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        <title>Kainos Group plc (LSE:KNOS) Share Price, History, &amp; News | The Motley Fool UK</title>
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	<title>Kainos Group plc (LSE:KNOS) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-knos/</link>
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                                <title>The Dow Jones may be at 50k but these 3 UK shares are forecast to grow further in 2026</title>
                <link>https://www.fool.co.uk/2026/02/25/the-dow-jones-may-be-at-50k-but-these-3-uk-shares-are-forecast-to-grow-further-in-2026/</link>
                                <pubDate>Wed, 25 Feb 2026 06:05:09 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1652479</guid>
                                    <description><![CDATA[<p>Mark Hartley identifies three UK shares with not only higher growth forecasts than the Dow Jones, but chunky yields to sweeten the deal.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/25/the-dow-jones-may-be-at-50k-but-these-3-uk-shares-are-forecast-to-grow-further-in-2026/">The Dow Jones may be at 50k but these 3 UK shares are forecast to grow further in 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>After last April&#8217;s sweeping trade tariffs, both US and UK shares took a hit &#8212; but the impact didn&#8217;t last long. The Dow Jones has since made a spectacular recovery, recovering 30% to hit 50,000 points for the first time.</p>



<p>But with valuations stretched and US GDP growth forecast at only 2%-2.5%, analysts don&#8217;t expect the same in 2026. Overall, the Dow isn&#8217;t expected to grow more than 10% in a best case scenario, with lower forecasts predicting only 3% growth.</p>



<p>These three high-yielding UK shares are forecast to grow far more.</p>



<h2 class="wp-block-heading" id="h-kainos">Kainos</h2>



<p><strong>Kainos</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE: KNOS</a>) helps big firms like the NHS or banks to upgrade their digital systems, especially with Workday software for payroll and HR. It’s been growing revenue steadily the past few years, with increasing public sector deals and cloud demand as UK government tech expenditure grows.</p>


<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Analysts forecast average price growth of around 67% in the coming 12 months. The 4% yield’s reliable too, covered by cash flow even after five years of increases, and shares trade on a fair-ish multiple around 29 times earnings.&nbsp;</p>



<p>Still, it faces stiff competition from lower-cost alternatives in regions like India. If the economy dips, tightening budgets could send clients looking elsewhere. Still, the combination of growth and income makes it worth considering in my book &#8212; even with the tech-cycle wobbles.</p>



<h2 class="wp-block-heading" id="h-telecom-plus">Telecom Plus</h2>



<p>Think of <strong>Telecom Plus</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-tep/">LSE: TEP</a>) as a one-stop shop for broadband, mobile, gas, and electric. By bundling bills together, it saves customers cash and builds loyalty. The latest half-year results showed steady profits despite energy price swings, with dividends up 13% last year to a near-7% <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/" target="_blank" rel="noreferrer noopener">yield</a>. Cash coverage is a bit thin at only 1.2 times but is backed by 25 years of payments.</p>


<div class="tmf-chart-singleseries" data-title="Telecom Plus Plc Price" data-ticker="LSE:TEP" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Plus, the average 12-month analyst forecast is 68% higher than today&#8217;s price. That&#8217;s a chunky combo of income and growth!</p>



<p>But it&#8217;s a competitve sector, with rivals Octopus and Bulb muscling in on its market share. On the plus side, falling wholesale energy costs should boost profits as UK households switch. But any change in regulations could further pressure margins.&nbsp;</p>



<p>For now, the <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-balance-sheet/">balance sheet</a> looks solid and cash generation is promising. For investors seeking dependable income with growth potential, it’s a strong contender to consider.</p>



<h2 class="wp-block-heading" id="h-mony-group">MONY Group</h2>



<p><strong>MONY Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-mony/">LSE: MONY</a>) operates price comparison sites like MoneySuperMarket, helping customers find the best deals on loans, insurance, and broadband. Revenue recently ticked up 1% to £225m amid car insurance woes while EBITDA rose 2% and SuperSaveClub membership hit 1.5m, now 14% of sales.</p>


<div class="tmf-chart-singleseries" data-title="Mony Group Plc Price" data-ticker="LSE:MONY" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>The core attraction here is the stock&#8217;s 8.2% yield, but the average 57.5% growth forecast is a big bonus. Analysts have cited potential UK rate cuts as driving interest in switching providers.</p>



<p>But lately, AI-driven comparisons and fierce Google ad competition threaten its business model. If consumer spending softens, it could stall traffic and impact profits.</p>



<p>While the growth narrative is lower here, the yield is undeniably attractive for UK income hunters. It’s long been a favourite of mine and the current low price also makes it worth considering.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/25/the-dow-jones-may-be-at-50k-but-these-3-uk-shares-are-forecast-to-grow-further-in-2026/">The Dow Jones may be at 50k but these 3 UK shares are forecast to grow further in 2026</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>FTSE shares: a near-once-in-a-decade opportunity to get richer?</title>
                <link>https://www.fool.co.uk/2026/02/23/ftse-shares-a-near-once-in-a-decade-opportunity-to-get-richer/</link>
                                <pubDate>Mon, 23 Feb 2026 07:51:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1650760</guid>
                                    <description><![CDATA[<p>Is the UK economy secretly thriving? FTSE shares are climbing at a record pace as new economic data reveals a sudden improvement in productivity.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/23/ftse-shares-a-near-once-in-a-decade-opportunity-to-get-richer/">FTSE shares: a near-once-in-a-decade opportunity to get richer?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>2025 was a stellar year for FTSE shares. Looking just at the UK’s flagship index, the <strong>FTSE 100</strong> delivered a record-breaking 26% total return. And with the impressive momentum continuing in 2026, that number’s closer to 35%, including the last two months.</p>



<p>Yet, this could be just the tip of the iceberg. In fact, investors could be looking at a buying opportunity in British businesses that haven’t been seen in almost a decade.</p>



<h2 class="wp-block-heading" id="h-an-economic-rebound">An economic rebound?</h2>



<p>Looking at the UK’s economy today, there’s plenty to be gloomy about, including stubbornly above-target inflation and rising unemployment. However, something that’s seemingly fallen below the radar of most investors is that productivity’s actually rising, with the latest forecasts for 2025 placing estimated growth at 1.4%.</p>



<p>Excluding the post-pandemic economic recovery, that’s the highest projected level of productivity growth seen since 2017, and just prior to the 2008 financial crisis before that. And if this improvement can be sustained, it could create a powerful tailwind that most FTSE shares can capitalise on.</p>



<p>Digging deeper, there are two possible factors driving this surprise surge.</p>



<p>The first is that investments made by businesses to cut costs and improve efficiency over the last few years are finally starting to pay off. And we’re already seeing supportive evidence of this with record profits emerging and rising profit margins among many UK stocks.</p>



<p>However, the second explanation’s less exciting. Due to the government increasing both employer National Insurance contributions and the Minimum Wage, low-paid jobs, particularly in the hospitality and <a href="https://www.fool.co.uk/investing-basics/market-sectors/investing-in-consumer-staples-stocks-in-the-uk/">retail sectors</a>, have been cut, temporarily boosting the perceived productivity of the remaining workforce.</p>



<p>The truth is likely a combination of both factors. But as it turns out, there are several FTSE shares that can benefit either way.</p>



<h2 class="wp-block-heading" id="h-a-hidden-winner">A hidden winner?</h2>



<p>Regardless of whether productivity’s being boosted through operational efficiency or labour restructuring, <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE:KNOS</a>) still benefits.</p>



<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>The company offers a portfolio of software and digitalisation services to help businesses automate operations and become more efficient. If companies need to cut back on jobs, Kainos can help ensure minimal disruption. If companies want to become more efficient with their existing workforces, Kainos can help implement artificial intelligence (AI) and other software solutions.</p>



<p>This nifty combination has already translated into <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">record sales</a> and orders across the first half of its 2026 fiscal year (ending in March). Meanwhile, its relatively new software-as-a-service segment is currently on track to surpass £100m high-margin recurring revenue by the end of this year.</p>



<p>Needless to say, this structural tailwind bodes well for Kainos shareholders. But of course, there are still some risks. One of the firm’s biggest customers is the UK government, making it susceptible to budget cuts, particularly for the NHS.</p>



<p>At the same time, with the rise of new AI models potentially lowering long-term demand for external digitalisation experts, this economic productivity tailwind may end up being offset.</p>



<p>Nevertheless, AI disruption risk is potentially problematic for its currently larger services segment. By comparison, its rapidly expanding software arm appears to be an AI beneficiary. And with management aggressively investing in this long-term growth engine, this risk could be mitigated.</p>



<p>That’s why, in my opinion, Kainos could be worth a closer look. And it’s not the only FTSE share I’ve got my eye on right now.</p>



<p></p>
<p>The post <a href="https://www.fool.co.uk/2026/02/23/ftse-shares-a-near-once-in-a-decade-opportunity-to-get-richer/">FTSE shares: a near-once-in-a-decade opportunity to get richer?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>After its share price crashed 40% in 3 months, is this a bargain basement value stock?</title>
                <link>https://www.fool.co.uk/2026/02/21/after-its-share-price-crashed-40-in-3-months-is-this-a-bargain-basement-value-stock/</link>
                                <pubDate>Sat, 21 Feb 2026 07:41:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1649286</guid>
                                    <description><![CDATA[<p>This tech stock has nosedived as AI disruption fears are at the forefront of investors' minds. But is this now a bargain value stock to consider buying?</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/21/after-its-share-price-crashed-40-in-3-months-is-this-a-bargain-basement-value-stock/">After its share price crashed 40% in 3 months, is this a bargain basement value stock?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p>During the first week of February 2026, a clutch of tech-focused UK shares saw their share prices collapse by double-digits, with some now sitting in near-value stock territory.</p>



<p><strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE:KNOS</a>) is one such enterprise whose market cap had already been on a downward trajectory since early December 2025. And now, on a forward basis, the group&#8217;s price-to-earnings ratio sits at a decade low of just 14.8!</p>



<p>So, is this growth-turned-value stock now a screaming buy for long-term investors? Or is there trouble brewing?</p>



<h2 class="wp-block-heading" id="h-ai-disruption-risk">AI disruption risk</h2>



<p>For most of its history, Kainos has been a digitalisation specialist, helping businesses and governments implement software solutions to automate processes and boost operational efficiency.</p>



<p>But, in more recent years, management has been evolving the company into a software-as-a-service enterprise by creating bespoke plugins for the <strong>Workday</strong> human capital management (HCM) platform. And while its suite of tools is still quite niche, they&#8217;re proving to be rather popular, delivering impressive and expansive recurring revenue growth.</p>



<p>As of November 2025, its software segment is now responsible for 20% of the top line. But over the medium-to-long term, that could increase significantly, especially as the firm aims to reach £200m in <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">annual recurring revenue</a> by 2030, up from £77.5m today.</p>



<p>However, right now, that means the business remains largely dependent on supporting customer digital transformation projects. And that&#8217;s something that could be exposed to significant AI disruption. After all, why would a company hire large teams of consultants to write code and configure systems when AI agents can do most of the legwork?</p>



<p>This fear of disruption is what sparked a <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">wider tech sell-off</a> recently, and unsurprisingly, Kainos got caught in the crossfire.</p>



<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-a-buying-opportunity">A buying opportunity?</h2>



<p>Buying Kainos shares today is very much a bet on whether the company is an AI enabler or an AI victim. There&#8217;s no denying that the firm&#8217;s currently core consulting-style revenues are at risk. But with its existing contracts spanning multiple years, the group appears to have more than enough time to adapt and reallocate resources to more aggressively expand its software arm.</p>



<p>This obviously introduces some critical execution risk. And it&#8217;s worth highlighting that by building tools for the Workday platform, the business is also tied to Workday&#8217;s long-term trajectory and its fight against competing HCM platforms from <strong>Oracle</strong> and <strong>SAP</strong>.</p>



<p>Nevertheless, with Kainos shares now trading at a dirt-cheap valuation not seen in over a decade, I can&#8217;t help but wonder if the market is seriously underestimating this business. And with a pretty impressive track record of navigating through both favourable and adverse operating environments, this does indeed look like a potential buying opportunity worth investigating further.</p>



<p>Yet it&#8217;s not the only business to have been hit during this recent tech sell-off that&#8217;s caught my attention this month.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/21/after-its-share-price-crashed-40-in-3-months-is-this-a-bargain-basement-value-stock/">After its share price crashed 40% in 3 months, is this a bargain basement value stock?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>The stock market in 2026 could be a rare opportunity to build wealth in an ISA!</title>
                <link>https://www.fool.co.uk/2026/02/14/the-stock-market-in-2026-could-be-a-rare-opportunity-to-build-wealth-in-an-isa/</link>
                                <pubDate>Sat, 14 Feb 2026 07:11:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1646795</guid>
                                    <description><![CDATA[<p>Zaven Boyrazian explores the recent tech sector volatility in the stock market and explains how to use this chaos to target bigger long-term profits.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/14/the-stock-market-in-2026-could-be-a-rare-opportunity-to-build-wealth-in-an-isa/">The stock market in 2026 could be a rare opportunity to build wealth in an ISA!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                                                                            <content:encoded><![CDATA[
<p>For most investors, a stock market crash is a painful, unpleasant experience that results in sleepless nights and a lot of stress. But for intelligent investors, they&#8217;re an amazing opportunity for making potentially huge long-term gains.</p>



<p>And when leveraged correctly using an ISA, it can drastically accelerate the journey towards financial freedom. Here&#8217;s how.</p>



<h2 class="wp-block-heading" id="h-capitalising-on-volatility">Capitalising on volatility</h2>



<p>When investors panic, they&#8217;re <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">often quick to sell</a> businesses in their portfolio as an attempt to prevent losses, regardless of whether these businesses are actually in trouble.</p>



<p>This knee-jerk reaction, driven by a lack of emotional discipline, is what smarter investors can exploit to target outsized, long-term returns. And right now, such an opportunity could exist within the tech sector.</p>



<p>Earlier this month, many technology stocks were slammed. <strong>Microsoft</strong> and <strong>Amazon</strong> have seen their market-caps tumble by double digits. And for some software vendors including <strong>Atlassian</strong> and <strong>Duolingo</strong>, the losses have stretched by almost 50% since the start of 2026!</p>


<div class="tmf-chart-multipleseries" data-title="Microsoft + Amazon + Atlassian + Duolingo Price" data-tickers="NASDAQ:MSFT NASDAQ:AMZN NASDAQ:TEAM NASDAQ:DUOL" data-range="5y" data-start-date="2026-01-02" data-end-date="" data-comparison-value="percent"></div>



<p>It&#8217;s not just US stocks getting sold off. UK businesses such as <strong>RELX</strong>, <strong>Softcat</strong> and <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE:KNOS</a>) have also seen their shares get caught in the panic-selling crossfire.</p>


<div class="tmf-chart-multipleseries" data-title="RELX + Softcat Plc + Kainos Group Plc Price" data-tickers="LSE:REL LSE:SCT LSE:KNOS" data-range="5y" data-start-date="2026-01-02" data-end-date="" data-comparison-value="percent"></div>



<p>The primary cause of this sell-off seems to be panic about artificial intelligence (AI) disruption, causing some software enterprises to potentially become obsolete. After all, why pay for expensive software-as-a-service licenses when an AI model can do just as good a job at a much lower cost?</p>



<p>It&#8217;s a valid concern. But right now, investors seem to be throwing the baby out with the bathwater. And that&#8217;s where intelligent investors can potential unlock some impressive long-term gains.</p>



<h2 class="wp-block-heading" id="h-time-to-go-shopping">Time to go shopping?</h2>



<p>Let&#8217;s zoom in on Kainos Group. The  digitalisation and software specialist&#8217;s shares have tumbled by around 25% since the start of the year, once again driven by concerns of AI disruption.</p>



<p>Is this justified? There&#8217;s an argument to be made that Kainos could be in trouble. After all, the firm derives a <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">large chunk of its revenue</a> from digitalisation consultancy services – an area where generative AI is already taking market share.</p>



<p>However, recognising the disruptive potential of AI on its business years ago, management&#8217;s been steadily pivoting away from its dependency on consultancy. As such, the group&#8217;s been building out a suite of complex software tools that plug directly into the <strong>Workday</strong> platform to handle mission-critical tasks like compliance, data security, and process automation.</p>



<p>This part of the business is still relatively small. But it&#8217;s expanding rapidly and in the long-run, is expected to eventually dominate the revenue stream. And with the Workday platform so heavily integrated into its customers&#8217; operations, replacing this entire ecosystem with AI tools seems very unlikely.</p>



<p>Meanwhile, the Kainos short-term outlook also appears quite strong. It&#8217;s now the fifth-largest AI supplier to the UK public sector, with pre-approved government contracts running through 2026 and 2027. In other words, AI may not actually be a threat. Instead, it looks like an opportunity.</p>



<p>Transitioning from an implementation specialist to an AI-native platform is no easy feat. There&#8217;s no denying that significant execution risk surrounds this business. But with the stock now 25% cheaper, that&#8217;s a risk I&#8217;m seriously considering. And it&#8217;s not the only sold-off stock that I&#8217;ve got an eye on right now.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/14/the-stock-market-in-2026-could-be-a-rare-opportunity-to-build-wealth-in-an-isa/">The stock market in 2026 could be a rare opportunity to build wealth in an ISA!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 top British growth shares to buy in January, according to the experts</title>
                <link>https://www.fool.co.uk/2026/01/13/2-top-british-growth-shares-to-buy-in-january-according-to-the-experts/</link>
                                <pubDate>Tue, 13 Jan 2026 07:01:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1631743</guid>
                                    <description><![CDATA[<p>Here are two top growth shares that institutional analysts believe have the potential to thrive in 2026. Should investors rush to buy?</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/13/2-top-british-growth-shares-to-buy-in-january-according-to-the-experts/">2 top British growth shares to buy in January, according to the experts</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>With hundreds of UK growth shares to pick from, it can be tough for investors to know which companies are the best investments. But institutional analysts are constantly on the prowl for lucrative opportunities. And as 2026 kicks off, several stocks have been highlighted as potentially terrific buys by these professionals.</p>



<p>Here are two of the recent top picks.</p>



<h2 class="wp-block-heading" id="h-1-an-evolving-saas-business">1. An evolving SaaS business</h2>



<p>The analyst team at Bank of America has flagged <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE:KNOS</a>) as a potentially top stock to consider in 2026, upgrading its recommendation from Underperform to Buy.</p>



<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>This change of tone&#8217;s pretty drastic. But looking at the company&#8217;s recent achievements, it&#8217;s not hard to see why. Following its latest results, Kainos is now standing on a record contracted backlog of £396.9m alongside £227.9m in bookings – 27% higher than a year ago.</p>



<p>Digging deeper, the business is benefiting from structural tailwinds in public sector spending, particularly within the NHS and wider government-backed AI initiatives. But the firm&#8217;s relatively new software-as-a-service (SaaS) offer that piggybacks the Workday platform is also picking up steam.</p>



<p>Its SaaS arm has reached £77.5m in <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">annual recurring revenue</a> as of September 2025, on track to surpass £100m by the end of 2026, and over £200m by 2030. And with order and revenue momentum building in North America, Kainos’ growth trajectory looks like it&#8217;s accelerating.</p>



<p>This promising outlook is why I&#8217;ve already snapped up shares for my own growth portfolio. However, it&#8217;s important to recognise the risks. Given the state of the UK&#8217;s finances, public sector spending could be vulnerable to budget cuts, handicapping Kainos’ growth potential.</p>



<p>Its commercial software does provide some revenue diversification. However, these too could be exposed if economic conditions deteriorate – something growth investors need to consider carefully.</p>



<h2 class="wp-block-heading" id="h-2-opportunities-in-facilities-management">2. Opportunities in facilities management</h2>



<p><strong>Mitie Group</strong>&#8216;s (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-mto/">LSE:MTO</a>) another business among growth shares that institutional investors have on their radars. The team at <strong>Peel Hunt</strong> has even issued a 191p <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/broker-forecasts/">share price target</a>, suggesting potential double-digit growth could be on the horizon.</p>



<div class="tmf-chart-singleseries" data-title="Mitie Group Plc Price" data-ticker="LSE:MTO" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Just like Kainos, Mitie&#8217;s been delivering some robust results of late. Thanks to a combination of organic and acquisitive growth, management&#8217;s delivered solid double-digit revenue growth while simultaneously securing a record £3.8bn in total new contract awards.</p>



<p>Yet this could be just the tip of the iceberg. Thanks to its transformational Marlowe acquisition last August, management added over £300m in annual high-margin revenue. And with £30m in expected cost synergies, both operating profits and free cash flow generation are expected to step up significantly throughout 2026 and beyond.</p>



<p>However, acquisitions don&#8217;t always pan out. Digesting Marlowe seems to be progressing well so far, but there remains significant integration risks.</p>



<p>Unexpected disruptions and culture clashes often create unforeseen costs and headaches for acquisitive businesses. And with fierce competition within the facilities management sector, any missteps could create opportunities for Mitie&#8217;s rivals.</p>



<p>Nevertheless, given the group&#8217;s emerging strength and prudent leadership, this business could also be worth mulling. Of course, there are plenty more growth shares with promising potential to explore.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/13/2-top-british-growth-shares-to-buy-in-january-according-to-the-experts/">2 top British growth shares to buy in January, according to the experts</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>I asked ChatGPT to name 3 epic growth stocks to buy in 2026 and it said…</title>
                <link>https://www.fool.co.uk/2026/01/01/i-asked-chatgpt-to-name-3-epic-growth-stocks-to-buy-in-2026-and-it-said/</link>
                                <pubDate>Thu, 01 Jan 2026 09:45:00 +0000</pubDate>
                <dc:creator><![CDATA[Harvey Jones]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1625710</guid>
                                    <description><![CDATA[<p>Harvey Jones is looking to inject some excitement into his portfolio this year and wondered if ChatGPT could suggest some growth stocks to consider.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/01/i-asked-chatgpt-to-name-3-epic-growth-stocks-to-buy-in-2026-and-it-said/">I asked ChatGPT to name 3 epic growth stocks to buy in 2026 and it said…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Growth stocks are the spice of investing life. I&#8217;ve done brilliantly out of my portfolio of&nbsp;<strong>FTSE 100</strong>&nbsp;dividend shares in 2025, but now I want to dial up the action with some growth. Where to start? </p>



<p>I’ve got a few ideas, but I’m worried I might be missing something. So just for fun, I asked ChatGPT to pick three UK shares with serious, if not epic, growth potential.</p>



<p>I’d never actually use AI to pick stocks, that’s not what it’s designed for, but I hoped it would point me towards something interesting. To my surprise, given my focus on income, I already own the first stock it highlighted. </p>



<p>I shouldn&#8217;t really be surprised, given that the stock is <strong>Rolls‑Royce Holdings</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-rr/">LSE: RR.</a>). It&#8217;s rocketed 1,150% in three years, and 99% over the last 12 months. Which is pretty epic.</p>


<div class="tmf-chart-singleseries" data-title="Rolls-Royce Plc Price" data-ticker="LSE:RR." data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-rolls-royce-holdings-is-risky-now">Rolls‑Royce Holdings is risky now</h2>



<p>ChatGPT says the engineering giant has benefitted from the rebound in aviation, combined with optimism around future nuclear and aerospace contracts. It listed risks as <em>“execution and cash flow&#8221;</em>, which is very generic.</p>



<p>Personally, I’d be wary about Rolls-Royce. Expectations are sky-high, with a price-to-earnings ratio of 55. If profits, revenues or margins disappoint, it could smash the shares at these levels. I’m seriously thinking of taking profits rather than buying more. It&#8217;s a good example of why investors should never take ChatGPT as written, but do their own research.</p>



<h2 class="wp-block-heading" id="h-kainos-group-shares">Kainos Group shares</h2>



<p>By contrast, the next pick came out of the blue. <strong>FTSE 250</strong>-listed <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE: KNOS</a>), a digital technology services firm I hadn’t considered before. ChatGPT says it&#8217;s riding a wave of enterprise tech spending, with revenue growth expected to outpace the broader market. The Kainos shares price jumped 30% in 2025, though the five-year trend has been patchy.</p>


<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>The board reported a 16% drop in first-half profits to £32m, but that was mostly due to investing in the business and taking on new staff. Six-month revenues actually rose 7% to £196.1m. Kainos further cheered investors by hiking the interim dividend and announcing a £30m <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/share-buybacks/">share buyback</a>.</p>



<p>ChatGPT warned that <em>&#8220;growth may stall if budgets tighten or competitors nibble at market share&#8221;</em>, which is so generic as to be meaningless. I’ll dig deeper, but I think this one deserves a <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/how-to-be-a-good-investor/">longer look</a>.</p>



<h2 class="wp-block-heading" id="h-oxford-biomedica-has-momentum">Oxford Biomedica has momentum</h2>



<p>Finally, ChatGPT tossed out FTSE 250 cell and gene therapy specialist <strong>Oxford Biomedica</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-oxb/">LSE: OXB</a>). It&#8217;s clearly chasing momentum here, as the company&#8217;s shares are up 40% this year and 200% over two.</p>


<div class="tmf-chart-singleseries" data-title="OXB Price" data-ticker="LSE:OXB" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>In September, Oxford Biomedica posted a 44% rise in first-half revenues to £73.2m, and the order book more than doubled year-on-year. Consensus forecasts are optimistic, suggesting the shares may rise another 24% over the next year, to 748p.</p>



<p>Biotech&#8217;s a little too volatile for my liking. Regulatory approvals and long development cycles can make share prices swing dramatically if anything goes wrong. This one&#8217;s not for me.</p>



<p>Investors might consider both Kainos and Oxford Biomedica but, like me, they should do their own due diligence. And then tread very carefully around Rolls-Royce. Investing is a personal thing. It&#8217;s fun to play with AI, as it&#8217;s brought two exciting stocks to my attention, but the rest is down to me.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/01/i-asked-chatgpt-to-name-3-epic-growth-stocks-to-buy-in-2026-and-it-said/">I asked ChatGPT to name 3 epic growth stocks to buy in 2026 and it said…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>How to invest £400 a month in a Stocks and Shares ISA to try for a million</title>
                <link>https://www.fool.co.uk/2025/12/07/how-to-invest-400-a-month-in-a-stocks-and-shares-isa-to-try-for-a-million/</link>
                                <pubDate>Sun, 07 Dec 2025 07:01:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1612484</guid>
                                    <description><![CDATA[<p>Zaven Boyrazian explains how investing just £400 each month using a Stocks and Shares ISA can help investors build a seven-figure portfolio.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/07/how-to-invest-400-a-month-in-a-stocks-and-shares-isa-to-try-for-a-million/">How to invest £400 a month in a Stocks and Shares ISA to try for a million</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>Pound cost averaging combined with the tax-saving advantages of a Stocks and Shares ISA is one of the most powerful strategies British investors can use to accelerate the wealth-building process.</p>



<p>So much so that even when starting from scratch, investing £400 a month could be all that it takes to grow a portfolio into millionaire territory. Here’s how.</p>



<h2 class="wp-block-heading" id="h-becoming-an-isa-millionaire">Becoming an ISA millionaire</h2>



<p>Today, there are over 5,000 ISA millionaires in Britain – proof that building a seven-figure tax-free portfolio is possible even with a £20,000 annual allowance limit. What’s more, investors don’t even need to use this entire allowance to achieve it.</p>



<p>Over the long term, the <strong>FTSE 100</strong> has historically generated an average total gain closer to 8%. And by investing just £400 a month or £4,800 a year (using less than a quarter of the annual allowance), a brand new portfolio would grow to £1m in around 36 years.</p>



<p>Obviously, waiting around for three and a half decades is hardly ideal. This is where <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/finding-companies-to-invest-in/">stock picking</a> can come to the rescue. By selectively investing in only the best businesses, a portfolio can achieve far better returns than an index fund.</p>



<p>This requires a lot more time, dedication, and discipline. Yet, even if the returns are increased by an average of 4% to 12%, that’s enough to wipe out almost a <a href="https://www.fool.co.uk/investing-basics/the-miracle-of-compound-returns/">decade from the timeline</a> to becoming a millionaire.</p>



<p>In other words, even a 40-year-old investor with next-to-no savings could build a seven-figure nest egg – just in time for retirement. And by using a Stocks and Shares ISA, all of this wealth can be enjoyed entirely tax-free.</p>



<p>So which stocks could potentially unlock these sorts of gains in the future?</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<h2 class="wp-block-heading" id="h-a-future-uk-tech-giant">A future UK tech giant?</h2>



<p>One enterprise that I’ve got my eye on right now is <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE:KNOS</a>).</p>



<p>The digitalisation specialist has struggled in recent years with both public and commercial sector spending taking a tumble in light of inflation uncertainty. And this headwind has only been compounded by rising levels of competition.</p>



<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>However, management hasn’t sat idle. Through continuous investment, Kainos has begun pivoting from an IT services group into a fully-fledged software-as-a-service enterprise.</p>



<p>Today, it has five solutions that work directly with the <strong>Workday</strong> platform, enabling businesses to assist in regulatory compliance, sensitive data protection, and automation.</p>



<p>The group’s software offers are currently responsible for around 20% of sales. But if management hits its 2026 targets, this could grow closer towards 25%-30%. And by 2030, where Kainos expects to earn £200m in annual recurring revenue from software subscriptions, this high-margin proportion of sales could climb even higher, potentially paving the way for double-digit share price gains.</p>



<p>Even as this growth engine expands, Kainos still has risks to navigate. Its digitalisation services operations will continue to face fierce competition. And even its software arm is somewhat tied to the fate of the Workday platform. If Workday losses market share within the human resources management space, Kainos’ growth ambitions could be subdued.</p>



<p>Nevertheless, with the business already generating an impressive volume of free cash flow, the company seems to be well-positioned to capitalise on a software-driven rebound. That’s why I’ve already added it to my Stocks and Shares ISA. And it’s not the only promising long-term growth opportunity I’ve spotted.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/07/how-to-invest-400-a-month-in-a-stocks-and-shares-isa-to-try-for-a-million/">How to invest £400 a month in a Stocks and Shares ISA to try for a million</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 UK shares I&#8217;d prefer to own over Lloyds stock right now</title>
                <link>https://www.fool.co.uk/2025/11/19/2-uk-shares-id-prefer-to-own-over-lloyds-stock-right-now/</link>
                                <pubDate>Wed, 19 Nov 2025 17:09:00 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1606947</guid>
                                    <description><![CDATA[<p>Jon Smith notes the strong run in the Lloyds share price but points out a couple of UK shares that he believes has even more potential for 2026.</p>
<p>The post <a href="https://www.fool.co.uk/2025/11/19/2-uk-shares-id-prefer-to-own-over-lloyds-stock-right-now/">2 UK shares I&#8217;d prefer to own over Lloyds stock right now</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p><strong>Lloyds Banking Group</strong> stock has surged 58% in the last year and is currently close to 52-week highs. Despite the upbeat tone around the business, I think it now looks fairly valued. This means I don&#8217;t see it as a cheap UK share to consider buying. Here are two other options that I believe offer greater potential for the coming year.</p>



<h2 class="wp-block-heading" id="h-building-for-the-future">Building for the future</h2>



<p>The first one is <strong>Persimmon</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-psn/">LSE:PSN</a>). Unlike Lloyds, which has already surged higher in the past year, Persimmon stock is down 2% in the last year. Yet, momentum appears to be building for a move higher in the share price.</p>



<p>Last week, the business put out a trading statement saying the company has performed well in 2025 with increased sales rates, more sales outlets and forward sales up 15%. This indicates better near-term revenue visibility as we head into 2026. That kind of operational improvement can translate into <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/" target="_blank" rel="noreferrer noopener">strong earnings beats</a> for the coming quarters, ultimately helping to lift the share price.</p>



<p>Another reason Persimmon could outperform Lloyds is lower interest rates. Housebuilders typically outperform other sectors during periods when interest rates fall. This is because mortgage affordability improves, boosting housing demand. I think the Bank of England committee will accelerate the pace of rate cuts into next year to help the economy.</p>



<p>Of course, there are risks. Potential changes to taxation from the Budget next week could hinder things, especially if stamp duty gets cut or if policy towards housing becomes less accommodating. This could change investors&#8217; sentiment about the <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/" target="_blank" rel="noreferrer noopener">stock&#8217;s valuation</a>.</p>


<div class="tmf-chart-multipleseries" data-title="Persimmon Plc + Kainos Group Plc Price" data-tickers="LSE:PSN LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-operating-in-a-key-sector">Operating in a key sector</h2>



<p>Another company to consider is <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE:KNOS</a>). The <strong>FTSE 250</strong> stock is up 16% over the past year, but I think it could continue to surge in the coming year.</p>



<p>Kainos is well-positioned in the digital transformation space and the AI evolution. After all, its core business is providing digital technology and software services. Last year, it worked with the UK government on implementing AI-related products and services for the defence department.</p>



<p>I think the business can outperform Lloyds as it has more ability to scale in a rapidly growing market. Banking can grow as well, but not at the same pace. Kainos has strong profit margins and some subscription revenue, allowing it to benefit from economies of scale if it can maintain its growth trajectory.</p>



<p>It&#8217;s true that half-year profits took a hit when results were announced earlier in November. This was partly blamed on higher labour costs and increased investment. Even though rising costs are a risk going forward, I don&#8217;t see the boost to investment as being a bad thing for the long term.</p>



<p>Of course, I can&#8217;t say for sure if either of these picks will outperform Lloyds for the coming year. But based on the momentum both companies have right now, I think they are options for investors to consider.</p>
<p>The post <a href="https://www.fool.co.uk/2025/11/19/2-uk-shares-id-prefer-to-own-over-lloyds-stock-right-now/">2 UK shares I&#8217;d prefer to own over Lloyds stock right now</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>I asked ChatGPT to name 3 growth stocks to consider buying in today’s dip. Here they are!</title>
                <link>https://www.fool.co.uk/2025/04/29/i-asked-chatgpt-to-name-3-growth-stocks-to-consider-buying-in-todays-dip-here-they-are/</link>
                                <pubDate>Tue, 29 Apr 2025 11:45:00 +0000</pubDate>
                <dc:creator><![CDATA[Harvey Jones]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1510541</guid>
                                    <description><![CDATA[<p>Harvey Jones wants to use the stock market sell-off to buy some great value growth stocks and decided to call in the robots for help. The results were mixed.</p>
<p>The post <a href="https://www.fool.co.uk/2025/04/29/i-asked-chatgpt-to-name-3-growth-stocks-to-consider-buying-in-todays-dip-here-they-are/">I asked ChatGPT to name 3 growth stocks to consider buying in today’s dip. Here they are!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>I&#8217;ve been looking to take advantage of today&#8217;s <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">stock market volatility</a> to buy some cut-price FTSE growth stocks for my Stocks and Shares ISA.</p>



<p>While searching, I did something I haven&#8217;t done for a while, and called in ChatGPT. I learned long ago that the chatbot can&#8217;t be relied upon to tip stocks, and to be fair, it admits that itself. But it did highlight three interesting <strong>FTSE 250</strong> opportunities, while serving up its usual share of errors.</p>



<h2 class="wp-block-heading" id="h-it-tipped-pets-at-home">It tipped Pets at Home</h2>



<p>ChatGPT’s first growth pick was <strong>Pets at Home Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-pets/">LSE: PETS</a>). Its shares dipped 20% in the last year but are cheap as a result, with a price-to-earnings (P/E) ratio of just over 11.</p>


<div class="tmf-chart-singleseries" data-title="Pets At Home Group Plc Price" data-ticker="LSE:PETS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>It said the UK pet market has shown held up despite the cost-of-living crisis, and the company&#8217;s Pets Club loyalty programme boasts 7.8m members (actually, its 8.1m), driving recurring revenues.</p>



<p>ChatGPT stuck to generalities after that, warning that economic pressures may hit revenues, while failing to warn that underlying pre-tax profit is expected to decline from £133m in 2024 to between £115m and £125m.</p>



<p>It did mention that the pet care market faces competition from supermarkets and online retailers, which does worry me. While the stock yields more than 5%, I&#8217;m not going to bite.</p>



<h2 class="wp-block-heading" id="h-kainos-group-has-taken-a-hit">Kainos Group has taken a hit</h2>



<p>My robot buddy’s next pick was Belfast-headquartered software company <strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE: KNOS</a>).</p>



<p>Its shares have fallen 25% over 12 months, and are trading close to a five-year low. They&#8217;re not super cheap though, with a P/E of 15. That&#8217;s roughly in line with the index average.</p>


<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>ChatGPT said Kainos has <em>“a strong position in Workday software implementation and a significant footprint in government digital services”</em>, which gives it stable revenue streams.</p>



<p>It added that <em>&#8220;the board recently warned it could undershoot revenue expectations&#8221;</em>, but when I checked, this was based on a report from last September. Which shows the danger of relying on a ‘bot to review stocks.</p>



<p>Kainos last reported on 14 April, just a fortnight ago, and said its Built on Workday partnership puts it on track to meet its initial target of £100m annual recurring revenue by 2026, with a longer-term aim of £200m by 2030. The board highlighted its <em>“strong balance sheet, robust cash flow and a healthy pipeline”</em>.</p>



<p>I’m glad ChatGPT highlighted this stock, but I&#8217;m only treating its tip as a springboard to further investigations.</p>



<h2 class="wp-block-heading" id="h-switching-on-to-itv">Switching on to ITV?</h2>



<p>Its final pick was broadcaster <strong>ITV</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-itv/">LSE: ITV</a>). Which didn&#8217;t even meet my criteria, as it shares are actually up 10% in a year.</p>


<div class="tmf-chart-singleseries" data-title="ITV Price" data-ticker="LSE:ITV" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>Still, the ITV share price looks good value with a P/E of 8.1 while yielding 6.2%. These are my figures, ChatGPT’s numbers were behind the times.</p>



<p>In fact, I&#8217;ve had to ditch all of its figures, as they were based on last year&#8217;s numbers, even though ITV published full-year results on 6 March.</p>



<p>These showed record profits driven by the success of titles such as <em>Mr Bates vs the Post Office</em>, <em>Fool Me Once</em>, <em>Rivals</em> and <em>Love Island USA</em>, helped by £60m of <em>“efficiencies”</em>. </p>



<p>ITV looks tempting, but I&#8217;m worried by news that rival Channel 4 is struggling with advertising revenues. The broadcasting sector is <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/when-will-the-stock-market-recover/">too risky for me</a>. Although not as risky as relying on AI to tip stocks.</p>
<p>The post <a href="https://www.fool.co.uk/2025/04/29/i-asked-chatgpt-to-name-3-growth-stocks-to-consider-buying-in-todays-dip-here-they-are/">I asked ChatGPT to name 3 growth stocks to consider buying in today’s dip. Here they are!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>I&#8217;m buying more of this beaten-down FTSE 250 stock before it takes off!</title>
                <link>https://www.fool.co.uk/2025/03/20/im-buying-more-of-this-beaten-down-ftse-250-stock-before-it-takes-off/</link>
                                <pubDate>Thu, 20 Mar 2025 08:35:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1485418</guid>
                                    <description><![CDATA[<p>FTSE 250 tech company Kainos Group is near its five-year low and looks primed for a recovery this year. This Fool doesn’t plan to miss out.</p>
<p>The post <a href="https://www.fool.co.uk/2025/03/20/im-buying-more-of-this-beaten-down-ftse-250-stock-before-it-takes-off/">I&#8217;m buying more of this beaten-down FTSE 250 stock before it takes off!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>Kainos Group </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-knos/">LSE: KNOS</a>) is a <strong>FTSE 250 </strong>information technology company specialising in digital transformation services and Workday solutions.&nbsp;</p>



<p>Founded in 1986 in Northern Ireland, it&#8217;s grown to operate in 22 countries worldwide, employing over 2,900 people. It operates through three primary divisions: Digital Services, Workday Services, and Workday Products.</p>



<p>Among them, they cover the digitalisation of various clients in the public, commercial and healthcare sectors. Services include digital advisory, cloud systems, artificial intelligence (AI), user experience design and managed services. </p>



<p>But the key selling point is the company&#8217;s partnership with <strong>Workday</strong>, a US software system for Human Capital Management (HCM) and Financial Management. Kainos builds on Workday&#8217;s offerings by developing proprietary software that complements its functionality and enhances the user experience.&nbsp;</p>



<h2 class="wp-block-heading" id="h-years-of-problems">Years of problems</h2>



<p>Despite consistent revenue growth over the past five years, a slew of issues have dragged down the company&#8217;s stock price. It&#8217;s currently hovering around £7.27, a 65% drop from its all-time high of £20.52 set in November 2021.</p>


<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>This suggests it’s undervalued, with a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> ratio of 17.4 &#8212; below the industry average of 20.7.</p>



<p>Several factors have contributed to the decline, including a weak economy, a sudden leadership change and, most recently, the threat of US trade tariffs.</p>



<p>The issues have led to subdued revenue guidance for the year ending March, further impacting sentiment. The sudden and unexpected reappointment of ex-CEO Brendan Mooney brings a wealth of experience back in but has still irked investors. These issues may continue to limit price growth in the short term.</p>



<p>It also faces a barrage of competitors vying for a share of the growing digitisation market. This has led to more aggressive pricing among partners, putting pressure on its profit margins and market share.</p>



<h2 class="wp-block-heading" id="h-why-i-expect-a-recovery">Why I expect a recovery</h2>



<p>Kainos has established itself as a leader in UK-based digital transformation and proprietary Workday services. Despite growing competition, it still commands a large section of the market across various sectors and has a solid pipeline of upcoming projects that promise long-term demand for its services.&nbsp;</p>



<p>It has overcome recent financial struggles and maintains a strong <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-balance-sheet/" target="_blank" rel="noreferrer noopener">balance sheet</a> with significant cash reserves. This financial stability positions it well to take advantage of expansion opportunities. It also supports its dedication to shareholder returns, with a 4% dividend yield and 68.5% payout ratio.</p>



<p>Its Workday Products division has enjoyed particularly impressive growth, accounting for 19% of total revenue. The strategic move is already proving profitable and could reduce reliance on service-based income.</p>



<figure class="wp-block-image aligncenter size-full"><img fetchpriority="high" decoding="async" width="1200" height="474" src="https://www.fool.co.uk/wp-content/uploads/2025/03/KNOS-revenue-1200x474.png" alt="FTSE 250 company KNOS revenue growth" class="wp-image-1485420" /><figcaption class="wp-element-caption">Screenshot from <a href="https://Tradingview.com">Tradingview.com</a></figcaption></figure>



<h2 class="wp-block-heading" id="h-a-renewed-growth-strategy">A renewed growth strategy</h2>



<p>With Mooney back at the helm, I think his experience and knowledge could reignite the business and reassure stakeholders.</p>



<p>His guidance will likely refocus the business on emerging technologies such as AI. This is critical to meet evolving client needs and capitalise on new market opportunities. </p>



<p>With a solid business and substantial cash reserves, Kainos has the flexibility to invest in growth initiatives, pursue strategic acquisitions, or simply satisfy shareholders.</p>



<p>It has all the trappings of a business ready to adapt (and thrive) in today&#8217;s rapidly evolving economic landscape. That&#8217;s why I&#8217;m stocking up on the shares while the price is good!</p>
<p>The post <a href="https://www.fool.co.uk/2025/03/20/im-buying-more-of-this-beaten-down-ftse-250-stock-before-it-takes-off/">I&#8217;m buying more of this beaten-down FTSE 250 stock before it takes off!</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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