If I had £2,000 to invest in the stock market today, I’d buy UK growth shares. There are a handful of companies that I think are worth buying right now. Here are two stocks that feature on my list.
UK shares to buy
The first company I’d buy is recovery play Rank Group (LSE: RNK). Like most hospitality businesses, the casino operator has been winded by the pandemic. Thankfully, the group’s online business has provided some much-needed cash flow.
According to its latest trading update, like-for-like net gaming revenue was down 76% on the prior year for the quarter ended 31 March. Revenue from its gaming venues fell 98%, while digital revenues were down just 3%.
However, over the next few months, Rank should be able to reopen its gaming venues. Based on reports emerging from the hospitality industry over the past few weeks, it seems consumers aren’t holding back their spending when venues reopen.
This suggests to me the enterprise could experience a strong recovery over the next few weeks and months. That’s why I’d buy this company for my basket of UK shares.
Of course, Rank might not be suitable for all investors. Its primary business is gambling, which is highly regulated. Some investors might not be comfortable owning shares in a gambling enterprise. That’s understandable. The company faces some significant risks and challenges operating in this sector.
Still, despite these risks, I’d acquire the stock today.
Flying high
I’d also acquire Wizz Air (LSE: WIZZ) for my basket of UK shares. This airline entered the crisis in a relatively stable position. It had a strong balance sheet and was recording record growth in passenger numbers and profitability.
As such, while the company expects to report a full-year net loss of between €570m to €590m, at the end of the year the group had cash and equivalents on its balance sheet of €1.6bn. Therefore, this funding should provide the group with enough financial firepower to drive its recovery.
Indeed, many other airlines don’t have access to the same level of financial resources. That puts Wizz in a unique position to take market share and capture business from struggling competitors.
That said, the airline industry is incredibly competitive. So, just because Wizz has a strong balance sheet today doesn’t necessarily mean the company will be able to grab market share and survive a price war. Especially when many of its competitors have been bailed out by national governments.
This is probably the most significant challenge the company faces right now. However, I’d buy the stock for my portfolio of shares because I believe Wizz has what it takes to continue to navigate the competitive airline industry successfully.
As the sector starts to recover, I think it’s one of the few airlines worth buying.
