The Motley Fool

3 explosive stocks to buy right now

Image source: Getty Images.

Are the following three shares the best stocks for me to buy right now for explosive growth? I think they might be. I see these small-to-medium-sized companies as combining decent valuations with very strong growth prospects.

The first stock to buy right now on my list is property franchisor group Belvoir (LSE: BLV). With evictions banned by the government and young people losing their jobs, I might assume the lettings agent would have seen rents drop. Yet it seems to have had a pretty good pandemic, with its franchisees continuing to do well, which bodes well longer term.

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...

Belvoir provides both property sales and lettings, as well as financial services. Moving away from lettings, where it started, provides more diversified earnings. The expansion of financial services is particularly exciting. Also, Belvoir has formed some great partnerships, for example with The Nottingham Building Society. 

With a P/E of 12, the stock is fairly valued. Operating margins are high and the balance sheet looks strong. It’s all very positive. An added bonus is analysts forecast the share price rising by around 33%.

But as government takes tax breaks away from property investors, there might end up being less demand for Belvoir’s services. The property group is also acquisitive so there’s a risk it could overpay for future growth.

Overall through, I back management and the pandemic has shown the business model is resilient even in a difficult economic environment. I really do think it’s a stock to buy right now and will very likely add it to my portfolio soon.

Another high flyer

K3 Capital (LSE: K3C) is another stock with a lot to like, in my opinion. The Bolton-based business operates professional services businesses that advise SMEs. It has been growing revenue at a rate of knots. From 2015 to 2020 revenue more than tripled. It’s forecast to go from £15m in 2020 to £50.9m in 2022. That’s explosive growth, in my book.

Operating profit is also climbing strongly, margins are high and dividend growth is strong. With a market capitalisation of only £250m, there’s plenty of room for yet more growth.

With any share there is the possibility that the share price might not perform, of course. When it comes to K3 Capital, the main risks I see are that acquisitions may not integrate well or be too expensive. And as a professional group, people are key to its success so losing senior executives and managers could be a big blow.

Overall for me, the pluses massively outweigh the minuses. K3 is, for me, a stock to buy right now.

A final stock to buy right now

EKF Diagnostics is a final stock I want to briefly look at. The healthcare group grew revenues from £30m in 2015 to £65.3m in 2020. It’s projected to grow much further with revenues of £56.2m in 2022.

The risk with this one is the shares are potentially expensive with a P/E of around 29. But I’ll research further and potentially add to my portfolio as a riskier investment.

All these stocks strike me as high-quality growth opportunities. I won’t be at all surprised if they all see explosive growth in the coming months and years.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. 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 click below to discover how you can take advantage of this.