With the market falling, it’s no surprise most investors are asking themselves if there are UK shares that are worth buying now. Every market fall throws up opportunities. Despite the stock market struggles, these three shares have momentum and, in my view, could keep growing.
A UK share with big US ambitions
William Hill (LSE: WMH) shares are up 40% in just the last month, putting them back near their pre-pandemic level. The most obvious catalyst for this rise I think is the realisation that it has a big opportunity in the US. Indeed, shares rose last month when analysts at Jefferies increased their share price target to 330p from 305p and said US value is not priced into the shares.
William Hill was an early mover into the US market, which is opening up. Since launching in Nevada in 2012, William Hill has gained a 29% share of real money sports betting in the US. There’s little reason to think the coming years won’t see significant value created for shareholders from this new market.
In the UK, betting shops are under pressure. William Hill is cutting costs by shutting shops and focusing more on online business.
Although it’s risky to buy shares with momentum in some ways, William Hill could do well in both the short and longer term.
Recovering from the pandemic
Shares in Intercontinental Hotels (LSE: IHG) have risen by 15% in just the last month. Given the ongoing pressure Covid-19 is putting on hotels, this isn’t a bad performance. Unless you think there will be a second wave of coronavirus then there’s little reason to suspect the UK shares won’t continue to rise, especially given how hard they’ve been hit this year. The shares are still well below where they started the year.
The group has already announced that it’s seeing signs of improvement. Back in July, only 5% of its hotels remained closed, and that figure is now likely to be much lower.
The group’s low fixed costs will help it through this turbulent time. It only directly owns about 25 hotels; the business mostly acts as a franchisor. This helps it produce cash, which is important at a time like this.
I think the recovery in the share price is only just beginning. Sure, the group faces challenges, but with countries keen to get their economies going again, I think the shares have further to rise.
A tech share with share price growth potential
Lastly, shares in information software management group Ideagen have risen 21% in the last month. This is probably partly because of the demand for tech shares, an acquisition the group made, and a robust trading update. Combined they show the group probably justifies a high price-to-earnings ratio, like other software companies at this time, and could keep growing. It’s another share I feel has the potential for both short- and longer-term share price growth.
These UK shares all have momentum and I have confidence they can keep growing.
Andy Ross owns no share mentioned. The Motley Fool UK has recommended InterContinental Hotels Group. 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.