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I FTSEand especially i FTSE 100it has a reputation for being home to some of the highest paying stocks in the world. However, that doesn’t mean that an FTSE-listed stock can’t offer growth that surpasses the rest of the world.
Actually, Schroeder UK Mid Cap fund manager Jean Roche says you are more likely to find multibagger – stocks rising 100% or more – in the UK stock market than in the US. He has the statistics to back this up too.
So, which stocks were the best in the UK?
Mega is coming back
Over the past 12 months, the period covering the last two weeks of 2023, the FTSE All Share index has increased by 7%. However, some stocks have outperformed this, delivering growth of over 100%. Some of these stocks are household names, but others may be unfamiliar to investors.
| Stock | One-year share price growth |
| Funding Circle | 261% |
| CMC Markets | 167% |
| Metro Bank Holdings | 150% |
| The Greencore Group | 117% |
| Company Hochschild Mining Plc | 114% |
| Oxford Biomedica | 113% |
| The Trustpilot Group | 111% |
| Rolls-Royce | 103% |
| Just Group | 89% |
| Curry’s | 88% |
A quick look highlights that the growth is coming from many different companies, including financial services like CMC Markets, banks like Metro, engineering giants like Rolls-Royce, and retailers like Curry’s.
Combined, these 10 stocks have returned 131% over the past 12 months. That means £1,000 invested last year would be worth £2,310 today, plus any gains made over that period.
Finding the next big winner
Finding the next big winner is easier said than done. Among UK stocks, investors can consider AGwhich provides both strong momentum and attractive foundations.
However, in the coming years investors are likely to find the next multibagger in the US. This is due to current trends in Artificial Intelligence (AI) and the buzz around quantum computing.
One stock benefiting from the AI revolution is Celestica (NYSE:CLS). The company’s success is driven by the strong demand for cloud infrastructure and communication products, which are important for the development of AI. In the last reported quarter, Celestica’s Connectivity & Cloud Solutions segment saw a 42% year-over-year revenue increase, highlighting its strategic position in the AI market.
The company’s price-to-earnings-growth (PEG) ratio of 0.92 suggests it may be undervalued relative to its growth potential. This is an attractive PEG ratio by historical standards, but it is incredibly cheap relative to the broader market now. This is especially true among companies that are exposed to AI.
However, investors should consider risk factors including customer traffic. Only 10 customers make up two-thirds of sales. Also, geopolitical tensions can affect semiconductor supply chains, and Celestica needs chips to make its products.
Despite these challenges, Celestica’s strong financial performance and strategic positioning in the AI sector make it an attractive investment option for growth-oriented investors. I recently added this stock, and it is now the largest holding in my portfolio. My initial investment in the stock went up 280%.
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