The Motley Fool

UK stocks: why I think these 3 could keep flying higher

Image source: Getty Images.

Despite the stock market crash back in March, some UK stocks have done exceptionally well over the last six months. The rises by both Ocado and AO World highlight the appetite investors have for online only retailers. But I think there are even better companies out there to invest in. 

The backer of Tesla and other tech companies

One such company is Scottish Mortgage Investment Trust (LSE: SMT). The share price is up 44% over the last six months. This has been driven by its focus on tech, a principal beneficiary of the covid-19 situation.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Its top holding is Tesla. This is followed by holdings in Amazon, Tencent, Illumina and Alibaba. Spotify and Netflix are also in the top 10 holdings.

The trust, run by Baillie Gifford, is a top performer. The manager though has other strong-performing trusts. This gives me hope the current outperformance isn’t a flash in the pan.

Technology isn’t going away so the trust should keep doing well and the share price might well keep flying upwards. But a word of warning — it’s closely tied to the success of its biggest holding, Tesla.

A UK tech stock riding the 5G wave

Spirent Communications (LSE: SPT) is another tech stock that’s making moves upwards. It’s piggybacking on expectations of a 5G revolution. The company provides testing and assurance services to the telecoms industry.

Spirent says that 5G isn’t yet at the end of its journey. There will be a lot more ongoing demand for its services is the key message. Spirent Communications, like Scottish Mortgage, is in the right place at the right time.

The latest results showed the company is making good progress, which should work through to the share price (it’s already nearly double its low during the stock market crash). Spirent saw revenue rise 7% in its first half to $233.7m (£177.53m). On a reported basis, operating profit was up 97% at $35.6m and its profit before tax improved 93% to $36m, while basic earnings per share grew 94% to 5.28 cents.

Devoted fans bring in the profits

Games Workshop (LSE: GAW) has been getting a lot of press attention. It’s not hard to see why. The share price has been motoring upwards. The company displays a lot of signs of a quality business. It has repeat, dedicated customers, high margins and the ability to grow sales and profits.

The shares have been hitting new highs recently. The boost has been provided by results last month that showed a 10% jump in profits before tax to £89.4m for the year ending on 31 May. At the same time, cash on hand before paying dividends stood at £70.5m, against £50.7m in the year before.

On a more operational level, it’s encouraging to see its roughly 40% jump in user numbers on the Warhammer website to over 8m. This indicates there are a lot of fans out there.

The opportunity to licence itself creates the next big opportunity for Warhammer and as such, I think the shares, though expensive already, could keep moving higher.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Andy Ross owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.