Coincidentally, I bought all three in November 2023, and they’ve all hit the magic 100% mark in the Gain/Loss column of my online SIPP. What a month that was!

This is brilliant and I love ‘em but it does leave me facing a problem. They’ve all failed to kick on since hitting that milestone.

A secondary issue is that one of them is now worth almost 9% of my entire SIPP, so I’m heavily exposed to its fortunes.

3i Group flies

That stock is 3i Group (LSE: III). Shares in the FTSE 100-listed private equity manager have rocketed 357% in five years, and continue to fly, up 39% in 12 months.

Established in 1945, 3i has a brilliant track record of buying companies, building them up, pocketing dividends then selling them at a profit.

It has a huge success on its hands in discount retailer Action, which has grown so fast it now makes up more than 75% of 3i’s total £23.6bn portfolio.

Now I’m worried 3i may be a little too Action-packed. I’m not sure what its exit strategy is or whether it even wants one.

Another issue is that shares in the investment trust are trading at a massive 69% premium to their underlying net value. 

I’m still sitting on a 97% gain, and common sense suggests I should at the very least reduce my exposure. Trouble is, it’s hard to kiss success goodbye.

Costain is cheaper

I’m a bit less concerned about the second double-my-money stock, construction specialist Costain Group.

Costain has also idled since hitting the 100% mark but still looks cheap, with a price-to-earnings (P/E) ratio of just 8.3.

There’s lots to like here. Its forward work position, a key industry measure, jumped £1.5bn to a record £5.4bn in 2024. The shares are up 44% in the last 12 months.

Construction can be a volatile sector, so that’s a concern. Also, our cash-strapped government may struggle to fund infrastructure development.

However, Costain looks solid, with net cash of £180m against a £330m market cap. With its forward work piling up, I’d rather buy more than sell.

Just Group stumbles

FTSE 250 insurer Just Group (LSE: JUST) has also been going gangbusters, up 42% over the last year.

However, the shares have fallen 12% in the last three months, after full-year results published on 7 March fell well short of estimates.

Adjusted pre-tax profit fell by 7.3% to reach £482m, mostly due to lower non-operating items. Underlying operating profit climbed 34% to £504m and group chief David Richardson remains upbeat.

He noted that the company had more than doubled profits in just three years, a process supposed to take five. Just still looks incredibly cheap with a P/E of just 4.1. The trailing yield is a low 1.68%, but the dividend policy is progressive, with a 20% hike in 2024.

I bought for the long-term, and since I hold a modest stake, I’m not selling. I might even take advantage of the recent dip. Providing I can bring myself to trim my position in 3i.

The post These 3 stunning UK stocks have doubled my money in 18 months. Time to bank the profit? appeared first on The Motley Fool UK.

Comparing 2024 with 2023, the results show a 34% increase in underlying profit to £504m, a 36% rise in retirement sales, and an improvement in the return on capital. As a result, the directors were able to announce a 20% increase in the dividend.

At first glance, the shares appear to be a bargain. Underlying earnings per share was 36p, implying a price-to-earnings (P/E) ratio of only four.

Summarising the performance, the group’s chief executive commented: “We made a pledge three years ago to double profits over five years. We have significantly exceeded that target in just three years and created substantial shareholder value as a result.”

So why did the company’s shares fall so much today? At one point they were down 15% before recovering slightly.

Different standards

I suspect it has something to do with the group’s use of alternative performance measures. These can produce different results to the statutory ones used by accountants, as laid down by financial reporting standards.

A look at the company’s accounts shows that the reported profit after tax was £80m. This was £49m (38%) lower than for 2023. And very different to its underlying profit of £504m.

Basic earnings per share for 2024 were 6.5p. Using this measure, the shares have a P/E ratio of around 23. Again, this is miles away from the headline number.

To help investors understand the variation in these figures, a reconciliation is provided.

The bulk of the difference is explained by the “deferral of profit in CSM” (£369m), which is excluded from underlying earnings. This refers to the Contractual Service Margin reserve, a bucket into which profits are deferred and reported at a later date.

Accounting standards require the profit from new business to be reflected over the lifetime of the contract. In contrast, when reporting its headline numbers, the company prefers to include it all at once.

Of course, there’s nothing wrong with either approach. The directors aren’t hiding anything, they are just choosing a different method to interpret its results.

What does this all mean?

In my opinion, this makes it difficult for investors to understand the numbers.

However, one thing that never lies is cash. It either exists or it doesn’t. During 2024, the group reported a significant increase in the cash generated from its operating activities. Overall, cash balances increased by 54%.

As well as this, in my opinion, there are other reasons to consider investing in the group. It’s growing rapidly and the company describes market conditions as “buoyant”. In addition, with a Solvency II capital coverage ratio of 204%, its balance sheet remains robust.

But there are risks.

Annuity sales may slow if interest rates fall as anticipated. And the group operates in a very competitive market that’s sensitive to wider economic conditions. Also, there are better income stocks around.

On balance, I’m still undecided. Therefore, I’m going to continue monitoring the company’s performance — considering both alternative and statutory measures — over the coming months, with a view to revisiting the investment case later in the year.

The post A P/E ratio of 4 or 23? I’m not sure what to make of this FTSE 250 stock appeared first on The Motley Fool UK.

CEO David Richardson said: “We made a pledge three years ago to double profits over five years. We have significantly exceeded that target in just three years and created substantial shareholder value as a result.“

What’s not to like about that? Maybe it’s because the good news was hinted at in a 15 January update, boosting the share price. Perhaps investors are going on ‘buy the rumour, sell the news?’

“Shaping a brighter future”

The CEO added: “Our markets remain buoyant and we are confident in our ability to grow earnings at an attractive rate from this significantly higher level.”

The pensions insurance group saw a 34% rise in underlying operating profit to £504m. That includes a contribution from new business growth. But recurring profits, which can be a key sustainer of long-term income, played a part.

Adjusted profit before tax actually fell, to £482m from the previous year’s £520m. The bulk of that is deferred, which leaves IFRS profit before tax of just £113m (£172m a year ago). Am I seeing some reason behind the morning’s share sell-off?

A 15.3% return on equity (up from 13.5%) and tangible net asset value (NAV) per share of 254p (from 224p) both look impressive. On the previous day’s close, that implies a discount to NAV of 36%.

Five-year winner

Just lifted its 2024 dividend by 20% to 2.5p per share for a 1.5% yield. It’s not among the FTSE 250’s biggest, but it beat forecasts. Seeing the share price more than double over the past five years more than makes up for a low dividend in my books.

After such a steller performance, the stock must be highly valued, right? Well, that’s where Just Group adds another to the list of puzzle-building, in my mind.

Underlying earnings per share (EPS) of 36.3p indicate a trailing price-to-earnings (P/E) ratio of just 4.5. But on a reported basis, EPS came in at only 6.5p per share for a P/E of 25. That’s a huge difference, and it’s down to IFRS profit before tax being so low.

Forecasts had put EPS at 8.1p. So on a reported basis, this was a miss. For 2025, the analysts predict 7.7p per share, which is a fall from the 2024 expectations but a rise on Just’s actual reported 6.5p. How do these figures relate to adjusted earnings? My head hurts.

What should investors do?

I think results like these offer us a helpful lesson. Anyone considering buying should take care to understand all the adjustments. It doesn’t imply anything wrong, and IFRS sometimes doesn’t apply well to specific businesses. But varying accounting standards can mean it’s much harder to make like-for-like comparisons between stocks based on the same headline criteria.

My take on Just as an investment? Until I do some further research to clarify these confusions, I simply don’t know.

The post Why did this high-flying FTSE 250 stock just fall 15%? appeared first on The Motley Fool UK.

I bought insurer Just Group in November 2023 and added to my holdings last May. And last week, my trading account showed share price growth had hit the magical 100% mark.

Just has kindly doubled my money in less than 15 months. So what should I do now? Let my money run, or cash in and look for the next FTSE 250 recovery play?

One thing’s certain. I don’t expect my shares to double in value again over the next year, as growth trajectory has slowed. While the Just Group share price is up 104% over the last 12 months, it’s only climbed 12% in the last six. No stock keeps smashing the market forever.

The shares have smashed it

It still looks incredibly cheap though, with a trailing price-to-earnings (P/E) ratio of 5.8. That’s well below the index average of 10.7 times.

Recent performance has been impressive too. Its update for the year to 31 December, published on 15 January, showed a 36% jump in retirement income sales to £5.3bn.

It’s making hay in the bulk annuity market, where insurers assume the risk of managing company-defined benefit pension schemes. It recently completed its largest transaction to date, a £1.8bn full buy-in with the trustee of the G4S pension.

New business strain, which reflects the initial loss incurred by a life company in the first year of a policy, is expected to remain low at 2%.

The disappointing news is that Just anticipates full-year 2024 new business margins will be lower than the first half of the year. It said this is principally down to business mix, as it maintains pricing discipline and limits risk.

For income-focused investors, Just might not be the most attractive option. Its trailing dividend yield’s a modest 1.27%. That pales in comparison to FTSE 100 insurers Aviva and Legal & General, which yield 6.7% and 8.6% respectively.

High growth, low income

Analysts’ sentiment is positive but not ravingly optimistic. The seven brokers offering one-year share price forecasts have produced a median target of around 186p. If correct, that’s an increase of 14% from today. 

Five out of seven analysts rate it as a Strong Buy, and two as a Buy.

There are risks. While the bulk annuity market offers a huge growth opportunity, it’s very competitive. Also, sales of individual lifetime annuities may fall once interest rates start dropping from today’s relative highs. If that happens, profit growth will slow.

I won’t add to my stake in Just. It’s reasonably large after its blistering run. Also, I already have more than enough exposure to the UK financials sector. It’s proving to be a happy hunting ground for both dividend income and share price growth. 

I’m expecting solid returns ahead, but won’t push my luck. There are other FTSE 250 stocks I’d like to buy. Maybe they’ll double my money too. No guarantees though.

The post My favourite FTSE 250 stock doubled my money in 15 months and still looks cheap to me! appeared first on The Motley Fool UK.

By contrast, the average Cash ISA returned just 1.21% a year. I was converted to the glories of equity investing yonks back. But it’s nice to be reminded from time to time.

Let’s see what this means in practice. Say an investor had tucked £10,000 into the average Stocks and Shares ISA some 10 years ago. Today, they’d have £25,101, assuming all dividends were reinvested. By contrast, a Cash ISA would be worth just £11,278. 

The stock market has its ups and downs, but history shows it delivers superior long-term growth. Provided investors give it time.

That’s why I prefer equities

In the short run, share prices can go pretty much anywhere. Nobody should invest over a term below five years. Ideally, they should leave their money to compound over decades.

Here’s another figure I’ve stumbled across, from tracker manager Vanguard. It calculates that an investor who put £10,000 in the FTSE All-World Index in 1998 would have £59,825 by the end of last year. The average cash account would have delivered just £18,695.

These figures are slightly harsh on cash. Savings account took a beating when central bankers slashed interest rates almost to zero after the financial crisis. And everybody needs a bit of cash on easy access for a rainy day.

That 9.64% annual Stocks and Shares ISA return’s great, but I’m aiming to do a little better. Rather than investing in a broad index tracker, I pick individual stocks. This strategy carries more risk, but the potential for bigger rewards.

FTSE 250 insurer Just Group (LSE: JUST) is my most successful stock pick of the last year. Its shares soared 95% in that time.

The outlook remains bright. The group’s 2024 update, published on 15 January, revealed a 17% increase in new business profit to £246m. Adjusted operating profit climbed almost 45% to £324m, while its solvency ratio improved to 217%.

Just Group shares are a bit special

These figures demonstrate the company’s strong financial position and growing demand for its retirement products.

I don’t expect Just Group’s share price to double again over the next year. That kind of return is rare. The seven analysts offering one-year share price forecasts have produced a median target of just over 186p. If correct, that’s a modest 14% increase from today’s 163p. I get a small dividend on top. The trailing yield’s 1.3%.

Obviously, I cherry picked that stock. My portfolio also contains its share of losers (everybody’s does). I expect most of them to recover, given time.

There are no guarantees in any of this. I’ve no idea what the average return on my portfolio will be over the next decade. But I’ll be astonished if I didn’t beat cash.

Investing is never a guaranteed route to riches. But with patience, research and a diversified approach, I believe I can beat the average Stocks and Shares ISA over time. That’s my goal and I’m giving it my best shot.

The post The average Stocks and Shares ISA turned £10k into £25k in a decade. I aim to beat that appeared first on The Motley Fool UK.

I’ve run through my portfolio and picked out two stocks I’ve added since turning 50. I bought both because they looked bargains, but with bags of long-term share price and dividend income growth potential.

FTSE 100-listed pharmaceutical giant GSK‘s (LSE: GSK) been a huge disappointment. The shares have had a rough year, falling 8% over 12 months. Personally, I’m down a painful 18.5%. And I thought this was a defensive stock.

GSK’s year was overshadowed by a US class action lawsuit taken against former heartburn treatment Zantac, alleged to cause cancer. When GSK settled for a lower sum than many feared, the relief was short-lived. The stock ran straight into President-elect Donald Trump.

I’m backing GSK to bounce back

His decision to pick controversial vaccine sceptic Robert F Kennedy Jr to lead the US Department of Health and Human Services, hit pharma stocks across the board. GSK’s reported a slew of new drugs approvals in the US, Europe and China, but that wasn’t enough to cheer investors.

2025 could be bumpy too, but with a price-to-earnings (P/E) ratio of just 8.78 times earnings and yield of 4.25%, I think GSK remains a good long-term buy-and-hold. I hope to hold it to retirement and beyond.

Happily, my second stock pick has enjoyed a much stronger year, FTSE 250-listed financial services firm Just Group (LSE: JUST).

Just specialises in the retirement segment of the market. As the nation ages, that’s a good place to be, assuming it gets its strategy right. It sells annuities, retirement income and equity release plans. It’s also taking advantage of rapid growth in the bulk annuity market.

Just’s shares are still in the recovery phase after suffering a major blow in 2018 when the Prudential Regulation Authority forced firms to hold more capital to protect against equity release risks. Low interest rates and stiff competition didn’t help.

I expect my Just Group shares to fly even higher

It’s rebounded nicely since as the threat subsided, with the share price up 90% over the last 12 months. That makes it the biggest winner in my portfolio. Yet with a lowly P/E ratio of just 5.8 times, I’m hoping for even more growth this year. 

Just still operates in a competitive market, where it has to go toe-to-toe with the big FTSE 100 players. Equity release demand hasn’t fully recovered from the pandemic. The stock doesn’t pay much income either. The yield is just 1.29%.

There’s no way I’m banking my fat profit though. I plan to remain invested for the rest of my 50s, and with luck all of my 60s and 70s too. The same goes for GSK. Over time, I’m confident it will regain its lost value.

In both cases, I’ll reinvest every dividend I receive until I finally need to draw them as income. I do love a bargain. Now I’m going shopping for more cheap UK shares.

The post 2 cheap shares I’ve bought to build my wealth after 50 appeared first on The Motley Fool UK.

Just has a laser-like focus on later life and retirement income, selling products such as annuities and equity release lifetime mortgages. I thought it should do well as the population ages and grasps the importance of these things.

Just Group is my best stock in 2024

Three days before I parted with my cash, I wrote this on the Fool: “Just has a much narrower product focus than FTSE 100 equivalents such as Aviva and Legal & General Group, which has made it more turbulent”.

In 2018, Just shares took a beating after the Prudential Regulation Authority (PRA) introduced new rules for calculating capital reserves for companies offering annuities. This forced Just to raise additional capital, spooking investors who feared dilution.

The shares plunged and continued to idle once the issue was resolved. JP Morgan was awake to the opportunity, noting that Just is “clearly punching above its weight” in the fast-growing UK pension risk transfer market, where it has a 10% share. It also benefited from the annuity resurgence, as interest rates handed retirees a better return.

I should add a disclaimer here. When I’m not writing for The Motley Fool, I’m a personal finance journalist, so I know the Just PR team. That applies to a heap of financial firms though and I wouldn’t gamble my retirement pot on them for that reason.

This stock could smash it in 2025 too

I invested because I thought the shares looked ridiculously under-valued trading at what I called “a rock bottom valuation of just 4.24 times earnings”. The price-to-book ratio was a mere 0.4. This seemed plain wrong for a company that had just doubled first-half sales to more than £1.9bn. So I swooped.

Over 12 months, Just’s shares are up 85.66%. Yet the shares still look incredibly cheap, trading at 5.57 times earnings.

Last month, Just announced its biggest ever bulk annuity deal, a £1.8bn full buy-in with the G4S Pension Scheme, covering 22,500 members. On 19 November, JP Morgan reiterated its Overweight rating and lifted the price target from 190p to 200p. Today, the shares trade at 159.9p. That suggests another 25% of potential upside.

One thing worries me. When interest rates fall, the boom in personal annuities could deflate, hitting profits. As a smaller player, that would hit Just more than Aviva or L&G. Investors are optimistic today but that can change in a moment.

By contrast to other insurers, the yield isn’t much to shout about at 1.31%. That’s partly down to its rocketing share price though, as management is progressive.

If I didn’t hold Just Group I would buy it. I expect another positive year in 2025, although nothing to match what we’ve just seen. I’ve got enough exposure now, thanks to the strong run, and will look elsewhere for next year’s big winner.

The post Up 92% in a year! Is my biggest winner my best share to buy for 2025 too? appeared first on The Motley Fool UK.

I think so and I’m holding on to both stocks.

My first red-hot stock pick was infrastructure specialist Costain Group (LSE: COST). Its big appeal was that net cash on its balance sheet was worth more than its market-cap, offering a big safety net for a smaller company.

Costain Group has been a brilliant buy

Costain ended 2023 with £194m in net cash against a market-cap of £188m. When I last wrote about the stock on 22 September, net cash had shrunk slightly to £166m while the market-cap had soared to £284m.

It still has a big comfy cash balance and is earning a heap of interest simply for parking it in the bank. That may fade if interest rates fall next year but Costain’s underlying business has been doing well too.

First-half profits to 30 June climbed 8.7% to £16.3m, with margins edging up. Revenues actually dipped 3.8% to £639.3m. Costain investors must put up with this level of bumpiness, as old projects are wrapped up, in this case the main works at Gatwick Airport Station.

Happily, it’s winning new contracts with a “very healthy” £4.3bn order book. The board felt able to reward shareholders with a £10bn share buyback.

The Costain share price has soared 80.31% in a year but the stock still trades at a modest 8.48 times earnings.

The yield’s a mere 1.06% but it’s hard to complain. Next year could be stickier as the UK economy may slow while the inflation revival could push up costs. But after the year I’ve had, I’m certainly not selling.

The Just Group share price still looks amazing value

I followed my nifty purchase of Costain Group by snapping up undervalued FTSE 250 insurer Just Group (LSE: JUST) on 30 November. Its shares are up 70.71% since. If investing was always like this everybody would do it.

The Just Group share price was too cheap to ignore, trading at just 4.2 times earnings. It slumped after 2015’s pension freedom reforms scrapped the obligation to buy lifetime annuities at retirement, a key product for Just. It was also knocked by regulatory threats over equity release lifetime mortgages, another key product, but they came to nought.

Life goes in cycles and personal annuity sales have revived as rising interest rates give pensioners more income. Just has also benefitted from the boom in bulk annuities, where companies de-risk by passing on pension scheme liabilities to insurers.

Again, the shares looked cheap despite their stellar run, trading at just 5.06 times earnings. There are risks though. Just is competing for bulk annuity business with blue-chip FTSE 100 insurers. Personal annuity sales could drop sharply when interest rates retreat. The trailing yield’s a lowly 1.46%. But I’m having too much fun to sell now.

Given Costain and Just’s continuing low valuations, if I didn’t already have a suitably-sized holding in these two stocks I’d buy them today and believe they’re worth investors considering.

The post Up 70% and 80%! I’m thrilled I bought these two red-hot UK stocks exactly 1 year ago appeared first on The Motley Fool UK.

I buy individual FTSE 100 companies in the hope of generating more dividends and growth than I’d earn by simply tracking the index, but I don’t feel so confident about buying individual US stocks. Hence the tracker.

I do hold one UK tracker, the Vanguard UK All-Share Index Unit Trust, which I bought after transferring some legacy company schemes into a self-invested personal pension (SIPP).

This gave me instant stock market exposure while I set about the task of populating my SIPP with UK stocks. My timing was good as the FTSE All-Share dipped when I bought my tracker on 7 July. So far I’m up 16.45%.

Should I keep tracking the FTSE All-Share?

I’m pleased with that, but I’m even happier with the Vanguard S&P 500 UCITS ETF, which I bought on 22 September last year. It’s up 33.24%.

As a benchmark, the FTSE All-Share is up 9.03% over 12 months while the S&P 500 is up 35.54% over the same period.

This isn’t surprising. The US stock market contains the most exciting companies in the world, led by Magnificent Seven tech giants like Apple, Nvidia, and Microsoft. Yet this stellar past performance makes me wary.

Today, the S&P 500 trades at a hefty price-to-earnings ratio of 38.16. That’s more than double the FTSE All-Share’s modest P/E of 14.2.

Making this trade would involve selling low and buying high, when I normally try to do the opposite. So here’s what I’m going to do instead.

I’ll still sell my FTSE All-Share tracker. Why? Because I’m fully invested and need some cash. And the last 18 months have shown that my biggest successes have come not from trackers but individual UK shares.

As an example, shares in Just Group (LSE: JUST) are up 70.25% since I bought the FTSE 250 insurer almost one year ago. I found that particularly gratifying because I ran the rule carefully over the stock before purchasing it.

The Just Group share price crashed in July 2018 after a Prudential Regulation Authority consultation into the equity release market forced the board to set aside extra capital to cover its lifetime mortgage products.

Just Group shares are beating the US index

The consultation fizzled out, as consultations often do. Yet the Just share price failed to spark into life. So I took my chance.

In August it posted a bumper first-half with a 44% increase in underlying operating profit to £249m, amid stronger new business sales, increased recurring profits, and improved operational efficiency. The Just balance sheet looks solid with a capital coverage ratio of 196%.

As with every stock, there are risks. Just Group sells annuities, and sales have spiked as rising interest rates mean they pay more income. Once rates fall, sales may reverse. The stock has a low trailing yield of just 1.51% and dividends have been patchy, as this chart shows.

Chart by TradingView

Just still looks incredibly cheap, with a price-to-earnings ratio of just 4.88. I’d rather use the proceeds from my FTSE All-Share tracker sale to buy great value UK stocks like this one, than a potentially overpriced S&P 500 tracker.

The post Should I sell my FTSE All-Share index fund and buy a S&P 500 tracker instead? appeared first on The Motley Fool UK.

Admiral Group

What it does: Admiral is a diversified insurance underwriter specialising in motor, household, travel, and pet insurance.

By Zaven Boyrazian. In the world of British insurance, Admiral (LSE:ADM) is currently dominating. Or at least, that’s what its latest interim report suggests. The firm now has over 10.5 million customers after a 12% bump year-on-year, with UK motor insurance policies being the most popular product.

Thanks to some prudent early decision-making from management when inflation started ramping up, Admiral insurance policies are now priced fairly competitively.

That’s despite the fact that overall prices are higher compared to a few years ago. And when paired with the surge in customers, the group’s total turnover has exploded by 43%, reaching £3.2bn in the first half of 2024. Profits subsequently followed, resulting in a tasty 39% dividend hike!

With most of this performance stemming from motor insurance, the company’s policy portfolio has become riskier. After all, these types of policies are expensive and have a much higher claim rate than other insurance contracts.

If Admiral hasn’t charged the right premiums, profitability could be under significant pressure next year. Nevertheless, given the group’s impressive track record, it’s a risk I feel could be worth taking in the long run.

Zaven Boyrazian does not own shares in Admiral Group.

AJ Bell

What it does: AJ Bell is one of the UK’s largest investment platforms, providing administration, dealing and custody services.

By Paul Summers: If only I’d trusted my instincts and snapped up stock in investment platform provider AJ Bell (LSE: AJB) a while back, I’d be enjoying some great gains by now. 

October’s trading update has only made me even more bullish on the mid-cap’s outlook. Total assets under administration stood at a record £86.5bn by the end of its financial year, helped by a 14% jump in customer numbers. With net inflows rocketing 45% to £6.1bn, I’d say confidence is definitely returning to the UK market.

Yes, AJ Bell needs to keep its fees competitive if it’s to hold on to those new clients. A “painful” Budget might also cause some volatility in the share price as investors adapt to any changes that are announced on 30 October.

Then again, this could provide me with a wonderful opportunity to finally buy in.

Paul Summers has no position in AJ Bell.

Bloomsbury Publishing

What it does: Bloomsbury Publishing prints a broad spectrum of books spanning fiction, non-fiction and academic publishing.

By Royston Wild. Bloomsbury Publishing (LSE:BMY) is best known as the publisher of the Harry Potter blockbuster book series. However, the company is about much, much more than the world’s most famous wizard, as latest financials showed.

Sales across its fiction and non-fiction categories remained strong in the four months to June, the firm announced in July. This followed on from Bloomsbury’s strong financial year ending February 2024, during which revenues and pre-tax profit soared 30% and 57% respectively.

Fiscal 2024 was especially notable for fantasy fiction sales, only this time from the world of Sarah J Maas rather than JK Rowling. Sales of her titles rocketed 79% year on year, and with further titles in the pipeline from its current star author, fantasy revenues should remain white hot.

I’m also encouraged by Bloomsbury’s ongoing push into the academic publishing arena. Its acquisition of Rowman and Littlefield’s academic publishing operations in May gives it even bigger exposure to the lucrative US market.

Weak consumer spending could dent profits growth in the near term. However, I think on balance there’s a good chance it should continue delivering impressive sales.

Royston Wild does not own shares in Bloomsbury Publishing.

Just Group

What it does: Just Group provide financial advice and retirement products geared towards the older retail client base.

By Jon Smith. Just Group (LSE:JUST) shares have almost doubled over the past year. Part of this surge has come following the release of strong results back in August.

Under the title “consistently outperforming our targets”, the report detailed how the defined benefit and retail divisions continued to grow. This helped to push operating profit up 44% versus the same period in 2023. It’s benefitting from being in a market that is structurally growing, as well as taking market share away from competitors. As a result, the firm upgraded the outlook for the rest of the year.

I’m thinking about buying the stock, based on the strong momentum that it has right now. However, one concern is that the insurance sector is one of the most tightly regulated in the UK. As a result, any changes imposed could have a material impact on the company.

Jon Smith does not own shares in Just Group.

The post 4 stocks to consider buying after outstanding earnings appeared first on The Motley Fool UK.