support through the Automotive Transformation Fund in October 2023.

However, Pensana is yet to generate revenue, and its ambitious production targets have drawn criticism.

Despite these challenges, the strategic importance of rare earths and Pensana’s potential to disrupt the market make it an attractive addition to my portfolio. I plan to invest in this AIM stock when I next have spare cash.

Mark Tovey does not own shares in Pensana.

YouGov

What it does: YouGov is a fast-growing international research company gaining insights from analysing marketing and opinion data.

By Kevin Godbold. YouGov (LSE:YOU) has a strong record of earnings growth and City analysts expect double-digit percentage gains for the current trading year to July 2024 and next year.

February’s half-year trading update is impressive and the outlook statement upbeat.

The directors acknowledged challenging market conditions and said client budgets had been under pressure.  But YouGov’s customers are looking for high-quality, data-driven solutions, they said. Despite longer sales cycles, momentum accelerated in the second quarter of the firm’s trading year.

The top managers pointed to the robust sales pipeline and said they are “confident” in achieving current market expectations for the full year to July.  

However, with the forward-looking price-to-earnings rating for next year in double digits, there’s plenty of potential for the share price to slide if the company misses its earnings estimates.

Nevertheless, despite the risks, the business is a high-quality growth outfit and may be worth its premium rating.

Kevin Godbold does not own shares in YouGov.

YouGov

What it does: YouGov is a market research company that focuses on public opinion, consumer intelligence, and data analytics.

By Charlie Carman. The YouGov (LSE:YOU) share price has risen 140% over five years and the strong growth trajectory may well continue.

Investment in technology has boosted margins, especially for the group’s customised research unit. This bodes well for YouGov’s existing long-term relationships and multi-year contract opportunities with new clients also show promise.

Elsewhere, YouGov’s acquisition of German consumer panel firm GfK has proved to be a success. The acquired business is currently trading ahead of expectations. Plus, new behavioural data sets on FMCG and retail consumer insights strengthen YouGov’s long-term client offering.

Handily, the company should also benefit from increased publicity during an election year, although political opinion polls are now only a small revenue source.

Granted, the shares aren’t cheap at over 25 times forward earnings. If demand for YouGov’s services proves weaker than expected, the valuation might not be justified.

Nonetheless, as things stand, I think this AIM stock merits serious consideration.

Charlie Carman does not own shares in YouGov

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.

The Motley Fool UK has recommended YouGov Plc. 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 Top Stocks

Young Black woman looking concerned while in front of her laptop
Investing Articles

5 stocks that Fools think are overvalued

There are a few famous value investors who spring to mind that might take one look at these stocks, and…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

“The last FTSE 100 stock I’d sell in a recession is…”

It's well worth considering some recession-resiliant stocks as part of a diversifed portfolio. Here, our free-site writers offer up their…

Read more »

Silhouette of a bull standing on top of a landscape with the sun setting behind it
Investing Articles

“The last holding I’d want to sell in my Stocks and Shares ISA is…”

Happy New Tax Year, to all Stocks and Shares ISA owners! The £20,000 allowance has reset -- will you be…

Read more »

Close up of two senior females hiking together
Investing Articles

Best AIM stocks to consider buying in April

We asked our writers to share their best AIM-listed stocks to buy in April, featuring three very different businesses.

Read more »

The Troat Inn on River Cherwell in Oxford. England
Investing Articles

Best British dividend stocks to consider buying in April

We asked our writers to share their top dividend stock for April, including an 'Ice' pick first recommended in 2014!

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Best US stocks to consider buying in April

We asked our freelance writers to reveal the top US stocks they’d buy in April, which included three names you…

Read more »

British Isles on nautical map
Investing Articles

Best British stocks to consider buying in April

We asked our writers to share their ‘best of British’ stocks to buy this month, including one 'Fire' and one…

Read more »

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

5 oversold FTSE stocks to consider buying

Should investors buy shares in any of these stocks, despite being unloved by the market?

Read more »