Britain is facing turbulent times, with an ongoing energy crisis and the looming threat of recession – not to mention political turmoil – so how can investors pick stocks with good growth prospects?
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We have used the TipRanks Stock Screener tool to screen stocks with high target prices combined with Buy ratings from analysts.
Based on this, we have shortlisted the royalty business Anglo Pacific Group (GB:APF), thread manufacturer Coats Group (GB:COA), gold miner Pan African Resources (GB:PAF), packaging products manufacturer DS Smith (GB:SMDS), and fintech company Plus500 (GB:PLUS).
These stocks also have a ‘Perfect 10’ score on the Smart Score tool, which makes them a solid bet for the future.
Let’s see why the analysts are so positive about these stocks.
Anglo Pacific Stock
Anglo Pacific Group operates as a royalty business that invests in mining natural resources.
The company reported stellar half-year results for 2022, driven by higher coal prices and a revised royalty rate for the Kestrel mine in Queensland. The company also stated in its results that it is shifting its focus onto future commodities such as copper, nickel, etc., and will aim to generate 90% of its revenues from them by 2026.
Post-results, analysts are confident about stock price growth and have reiterated their Buy ratings.
According to TipRanks, the APF target price is 337.5p, which has an upside potential of almost 100% from the current price level.
Coats Group Stock
Coats Group is a leading manufacturer and distributor of thread, knitting yarns, zips, and trims, to various industries.
The company posted an increase of 28% in operating profits of $125 million in its interim results for 2022. Even though the company faces inflation challenges and supply-side disruptions, it pushed its prices up on time, which led to higher margins. As a result, Coats Group expects its full-year numbers to be ahead of its guidance range.
Five-star analyst Charles Mortimer from Citigroup is highly bullish on the stock with a target price of 115p which is 93% higher than the current price level.
According to TipRanks, the COA price target is 100.2p, an increase of 67.8%.
Pan African Resources’ Stock
Pan African Resources is a gold producer with mining operations in South Africa.
The company is in the process of closing its acquisition from Mintails SA, which was started in November 2020. The transaction is in its final stage of due diligence. The acquisition creates an attractive opportunity for the company’s tailings retreatment operations and can push production up by more than 25%.
The stock has two Buy recommendations and a Moderate Buy rating. The PAF price forecast is 30.0p, which has an upside potential of 55.6% from the price level of 19.2p.
DS Smith Stock
DS Smith is a multi-national company that manufactures sustainable packaging products for retail and industries.
Last week, the company issued its trading update for the last few months, which pushed the share prices up 4.2% in the last 5 days. The company’s volumes remained in line with expectations, riding high on higher prices and improved cost control measures. The company has the advantage of long-term customer and supplier relationships, which will help it navigate through inflationary pressures.
The SMDS target price is 402.86p, which depicts a 42.45% upside on the current price level.
Citigroup’s five-star-rated analyst Ephrem Ravi is bullish on the stock, with the highest target price of 500p.
Plus500 Stock
Plus500 operates as an online trading platform for shares, commodities, futures, and options.
The company posted its half-yearly results for 2022 with a huge 48% jump in its revenues of $511.4 million. The earnings increased by 63% highlighting the company’s strength to retain customers for a longer time.
The company is growing rapidly and is rewarding shareholders. The interim dividend announced was $0.623 per share along with a new buyback program for $60.2 million. The company stock has outperformed the market and has given a return of around 172% in the last three years.
The PLUS target price is 2,300p, which is 40% higher than the current price level.
Conclusion
These companies have delivered good results and are on track for the next results. The companies have solid fundamentals, and as a result, analysts are bullish on stock price growth.
