The UK isn’t known for its growth stocks. But dive into the FTSE 350, and you’ll find quite a few companies that have grown significantly in recent years (and generated big returns for investors in the process).
Here, I’m going to highlight two UK growth stocks that look unstoppable right now. I think both are worth considering as long-term buy-and-hold investments.
A technology powerhouse
First up, we have London Stock Exchange Group (LSE: LSEG), a leading financial markets infrastructure and data company.
No one really talks about LSEG when discussing British growth stocks. And I find that odd. Over the last 10 years it’s risen about 400% while over the last 20 years, it’s climbed about 2,000%. There are not many UK shares with track records like that!
Looking ahead, I reckon this company – which is currently the UK’s second-largest tech firm – has bags of potential. Today, LSEG’s primarily a software company, selling financial data to banks and investment managers globally. And in 2025, it plans to roll out new artificial intelligence (AI) features that have been developed in conjunction with Microsoft. This could help it grab market share from industry leader Bloomberg.
Another thing worth highlighting is that LSEG owns the FTSE and Russell indexes. Owning these kinds of indexes is basically a licence to print money since any firm that uses them as benchmarks has to pay licence fees. LSEG also has plenty of other ways to make money. For example, it generates income from trading on its exchanges and from initial public offerings (IPOs).
In terms of the valuation, it’s quite high by UK standards. Currently, the price-to-earnings (P/E) ratio using the 2025 earnings forecast is 28.5. That doesn’t leave much room for a mis-step (eg a slowdown in growth). I don’t see the valuation as a deal-breaker (I own the stock) but those who are put off by the earnings multiple may want to look at this stock in the next bout of market volatility when valuations are lower across the board.
A company generating huge returns
The other growth stock I want to highlight is Games Workshop (LSE: GAW), the manufacturer of miniature war games and the owner of the Warhammer brand.
Now, I’ve never bought a Games Workshop product. I’d rather spend my spare time playing guitar than assembling an army of figurines. But I can’t deny the fact that its products are popular. Over the last three financial years, the company’s sales have risen from £353m to £526m – growth of around 50%.
As a result of this popularity, Games Workshop shares have been an incredible long-term investment. Over the last decade, they’ve risen about 2,600%. Yet with sales forecast to continue rising, there could be more gains for investors ahead. Of course, there are no guarantees here, and if the company’s rate of growth slows, the stock may stall (or fall) as it’s priced for continued growth (the P/E ratio’s currently 27).
Recently however, Amazon announced a deal with Games Workshop to develop a TV series for Warhammer 40,000. I see this as a major development. This series could potentially bring in a whole new audience. And that could push the stock significantly higher between now and 2030.
The post 2 unstoppable UK growth stocks to consider buying and holding until 2030 appeared first on The Motley Fool UK.
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Ed Sheldon has positions in Amazon, London Stock Exchange Group Plc, and Microsoft. The Motley Fool UK has recommended Amazon, Games Workshop Group Plc, and Microsoft. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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.
