While stamp duty’s still charged on some transactions, all capital gains and dividends can be enjoyed without HMRC knocking at the door. And in today’s era of higher taxation and rapidly rising prices, making the most of the £20,000 allowance is critical when striving for financial freedom.

So let’s break down exactly how a new investor can start unlocking a new lifelong income.

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.

Setting expectations

Everyone loves the idea of getting rich quick. But in the stock market, wealth takes both time and discipline to build. The most reliable and successful wealth-building strategy is a long-term one, investing in quality and letting compounding work its magic.

That means even with £20,000 to invest on day-one, the initial passive income likely won’t be life-changing. In fact, following the 4% rule, it would likely only sustainably generate £800 a year.

But when left to compound at the stock market’s 8% long-term average return for 20 years, every £20,000 transforms into just shy of £100,000, or £98,536.06 to be precise. That’s five times the original amount invested, significantly outpacing inflation and unlocking a chunkier £3,941 lifetime passive income in the process.

What if someone continues to make use of their £20,000 ISA allowance each and every year? After two decades, the same portfolio would now be worth £1,080,433 – enough to generate a £43,217 sustainable income. And thanks to the ISA wrapper, both the seven-figure portfolio and the five-figure passive income can be enjoyed entirely free from tax.

Finding quality opportunities

Not everyone has the luxury of putting aside £20,000 for their ISA each year. However, even with a few hundred pounds to spare each month, becoming an ISA millionaire remains entirely within reach for investors who start as early as possible.

But the question now becomes, which quality stocks should I buy? When looking at the top picks from the analyst team at Peel Hunt, Mortgage Advice Bureau (LSE:MAB1) currently stands out as a top candidate.

At a share price target of 1,250p, the mortgage brokerage network provider could be about to climb as much as 120% if Peel Hunt’s right. And to be fair, the bull case is quite compelling.

With millions of pandemic-era fixed-rate mortgages about to switch to variables rates, there’s an enormous pipeline of remortgaging about to take place to re-fix rates. And since this business earns advisory and commission fees, this massive volume opens the door to an incoming revenue surge.

Does that make this a no-brainer? Maybe. But like all investments, there are risks to consider. Even if the top line goes through the roof, the bottom line is a bit more complex.

Mortgage Advice Bureau doesn’t exist in a vacuum. And with other mortgage referral businesses looking to cash in on this opportunity, the company could be forced to cut its fees to remain competitive. In other words, margins could be squeezed, preventing the stock from reaching Peel Hunt’s lofty target.

Nevertheless, as a toll-booth to the UK mortgage market, the company’s highly cash generative – exactly the sort of business that can turn into a long-term quality compounder. That’s why I think investors should take a closer look.

The post How to invest £20,000 in an ISA to get passive income for life appeared first on The Motley Fool UK.

Yet, even with such tremendous growth under its belt, the UK stock market might still have some big winners in 2026. And right now, institutional investors have their targets locked on a handful of more dividend-paying stocks set to potentially deliver explosive gains this year.

So the question is, what are these potential winners?

1. B&M European Value Retail

After strategic missteps, inventory mismanagement, missed earnings targets, and even a minor accounting scandal, B&M (LSE:BME) shares have been utterly decimated in the last few years. In fact, its market-cap has collapsed by almost 70% in the last two years.

But with a new leader at the helm executing a fresh turnaround strategy, some institutional investors believe a massive buying opportunity may have emerged.

Revenue growth remains lacklustre, but sales have begun slowly ticking up again. And with international operations building momentum, the experts at Berenberg believe B&M shares could surge by 70% from current levels if the turnaround is successful.

Obviously, the stock comes with significant execution risk. And the fierce competitive landscape from other discount retailers only adds to the challenge. But with a 7.5% yield, the dividend stock could be worth a closer look.

2. Domino’s Pizza Group

Domino’s Pizza (LSE:DOM) is another dividend-paying stock that analysts believe could be ripe for a turnaround. With the CEO recently stepping down and the economic landscape for pizza takeaway less than ideal, the company’s similarly been under significant pressure, with its shares being slashed in half since 2024 kicked off.

But with a new loyalty programme rolled out this year, signs of improving unit economics emerging in Ireland, and an industry-leading store footprint, the team at Peel Hunt has issued a 275p share price target – roughly 52% higher than where the stock trades today.

Of course, while the customer loyalty programme had a successful pilot scheme, that doesn’t mean a full-scale rollout will meet performance expectations. Continued macroeconomic weakness alongside UK pizza market saturation may prevent this target from being hit. Nevertheless, with a 6.1% yield on offer, this is another dividend stock worth investigating further.

3. Mortgage Advice Bureau

Another dividend stock on Berenberg’s shopping list is Mortgage Advice Bureau (LSE:MAB1). Just last month, its analysts reiterated a 1,150p share price target – roughly 50% ahead of where the stock trades today.

The forecast mostly revolves around a UK housing market recovery narrative. An estimated 1.8 million fixed-rate mortgages are due to switch to variable rates throughout 2026, up from around 1.6 million in 2025. And with many households likely seeking to refinance, it creates a potentially lucrative advisory opportunity for this business.

The company’s facing increasingly fierce competition from large banks offering mortgage advisory services directly. What’s more, the market seems to be pricing in multiple interest rate cuts throughout 2026. But if these fail to materialise, mortgage rates could actually start climbing again, lowering refinancing demand.

With a 2.8% dividend yield on offer, Mortgage Advice Bureau could still prove to be a lucrative income opportunity. That’s why I think it deserves a deeper dive. But there’s no denying significant cyclical risk is attached.

The post 3 UK dividend stocks tipped to grow 50% (or more) in 2026 appeared first on The Motley Fool UK.

We really shouldn’t put trust in these targets though. But we should instead examine the fundamentals behind them and work out for ourselves if we think they’re plausible.

First, I’ve to note a caution. There are only a four analysts offering forecasts for Mortgage Advice Bureau over the past few months. But even the least optimistic thinks we’ll see 900p. And the top end of the scale stretches to a target of 1,250p. That means these City instititutions see the share price gaining anywhere between 25% and 75% from where it is at the time of writing. That’s what I call bullish.

Performance rebound?

The shares have disappointed over the past five years — as we can see from the price chart above. But when we consider the nature of the company’s business, it’s not all that surprising. As the name suggests, this is a mortgage broker offering advice and guidance for first-time buyers, remortgages, buy-to-let, etc.

Think high interest rates, expensive mortgages, weak house buying demand. With a modest 18% fall in the past five years, I’m actually impressed that Mortgage Advice Bureau shares have held up as well as they have.

So what’s likely to drive a turnaround in 2026 and beyond? Bank of England interest rates falling further and mortgages becoming cheaper have to provide a boon for a business like this, surely?

A strong 2025

If January’s year-end trading update’s anything to go by, it sounds like the recovery’s already progressing at a hot pace. For the year ended 31 December, revenue rose by 19% to around £318m.

The board “expects to report adjusted [profit before tax] of c.£35.8m, representing 12% growth on the equivalent period last year“. We should have full profit figures on 17 March when we get the 2025 report.

We also heard that the group’s “number of mainstream advisers … was up 10% on the prior year end to 2,135, with 65% of this growth driven by organic expansion from firms already in MAB’s network“. This “marks the first year of material growth since 2022, signalling increased confidence in the outlook“. It sure looks to me like business is picking up nicely.

Outlook

The optimism backs up analyst forecasts for a 90% rise in earnings per share between 2024 and 2027. There is however, still a significant amount of risk with any investment dependent on the mortgage and property markets in today’s economy. And that might keep the share price down for a while longer.

But this looks to me like a potential growth share that investors should seriously consider in 2026.

The post Can this UK growth share really soar 50% or more in 2026? Some experts think so appeared first on The Motley Fool UK.

Tasty recovery play

Shares in ingredients manufacturer and supplier Treatt (LSE: TET) have lost 36% of their value in the last 12 months. That seems a pretty big fall for a company that had been performing brilliantly for long-time holders.

The company’s valuation was beginning to look very rich in the face of multiple economic headwinds. So, perhaps we shouldn’t be surprised that Treatt has been walloped by the market.

Still, I’m beginning to think this share could bounce back well in time. Despite raw material inflation and industry de-stocking, revenue is still rising. FY23 profits are also expected to be 11% above FY22.

Elsewhere, the firm has been paying down debt and boasts a great record of rising dividends. Those are two things I always like to see.

The forthcoming retirement of CEO Daemmon Reeve after 11 years is a potential drawback. As a result, I’m adding this stock to my watchlist until an update on his successor is provided.

Already climbing

MJ Gleeson (LSE: GLE) is a second small-cap stock I think could recover strongly in time. In fact, shares in the housebuilder have already jumped 32% year-to-date as investors grow increasingly confident that interest rates have peaked.

I reckon this is just the start though. Assuming a recession can be avoided (a key risk here), the company is likely to see more demand for the small, affordable starter homes that it builds in the North and the Midlands.

This tallies with Gleeson’s comment last week that a “more certain backdrop” means it expects demand to “pick up into the seasonally stronger spring selling season“.

In the meantime, the balance sheet looks strong. There’s also a decent 3.2% dividend yield that’s likely to be covered more than twice by profit. Naturally though, it goes without saying that this income can never be guaranteed.

Good outlook

Former high-flyer Mortgage Advice Bureau (LSE: MAB1) completes the trio of small-cap stocks that I’m considering.

Back in September, CEO Peter Brodnicki reflected on “an exceptionally challenging year” with multiple interest rate hikes creating huge problems for mortgage brokers. On a more positive note, he also said that the company had still managed to outperform its market.

Looking ahead, the Derby-based business believes the “underlying level of demand for home ownership and home moves remains strong“.

All this may help to explain why the share price has been moving upwards ever since. A 22% rise in the last month is particularly encouraging, even if the shares may still be some way off the 52-week high hit back in May.

My main concern here, however, is the valuation. Changing hands for 24 times forecast FY23 earnings, the shares are far from cheap. So there could be some more volatility ahead if rate cuts take longer than expected to materialise.

That’s when it may be the time for me to consider building a stake here.

The post 3 FTSE shares I’d consider buying for a massive market bounce-back in 2024 appeared first on The Motley Fool UK.

It’s perhaps unsurprising that investors have been heading for the exits. Even with that recent share price weakness Mortgage Advice Bureau carries a meaty valuation. For 2022 the business trades on a forward price-to-earnings (P/E) ratio of 24.9 times.

Increasing interest rates have the potential to significantly dampen the housing market and, by extension, mortgage activity. If this happens then Mortgage Advice Bureau, with its chunky earnings multiple, could see its share price plummet.

A rock-solid homes market

It’s my opinion, though, that recent share price weakness could represent an attractive dip buying opportunity for me. So far trading news from the firm has remained encouraging and in January it said that “the underlying fundamentals driving levels of consumer demand for housing and mortgage products remain strong”. That’s despite the removal of the Stamp Duty holiday in the second half of 2021.

There’s been a wealth of other data highlighting the robustness of the British homes market too. This week, building society Nationwide said that house prices were up 12.6% year on year in February, speeding up from the 11.2% rise recorded a month earlier.

Fresh trading updates from some of London’s listed housebuilders have also illustrated the resilience of homebuyer demand today. Today Taylor Wimpey declared that “demand for our homes remains strong.” While on Wednesday its FTSE 100 rival Persimmon claimed that “the new year’s trading has started well” and lauded its “robust forward sales position.”

Critically Taylor Wimpey also suggested that homebuyer activity will remain solid even if interest rates rise. The company stated that while “further rises in the base rate are anticipated this year, we expect affordability to remain good and the cost of servicing a mortgage to remain attractive compared to the cost of rental.”

Strong profits and dividend growth on the cards?

My main concern for Mortgage Advice Bureau is that homes supply may fail to match the scale of demand. This imbalance could have an adverse impact on the amount of work it’s required to do.

Yet despite this threat, City analysts expect the company’s earnings to keep growing. Current forecasts suggest profits will soar 22% and 18% in 2022 and 2023. Pleasingly this leads to predictions of spectacular dividend growth as well. Mortgage Advice Bureau is predicted to pay a 34.7p per share dividend in 2022, up from an anticipated 28.4p for last year.

The good news keeps coming too as the full-year payout for 2023 is expected to leap  to 40.9p. This drives the dividend yield from a healthy 3% for this year to an improved 3.6% for next year. I think Mortgage Advice Bureau is a great dividend growth share to buy right now. I think it could prove to be a terrific income stock for me for years to come too. I’d buy.

The post 1 of the best dividend growth stocks to buy today! appeared first on The Motley Fool UK.

Why I think these are 3 UK shares to buy now

International recruitment consultancy Pagegroup (LSE: PAGE) delivered an upbeat half-year report at the beginning of August. Among the highlights, the company declared an interim dividend worth 4.7p per share and a special dividend of almost 27p per share. The directors had temporarily suspended dividends in 2020 because of the pandemic.

But Pagegroup upgraded its outlook in July. And operating profit for 2021 will likely come in between £125m and £135m, which compares well to the 2019 pre-pandemic outcome of £147m. It seems the business is on course to shrug off the effects of the coronavirus crisis.

Chief executive Steve Ingham said in the report the company is the “clear leader” in many of its markets. He thinks the business is well-placed to “grow and improve.”

With the stock near 628p, the forward-looking earnings multiple is just below 18 for 2022. That’s not cheap. But I’m encouraged by the cash-generating and quality credentials of the enterprise and would add it to my ISA.

Further strong growth ahead

Meanwhile, Mortgage Advice Bureau (LSE: MAB1) has a multi-year record of impressive rises in revenue, earnings and shareholder dividends. The shares have increased greatly to reflect the progress. However, I’m encouraged by the firm’s strong balance sheet and robust quality metrics. And City analysts expect further double-digit percentage gains in earnings ahead.

With the stock near 1,440p, the forward-looking earnings multiple is near 32 for 2022. So it’s not a cheap buy. But Mortgage Advice Bureau could prove to be decent value in the end if operational progress continues in the years ahead.

In an update delivered in July, chief executive Peter Brodnicki said he’s “confident” recent developments in lead generation and ongoing enhancements to the technology platform will “accelerate” the pace of growth. That’s an enthusiastic assessment and it gives me the courage to buy the stock now for the long term.

Cyclical but growing

Somero Enterprises (LSE: SOM) manufactures laser-guided equipment for automating the process of spreading and levelling concrete for commercial flooring and other horizontal surfaces.  The company reckons it supplies equipment, training, education and support to customers in more than 90 countries.

Earnings and the share price have been up and down a bit over the past few years. And I reckon that reflects the inherent cyclicality in the industry. However, there’s no mistaking the longer-term trend for the business and its stock – up! Indeed, the company appears to be succeeding and expanding.

And with the share price near 479p, the earnings multiple for 2022 is just over 13. I think that lower rating accommodates the cyclical uncertainty ahead. But Somero has a strong balance sheet, impressive quality indicators, and a chunky dividend for shareholders to collect.

In July, the company raised its earnings guidance because of “stronger than anticipated trading in the US.”  And, looking ahead, the business has a pipeline of new products targeted to expand the addressable market. I like what I’m seeing here and would add the stock to my ISA.

A positive outcome isn’t certain. And I could lose money on these stocks if they fail to meet earnings expectations. But I’m prepared to embrace the risks with a multi-year holding period in mind.

The post 3 UK shares to buy now for an ISA appeared first on The Motley Fool UK.

Strix

As I type, shares in kettle safety device manufacturer Strix (LSE: KETL) are up 70% over the last year. That’s a superb return for what is, admittedly, not the most exciting of businesses. In fact, KETL has been a winning AIM stock since coming to the market. In four years, the shares are up 173%.

This momentum might just continue. In July, the company said it was now expecting to deliver revenue growth of 50% or so for the first half of 2021, and roughly 30% for the year as a whole. Any improvement to the latter when interim numbers are confirmed in September should do the share price no harm.

I’m not the only one bullish on Strix either. Earlier this month, analysts at Liberum said the company was primed for a re-rating, due to the potential earnings growth on offer. 

Of course, there’s a chance the shares could lose steam at some point. Early holders may want to bank some profit, for example. Even so, a valuation of 24 times forecast earnings still doesn’t feel unreasonable. The solid dividend stream compensates me for choppier times too.

Inspecs

Eyewear manufacturer and distributor Inspecs (LSE: SPEC) is another AIM stock I’d buy now. Its shares are up 51% in value over the last year. In its 18 months as a listed company, SPEC has returned 86%.

All this is rather impressive considering Inspecs came to market at the worst possible time. Due to Covid, group revenue fell almost 25% to $47.4m in 2020. The firm also reported a post-tax loss of $8.9m. 

Still, next month’s interim figures should be more encouraging. Inspecs has certainly been preparing itself for better times by snapping up lens maker Norville and manufacturer Eschenback. It’s also been adding new global brand licences to its portfolio. 

Yes, a P/E of 30 is getting punchy and shares are less liquid than those of other companies (meaning price moves could be more pronounced). However, I think the ‘essential’ nature of its products makes up for this risk.

Mortgage Advice Bureau

A final AIM stock worth buying in advance of September is Mortgage Advice Bureau (LSE: MAB1). As one might expect, trading has been excellent of late, thanks to a booming UK housing market. However, shares now trade on 39 times earnings, having climbed 123% in value in 12 months. Is this too high?

It’s certainly not cheap. Then again, recent demand for housing (and, by association, MAB’s services) surely won’t grind to a halt. More people are wanting to work from home, after all. Moreover, I’d be shocked if next month’s interim results were anything but great. 

As a (mostly) buy-and-hold investor, I also think it’s important not to base an investment decision purely on a single metric. Expensive stocks can continue going up if they can carry on growing. As an aside, returns on capital are high and the firm has net cash on its balance sheet — just the sort of things I look for.

MAB’s still a buy for me.

The post 3 AIM stocks to buy before September appeared first on The Motley Fool UK.

City analysts think earnings will more than double in 2021. This leaves the business trading on a forward price-to-earnings growth (PEG) ratio of 0.2.

This sort of undemanding rating leaves plenty of scope for meaty share price gains if those financials impress. And I think there’s a great chance of another sound update coming down the pipe as the online betting phenomenon drives demand for its broad range of services. 

But it’s possible the Covid-19 crisis could dent earnings growth if lockdowns persist. Indeed, recent longer-than-expected shutdowns in Italy have dented trading at the firm in recent months.

But I still think the rate at which the online gambling sector’s booming — and particularly in the US where Playtech continues to make steady progress — make this a great cheap UK share to buy today and hold for years.

Indeed, experts at Researchandmarkets.com think the global online gambling market will be worth $112.1bn by 2025. That compares with the $72bn it’s estimated to clock in at this year and $64.1bn in 2020.

A cheap UK share I’d buy for the housing boom

Mortgage Advice Bureau (LSE: MAB1) is another cheap UK share set to release half-year results next month. Slated for 28 September, I’m expecting the financial advice provider to confirm that business remains strong.

I’m not going to suggest that buying Mortgage Advice Bureau shares isn’t without risk. Stamp Duty concessions have helped fuel the homebuyer stampede of the past 12 months. The gradual withdrawal of the tax holiday (with the standard rate due to be imposed again in October) could potentially deal a hammerblow to home sales and thus demand for the mortgage advisers’ services.

However, in my opinion, this risk is more than baked into Mortgage Advice Bureau’s share price today. Brokers think this cheap UK share’s earnings will rocket 60% in 2021. This leaves it trading on a PEG multiple of just 0.6. Like Playtech, this means the company trades on a ratio inside the benchmark of 1. A figure below that suggests a stock could be undervalued.

In fact, I expect Mortgage Advice Bureau’s trading to remain strong for some time yet. Sure, the Stamp Duty holiday’s on borrowed time. But massive government support through Help to Buy equity loans and ISAs remain in place to help potential buyers.

There’s also the fact that Bank of England interest rates look set to remain low, keeping the costs of mortgages at rock-bottom rates. Rising competition among Britain’s lenders should also keep a lid on homeowner costs for a long time yet.

I’d happily buy this cheap share for my own portfolio right now.

The post 2 cheap UK shares to buy in September appeared first on The Motley Fool UK.

Boring but beautiful

Yes, I know — JHD’s line of work will never quicken the pulse in the same way as a blue-sky tech stock might. Then again, I find many of the best long-term investments tend to be those that never make the headlines. Despite shares up roughly 2,000% over the last 20 years, James Halstead has managed to remain a low-key operator.

Today’s interim results show the mid-cap firm is continuing to do all the right things. At £130.5m for the six months to the end of last December, revenue was pretty much identical to that achieved last year. However, it’s worth pointing this level of sales was a record for the company. That’s some feat considering how disruptive the pandemic has been. At £26m, pre-tax profit was 3.3% higher than over the same period in 2019. This was another record result.

As an investment, James Halstead ticks a lot of my boxes. It operates in many markets around the world, serving customers in many industries (retail, hospitality, healthcare). It also generates great returns on capital — a key metric for star fund managers such as Nick Train and Terry Smith. On top of this, JHD has a bulletproof balance sheet and consistently increases its dividends.

All this aside, there are a few drawbacks to investing now. For one, the shares are expensive to acquire, trading as they do on 29 times forecast earnings. While performance over the very long term has been fantastic, some may be put off by the fact that the company is now worth over £1bn. As such, big share price gains are less likely going forward. 

On balance though, I’d be happy to add a stake to my Stocks and Shares ISA today.

Under-the-radar winner

Another quality AIM-listed stock, in my opinion, is Mortgage Advice Bureau (LSE: MAB1). Like James Halstead, the stock has shown itself to be an excellent long-term investment. Since listing in 2014, the share price has climbed over 600%.

Last week’s full-year results for 2020 suggests there’s more to come. Despite gross new mortgage lending falling 9% in the market as a whole, MAB’s revenue rose by 3% to a little over £148m.

Mortgage completions were up by 5% to £17.6bn and the firm grew its market share of new mortgage lending to 6.3%. Quickly establishing itself as an excellent source of dividends, the mid-cap also raised its total payout by 46%!

In terms of risk, MAB is clearly exposed to a any downturn in the housing market. While the Stamp Duty holiday extension and the growing availability of 95% mortgages are reasons to be optimistic about demand, we still don’t know the full economic impact of the pandemic.

Secondly, the shares are even more expensive to buy than those of James Halstead. MAB has a forecast P/E of 31.

Of course, it isn’t necessary to invest in MAB directly to get exposure. The company makes up almost 4% of CFP SDL Free Spirit — a fund I hold within my own Stocks and Shares ISA.

The post 2 high-quality AIM shares I’d buy for my Stocks and Shares ISA appeared first on The Motley Fool UK.

As investors, we learn that the greatest gains can often come where others fear to tread. So, could those buying now profit handsomely in time? It’s certainly possible. News of a vaccine or simply a drop in infection rates could see markets rally. In such a situation, it’s likely that the biggest victims of the pandemic will fly the highest. 

Having said this, it’s vital to consider the risk/reward payoff. The reason the IAG share price is so low (not helped by the recent equity fundraising) is because the market is concerned that it will take air travel a long time to fully recover. We’re talking years, not months. On top of all this, the company is understandably no longer paying dividends. For me, this was the chief attraction to owning the shares in the past.

In light of this, I think investors should consider alternative, high-growth destinations for their cash. Here are just two suggestions.

Dotdigital

In July, software provider dotDigital (LSE:DOTD) said that the pandemic had a “minimal impact” on trading since most of its revenue (estimated at 85%) was recurring. Indeed, adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) was now expected to be “comfortably ahead of market expectations“.  In contrast to the IAG share price, dotDigital’s valuation understandably soared!

In addition to this momentum continuing into the new financial year, the firm announced yesterday that it would be included in the government’s G-Cloud initiative. A new market for dotDigital, G-Cloud is a platform allowing public sector organisations to buy services without running a full tender.

Any drawbacks? Well, the shares certainly aren’t cheap at 39 times forecast FY21 earnings. Then again, the company reeks of quality with consistently high margins and returns on capital employed. Importantly, it also has net cash on its balance sheet — handy given the outlook for the global economy. 

At this price, dotDigital isn’t a screaming buy, but it’s certainly one to consider scaling into and/or buying on any dips. 

Mortgage Advice Bureau

Another stock posting great growth recently has been Mortgage Advice Bureau (LSE: MAB1).

Despite “an exceptionally challenging market“, yesterday’s interim results for the first half of 2020 included a 4% rise in revenue (to £63.5m) and 6% increase in adjusted pre-tax profit (to £7.9m).

Since the housing market reopened, the company has seen “continued strong trading“. New applications have climbed to record levels and its share of the new mortgage lending market rose 17%. 

As a result, the firm’s management expects that adjusted profit before tax for the full year will come in “significantly ahead” of what the market was predicting. This is dependent, of course, on no further coronavirus-related restrictions being announced. 

The shares currently trade on a very high 41 times earnings. However, a PEG (price-to-earnings/growth) ratio of just 0.5 suggests investors will actually be getting quite a lot of bang for their buck.

Like dotDigital, I think this company warrants more attention, particularly from those tempted by the IAG share price.

The post Tempted by the IAG share price? I’d consider these top growth stocks instead appeared first on The Motley Fool UK.