2 beaten-down UK growth stocks to buy right now

Posted on

first_imgThis morning, Barr said that trading has been in line with management expectations. That’s comforting considering the UK was in lockdown for the early part of 2021. As investors might expect, the easing of restrictions and re-opening of hospitality and leisure venues have provided a much-needed boost to sales. This is particularly the case for its Funkin ready-to-drink cocktails business (although people still seem to be consuming these at home). Elsewhere, the launch of new products, such as Rubicon RAW Energy, have been well-received by consumers. There were also encouraging noises on dividends. Now, income isn’t a priority for growth investors like me (I simply re-invest what I receive). However, I do use it as a gauge for just how confident management is on future trading. Today, Barr announced it remained committed to restoring cash returns in the current financial year. More news is expected in August.A forecast price-to-earnings ratio of 22 isn’t initially appealing, especially given the risk of coronavirus infections climbing again. Naturally, any change to Boris Johnson’s roadmap back to normality would not go down well with the market.Nevertheless, it’s worth highlighting that BAG is still 45% off the valuation it hit almost exactly two years ago. It’ll take a while, but I firmly believe the Irn-Bru owner will fizz in time.Avon RubberA second growth stock that’s still far off previous highs is life-critical personal protection firm Avon Rubber (LSE: AVON). Thanks to the strangely muted reaction to this week’s encouraging interim results, I think there’s still time for investors like me to get involved in this quality company.According to CEO Paul McDonald, the firm has made a “strong start” to the year. The numbers bear this out. Revenue and adjusted pre-tax profit climbed 41% (to $122m) and 23% (to $16m) respectively over the six months to the end of March. In other news, net debt pretty much halved to just over $44m. The interim dividend was also hiked by 30%.Perhaps most importantly for would-be investors, Avon said that it was making “good progress” with regard to sorting out the delays in gaining product approval for its body armour programmes. This is partly what caused the shares to dive late last year. Thanks to a 46.5% jump in orders, the mid-cap — which will shortly change its name to Avon Protection — thinks it will deliver full-year numbers as expected. Revenue visibility going forward has also been described as “excellent“. That’s more than you can say for other growth stocks. Avon is still 35% below the share price high it hit back in December. Again, like AG Barr, I’m not expecting this gap to close overnight. However, I do think those with time on their hands will be rewarded eventually. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. One FTSE “Snowball Stock” With Runaway Revenues Enter Your Email Address The recovery in the UK stock market over the last year would suggest there are no longer any beaten-down growth shares worth buying. I beg to differ. Today, I’m highlighting two companies that, while not ‘cheap’ in the traditional sense, could still offer decent upside for investors like me who are prepared to sit on their hands.AG BarrIn contrast to other consumer goods stocks, the share price of drinks firm AG Barr (LSE: BAG) is still to see some serious positive momentum. Nevertheless, today’s trading statement does hint that the recovery is getting closer.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential… Paul Summers | Friday, 28th May, 2021 | More on: AVON BAG Paul Summers owns shares of AG Barr. The Motley Fool UK has recommended AG Barr and Avon Rubber. 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. 2 beaten-down UK growth stocks to buy right now Our 6 ‘Best Buys Now’ Shares Looking for new share ideas?Grab this FREE report now.Inside, you discover one FTSE company with a runaway snowball of profits.From 2015-2019…Revenues increased 38.6%.Its net income went up 19.7 times!Since 2012, revenues from regular users have almost DOUBLEDThe opportunity here really is astounding.In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer?You could have the full details on this company right now. Image: Avon Rubber Simply click below to discover how you can take advantage of this. See all posts by Paul Summers Grab your free report – while it’s online.last_img read more