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5 Growth Stocks Under £1 Fools Say Will Soar
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5 Growth Stocks Under £1 Fools Say Will Soar

Five UK-listed stocks, selected by Fool.co.uk contributors for their growth potential, across a variety of sectors. Without further ado, let’s get to it!

Currys

What it does: Currys is a retailer of a variety of electrical products, from televisions and appliances to computers and games consoles.

By Mark David Hartley. I recently purchased Currys (LSE: CURY) after noting a change in consumer behavior, particularly towards electronics. Affordable e-commerce stores remain the biggest risk to its profits as it struggles to compete in that market. But consumers are increasingly looking for in-store advice as trust in online reviews declines. This put Currys in a great position, especially after cornering the UK market for next-generation AI-enabled laptops.

Yes, the price is still down 82% since 2016, but I think it’s a stronger business than many people give it credit for. It benefits from a well-established brand presence, an extensive network of physical stores and a growing online presence. Although it has had its ups and downs, overall performance has been good and it continues to demonstrate its ability to adapt to changing market conditions. Additionally, the focus on customer service and after-sales support helps build customer loyalty.

Mark David Hartley owns shares in Currys.

DP Poland

What it does: DP Poland holds the exclusive operating and sub-franchising rights to the Domino’s Pizza brand in Poland and Croatia.

By Ben McPoland. With a share price of 11p and a market capitalization of £100 million, I think DP Poland (LSE:DPP) has an outside chance of increasing much more. I say “external chance” because the company has a history of losses and frequent stock dilution to finance its operations. For it to ever generate value for its shareholders – alongside its pizzas – this will have to change. And it’s not guaranteed.

However, the company is currently experiencing strong growth, with group turnover jumping 26% to £26.4 million in the first half of 2024. It is gaining market share in Poland and analysts City expect revenues to grow to around £65.8 million in 2025, more than double the figure for 2021 (£30 million).

Meanwhile, the net loss was just under £0.5m for the first half, so profits are on the horizon. I expect profitability to improve as DP Poland moves towards a low-capital franchise model. This will “accelerate growth and increase return on capital,” according to the company.

Looking ahead, the company plans to open hundreds of additional stores in Poland and Croatia (it had 111 at the end of June). I think the stock could do very well.

Ben McPoland owns shares in DP Poland.

hVIVO

What it does: hVIVO is a small healthcare company providing clinical trial and laboratory testing services.

By Edward Sheldon, CFA. One stock under £1 that I think could skyrocket in the coming years is hVIVO (LSE: HVO). It is currently trading at around 26p.

There are several reasons why I think this stock has the potential to soar. The first is that the company has just opened a new state-of-the-art facility in Canary Wharf, London. This should enable it to grow rapidly in the years to come.

Another reason is that the valuation is relatively low. Currently, hVIVO’s P/E ratio, based on consensus earnings forecasts for next year, is just 15.5. Given that the company is targeting revenues of £100 million by 2028, up from around £62 million this year, I think the stock could easily achieve a P/E ratio of between 20 and 25 in the future.

It should be noted that hVIVO faces unique risks. For example, clinical trials can sometimes lead to complications and even death.

All things considered, though, I think the title has a lot of potential.

Edward Sheldon has no position in hVIVO.

ITV

What it does: ITV operates a British television network and produces and distributes program content globally.

By Alan Oscroft. In the words of CEO Carolyn McCall in the first half of the year: ITV (LSE: ITV) “has transformed over the past five years“.

ITV Studios, the update suggests, is expected to generate record profits this year, thanks in part to improving margins. And that, I think, could alleviate some pressure on the irregular nature of advertising revenue.

Forecasts suggest we could be looking at a 63% increase in earnings per share (EPS) between 2023 and 2026.

That could push the 2026 price-to-earnings (P/E) ratio down to nine by 2026. And this is a stock with a projected dividend yield of 6.5% for this year, and increasing.

The main risks I see are that the content delivery industry is highly competitive and the advertising industry is notoriously fickle.

ITV is also highly indebted, which could put pressure on the dividend. However, analysts predict a decline in the coming years.

Alan Oscroft has no position at ITV.

See the machines

What it does: Seeing Machines provides operator monitoring and tamper detection technologies for the automotive, mining, transportation and aviation industries.

By Paul Summers. I held a small position in See the machines (LSE: SEE) for a long time. Despite occasional increases in its share price, my patience remains rewarded.

However, I remain faithful to the story. The company is a leader in high-tech tracking software that monitors driver fatigue levels. The laudable goal is to reduce accidents on the roads and elsewhere. And legislation forcing car manufacturers to adapt this type of (high-margin) technology to new cars is gradually being introduced.

To be clear, this is a risky business and the company has managed to spend a lot of money over the years. That’s why I only invest money that I can afford to lose.

But if Seeing Machines can break even over the next couple of years, I could very well profit from this blue-sky growth stock.

Paul Summers owns shares in Seeing Machines