As the cost of these treatments falls and daily pill versions are released, adoption is set to soar. Indeed, JP Morgan says over 30m Americans could be taking them by 2030, up from 6.8m in 2024.

In the UK, more than 1.6m adults are already using GLP-1s. But the total addressable market is much larger (3.4m planned users through the NHS alone by 2036). Roughly two-thirds of UK adults are classed as overweight.

There are a few firms that I believe could see an incremental sales boost due to this powerful long-term trend, including Next (millions will need new, smaller-sized clothes). With this in mind, here are two UK stocks to check out.

Fitness

Naturally, weight loss can boost confidence to start attending the gym. And this is good news for The Gym Group (LSE:GYM), a leading low-cost operator with 923,000 members across 260 UK sites.

Last year, revenue increased 8% to £245m, with like-for-likes revenue rising 3%. Average revenue per member per month rose 4% to £21.60, displaying an ability to nudge up prices without causing a mass exodus of members.

Adjusted pre-tax profit surged by 194% to £10.6m. Meanwhile, the fitness firm generated £38.3m in free cash flow, which funded all 16 new site openings in 2025. With interest rates possibly rising again, I like this self-funded growth.

Competition adds risk, as would an increase in electricity prices due to the Iran war. But the group has just announced a £10m share buyback, and is targeting another 20 new site openings in 2026 (and 75 over three years). So I think the positives may outweigh the negatives.

It’s worth mentioning that strength training protects against the loss of muscle mass. Doctors are prescribing such training and high-protein diets to GLP-1 users to prevent muscle wastage.

Finally, research group Mintel found over half of 18–24-year-olds hit the gym more than once in the month to July 2025, versus 42% who went to the pub.

Nutrition and supplements

Many gym goers obviously use sports nutrition products and health supplements. So a growth company from the FTSE 250 worth assessing is Applied Nutrition (LSE:APN).

What I like about this ambitious firm is its global reach (it operates in over 85 countries). In the US, for example, its ABE (All Black Everything) pre‑workout drinks range is in Walmart stores. 

In the UK, its products are in Tesco, Asda, and Holland & Barrett (where it sells a popular Coleen Rooney co-branded health & beauty range).

For the current fiscal year (ending July), revenue is expected to jump around 30% to £140m, alongside strong margins. This would mark an acceleration from last year.

One risk here is rising cost inflation for ingredients, with whey prices spiking recently due to surging protein demand. While not ideal specifically for its whey protein products (about a fifth of sales), raw materials outside of this ingredient aren’t volatile.

Interestingly, Morrisons is to launch 53 Applied Nutrition-branded food products, including high-protein snacks and GLP-1 friendly ready meals. The stock is trading at just 17.7 times fiscal 27’s forecast earnings.

The post 2 UK stocks to consider buying as Mounjaro and Wegovy take off appeared first on The Motley Fool UK.

Want to know what makes them top growth shares to consider? Read on to hear about their stunning earnings forecasts.

Applied Nutrition

The sport supplements market is huge and growing rapidly as people pursue healthier lifestyles. Analysts at Grand View Research expect the sports supplement market to be worth $138.5bn by 2033. That’s up from $71.6bn last year.

Applied Nutrition has found the formula to capitalise on this booming industry. Its shares listed on the London Stock Exchange in October 2024. Since then, they’ve risen a whopping 90% in value.

Latest financials this week show the incredible progress the firm’s making. Revenues leapt 57% in the six months to January, prompting the firm to predict forecast-beating sales for the full year. Applied Nutrition enjoyed above-forecast orders in the first half, driven by new product launches and the firm’s diversified retail strategy spanning supermarkets, discount chains, and health stores.

City analysts expect profits here to soar 38% during the financial year ending July 2026. Another healthy 10% rise is predicted for fiscal 2027.

These forecasts mean Applied Nutrition shares offer attractive value on paper. Its forward price-to-earnings (P/E) ratio is 22.1 times. However, the P/E-to-growth (PEG) ratio is 0.6. Any sub-1 reading implies a share that may be trading too cheaply.

But what are the risks of buying the company? It’s possible earnings could disappoint if recent pressures on consumer spending worsen. What’s more, Applied Nutrition operates in a highly competitive market, where new entrants could exacerbate pressure on sales and margins.

That said, I think the potential benefits of owning this high-performing growth stock outweigh the dangers. And especially given its proven ability to successfully navigate such pressures.

The Gym Group

The Gym Group — which operates 260 fitness centres in the UK — is riding the same healthy living craze sweeping Britain. Over the last year its shares have risen 31% in value, driven as well by a series of strong trading updates.

Its latest one on 13 January showed excellent progress across key metrics. Membership and average revenue per member both rose 4% in 2025, with headline and like-for-like revenues up 8% and 3% respectively.

The company’s expansion-driven growth strategy is clearly paying dividends. And there’s plenty more in the tank, with 75 new clubs planned for the next three years.

City analysts expect Gym Group’s earnings to soar 26% in 2026, and for growth to accelerate to 35% next year. It’s not cheap, with a forward P/E ratio of 39.2 and PEG of 1.5. This could cause a problem if the costs of its expansion programme rise and hit earnings, forcing a re-rating of the firm’s shares.

But I still think it’s a top growth opportunity to consider, one of several I’ve got my eye on right now.

The post Seeking super-high-growth stocks to buy? Here are 2 to consider appeared first on The Motley Fool UK.

Zooming out a bit further though, the stock is still down 55% from a high of 307p in June 2021. If it were to reach that price again, an investor could more than double their money by investing today.

Is this a stock that can pump up my portfolio? Let’s take a closer look.

Solid set of results

For those unfamiliar, the company was a pioneer of the low-cost gym model, offering 24/7 access and flexible, no-contract membership. I used to be a member a few years back and my gym was spacious with adequate equipment for the equivalent of less than £5 a week. Bargain stuff.

Today (12 March), we got the group’s full-year report for 2024, and there was a lot to like. Revenue grew 11% year on year to £226.3m, driven by an increase in both membership numbers and pricing. 

Members rose 5% to reach 891,000 by the end of the year. And 12 new sites (half in London) were opened, at the top end of guidance, bringing the total number of gyms to 245.

Meanwhile, profitability improved significantly, with the firm swinging to a pre-tax profit of £2.5m compared to a loss of £8.3m in 2023.

We’ve just been through the peak recruitment months of January and February, when the motivation to sweat off those extra Christmas pounds is still high. So it’s encouraging that management says revenue for the first two months of 2025 grew by 8%. Like-for-like revenue was up 3%, while the membership at the end of February was 951,000.

Looking ahead, the company plans to open 50 new sites over the next three years, including up to 16 gyms this year. This expansion will be funded entirely through free cash flow. 

With cost-of-living pressures still ongoing, I wouldn’t bet against 1m+ members in future.

Should I buy Gym Group stock?

The stock’s price-to-sales ratio is just 1.1, which isn’t particularly expensive. On this basis, the valuation looks decent, though the net profit margin is sill razor-thin. It wouldn’t take much — rising costs or another pandemic-style event — to put the group back into loss-making territory.

Last year, net debt was reduced by £5.1m to £61.3m. But that’s still higher than before Covid, when it stood at £47.4m.

The company has been raising prices to improve revenue per member. Last year, the average price of its standard membership rose 6% to £24.53. My worry with this though is that there might be limited pricing power from now on due to relentless competition.

Speaking personally, I have several different gym options within a five-mile radius, and nearly all offer contract-free memberships and half are open 24/7. The monthly price of my local leisure centre, with its two swimming pools, isn’t much more than the nearest Gym Group location.

This well-run company is performing nicely and the stock could have further to run. But weighing things up, I’m not going to invest. I prefer firms with distinctive and durable competitive advantages, and unfortunately I don’t find that here.

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But after a period of solid – albeit unspectacular – capital growth, I’m going to cast my investment net a little wider this year.

Piling on the pounds

One stock I recently came across was The Gym Group (LSE:GYM). It offers ‘cheap and cheerful’ gym membership. Think of it as the Premier Inn of fitness clubs.

It has an attractive business model. Users can pay monthly and are therefore free to leave at any time. The group’s 240+ gyms are open 24/7. It currently claims 900,000 members (February 2021: 547,000) who appear to rate their experience highly.

Planning to capitalise on this over the next three years, the group intends to add an additional 50 gyms to its portfolio. Impressively, it’s intending to do this using its surplus cash. There are no plans to borrow (or approach shareholders) to fund this expansion.

And there could be more gyms to follow. With 10.3m people visiting one at least once a year, the UK health & fitness market’s now worth £5.4bn.

Encouragingly, investors appear to like what they see. The company’s share price increased by nearly 50% in 2024.

However, looking back to the start of 2019, it’s down 48%. Unsurprisingly, the pandemic wasn’t kind to the business. The initial lockdown saw its share price fall by over two thirds. It lost 45% of possible trading days due to government restrictions.

But the shares are now 60% higher than their post-pandemic low. This sounds very positive to me.

On the other hand…

But I have some concerns. Despite its impressive growth, it remains a small business.

Its market-cap’s currently around £274m, which makes it vulnerable to an economic slowdown (or another pandemic). Although the UK economy’s expected to grow in 2025, recent financial data’s been disappointing. Consumer confidence appears low, which is a worry to me.

I’m also concerned that the company’s going to abandon its low-cost model. It says it’s £2 a month cheaper than its closest rivals and wants to narrow this gap because its members “ascribe a higher value to their gym membership than they currently pay”.

But if it becomes like all the others, I fear it’ll find it harder to compete successfully. 

The core problem

However, my biggest concern is that the company’s barely profitable. During the six months ended 30 June 2024, it reported a post-tax profit of only £200k.

Analysts are forecasting a loss for the full year. The situation’s then anticipated to improve in 2025, with an expected profit before tax of £3.1m. However, based on current corporation tax rates, the stock’s currently valued at 118 times its forecast 2025 post-tax earnings. Ouch!

It therefore appears to me as though much of the company’s growth potential has already been factored in to its share price.

I’m therefore not going to invest right now. But I shall continue to consider other smaller (cheaper) companies to add to my Stocks and Shares ISA.

The post Is it time to get my Stocks and Shares ISA into shape by investing in The Gym Group? appeared first on The Motley Fool UK.

But here’s why I think they could deliver the kind of significant earnings growth over the next decade that some penny stocks deliver.

The Gym Group

In recent months I’ve noticed a steady pick-up in the number of people using my local gym. Sometimes I’m having to wait to use the chest press, treadmill, or one of its other many fitness contraptions.

I don’t think it’s a coincidence that my club is owned by The Gym Group (LSE:GYM). Its cut-price no-contract business model is attracting huge numbers of people during this cost-of-living crisis.

Latest financials last week showed revenues up 18.5% in the six months to June at £99.8m. This was driven by member numbers rising to 867,000, a jump of 77,000 from the turn of the year. Gym attendance remains stable even during downturns, and this almost penny stock is booming as people switch to cheaper operators.

The importance of value across the retail and leisure sectors has been growing strongly over the past decade. It’s a trend that has much further to run and makes The Gym Group — which owns 230 clubs across the country — a top buy. That’s despite the impact of rising costs on its bottom line.

Andrada Mining

Purchasing lithium stocks could be another good way to build a winning portfolio. Demand for the silvery-white metal looks set to boom as sales of electric vehicles take off.

Goldman Sachs believes there will be 73m of these vehicles on the world’s roads by 2040. Yet the current mine development pipeline suggests that lithium supply will struggle to keep up with demand, at least over the next decade. In this landscape, producers of the metal should be able to command a premium price for their product.

Andrada Mining (LSE:ATM) is one lithium stock I’m considering buying to capitalise on this. It owns the Uis lithium mine in Namibia, an asset from where it already produces large amounts of tin and from where it recently made its first bulk lithium concentrate sale.

Andrada has described Uis as “a globally significant lithium and tin resource.” Current mineral resource estimates suggests it contains 138m tonnes, but exploration work is ongoing to lift this figure to 200m.

The AIM company also owns a string of other exciting exploration and development assets in Namibia. Testing at its Spodumene Hill project has also shown high-grade lithium intersections that “suggest the presence of significant spodumene mineralisation.”

Investing in African mining companies carries extra risk for investors. Political instability can be commonplace in the region and mining operations can be disrupted as a result. But on balance I think this stock could be a great way to make large long-term returns.

The post 2 ‘nearly’ penny shares to buy in a winning portfolio! appeared first on The Motley Fool UK.

The hedge fund is betting that the share prices of these companies will fall in the coming weeks or months. Short-selling is a way for investors to profit from a decline in stock prices.

The 21 stocks in the crosshairs

Citadel is a major hedge fund with over $62bn in assets under management.

Its short positions can significantly impact share prices. As an investor in UK stocks, I strive to keep up to date with the opinions and actions of big market movers like Citadel.

As of 6 April, Citadel held reportable short positions in 21 UK companies. The FCA requires funds disclose their short positions if they reach a specific threshold, which is when the net short position is equal to or greater than 0.5% of issued share capital.

You win some…

The FCA data show the date when the short position was opened. By looking at the change in the shorted companies’ stock prices since Citadel began shorting, I was able to calculate Citadel’s success rate up to the time of writing.

Of the 21 companies, a slim majority (11) have seen a share price drop since Citadel began shorting them.

Citadel’s biggest success so far has been with The Gym Group. The fitness firm has seen its share price tumble 16% since the hedge fund started shorting it on 16 March.

That sell-off was prompted by the release of The Gym Group’s annual results, in which it forecast energy costs would be £10m higher this year than in 2022. As a low-cost gym, the chain has had a hard time passing on inflation to customers. Still, the company plans to open 12 more sites, all of which will be self-financed.

All pain, no gain?

I don’t own any of the stocks Citadel is shorting. Of the 21 named, I’d stick up for just one: Persimmon. The housebuilder has already seen its stock price halve over the last 12 months.

With a forward price-to-earnings (P/E) ratio of 9 and a strong balance sheet, I think the company faces limited downside. I will add Persimmon shares to my portfolio when I next have spare cash.   

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Spire Healthcare

Private hospital operator Spire Healthcare (LSE: SPI) is a UK share I’ve already bought for my Stocks and Shares ISA. I’m considering upping my holdings too as waiting lists for free treatment keep growing.

The British Heart Foundation said on Thursday that wait times for cardiac care grew for a 22nd straight month in April to an all-time high of 319,366 people. Lists are climbing across the NHS and this is driving patient numbers at the likes of Spire through the roof. Private patient revenues at this particular provider rose at a record pace in 2021.

I think stocks like this could be better placed than many others to weather the economic downturn as well. This is because spending on healthcare tends to remain broadly unchanged, even during bad times. Good health is something we can’t afford to take for granted.

I’m considering buying more of Spire despite the threat that rising staff costs pose to profits.

The Gym Group

Investing in companies that offer cheaper goods and services could work for me as consumer spending power falls. One way I’m thinking of doing this is by buying The Gym Group (LSE: GYM) shares.

People don’t stop working out when times get tough. They might however choose to do it at lower cost by joining a gym with cheap membership costs like The Gym Group. In fact, this operator’s low-cost model has helped turbocharge member levels since re-opening last April. It had 718,000 on its books at the end of 2021, up from 547,000 10 months earlier.

I could be tempted to buy the share today and hold onto it for the long haul too. I like its plans to significantly expand its gym network from 206 sites to above 300 by 2025.

The fitness industry is competitive, and The Gym Group will have to paddle hard to keep growing membership numbers. Still, I find the rate at which it has added members over the past year highly encouraging.

Bloomsbury Publishing

Reading is a relatively cheap pastime. So it makes companies involved in the book trade like Bloomsbury Publishing (LSE: BMY) attractive investments for me during this cost of living crisis.

The company’s exceptional trading news this week has boosted my appetite. Sales and profits rocketed 24% and 40% respectively to new highs in the last fiscal year (to February) as the upswing in book demand seen during the pandemic carried on.

I like Bloomsbury for other reasons too. It’s the home of Harry Potter, a cash cow whose sales continue to grow decades after launching. I also like the company’s successful foray into the realm of academic literature.

I’d buy the business even as soaring paper prices put profit margins under strain.

The post 3 safe-haven shares I’d buy as the economy cools appeared first on The Motley Fool UK.

Fitness on the up

Despite lockdown causing many gyms to close, a new emphasis was placed on health, healthy living, and working out due to the pandemic. Firms like Gym Group could benefit and recent results point towards increased demand in memberships at its gyms.

The Gym Group is the UK’s largest low-cost, value gym with over 200 locations currently open throughout the UK. Gym Group attracts its customers with no fixed contracts and a cheap monthly memberships starting from as little as £10.99. In addition to this, it offers its members flexibility to train around their lifestyles with lots of 24-hour locations.

As I write, Gym Group shares are trading for 257p per share. This time last year shares were trading for 217p, which is a 19% return. Is this new focus on health and gym-going a temporary fad or a new way of living?

For and against buying shares

FOR: Gym Group has reported that membership numbers are still on an upward trajectory. This is based on a latest trading report released in December last year. In February 2021, it had 547,000 members. By the end of November, this stood at 735,000. Gym Group reported its multi-site premium membership had increased by 27.1% at the end of November compared to increases of 24.1% in July and 22.5% in December 2020.

AGAINST: I believe the biggest threat to Gym Group is the continued pandemic. There is a real risk that a new variant, as strong or stronger than the original and one that could bypass vaccine, could arise. If this were to happen, restrictions could force gyms to close.

FOR: Gym Group has a good amount of liquidity which will support the growth stock to enhance its number of sites and its offering. It is aiming to open 22 new sites in the UK by the end of December 2022. In addition to this, it has a good track record of performance. I understand that past performance is not a guarantee of the future, however. I can see that revenue and operating profit increased for three years in a row before 2020 was impacted by Covid-19.

AGAINST: There is lots of competition in the gym market and some have a longer history, with larger brand recognition, and a more varied offering than Gym Group. Not everyone wants a cheaper, basic gym experience. Some want a state of the art experience with swimming pools and so on and are willing to pay a premium for it. The Gym Group’s business model is to cater for the basic gym goer, without these added extras.

Growth stock I’d buy

Right now I would add Gym Group shares to my portfolio at current levels. I believe the shares are cheap. Furthermore, these new gym goers and older members will continue to support its growth and profitability. Gym Group’s plans to expand seem to be on track and the next few years could be an exciting time. 

The post Is this growth stock one to buy or avoid? appeared first on The Motley Fool UK.

Rupert Hargreaves: Bloomsbury Publishing

Bloomsbury Publishing (LSE: BMY) is my top British growth stock for January. A rise in the demand for reading material through the coronavirus pandemic has generated windfall profits for the company over the past two years.

Bloomsbury aims to capitalise on this newfound love of reading in the years ahead. Analysts believe this will translate into earnings growth of 11% this year and 10% in 2023.

Of course, this growth is not guaranteed. Rising inflation could cause consumers to cut back on spending on non-essential items like books. Despite this headwind, I would buy the stock for my portfolio.

Rupert Hargreaves does not own shares in Bloomsbury Publishing.

Zaven Boyrazian: Frontier Developments

Frontier Developments (LSE:FDEV) is a game development studio and publishing house. It’s responsible for a popular collection of titles, including Elite Dangerous and Jurassic World Evolution.

The stock took a significant hit in 2021 after management lowered its revenue guidance due to underperforming sales. However, its first entry of the Formula 1 franchise is coming out later this year, along with multiple other projects through its publishing arm.

Personally, I think the lineup of new releases could drastically boost sales again. And with further franchise titles coming out in 2023, including Warhammer, the stock looks like it has excellent growth potential in my mind.

Zaven Boyrazian owns shares in Frontier Developments.

Royston Wild: B&M European Value Retail 

City analysts don’t expect B&M European Value Retail (LSE: BME) to record ripping earnings growth in the near term. In fact, they’re expecting profits to reverse over the next 12 months or so as supply chain costs balloon. It’s my opinion, however, that earnings could actually surprise positively as shoppers seek out bargains in this high-inflationary environment. Indeed, B&M’s trading statement in early January showed profits exceeding analyst estimates.

This FTSE 100 share is unlikely to be a flash in the pan. Discount grocers Aldi and Lidl have grown rapidly over the past decade as consumers prioritise value. Encouragingly, B&M is expanding rapidly to make the most of this opportunity, too.

Royston Wild does not own shares in B&M European Value Retail.

G A Chester: Gym Group 

Low-cost operator Gym Group (LSE: GYM) was expanding and delivering strong revenue and cash-flow growth before the pandemic. Inevitably, government-mandated shutdowns had a negative impact on the business. 

There remains some risk from coronavirus, but I think Gym is cheaply valued on its pre-pandemic cash flows. Furthermore, it’s well funded to exploit an unprecedented growth opportunity coming out of the pandemic. 

Due to large numbers of store closures in UK towns and cities, the company has been offered dozens of high-quality sites on attractive terms. Management has never seen the property market so favourable and is taking full advantage to accelerate expansion. 

G A Chester has no position in Gym Group.

Ed Sheldon: Sage

My top British growth stock for January is Sage (LSE: SGE). It’s a leading provider of cloud-based accounting and payroll solutions with a focus on small and medium-sized businesses.

I’m bullish on Sage for a couple of reasons. Firstly, I expect the company to benefit from the ongoing global economic recovery. Better economic conditions should lead to higher demand for the company’s accounting solutions.

Secondly, the valuation seems very reasonable. Currently, Sage sports a forward-looking P/E ratio of around 32. By contrast, US rival Intuit currently trades at around 50 times this year’s forecast earnings.

One risk to consider here is competition from Intuit and other players such as Xero. I think this risk is baked into the valuation, however.

Edward Sheldon owns shares in Sage and Xero.

Roland Head: Electrocomponents

Profits at industrial and electronic parts supplier Electrocomponents (LSE: ECM) have risen by an average of 40% per year since 2016.

According to CEO Lindsley Ruth, trading was strong during the third quarter. He now expects results for the year to 31 March to be ahead of broker forecasts. My sums suggest we could see earnings growth in excess of 40% in 2021/22.

The main risk I can see is that with the stock trading on 26 times forecast earnings, any disappointment could cause the shares to slide. However, I expect further growth.

Roland Head does not own shares of Electrocomponents.

Christopher Ruane:  S4 Capital

After strong growth for most of 2021, digital ad group S4 Capital (LSE: SFOR) fell in the final quarter. It had a weak start to 2022. Like S4 boss Sir Martin Sorrell, I have increased my holding this month.

One risk is the cost of integrating acquisitions eating into profits. But the company continues to grow aggressively, acquiring another US agency this month. For 2022 it is targeting 25% growth in both gross profit and net revenue. S4 is set to benefit from growing spend on digital advertising. 

Christopher Ruane owns shares in S4 Capital.

Paul Summers: Biotech Growth Trust

Last year was pretty awful for shareholders of minnow-focused Biotech Growth Trust (LSE: BIOG). As a patient, long-term investor, however, I’ve been taking this period of selling pressure as an opportunity to load up.

Whether 2021 will see a return to form is hard to say. On an optimistic note, directors believe the valuations given to small-cap stocks in the sector are now “very compelling”. A rise in merger and acquisition activity, the passing of price legislation in the US and increased regulatory approval of drugs (held up by the pandemic) could also spark a recovery.

Paul Summers owns shares in Biotech Growth Trust

Harshil Patel: Alpha FX 

My top British growth stock for January is financial solutions company Alpha FX (LSE:AFX). It’s a founder-led British business focused on two areas: foreign exchange risk management and alternative banking. 

Trading has been strong, and the company has proven sales and profit growth over several years. I like that it has a diversified client base and client numbers are also growing.  

I’d say not only is Alpha FX a growth stock, but it’s also a good quality business with a double-digit profit margin. 

With a market capitalisation of under £1bn, I reckon it has much room to grow further.  

Harshil Patel does not own shares in Alpha FX.

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The Gym Group itself has slumped to its cheapest since early February, at around 235p per share. The company’s high valuation even in spite of recent drops leaves it in danger of additional weakness too. Today the UK share trades on a forward price-to-earnings (P/E) ratio of above 60 times.

In great shape to jump again?

The risks of gym shutterings are something investors need to consider seriously, even if studies into omicron are in their early days. But could The Gym Group be an attractive dip buy at current prices for my long-term portfolio? Attendance at gyms and fitness centres has been especially strong since Covid-19 lockdowns were first eased in the spring.

The Gym Group itself added 183,000 new members in the four months to 30 June, latest trading numbers showed. This took the total to 730,000. A quest for better personal health and an improved physique has driven gym attendance through the roof in recent years. It’s a long-term trend that I’d expect to resume in the event of fresh lockdowns.

The ongoing Covid-19 crisis poses a significant threat to profits in the immediate future. But the rate at which the gym industry is growing means The Gym Group could still prove to a brilliant buy for the years ahead. I’m encouraged by a recent £30m-plus share placing, too, that has bulked up its balance sheet and left it better prepared for fresh centre closures. I think recent heavy share price weakness could prove an attractive point for me to buy this cheap UK share at.

A fallen penny stock I’m considering buying

Recent share price falls leave Titon Holdings (LSE: TON) trading just inside penny stock territory at 99.5p per share. It has lost 20% of its value over the past three months as concerns over the economic recovery have grown. The departure of recently installed chief executive Mat Norris “to take up another role” earlier in November hasn’t helped investor confidence, either.

Could this provide me with a great dip opportunity, however? Titon manufactures ventilation systems as well as door and window fittings that it sells in Europe, North America, and South Korea. It is therefore well placed to ride the housebuilding boom to meet the needs of a growing global population.

It’s true that conditions are weak in its Asian marketplace. However, I think the strength of the UK, US, and European housing markets still make it an attractive stock for me to buy. Revenues at Triton rose 4.1% year-on-year during the six months to March 2021, latest financials showed, as housebuilding levels recovered. I’m expecting another sunny update when full-year trading numbers are released, one that could help Titon’s share price power back above £1.

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