Latest news with #growthstock
Yahoo
5 days ago
- Business
- Yahoo
VT Holland Advisors just made this growth stock its largest holding
Investors may have been surprised to see VT Holland Advisors Equity Fund make Rosebank Industries (LSE:ROSE) its largest single holding, with the growth stock now accounting for a sizeable 9% of the portfolio. The decision comes at a time when Rosebank's headline numbers don't exactly dazzle. The share price has almost halved in a year. And at first glance, its financial metrics look unremarkable. Not a typical growth stock Yet Rosebank isn't a typical growth company and doesn't fit the standard mould. Established in 2024, its core strategy is to buy quality industrial and manufacturing businesses and drive significant improvement before ultimately selling them. It's a model that closely resembles that of a private equity firm. Recent activity has shown this approach in action. Rosebank's high-profile £1.9bn acquisition of Electrical Components International, a US-based supplier of critical systems, was financed through both debt and a major share placing. This bold move was supported by institutional investors, with the likes of Aviva, BlackRock, and Norges Bank on the shareholder register. What sets Rosebank apart is its operational focus. Management, led by CEO Simon Peckham, brings deep experience in transforming businesses through hands-on operational improvements and capital allocation discipline. Peckham was the founder of Melrose Industries. That's one of my favourite stocks right now. Rosebank targets companies with strong fundamentals but with clear scope for growth under new stewardship. This 'buy, improve, sell' method is about driving shareholder value not simply by holding assets, but by unlocking underlying potential and capitalising on market positioning. The metrics suck On paper, Rosebank's growth story is yet to translate into eye-catching metrics. However, that's not overly surprising as it's only just completed its first major deal and is yet to fully execute on its strategy. The approach is heavily dependent on management's ability to identify and integrate acquisition targets. And then it has to deliver the kind of structural improvements that private equity firms are known for. For now, sales remain volatile. Performance is resting on future execution rather than current earnings momentum. As such, it's a stock for investors comfortable with a degree of uncertainty and looking beyond quarterly earnings. The bottom line Despite the risks, VT Holland Advisors' conviction signals confidence in Rosebank's experienced team. It's also a vote of confidence in the differentiated, private-equity-like proposition for UK public markets. The next phase will be crucial as Rosebank sets about proving it can deliver outsized returns through its operational know-how and fresh approach to value creation. It's absolutely not the type of investment I'd normally go for however. I like companies that are clearly trading with a margin of safety. This is typically driven by compelling earnings metrics, strong balance sheets, and profitability metrics. That's not what I can see here. For now, I'm going to pop this one on my watchlist. It certainly deserves consideration, it just might not be the perfect match for me. The post VT Holland Advisors just made this growth stock its largest holding appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Melrose Industries Plc. The Motley Fool UK has recommended Melrose Industries Plc and Rosebank Industries Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Why Shopify Was Climbing Today
Key Points Needham weighed in with a buy rating on Shopify, and Baird raised its price target. The company has performed well in an uncertain consumer environment. Analysts are expecting another round of solid growth when the company reports second-quarter earnings in a few weeks. 10 stocks we like better than Shopify › Shares of Shopify (NASDAQ: SHOP) were moving higher today after the e-commerce software superstar picked up some new fans on Wall Street. Shopify scored a buy rating from Needham, and another analyst raised their price target on the growth stock. As of 1:48 p.m. ET, the stock was up 4.2% on the news. Shopify earns more cheers Needham became the latest research firm to weigh in positively on Shopify, calling the stock a buy with a price target of $135. The firm observed that Shopify was in the middle of a durable growth cycle, benefiting from continuing growth in consumer spending, despite weak sentiment, and it's likely to benefit from the recently signed U.S. tax bill. Additionally, Baird raised its price target on the stock from $110 to $120, and maintained an outperform rating as analyst Colin Sebastian said that its merchant business remains healthy despite headwinds on its monthly recurring revenue. What's next for Shopify Shopify has a lot of exposure to the business cycle and broader consumer demand, but its continued growth in the face of concerns about a trade war is a positive sign. The opportunity in front of the company still seems sizable as it innovates and invests in AI, and continues to attract new merchants to the platform. Investors will want to pay attention tomorrow morning when the June Consumer Price Index is released, as that could move the stock. Investors are still anxious to see if tariffs have had any impact on prices thus far. A few weeks later, Shopify will report second-quarter earnings. Analysts expect revenue to jump 24.5% to $2.55 billion, and see adjusted earnings per share improving from $0.26 to $0.29. Should you invest $1,000 in Shopify right now? Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor 's total average return is1,047% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 14, 2025
Yahoo
05-07-2025
- Business
- Yahoo
1 top growth stock up 233% to consider buying in July
Wise (LSE: WISE) is a high-quality UK growth stock that listed in 2021. Unfortunately, its debut coincided with the end of the near-zero interest rate era — a shift that sent richly priced growth shares tumbling. Wise lost more than 60% of its value in 12 months! However, since bottoming out at 311p in July 2022, the stock has surged 233% higher. And it hit a record recently, as more investors turn bullish on the fintech disruptor. Could Wise stock head even higher over the next few years? I believe it can. Here's why. Wise specialises in international money transfers, believing that this should work without borders. In other words, money transfers should work the same internationally as easily as they do domestically. In reality though, there's still a lot of hassle when people and businesses move money across borders. SWIFT payments, for example, typically take a few working days to clear. Fees can be high and opaque. Wise's infrastructure and products aim to improve this clunky process with faster times and lower prices. Approximately 65% of transactions being done by Wise are now completed in under 20 seconds. In the 12 months to 31 March, underlying income jumped 16% to £1.4bn, driven by customer growth, account adoption, and higher interest rates. Active customers grew 21% to 15.6m, more than doubling since 2021. There are a number of things I find attractive about Wise. Firstly, it's going after a massive opportunity. Each year, individuals move around £3trn across borders, and Wise currently handles about 5% of that. Then there are small businesses, where cross-border transfers total roughly £14trn annually. Wise's share here is even smaller, but growing. Add in the enterprise and corporate segments, and the full opportunity balloons to around £32trn a year (yes, trillions!). Now, most of this is not directly within Wise's app ecosystem yet. But the company is building the infrastructure to theoretically move it all. It transferred around £145bn in its last financial year, but aims to one day move trillions and become 'the network for the worldʼs money'. To this end, the firm is linking more deeply into the payment systems of Brazil and Japan, while already handling around 12% of all global remittances to the Philippines. So its scale is only increasing. Another thing I like here is that Wise is run by co-founder Kristo Käärmann. In my experience, the best growth stocks are often run by founders that sacrifice short-term profitability for long-term market share (think Jeff Bezos at Amazon). In Wise's case, the company is obsessed with lowering fees for customers as it scales. It recently dropped its cross-border take rate to 0.53%, from 0.67% the year before. And Wise intends to lower it further in future. As Käärmann explains: 'This strategy of continuously lowering our fees makes it harder for anyone to compete, and it will underwrite the long-term success and growth.' In the near term, there are risks relating to a global economic downturn. That could dampen transaction volumes, meaning fewer people and businesses send money abroad. However, over the long term, I think this stock has all the ingredients to be a big winner. It's currently trading at a reasonable valuation, making it well worth considering. The post 1 top growth stock up 233% to consider buying in July appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Wise Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
21-06-2025
- Business
- Yahoo
Investors should consider this growth stock… it's SpaceX's competition
Rocket Lab (NASDAQ:RKLB) is a US-listed growth stock that gives investors rare access to the commercial space sector. As a vertically integrated launch and space systems provider, Rocket Lab is often compared to SpaceX in its ambition and capabilities. But there's one crucial difference: you can actually buy shares in Rocket Lab, while SpaceX remains private. Rocket Lab delivers launch services, builds small and medium-class rockets, and manufactures spacecraft components for a range of commercial, government, and defense customers. With rapid revenue growth, an impressive order book, and expansion into new markets, Rocket Lab offers public market investors a way to participate in the booming space economy. It targets many of the same opportunities as its more famous, privately held peer. Rocket Lab and SpaceX operate in the same commercial space sector but differ significantly in scale, maturity, and valuation. Rocket Lab's market cap is currently $12.85bn, with trailing 12 months (TTM) revenue of approximately $460m. Despite strong growth — revenue nearly doubled from $240m in 2023 — Rocket Lab remains a smaller, earlier-stage player focused on small to medium launch vehicles and spacecraft manufacturing. Its valuation multiples are extremely high, with a forward price-to-sales ratio of 22.3 times, reflecting investor optimism. SpaceX, by contrast, is a far more mature private company valued at about $350bn. It's projected to generate $15.5bn in revenue in 2025. This is driven by its dominant Falcon 9 launch services and rapidly growing Starlink satellite internet business. SpaceX's valuation implies roughly a 22.5 times multiple on forward revenue. This is broadly in line with Rocket Lab. Focusing on Rocket Lab, the company is projected to deliver rapid revenue growth over the next several years, with estimates rising from $573m in 2025 to $889 in 2026, $1.2bn in 2027, and $1.69bn in 2028. This represents annual growth rates consistently above 30%, and even a jump of nearly 77% in 2030. However, the number of analysts providing forecasts declines sharply after 2027, dropping from 11–14 analysts in the near term to just two or one by 2028 and 2030. The one analyst projecting as far as 2030 sees $4bn in revenue for the year. I had the chance to buy Rocket Lab shares at $15 just two months ago. I missed out as unfortunately my attention had been diverted elsewhere. However, I found another entry point. And personally, I see this as an investment to hold for a very long period. The space industry is still in its early innings, with enormous potential as satellite launches, lunar missions, and in-orbit services become increasingly mainstream. And like any investment, there are risks. Rocket Lab remains loss-making. It's expected to turn a profit in 2026, when it will trade at 620 times earnings. And while this moderates to 140 times in 2027, it's still expensive and introduces plenty of execution risk. However, I certainly believe UK investors should consider this one. It could be a real winner going forward. The post Investors should consider this growth stock… it's SpaceX's competition appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Rocket Lab. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
08-06-2025
- Business
- Yahoo
Up 20% in a week! This growth stock is on fire – should I consider buying it?
I'm looking to add a growth stock to my self-invested personal pension (SIPP). This marks a change in strategy for me. In recent years, I've focused on value shares, especially income-paying FTSE 100 financials like Legal & General Group. But I need a break from being a contrarian. Today, I want to piggyback on some momentum. Pick a red-hot growth share and, with luck, hope it climbs even higher. Naturally, both strategies carry risks. Value stocks can turn out to be traps, while high-flying growth shares can come crashing down. I'm especially wary of buying after a stock has already surged, which is exactly the case with a FTSE 250 company that's rocketed 20% in the last week. This isn't a flash in the pan though. Its shares are up more than 50% over 12 months and over 115% in five years. The stock in question is Chemring Group (LSE: CHG), and it has the benefit of operating in a sector that's very much in demand right now: defence. Chemring is a world leader in chemical and biological threat detection, electronic warfare and systems that locate improvised explosive devices. In today's uncertain world, its kit is in demand. It isn't the only one riding this trend. FTSE 100 peer Babcock International jumped 13% last week. BAE Systems and Rolls-Royce have also wowed lately. Happily, I hold both. Chemring got a major lift on Friday (6 June) when analysts at Berenberg upgraded the stock from Hold to Buy, citing a 'very bright' outlook to 2030. It pointed to a pipeline of opportunities in Chemring's energetics division. Berenberg noted that earnings per share are forecast to compound at 19% a year on average over the next three years. The broker called Chemring's price/earnings-to-growth (PEG) ratio 'undemanding', and hiked its price target from 470p to 670p. This came hot on the heels of a first-half update on Tuesday, when Chemring confirmed its annual guidance after reporting a 12% rise in underlying earnings to £39.8m. The order book hit a record £1.3bn, with intake up 42% to £488m. Management noted rising global tensions, from Ukraine and the Middle East to the Asia-Pacific, with many governments increasing their defence budgets and rushing to replenish depleted stockpiles. All this explains the recent rally, but even strong shares can run too far, too fast. There are five analyst forecasts for the stock, all with a 12-month target of 540p. That's almost 7% below today's price of 584p. However, all six analysts rating the stock currently label it a Strong Buy. None say Hold, none say Sell. After quickfire surge, Chemring may slip back slightly as profit takers emerge, so I'd wait and watch before diving in. At a price-to-earnings ratio of 36, it's hardly cheap. Personally, I already have plenty of exposure to defence through BAE and Rolls-Royce. If I wasn't already so heavily exposed to this dynamite sector, I'd seriously consider buying Chemring in the days ahead. There's still a chance I might, if the heat goes out of it a little. The post Up 20% in a week! This growth stock is on fire – should I consider buying it? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has positions in BAE Systems and Rolls-Royce Plc. The Motley Fool UK has recommended BAE Systems, Chemring Group Plc, and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
