FTSE 100 growth stocks are roaring back to life and it’s a thrilling sight to behold.
As the world adjusts to Donald Trump’s tariff shock, UK shares bounced back. I’ve just counted 20 blue-chip stocks that have surged by at least 20% over the last month. That’s a reward for those who followed the Foolish mantra of staying calm and buying great companies when others are selling in fear.
Here are three that have been going particularly well, with potentially more to come.
Barclays is flying (again)
The Barclays (LSE: BARC) share price has jumped 27% in a month and nearly 45% over the year. That’s a big move, but the shares still trade on a modest price-to-earnings (P/E) ratio of around 8.5.
The dividend yield has dipped to 2.75%, but I’m not too worried. The board plans to return at least £10bn of capital to shareholders by 2026, through dividends and share buybacks, but especially the latter.
With interest rates slowly falling, the bank’s profit margins may get squeezed. But cheaper borrowing costs could reduce impairments and lift the housing market, boosting both retail and mortgage banking.
Its US investment banking operations should benefit from today’s volatility. Although if trade wars intensify, or the US slips into recession, it may struggle. Investors have high expectations for Barclays so any profits miss could be a shock, but I think it’s still worth considering despite its stellar run.
JS Sports is back in fashion
JD Sports Fashion (LSE: JD) has rebounded 25% in just a month, though it remains 30% lower than it was a year ago.
The cost-of-living crisis dragged on sales and there were headaches at key supplier Nike too. The timing of its move into the US via the Hibbett deal was unlucky, as stretched shoppers tightened their belts.
I’ve personally taken advantage of its dirt cheap P/E to build up my holding. Despite the recent jump, it still trades at just under seven times.
There’s always a risk of further weakness in the retail sector or integration issues with Hibbett, but after repeatedly averaging down, I am hopeful that JD Sports is finally on the up. Let’s hope it can get sales moving again.
Private equity rebound
Specialist private equity and alternative asset manager Intermediate Capital Group has climbed 25% in a month, but it’s still down 9% over 12 months.
It’s been a tough environment for private equity, with rising rates dampening risk appetite by, driving up the cost of capital and slowing small business growth. Yet the group still doubled fundraising last year to £27bn.
ICG has a respectable 4% yield and a decent P/E of around 12. It benefits from a strong long-term track record and recurring management fees. Key risks include market shocks that dry up the flow of new deals, while prolonged global trade uncertainty won’t help. Tariffs remain a live threat but the long-term looks positive.
I think all three growth shares still offer value and are worth considering, even after the latest leap. And they’re not alone. Plenty more FTSE 100 names are going gangbusters right now.
