One UK growth stock I’d buy right now is Boohoo (LSE: BOO). Its share price has taken a hit recently on the back of reports about poor working conditions at clothing factories linked to the company. I expect Boohoo shares to bounce back though.
One reason I’m confident Boohoo will keep growing is its social media presence. On Instagram, Boohoo has 6.7m followers, while its fast-growing brand PrettyLittleThing has 12.5m. Those figures are up from 6.1m and 11.4m last October. This suggests interest in the brands is not declining.
Another reason I’m confident about Boohoo is that top-level insiders have been loading up on shares recently. In July, Boohoo co-founder and executive chairman Mahmud Kamani spent £10.7m on stock while group co-founder and executive director Carol Kane spent £4.3m on stock. Insiders only buy stock for one reason – they expect it to go up.
A top UK growth stock
Boohoo shares currently trade on a forward-looking P/E ratio of about 41. That’s expensive. But this company is growing quickly. I’d buy the stock today while it’s well below its 2020 highs.
Another UK growth share I’d buy today is Rightmove (LSE: RMV). It operates the largest property sales website in the UK.
There are a number of reasons I like RMV. Firstly, its brand gives it a strong competitive advantage. 2019 was the ninth consecutive year Google reported that more people start their UK home search typing in ‘Rightmove’ rather than ‘Property.’
Secondly, it’s the leader in its field by a wide margin. In its half-year results, Rightmove said it had 940,000 UK residential properties advertised on its site. That’s 50% more than any other UK property website. Additionally, Rightmove is a ridiculously profitable company. Over the last five years, return on capital employed has averaged 734%.
Crypto, IT & Cloud 