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06 August 2021
05:28 hour

Is ASOS or boohoo a better stock to buy right now?

The Motley Fool UK

21/07/2021 - 17:49

ASOS and boohoo have both experienced share price falls over the past week. Charles Archer looks deeper to see whether they're good stocks to buy for his portfolio. The post Is ASOS or boohoo a better stock to buy right now? appeared first on The Motley Fool UK.


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  1. Will Boohoo shares rise after ASOS’s results? (12/04/2021 - The Motley Fool UK)
    The share prices of boohoo (LSE: BOO) and ASOS (LSE: ASC) are connected. After all, the companies are competitors operating in the same sector. So if one rises, it is likely to impact the other. Last week, ASOS released interim results, which were great overall. While I think this announcement is positive for the online retail sector, I’m bearish on boohoo shares. For now, I won’t be be buying the stock in my portfolio and I’ll explain why. ASOS’s results I think ASOS’s interim results were exceptional. In the six-month period, total sales and profit before tax increased strongly. But ASOS’s stock price fell on the back of this. I think there were a few reasons for this and I reckon it could hinder boohoo shares too. I think the fact that both online retailers have been winners in the pandemic is already factored into the stock prices. This is reflected in the high price-to-earning (P/E) ratios for each of the companies. But I also think why ASOS shares fell on its results is because there are concerns about whether the online retailer will continue to grow at the same rate now that the high street shops have opened in the UK. This is likely to impact boohoo as well.  ASOS also announced that it’s investing more in marketing. This means that if the cost of promotional activity is increasing for ASOS, then it’s likely boohoo may have to do the same to compete. This increase may place pressure on profitability for both online retailers. Hence I don’t think boohoo shares will rise after ASOS’s results. Boohoo’s own problems While ASOS may be its competitor, boohoo has enough of its own problems to contend with. Hence I will not be buying the stock on such a high valuation. I’ve previously commented on the allegations of slave labour that mean boohoo could face a potential US import ban. I found this alarming and yet the corporate governance issues will not go away. Boohoo is showing investors that it’s doing everything in its power to address these concerns ever since the scandal of exploitation of workers at its Leicester supplier factories. At the end of last month, the online retailer published a list of its UK suppliers six months after an independent review by Alison Levitt, QC. Boohoo also announced that it’s focusing on sustainability. For me, this is just the start of the company trying to redeem itself from its previous corporate governance issues. I’d like to see further evidence that it’s consistently improving its legacy problems. Recent concerns While boohoo may have figured out the fast fashion market, I’ve recently become concerned about the pricing of its items. The same items of clothing are being sold at different prices across boohoo’s brands. I reckon this is a problem of growing too quickly. In my opinion, customers pick up on these issues straight away and may lose trust with the brand. This could have an impact on boohoo shares. I can’t dismiss the phenomenal growth boohoo has achieved. But I think the corporate governance concerns could impact the share price. Especially when the stock is trading at a high P/E ratio of 57 times, it’s likely to be sensitive to any negative news. For now, I’ll only be monitoring boohoo shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why did ASOS shares fall despite great results? Is the ASOS share price too low? Can the ASOS share price keep rising? Can the ASOS share price continue to climb? ASOS shares are rising: here’s what I would like to do Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post Will Boohoo shares rise after ASOS’s results? appeared first on The Motley Fool UK.
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  2. The Boohoo vs ASOS share price rated (23/07/2021 - The Motley Fool UK)
    Which stock would I pick if I had to choose between boohoo (LSE: BOO) and the ASOS (LSE: ASC) share price? Both companies are homegrown e-commerce champions, and both are expanding rapidly overseas.  Further, both boohoo and ASOS have used the pandemic to expand by buying up struggling or bankrupt brick-and-mortar retailers.  These acquisitions have helped these companies cement their positions in the market and improve brand awareness with consumers.  The better operator  Of the two, I think boohoo has been the better operator. The company has chased market share aggressively over the past few years. It has relied heavily on marketing and collaboration strategies and keeping costs as low as possible. Net profit has grown at a compound annual rate of 49% since 2016, rising from £12m to £91m during this period.  In comparison, the ASOS share price has lagged that of boohoo as its earnings have grown at less than half the rate of its peer. Over the past six years, the company’s earnings per share have increased at a compound annual rate of 23%.  City analysts do not expect this trend to come to an end any time soon. They have pencilled in earnings growth for ASOS of 18% in 2021 and just 5% in 2022. Meanwhile, boohoo’s earnings growth is predicted to come in at 43% for 2022 and 25% for 2023.  In addition, boohoo’s cash balance is around £258m compared to a net debt position of £238m for ASOS. Therefore, it looks as if ASOS has more financial firepower available for completing deals and marketing.  All of these numbers suggest to me that boohoo is the better buy. The ASOS share price also looks expensive compared to the company’s projected growth. The stock is trading at a price-to-earnings growth ratio of 5, which is compared to 1 for boohoo. A ratio of less than one may indicate that a stock offers growth at a reasonable price.  ASOS share price risks  However, despite the company’s attractive qualities, when I look at boohoo, I see a business drowning in reputational issues and legal threats. It is currently fighting a $100m consumer rights lawsuit in the U.S. over allegations of false pricing.  The company has also faced criticism for its working practices, which might put some investors off investing.  On the other hand, ASOS has fewer reputational issues, and even though the company’s growth is set to lag that of its peer, this is enough to sway my opinion of the enterprise.  Still, even ASOS is not a risk-free investment. Fashion is an incredibly competitive industry. Top Shop’s former owner Arcadia used to be one of Europe’s top retail businesses. It collapsed last year, and ASOS bought its leading brands for £265m, a fraction of their former worth. This shows that even the best retailers are not immune to change.  Even after taking this risk into account, if I had to choose between boohoo and the ASOS share price, I would buy shares in the latter, considering its growth potential and better reputation.  The post The Boohoo vs ASOS share price rated appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Is ASOS or boohoo a better stock to buy right now? As the Boohoo share price falls, should I buy? Is this what’s needed to supercharge the Boohoo share price? The ASOS share price crash: is this now the bargain of 2021? Why is the ASOS share price falling? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS and boohoo group. 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.
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  3. Is this what’s needed to supercharge the Boohoo share price? (19/07/2021 - The Motley Fool UK)
    For years, Marks & Spencer struggled to shed its high street image and fully exploit the online marketplace. Now Boohoo (LSE: BOO) is moving in the opposite direction. Might this be exactly what’s needed to supercharge the dipping Boohoo share price? Boohoo stock did well during the 2020 crash, bouncing back after an initial sharp dip. Investors clearly realised, soon after dumping shares apparently randomly, that the online shopping business isn’t too badly affected by people being locked down at home. If anything, it makes it easier when the delivery arrives. Boohoo share price down That effect, however, has been tailing off as 2021 progresses and economies open up. I’m writing on the UK’s so-called ‘Freedom Day’ (when we’re all free to go and catch Covid pretty much wherever we please). And Boohoo’s down 4%. The FTSE 100 itself is down a couple of percent, mind, but Boohoo investors aren’t having a great day. Anyway, back to Boohoo’s latest strategy move, and it’s all about a deal struck with Alshaya Group, based in Kuwait. Alshaya has the franchise for the Debenhams brand in the Middle East, and it’ll now carry Boohoo brands too. Yes, it will sell those brands online commencing next year. But sales will start in stores in autumn this year. Boohoo isn’t alone in this, as ASOS is also moving in the same direction. ASOS, which pioneered the online fashion business a few years ahead of Boohoo, has a similar deal with Nordstrom in the US. Nordstrom will carry ASOS brands in its stores, as well as online. Which is better? Speaking of ASOS, it’s educational to compare the two. Since Boohoo followed ASOS and came to market in 2014, ASOS shares have declined by about 40%. But the Boohoo share price is up 285%. Perhaps it really is better to avoid the pioneers in a new market and let them iron out the teething problems, then buy into the second generation? Anyway, what’s my take as an investor (and as a Boohoo shareholder)? Firstly, I take one big lesson. I think it was a mistake to see the market as split between online fashion and in-store shopping. No, it was always a single sector, just with different sales and marketing channels. And whoever ended up successful was always going to be whoever managed all of its channels as seamlessly as possible. It doesn’t matter whether a company started in bricks and mortar, or whether its early life was exclusively online. The two will, surely, continue on the unification path we’re currently seeing — it’s just the eventual proportions that we really can’t be sure of right now. Lots of opportunities That does introduce risks for today’s successful online sellers, as well as opportunities for struggling traditional retailers. Could the opposite of my supercharging suggestion happen instead? Might, for example, M&S shares enter a period of growth while the Boohoo share price falls back to converge? Well, I think both might be good value now. And on balance, despite the volatility and the difficulty in working out a fair long-term valuation, I remain bullish over Boohoo. I’m not sure about supercharging, but I do think the shares will be ahead in five years. The post Is this what’s needed to supercharge the Boohoo share price? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading What’s going on with the Boohoo share price? 3 top UK stocks to buy in July Best shares to buy: 3 stocks I’d snap up in July Here’s how I’d invest £5,000 in the best UK shares Alan Oscroft owns shares of boohoo group. The Motley Fool UK has recommended ASOS and boohoo group. 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.
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  4. The Boohoo share price is sliding: should I buy the stock today? (02/03/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has been sliding recently. Shares in the fast-fashion company have fallen around 4% over the past month and approximately 3% since the beginning of the year.  Over the past year, shares in the company have put in a better performance. The stock is up around 10%. However, this pales in comparison to its close peer, ASOS. Since the beginning of March 2020, shares in ASOS have returned 92%.  But I think this only tells part of the story. While the Boohoo share price has underperformed over the past 12 months, its underlying business has achieved remarkable growth, thanks in part to the pandemic. As such, I have been taking a closer look at the stock recently to see if it could be worth adding the company to my investment portfolio.  Boohoo share price opportunity The fast-fashion retailer achieved staggering growth in 2020. It reported revenue growth of 44% and net income growth of 46% for the year. The boom in profitability has enabled the group to go on a buying spree. It recently spent £25.2m buying the Dorothy Perkins, Wallis, and Burton brands from failed retail group Arcadia. That followed a £55m deal to buy the Debenhams brand and website.  While the business saw impressive growth in 2020, it also faced some significant challenges. An investigation into working practices at the company’s suppliers revealed that some workers were being paid below minimum wage. To deal with these issues, Boohoo set up its own investigation.  While the company has tried to rectify its problems, the allegations and revelations have dented its reputation in the City. This is one reason why the Boohoo share price has performed so poorly compared to ASOS over the past year. That said, it seems consumers are more than happy to continue buying from the group.  Still, this issue has reared its ugly head again today. According to a media report, the company could be facing a US import ban “because of widespread allegations over the use of slave labour.” Last year, the organisation generated more than a fifth of its global sales in the US, an important growth market for the firm.  A significant problem Boohoo’s labour issues are a significant problem for the firm. For its part, management has said that it has increased oversight of suppliers and “ taken action against 64 suppliers who did not meet the group’s standards in the levels of transparency that business requires.”  I think there are two sides to the Boohoo story. On the one hand, there’s the group’s explosive growth rate. On the other, there are the company’s supplier issues. Then there’s the aggressive nature of the fast-fashion industry to consider. Boohoo is the market champion today, but 10 years ago, Arcadia was a darling too. There’s no guarantee Boohoo will be able to avoid Arcadia’s fate.  Despite the recent performance of the Boohoo share price, I am not going to buy the stock today. I think there’s just too much uncertainty surrounding the group’s long-term outlook.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading A high-growth UK share I’d buy in my ISA and hold for 10 years Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post The Boohoo share price is sliding: should I buy the stock today? appeared first on The Motley Fool UK.
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  5. Why I think the Boohoo share price could keep climbing (19/04/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has been one of the best growth investments to own in the market over the past five years. Since the end of April 2016, the stock has increased in value by more than 650%.  Unfortunately, despite this impressive performance, the stock has underperformed over the past 12 months. Since the end of April last year, shares in the company have returned just under 30%, compared to a return of nearly 140% for peer ASOS.  However, I think this is just a blip. I believe the Boohoo share price will return to its positive trajectory in the next few years.  Fast growth  The online fast-fashion retailer has reported explosive earnings growth over the past five years. Net profit has grown from just £8.4m in 2015 to 2020 for £64m.  Boohoo has been able to make the most of the pandemic. With most brick-and-mortar retailers closed, group sales jumped last year. Management has used these profits to buy up other struggling brands and increase the company’s diversification and footprint.  But while Boohoo’s growth has continued, the company has faced allegations of poor working practices. Competitors have also started to catch up to the business. The pandemic has forced brick-and-mortar retailers to invest in their online operations, increasing the number of options for customers. So as competition grows, it seems to me that investors are less inclined to pay a high price to buy in to this company.  I think these twin headwinds are to blame for the recent performance of the Boohoo share price. And they could continue to dominate investors’ opinion of the business as we advance. Fast-fashion is an incredibly competitive industry. Just because Boohoo has succeeded up to this point doesn’t mean it’ll continue to do so. Nevertheless, I think the company is getting ready for its next growth spurt.  Boohoo share price opportunity  Boohoo used to be an upstart in the fast-fashion market, but that’s no longer the case. Its market capitalisation of £4.5bn makes it one of the largest listed retail businesses in the UK. This suggests to me the company has reached a level of maturity, which requires a different approach. It needs to move away from the startup mentality, and that’s just what the business has been doing. Management has cut ties with dubious suppliers, is investing in warehousing and office space, and the firm is planning to open its own factory in Leicester.  I think all of these initiatives will help reinforce the company’s position in the market and prepare it for the next growth stage. With its new warehouse space, Boohoo will have the potential to service up to £4bn in sales every year. I think this capacity will help the organisation capitalise not only on demand for its existing products but also on the brands acquired over the past 12-24 months.  As such, I’m incredibly optimistic about the long-term outlook for the Boohoo share price. That’s why I’d buy the stock for my portfolio today.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Top growth stocks for April 2021 Will the Boohoo share price keep climbing? Will Boohoo shares rise after ASOS’s results? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post Why I think the Boohoo share price could keep climbing appeared first on The Motley Fool UK.
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  6. Will the Boohoo share price recover in 2021? (18/06/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has fallen nearly 19% over the past 12 months. Over the same period, shares in the company’s online fashion peer, Asos, have increased in value by 40%. This means shares in the former have underperformed those of the latter by 59%! The question is, will the stock turned things around in the second half, or is the company going to continue to underperform? The Boohoo share price outlook It’s impossible to predict what will happen to share prices in the short and long run. However, in theory, a stock price should track a company’s underlying fundamental performance. Therefore, if Boohoo’s profits grow, the stock price should also rise, although this isn’t always the case.  Indeed, over the past 12 months, Boohoo’s fundamentals have improved dramatically. Sales increased 41% year-on-year for the group’s financial year ended February. Meanwhile, profit before tax increased 35%, and adjusted earnings per share jumped 47% to 8.7p.  Boohoo has been one of the pandemic’s big winners. Consumers have flocked to its online offer as brick-and-mortar stores have been forced to shut. Management has used some of the windfall profits to buy some struggling brands, increasing is offer further still.  It looks as if the corporation is firing on all cylinders. But the Boohoo share price has still struggled.  Struggling I think there are two primary reasons why. First of all, last summer, the company was hit by evidence of labour abuses among its UK suppliers, including paying workers far below the minimum wage. While the enterprise has tried to rectify these issues with an investigation and cutting ties with specific suppliers, it seems there’s still a cloud hanging over the business.  Secondly, the stock looks a bit pricey. It is trading at a forward P/E ratio of around 46. This could be sustainable if the company’s growth continues, but that’s not guaranteed. As the economy reopens, consumers may return to brick-and-mortar stores, leading to a growth slowdown at the business. This could hurt the Boohoo share price.  Uncertainty prevails All of the above suggests to me that the outlook for the Boohoo share price is quite uncertain. The company’s growth is impressive, but if growth slows, then the stock looks expensive. What’s more, it could take some time for the digital retailer to rebuild trust with its investors.  That said, I’m incredibly encouraged by the group’s impressive growth, portfolio of brands, strong balance sheet and online operation. I think these qualities will help the business prevail over the next few years. As such, while I think the outlook for the Boohoo share price remains uncertain, over the next few years I think there’s a strong chance its profits will continue to increase. And as profits continue to increase, the company’s stock price should reflect that. On that basis, I’d buy the stock for my portfolio today as a buy-and-hold growth play.  The post Will the Boohoo share price recover in 2021? appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Are Boohoo shares worth buying today? Why the Boohoo share price still looks cheap Should I buy Boohoo shares? Where is the Boohoo share price going in June? Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS and boohoo group. 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.
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  7. ASOS share price: I think it’s set to go higher (15/02/2021 - The Motley Fool UK)
    Shares in ASOS (LSE: ASC) have performed well recently. Since their stock market crash lows of around 1,000p, they’ve risen about 430%. Meanwhile, over a 12-month time horizon, they’re up about 60%. Looking ahead, I believe ASOS’s share price has the potential to keep rising. Here are a few reasons I’m bullish on the stock. ASOS: poised for long-term growth The first reason is the online fashion market looks set for big growth in the years ahead. As a result of Covid-19, the shift to online shopping in the fashion space has accelerated. Last week, analysts at Bank of America (BoA) said that 2021 is on track to become another “killer year” for online retailers. It believes last year’s pandemic-driven growth is just the beginning of the growth story. And BoA expects revenues across the online retail companies it covers (including ASOS) to more than double between 2020 and 2025, to £38bn. “We believe these businesses are not simply pandemic beneficiaries, they are structural winners,” BoA analysts wrote. “The pandemic seems to have irreversibly accelerated changes in consumer behaviour,” they added. In another research note last week, analysts at Credit Suisse said consumers today tend to prefer ‘multi-brand’ websites. These kinds of websites make life easier for shoppers because they don’t need to have dozens of apps on their phones and re-enter payment and contact details on each one. This is encouraging for a company like ASOS which sells a wide range of brands. ASOS shares: bullish sentiment I’m also very encouraged by the analyst sentiment towards ASOS shares at present. Recently, a number of brokers, including JP Morgan, BoA, and Credit Suisse have upgraded their price targets significantly. The latter’s is more than 30% above the current share price. It’s worth noting that analysts at BoA even gave the stock a ‘double upgrade’ recently, lifting it from ‘underperform’ to ‘buy’. “Looking forward, we think ASOS should see a tailwind to order volume growth as the world normalises,” its analysts wrote. Low valuation vs Zalando Finally, the valuation on ASOS shares isn’t stretched, in my view. Currently, the business has a market-cap of £5.1bn. That means the forward-looking price-to-earnings (P/E) and price-to-sales (P/S) ratios are 36 and 1.3 respectively. By contrast, rival Zalando has a market-cap of approximately £22.3bn. Its P/E and P/S ratios are 86 and 2.4 respectively. Comparing the two online retailers, ASOS looks undervalued. Risks Of course, there are risks that could derail the momentum that ASOS’s share price has right now. One risk is the threat of competition. Rival Boohoo is currently growing at a fast pace and, like ASOS, is making key acquisitions. Amazon is also capturing market share in the UK online fashion space. There could also be complications with the integration of ASOS’s recently acquired brands (Topshop, Topman, and Miss Selfridge). If there are setbacks here, it could hit the share price. ASOS share price: I think it’s going higher Overall however, I think the outlook for ASC shares remains favourable. In the next few years, I expect its share price to climb much higher. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading I’m avoiding the BP share price. I prefer this FTSE AIM stock for 2021 instead The Boohoo share price has underperformed Asos. Should I buy the stock? The Lloyds share price is recovering but here’s why I won’t buy back in A top UK growth share I’d buy in my Stocks and Shares ISA in February! Topshop deal lifts ASOS share price: should I buy? Edward Sheldon owns shares in ASOS, Boohoo, and Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended ASOS and boohoo group and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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. The post ASOS share price: I think it’s set to go higher appeared first on The Motley Fool UK.
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  8. Is the ASOS share price too low? (08/04/2021 - The Motley Fool UK)
    ASOS (LSE:ASC) delivered record results for the six months to 28 February 2021. Sales rose 24% and the online fashion retailer produced profits of £112.9m versus £30.1m during the same period last year. Overall, ASOS benefited from the pandemic. Despite exceptional results, the ASOS share price showed volatility. The initial 2% gain was as I expected, but the price swiftly declined. There are multiple possible reasons for the short-term reactions in the ASOS share price. It’s possible that after a 42% rise last year and a 19% increase year-to-date, the ASOS share price is in a consolidation phase. In addition, ASOS said it was cautious about the near-term consumer outlook because of uncertain economic prospects for its younger target market. Other risks highlighted the timing of global re-opening and potential further Covid-19 peaks. Customers sending back fewer items while restrictions were in force provided ASOS with a boost, but this is likely to reverse as the economy opens up and customer returns normalise to pre-pandemic levels. Is the ASOS share price too low? Despite these risks, there is much to like about ASOS and reasons to believe the share price could be too low. I’m impressed by its ability to pivot from clothes traditionally bought for going out to more casual clothing suitable for staying in. Its ability to quickly execute this dramatic shift in consumer purchasing habits is remarkable and highlights management competency.   During the lockdown, there was more emphasis on activewear, casual clothing, and beauty products. The strategy was a success. ASOS experienced excellent sales growth, an increase in customer numbers, and profitability. In the UK, growth was exceptionally strong. UK sales showed growth of 39%, versus sales growth of 18% in the EU and 16% in the US. Its active customer base increased by 1.5m over six months, giving a total of 24.9m. I’m not currently an ASOS investor but I am tempted to buy some shares after this update. It offers a double-digit return on capital, favourable growth prospects, and good cash generation. I’m confident it could be a much larger business in three-to-five years and I think the ASOS share price is now too low. Winners and losers of fashion retail The pandemic created winners and losers in fashion retail. Some companies struggled and were forced to sell off much-loved brands. In the coming years, ASOS is likely to be seen as one of the winners, in my opinion. During the period, the company was able to acquire four iconic brands – Topshop, Topman, Miss Selfridge and HIIT. Adding the brands to the ASOS platform seems to have been seamless. Looking forward, ASOS is confident in achieving strong financial returns from these popular brands. Other winners in the sector that stand out include Next and Boohoo. I picked Next as my top FTSE 100 pick recently. One characteristic that the three have in common is their ability to pivot their business when the market changes. This entrepreneurial leadership should drive these companies into becoming larger businesses, and I would happily own them all. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the ASOS share price keep rising? Can the ASOS share price continue to climb? ASOS shares are rising: here’s what I would like to do 3 of the best shares to buy as the ISA deadline approaches Harshil Patel owns shares of Boohoo. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post Is the ASOS share price too low? appeared first on The Motley Fool UK.
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  9. The Boohoo share price is below 300p. Is now a buying opportunity? (27/07/2021 - The Motley Fool UK)
    The Boohoo  (LSE: BOO) share price is currently trading below 300p. In fact, the stock hasn’t delivered a great return so far this year. Since the beginning of 2021, it’s down 18% but over the last 12 months, the shares have increased by almost 10%. What does this mean? Well, I only have to look at the share price chart to see that there has been a lot of volatility. Despite this, the Boohoo share price trades on an expensive valuation, with a current price-to-earnings (P/E) ratio of 32x. So is now a buying opportunity? Well, I’m still steering clear of the stock as I do have some concerns. Bull case The pandemic has only accelerated online shopping. And this has clearly worked in Boohoo’s favour. The retailer continues to deliver strong sales as seen from its quarterly trading statement last month. What the company does well is sell fast fashion to a young demographic. It can react to changes in trends quickly, which has helped it grow rapidly. It made a good and relatively low-risk move by acquiring the non-store operations of Debenhams, Dorothy Perkins and Wallis. These brands should expand Boohoo’s current customer base and allow it to scale up quickly. So far it’s progressing well in integrating these into its platform, which should start to pay off. It has a strong balance sheet and last reported a net cash position of £199.1m. This is down from the year-end due to the company’s investment across its offices and infrastructure. But it’s encouraging to see that it’s spending capital to fuel the next stage of its growth. Bear case I have some concerns though. The Boohoo share price is trading on a high valuation, which means that it’s going to be sensitive to any negative news. The stock could fall further if it sees a slowdown in sales. Some developments could have either a positive or a negative impact. Physical shops have now opened in the UK and people are socialising. This could dent its revenue going forward, but the fact that people are socialising could encourage them to buy more of its products. The company is also ramping up its expansion especially in the US. That could be good news, but it could hit profitability if plans don’t remain on track. My other concern is its governance. Following on from its supplier scandal, it has been pulling out all the stops to polish its reputation. It has published its UK supplier list and expects to release the global version in September. Other moves include introducing new processes and additional audits. While this is all well and good, the damage will take more than this to resolve. As a long-term investor, I’m looking for quality of corporate governance on a consistent basis. Not just some of this and a little bit of that. I also can’t help but feel that some other skeletons could come out of the closet, which could hit the Boohoo share price. My verdict I don’t think the shares are a good buying opportunity even though they’re trading below 300p. But the stock is certainly on my watch list as I’d like to see further evidence that its governance issues have been resolved once and for all. The post The Boohoo share price is below 300p. Is now a buying opportunity? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 UK growth stocks I’ve been buying in July The Boohoo vs ASOS share price rated Is ASOS or boohoo a better stock to buy right now? As the Boohoo share price falls, should I buy? Is this what’s needed to supercharge the Boohoo share price? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. 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.
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  10. What’s in store for the Boohoo share price in May? (28/04/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has been uncharacteristically stable over the last couple of months. I think that could be set to change in May as the company reports its latest set of full-year results to the market. But in which direction will the stock go? Here’s my take.  Boohoo share price: ready to pop? Based on its last trading update, I think it likely that Boohoo’s latest numbers will be nothing short of stellar. Back in January, the company announced revenue growth of 40% in the last four months of 2020 with all brands performing well. Reading across from rival ASOS’s recent record results, I sincerely doubt trading has dramatically slowed since.  Aside from the numbers, I suspect Boohoo will provide another encouraging update on how its ‘Agenda for Change’ programme is going. This was brought in to implement all the recommendations made following Alison Levitt’s independent review of the supply chain.  So far, we know that the company has taken steps to consolidate its UK supplier base. Confirmation that directors will agree to link their bonuses to the firm’s performance on Environmental Social and Governance (ESG) measures would be another step in the right direction.  What may go wrong? Of course, whether Boohoo’s share price rises or falls is not purely dependent on how big the numbers released on May 5 are. It also depends on the extent to which those numbers meet or exceed expectations. Those who have played the game long enough know that investing is as much about psychology as it is about anything else. The more the market asks for, the greater the chance of it being disappointed. And there will come a time when Boohoo disappoints trading-wise. This is why I think it’s so important to consider the risks to stocks I own as much as all the reasons to hold. Perhaps the company’s original target market may turn away when they learn it now owns more ‘mature’ brands such as Dorothy Perkins and Debenhams. Maybe they won’t care. Even if they don’t, will Boohoo’s management be successful in spinning a lot more plates than it’s been used to? Another risk to the Boohoo share price is that online sales may moderate once coronavirus restrictions are fully lifted in June. Maybe job concerns will make people tighten their purse strings after an initial splurge. Right now, we don’t know. This is why it’s important not to get carried away on the AIM-listed giant’s prospects. To complicate matters, the current forecast P/E of 32 is reasonable enough for a top growth stock. However, it’s still high enough to fall hard.  No crystal ball All of the above makes estimating where Boohoo will be at the end of next month exceedingly tricky. As such, I would never buy a stock purely to try and make money over a few weeks. That’s a trader’s strategy. Some people can make it work. Most of us can’t. Notwithstanding this, I believe there’s a higher probability than not of a positive reaction in May. Boohoo feels like a better company than it was when its valuation peaked last June.  Whatever happens, I won’t be selling as I did a few years ago (albeit with a healthy profit). This is a long-term growth play and I want to be a part of it.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 of the best UK and US stocks to buy today Boohoo share price: here’s why I think now is a good time to buy shares 3 UK shares I’d buy with £1,000 Why I think the Boohoo share price could keep climbing Top growth stocks for April 2021 Paul Summers owns shares in boohoo group. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post What’s in store for the Boohoo share price in May? appeared first on The Motley Fool UK.
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  11. 3 UK growth stocks I’ve been buying in July (25/07/2021 - The Motley Fool UK)
    July has been a rather volatile month for the UK stock market. Optimism over the lifting of restrictions in England was quickly replaced with concerns over rising infection levels and staff shortages brought about by the so-called ‘pingdemic’. None of this has stopped me from continuing to buy growth stocks for my own portfolio though. Contrarian growth stock After sitting on the sidelines for a while, I’ve finally grabbed the bull by the horns and snapped up shares of online holiday firm On the Beach (LSE: OTB). Devoid of the high fixed costs endured by larger peers such as TUI, OTB’s flexible, online-only business model ensures it has minimal cash burn while travel restrictions remain in place. A recent £26m share placing also gives the company sufficient financial firepower for a big marketing push when rules are relaxed and demand for holidays explodes. This isn’t to say that taking a position now is without risk. Those restrictions will likely be in place for a while yet. Moreover, the barriers to entry into this market aren’t particularly high. Nevertheless, the progress of vaccination programmes leads me to think that the risk/reward trade-off is far better than it used to be. OTB’s share price is also down roughly 40% since March. This gives me what I feel to be a decent margin of safety. I’ll be continuing to drip-feed my money into this growth stock over the next few months.  Buying the dip I simply couldn’t finish July without adding to my stake in fast-fashion giant Boohoo (LSE: BOO). A bumpy ride over the last month, not helped by a poorly-received update from industry peer ASOS, looks to be another opportunity to acquire this growth stock at a great price. The 20% fall in Boohoo’s value over the last six months leaves its shares changing hands for less than 26 times earnings. I think that could prove to be a steal once the company puts its ESG (Environmental, Social, Governance) concerns to bed. The negative publicity will hopefully lessen as BOO demonstrates what it’s done to put things right with its supply chain. Sure, there are other potential headwinds. Confirmation of an online sales tax could send the shares lower, as might a simple lack of news over the next month. However, some knockout interim numbers in September may arrest this fall. Evidence that recent acquisitions are bearing fruit would provide another boost.  Investing megatrend My last buy this month has actually been an investment trust rather than a single company stock. I began buying Biotech Growth Trust (LSE: BIOG) in April. Unfortunately, its shares have drifted lower since then. Reasons could include the ongoing rotation from growth stocks into those appearing to offer more value. There might also be a belief that healthcare-related funds have had their time in the sun. Notwithstanding this, I’m confident BIOG’s managers — many of whom are medically trained — know what they’re doing. An annualised return of 17% over the last five years is far better than the trust’s benchmark. Then again, this has been at the expense of greater volatility, As such, those with weak stomachs need not apply. Given the rate of technological progress, this area could be one of the investment themes for years. I think a diversified trust like BIOG is the best way to play it. The post 3 UK growth stocks I’ve been buying in July appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Boohoo vs ASOS share price rated Is ASOS or boohoo a better stock to buy right now? As the Boohoo share price falls, should I buy? Is this what’s needed to supercharge the Boohoo share price? What’s going on with the Boohoo share price? Paul Summers owns shares in On The Beach, boohoo group and Biotech Growth Trust. The Motley Fool UK has recommended ASOS, On The Beach, and boohoo group. 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.
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  12. What’s going on with the Boohoo share price? (14/07/2021 - The Motley Fool UK)
    Despite my belief that the company’s stock was already looking cheap, considering the growth on offer, the Boohoo (LSE: BOO) share price has continued to fall in recent weeks. What’s going on? Boohoo share price: what gives? One potential explanation for the latest capitulation in the Boohoo share price is related to concerns over whether co-founder Mahmud Kamani will be required to give evidence in a $100m lawsuit. As reported in the Financial Times, Boohoo has been accused of using fake promotions in the US for a number of years. It’s been claimed that customers have been presented with inflated original prices. This, in turn, made discounts seem greater than they actually were. In response, the company’s claimed that Kamani isn’t usually involved in setting prices. As such, he shouldn’t be required to answer questions. Clearly, this isn’t the sort of headline that investors (including myself) wish to see after the hits to Boohoo’s reputation over the last year or so. This isn’t the first time it’s faced accusations of this kind either. Three years ago, the £4bn-cap had its knuckles wrapped over similar tactics and the use of psychological tricks, such as countdown clocks, in the UK.  So, could things get worse? In the very near term, it’s hard to predict which direction the Boohoo share price may go next. A cheap stock (based on growth potential) can always get cheaper. However, I remain optimistic. Reasons to be optimistic For one, the company still has its cheerleaders. Indeed, the Boohoo share price rose yesterday (Tuesday) following a ‘buy’ recommendation by broker RBC. Analysts there have set a target price of 410p a pop once the contribution of new brands kicks in.  Investors might also speculate that the fall in the Boohoo share price isn’t necessarily about Boohoo. After all, shares in fashion peer ASOS haven’t been on fire recently. The AIM-listed rival has lost 15% of its value over the last three months. This loss of momentum may be due, in part, to investors taking profits after benefitting from multiple UK lockdowns and looking for bargains elsewhere. Bargain stock? Once normality returns however, I suspect we could see a preference for growth over value again. Strong interim numbers in September could be a catalyst for this. So too could further evidence of progress on hitting its ESG targets and successfully integrating newly-acquired brands. On which note, it was announced today that the company would partner with Alshaya Group in the Middle East. The latter currently runs Debenhams stores in the region. The agreement will mean that Boohoo’s brands will now feature in stores from Q4, and through a local online platform from “early 2022.“ This is an interesting development considering ASOS’s similar deal with luxury store chain Nordstrom to stock its brands in the US. Should all the above come to pass, the current valuation of 27 times earnings could prove a bargain, in time. Naturally, none of this is nailed on. In fact, the Boohoo share price could slide again if earnings surprise on the downside, or the company continues to make headlines for the wrong reasons. Rising Covid-19 infection levels would likely hit sentiment as well.  As ever, it pays for me to remain diversified, just in case… The post What’s going on with the Boohoo share price? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 top UK stocks to buy in July Best shares to buy: 3 stocks I’d snap up in July Here’s how I’d invest £5,000 in the best UK shares The Boohoo share price is gaining in June. Here’s why I’d buy Could Boohoo shares be star buys of the summer? Paul Summers owns shares in boohoo group. The Motley Fool UK has recommended boohoo group. 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.
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  13. Best shares to buy: 3 stocks I’d snap up in July (06/07/2021 - The Motley Fool UK)
    2021 has been a great year for stock market investors, so far. Year to date, the FTSE 100 is up more than 10%. Meanwhile, the S&P 500 is up more than 15% (which shows the importance of owning international shares). The good news is that there are still plenty of opportunities for investors as we start the second half of the year. With that in mind, here are three stocks I’d buy today. Apple One I like the look of as we start Q3 is Apple (NASDAQ: AAPL). It’s been a bit of a laggard this year, due to the fact that investors have been focused on ‘reopening‘ stocks. However, recently, Apple stock has started rising again. In June, it shot up from $125 to $140. I think Apple shares have the potential to keep rising. The reopening trade appears to be losing its momentum and we’re now seeing institutional money flow into ‘growth-at-a-reasonable-price’ stocks. Apple certainly offers growth at a reasonable price. This year, its net profit is expected to rise 51%. Yet its forward-looking P/E ratio is just 27. One risk here is the threat of regulatory action against the company. This could impact profit margins going forward. Overall, however, I believe the stock has a very attractive risk/reward profile. Boohoo Another stock I see as a ‘buy’ right now is Boohoo (LSE: BOO). The fast-growing online fashion retailer owns a number of well-known brands including Boohoo, PrettyLittleThing, Nasty Gal and, more recently, Debenhams. There are a number of reasons I’m bullish here. One is that growth’s very strong. In a recent trading update, the company reported a revenue gain of 32% for the three months to 31 May. Another is that broker sentiment is improving. Recently, analysts at Liberum upgraded the stock to ‘buy,’ saying the shares are cheap at present. I agree – I think the stock’s forward-looking P/E ratio of 29 is a steal. It’s worth noting that the median price target here is about 470p – well above the current share price. A third reason I’m bullish is that an insider just bought a load of stock. Last month, board member Iain McDonald spent just under £330,000 on shares. This suggests he’s confident about the future. Some risks to consider here include competition from rivals such as ASOS, and reputational issues. Both could impact profitability going forward. However, I think these risks are priced into the stock. Fiverr Finally, I’d also buy shares in Fiverr International (NYSE: FVRR). It operates one of the world’s largest freelance employment platforms. It’s currently trading about 25% below its 2021 high and I think it’s a good time to buy the stock. This company has a lot of momentum right now. Recently, it reported a “massive start” to 2021 with revenue for the first quarter of the year up 100%. I expect Fiverr to continue growing rapidly in the years ahead. In the near term, it should benefit as economic activity picks up and businesses hire more staff. Many businesses will turn to freelancers for flexibility. In the long run, it should benefit as the employment model evolves and the ‘gig economy’ grows. This is a more speculative stock. Currently, the company isn’t making a profit, which increases risk. The stock is also highly volatile. I’m comfortable with the risks though. I think the long-term potential here is significant. The post Best shares to buy: 3 stocks I’d snap up in July appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Here’s how I’d invest £5,000 in the best UK shares The Boohoo share price is gaining in June. Here’s why I’d buy Could Boohoo shares be star buys of the summer? Will the Boohoo share price recover in 2021? Are Boohoo shares worth buying today? Edward Sheldon owns shares of ASOS, Apple, Fiverr International, and boohoo group. The Motley Fool UK owns shares of and has recommended Apple and Fiverr International. The Motley Fool UK has recommended ASOS and boohoo group and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. 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.
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  14. Boohoo share price: here’s why I think now is a good time to buy shares (27/04/2021 - The Motley Fool UK)
    Online fast-fashion retailer Boohoo (LSE:BOO) has grown massively in the past five years. I think the FTSE AIM-listed share is currently priced low and believe now could be a good time to buy shares. Looking at the current Boohoo share price, I am tempted. I believe with recent acquisitions, Boohoo could be gearing up for the next stage in its growth journey.  Fast fashion, faster growth Founded in 2006, the UK-based online retailer has become hugely popular with its target market of 16-30 year-olds. It offers its own-brand fashion clothing and sells over 30,000 products across multiple brands. Over the past five years, the Boohoo share price has risen due to the massive growth. To provide some perspective, net profit has grown from £8.4m in 2015 to £64m for 2020. Boohoo also benefited from the pandemic. Many traditional retail outlets closed their doors and Boohoo’s sales jumped. Boohoo has had a habit of buying failing labels and folding them into their business. This has allowed it to grow its brand and diversify its offering. Recent acquisitions include Debenhams, Warehouse, and Dorothy Perkins. Boohoo share price journey In the past five years, Boohoo’s share price has increased by over 620%. The past 12 months has seen the Boohoo share price underperform in my opinion. The Boohoo share price has been affected by allegations of poor working practices. It was accused of using dubious suppliers and the working conditions were reported to be controversial to say the least. In addition to this, competitors have begun to catch up to its growth. Furthermore, the pandemic has forced many traditional retailers to invest in their own online platforms. Despite these negatives affecting the Boohoo share price, I do believe things are on the up. As I write this, Boohoo shares are trading for just under 350p per share. This is still nearly 8% higher than this time last month. I expect this upward trajectory to continue. FTSE AIM opportunity I believe the Boohoo share price is well priced enough to tempt me to invest. The reasons behind this are also linked to the next chapter of its journey. Boohoo is now in a position whereby it is no longer a startup. It possesses a market capitalisation of £4.5bn. This makes it one of the largest listed retail businesses in the UK and it is still only listed on the FTSE AIM. With this level of market cap, it must reach a certain level of maturity and conduct itself in a certain manner operationally. I believe this is happening. One step it has taken to show me it has matured is that of cutting ties with controversial suppliers. In addition to this, it is investing heavily in warehousing and office spaces and is planning to open its own factory in Leicester. This new initiative will surely help it manage demand and take itself to the next level to fulfil demand related to its new acquisitions. There is always going to be the spectre of mistakes made recently that could affect the Boohoo share price. In addition, competition will always be attempting to grow, which could affect Boohoo. I am, however, optimistic about the long-term outlook for Boohoo and its investment viability and would buy shares at its current price. Another stock I like is Tesco — I think it could be another good opportunity. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading 3 UK shares I’d buy with £1,000 Why I think the Boohoo share price could keep climbing Top growth stocks for April 2021 Will the Boohoo share price keep climbing? Will Boohoo shares rise after ASOS’s results? Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended boohoo group. 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. The post Boohoo share price: here’s why I think now is a good time to buy shares appeared first on The Motley Fool UK.
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  15. 2 AIM stocks to buy in July (07/07/2021 - The Motley Fool UK)
    Many stocks on the London Stock Exchange’s Alternative Investment Market (AIM) have delivered strong returns for investors in recent years. Just look at the performance of the FTSE AIM 100 index. Over the five years to the end of June 2021, this index returned 93%. By contrast, the FTSE 100 returned just 31% over the period. Here, I’m going to highlight two AIM stocks I’d buy for my portfolio today. Both of these companies are growing rapidly, and I think it’s a good time to buy their shares. A top AIM stock One stock that strikes me as a ‘buy’ right now is online fashion retailer ASOS (LSE: ASC), the largest in the FTSE AIM 100 index. It’s underperformed in 2021 due to the fact that investors have been focused on reopening stocks. I think this underperformance has created a buying opportunity. ASOS has grown consistently in recent years. Over the last half-decade (FY2015 to FY2020), revenues climbed at an annualised growth rate of 23.4%. Looking ahead, further growth is expected. For FY2021 and FY2022, City analysts expect revenue growth of 23% and 18% respectively. I don’t think this level of growth is fully reflected in ASOS’ valuation. Currently, the stock trades on a forward-looking P/E ratio of 34, which isn’t particularly high for a growth stock. One risk to consider here is competition from other online retailers. Not only does ASOS face rivalry from other fashion retailers such as Boohoo but it also faces competition from larger online retailers such as Amazon. However, see the overall risk/reward proposition here as attractive. I’d buy the stock while it’s a little out of favour. A growth stock for the 5G revolution Another AIM stock I’d buy today is Calnex Solutions (LSE: CLX). It’s a leading provider of specialist testing and measurement equipment for telecommunications networks. The reason I’m bullish on Calnex is that 5G networks are going to require an enormous amount of infrastructure. I was reminded of this recently when I travelled by train from London to Devon. For at least half the journey, phone reception was terrible. To handle new technologies such as autonomous vehicles, telecommunication networks will need to be far more robust. Calnex’s testing services should be in high demand. Calnex has grown at an impressive rate in recent years. Between FY2018 and FY2021, revenue climbed from £8.4m to £18m. The group may not see huge growth this financial year (ending 31 March, 2022) because last year, customers pulled their orders forward. The company has advised however, that it sees a “significant opportunity” for both organic and acquisitive growth in the medium term and that it looks to the future with confidence. A risk to remember here is currency related. Calnex generates a large proportion of its sales in US dollars. If the pound strengthens, these US dollar sales will be worth less. Calnex is also a very small company so its share price could be volatile. But I’m comfortable with these risks. To my mind, this stock has a lot of potential. It currently trades on a forward-looking P/E ratio of 26, which I see as a very reasonable valuation. The post 2 AIM stocks to buy in July appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The best growth stocks to buy with £2,000 in July 3 UK shares I’d buy in my ISA for the new bull market! John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Edward Sheldon owns shares of ASOS, Amazon, Calnex Solutions Plc, London Stock Exchange, and boohoo group. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended ASOS and boohoo group and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.
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  16. ASOS shares are rising: here’s what I would like to do (19/03/2021 - The Motley Fool UK)
    British online fashion retailer ASOS (LSE: ASC) shares have more than doubled in the past year. Of course, past performance is not an indication of future results. The company’s focus on young consumers helped it grow its revenues rapidly. On the other hand, the lockdown has helped to boost online sales. A good growth stock is a must for my portfolio. I would like to understand the pros and cons of investing in this stock. Bullish reasons to buy ASOS shares The company’s revenue growth is strong. It grew at a compounded annual growth rate of 23% from the fiscal year 2016 to the fiscal year 2020. In the trading period for the four months ended 31 December 2020 revenue grew 24% year-over-year to £1.4bn. It was primarily helped by UK retail sales growth of 36% y-o-y to £554m.  The company has a wide range of brands and products to offer. This has helped to retain and grow its customers. As per the most recent trading report, it has 24.5m active customers. The company has a strong social media presence with over 1m Twitter followers. This is almost double that of its competitor Boohoo. It also regularly uses Instagram and TikTok to engage with its customers. The company’s efficient use of social media has helped it to become a global brand.   ASOS has recently bought four brands from Arcadia Group, including Topshop, Topman, Miss Selfridge and HIIT. Topman has more than 3.3m active customers and Topshop has 11.8m Instagram followers. The move should increase the portfolio of its own products and also increase the company’s brand value.  The management expects the fiscal year 2021 profit before tax to be at the top end of market expectations. The company has a stable balance sheet. Cash generation was also positive for the last fiscal year. This is another reason why I like ASOS shares. It had a net cash position of £407.5m at the end of the fiscal year 2020. Risks to consider  There is a growing concern that high street stores are closing due to competition from online stores. This is definitely not a good trend for the overall economy in the long term. The government might introduce higher taxes for online-only stores in the coming months.  Also, the online retail segment is getting more competitive. The company has benefitted from the lockdown, but very soon most shops will be open. This might have a negative impact on the revenue growth of the company. The stock also had a good run in the past year. With the rise of valuations, some investors could sell to take profits.  Final view on ASOS shares I like the company for its strong revenue growth and good profits. However, the stock has moved a lot this year. The stock is currently trading at a price-to-earnings ratio of 45 and a price-to-sales ratio of 1.7. In my opinion, the stock is not cheap, also it is a bit more attractive compared to Boohoo. I will wait to buy the stock at a lower price. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading 3 of the best shares to buy as the ISA deadline approaches Royston Roche has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Twitter. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post ASOS shares are rising: here’s what I would like to do appeared first on The Motley Fool UK.
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  17. 2 high-growth stocks I’d buy in August (05/08/2021 - The Motley Fool UK)
    I recently screened for some high growth stocks, listed in the UK. After looking for shares with earnings per share (EPS) growth greater than 30% and at least five years of consecutive EPS growth, only six shares came up. Of those, two in particular caught my eye as possible additions to my investment portfolio. A high growth stock Gamma Communications (LSE: GAMA) is a UK tech share I added relatively recently to my portfolio. It develops and sells communications and software services to small, medium and large businesses, enabling home working and effective customer contact, for example. The Gamma Communications share price has momentum and there are a few reasons to think the shares, although expensive already, could re-rate higher. The main catalysts for continuing strong growth that I see are new product development, expansion into new European markets, increasing the number of channel partners it sells through and increases in hybrid and home working. The company still has a lot of room to grow outside the UK. It only gets about 12% of revenues from Europe, the rest is from the UK. The main risks with this company from an investor perspective, I think, are the possibility it expands too quickly and management takes its eye off the ball, or overstretches the balance sheet. This is always a risk for fast-growth companies. The other is overpaying for acquisitions. I have some concerns about the £40.2m purchase of Mission Labs, as that company only has revenues of £3.4m. Overall though, I think Gamma Communications is a company that can continue to grow strongly and I’ll likely add further to my currently very modest position. Facing problems but with massive growth potential I’ve not always had the most positive opinion on fast fashion retailer Boohoo (LSE: BOO), especially following its well publicised ESG failings. It was found that manufacturing outsourcers were paying workers less than the minimum wage. These failings have hit the share price – and any further revelations could do so further. There is an ongoing risk of legal action in the US in relation to alleged misleading discounts. Another risk in my view is consumers demanding fast fashion becomes more environmentally-friendly, especially as Boohoo caters to a younger demographic. That said, customers continue to like it and this translates into its strong, consistent growth. For me, the ongoing growth potential is the main reason I’d consider buying the shares. The shares have become much better value and now trade on a forward P/E of 22. Before the bad press, the P/E would have been well over 40, and sometimes more than triple where it is now.  Revenue has gone from £195m in 2016 to £1.24bn in 2020. Over the same timeframe, operating profit went from £15m to £91m. Return on capital employed has been steady in recent years at around 25%, which is very good. While it faces some challenges, which could tarnish the brand, it remains probably one of the fastest growing UK companies. For that reason, I’ll at least consider adding it to my portfolio this month. The post 2 high-growth stocks I’d buy in August appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Boohoo share price is below 300p. Is now a buying opportunity? 3 UK growth stocks I’ve been buying in July The Boohoo vs ASOS share price rated Is ASOS or boohoo a better stock to buy right now? As the Boohoo share price falls, should I buy? Andy Ross owns shares in Gamma Communications. The Motley Fool UK has recommended Gamma Communications and boohoo group. 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.
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  18. 2 stocks I’d buy over Rolls-Royce (14/05/2021 - The Motley Fool UK)
    Back in November, I highlighted a stock I’d buy over Rolls-Royce, even though the engineer is one of the most popular shares in the UK at present. That was dotDigital, an under-the-radar UK technology company that provides digital marketing solutions. That call worked out pretty well. Since that article, DOTD shares have risen about 45%. Over the same timeframe, Rolls-Royce shares have fallen about 4%.  Here, I’m going to discuss two more stocks I’d buy over Rolls-Royce. These may not deliver the same kind of short-term outperformance dotDigital did. However, in the long run, I expect them to outperform RR shares. This UK company is growing much faster than Rolls-Royce One UK stock I’d buy today is ASOS (LSE: ASC). It’s a leading online fashion retailer that offers a market-leading app and mobile/desktop experience in over 200 markets. In its last financial year (ended 31 August 2020), it generated sales of £3.2bn. ASOS has grown at a tremendous pace in recent years (five-year revenue growth of 185%) and, looking ahead, I expect the company to keep growing. Currently, City analysts expect the group to generate top-line growth of 22% this financial year and 18% next year. This growth is likely to be driven by the continuing shift to online shopping, increased smartphone penetration, advances in payments technologies, as well as new technologies such as augmented reality (which can be used to create ‘virtual’ changing rooms). But there are risks to the investment case here, of course. One is the threat of competition. ASOS faces intense rivalry from a number of other retailers including Boohoo and Next. With the stock currently trading on a forward-looking price-to-earnings ratio of less than 30 however, I think the long-term risk/reward proposition here is attractive. This growth stock is also hard to ignore Another stock I’d buy over Rolls-Royce today is Amazon (NASDAQ: AMZN), which is listed in the US. It’s the largest e-commerce company in the world. It’s also a leader in cloud computing with its Amazon Web Services (AWS) division. Amazon is continuing to grow at an unbelievable rate. Its first-quarter results, for example, showed 44% growth in the e-commerce division, along with 32% growth in its cloud division. Looking ahead, I think Amazon has a long-growth runway ahead. I’m particularly excited about growth in the company’s cloud division. The global cloud computing industry is projected to grow at about 18% per year between now and 2025. This should provide huge tailwinds for Amazon. It’s worth noting that since Amazon posted its Q1 results, a number of brokers have lifted their price targets for the stock and many of these targets are much higher than the current share price. One broker went as high as $5,500 – 70% higher than the current price. So Amazon is an expensive stock. Currently, it sports a forward-looking P/E ratio of just under 60 and that means there’s some valuation risk here. If growth stalls, the stock could take a hit. I just think that in five years’ time though, this company is likely to be much bigger than it is today. That’s why I’d buy its stock over Rolls-Royce shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Tesco shares or Amazon shares? Amazon just had a blowout quarter. Should I buy the stock now? Amazon earnings demolish expectations: 5 metrics you should see 2 of the best UK and US stocks to buy today 3 Warren Buffett stocks I’d buy for this bull market Edward Sheldon owns shares in ASOS, Boohoo, dotDigital, and Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended ASOS, boohoo group, and dotDigital Group and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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. The post 2 stocks I’d buy over Rolls-Royce appeared first on The Motley Fool UK.
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  19. Will the Boohoo share price keep climbing? (13/04/2021 - The Motley Fool UK)
    The Boohoo (LSE:BOO) share price has been quite volatile over the last 12 months, rising and falling by double-digit percentages in a relatively short space of time. But recently, things appear to have begun stabilising. And it is now on an upward trajectory. So what caused all the volatility in the first place? Will the share price continue to rise? And should I be adding this stock to my portfolio? The volatile Boohoo share price In early July last year, the Boohoo share price crashed by nearly 50% following allegations made by The Sunday Times. The newspaper was the first of many to accuse Boohoo of poor labour practices as well as putting its workers at risk during the pandemic. Needless to say, this is quite serious. And so I wasn’t surprised when other clothing retailers dropped Boohoo’s products from their e-stores. To make matters worse, the company could even be facing a US import ban on its products, reports have claimed. Boohoo swiftly launched an independent review of its business to investigate these allegations. And in September, the review found no evidence of any criminal activity. The management team also stated it was not aware of any ongoing investigations by the US Customs and Border Protection agency but is prepared to work with authorities if requested to do so. These allegations, while unproven, have created some notable reputational damage. And looking at Boohoo’s volatile share price, there appears to be quite a bit of uncertainty as well. Based on current information, I think it’s unlikely that Boohoo will receive a US ban. But if it does, then a quarter of the firm’s total revenue would disappear. And it would also lose access to its fastest growing market. The underlying performance is encouraging Setting aside these issues, the company itself is performing exceptionally well. At least, I think so. In January earlier this year, Boohoo released a trading update that showed total revenues grew by 42% over the last 10 months. Seeing that level of growth coming from a fashion retailer is exceptional in my experience. And it would seem that the loss of the previously mentioned partnerships with other retailers hasn’t had a significant impact on performance. What’s more, the increased profits are being put to good use. Boohoo recently announced an expansion to its warehouse facilities to be completed later this year. Once operational, the site will substantially increase the business’s annual sales capacity. Combined, its four locations will give the group net sales capacity in excess of £4bn. Assuming it can continue generating more orders to take advantage of this increased capacity, I believe that the Boohoo share price can continue to climb even higher over the long term. The bottom line Boohoo continues to impress me. However, there is no denying that the scrutiny the company is currently facing adds a considerable level of risk and uncertainty. At today’s share price, Boohoo has a P/E ratio of around 50, which is relatively expensive even with its impressive growth. And in my experience, a high valuation mixed with uncertainty don’t tend to be a winning combination. So, while I do believe the business will thrive over the long term, I’m not going to be adding any shares to my portfolio today. But I did find another high-growth stock that looks far cheaper… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Will Boohoo shares rise after ASOS’s results? Zaven Boyrazian does not own shares in Boohoo Group. The Motley Fool UK has recommended Boohoo Group. 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. The post Will the Boohoo share price keep climbing? appeared first on The Motley Fool UK.
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  20. Boohoo shares: should I buy the stock today? (18/02/2021 - The Motley Fool UK)
    Boohoo (LSE: BOO) shares rose 15% in the past year. There is an increasing trend of online shopping in the past few years. I want to look deeper into the company to decide whether now is the right time to buy the stock. Boohoo shares’ fundamentals The company’s revenue growth has been strong. In the recent trading update released in January, revenue for the four months ended 31 December 2020 grew by 40% year-over-year to £660.8m. Growth has been strong in all the regions the company is operating in. UK revenue grew by 40% year-over-year to £357.2m, US revenue grew by 52% to £167.7m, rest of Europe grew by 30% to £90.4m, and the rest of the world grew by 20% to £45.5m. The group’s revenue for the 10 months ending 31 December 2020 grew by 42% to £1.47bn.  The management’s outlook is also strong for the future. The group’s revenue growth for the financial year to 28 February 2021 is expected to be 36% to 38%. This is better than the company’s earlier estimate of 28% to 32% growth. Taking into consideration the slowing growth in most companies, I believe this is very positive.  Another important metric is the profits of the company. The group continues to expect to deliver adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) margin at around 10%. The management’s medium-term guidance is 25% sales growth per annum and a 10% adjusted EBITDA margin. The company has a stable balance sheet as it had net cash of £386.9m.  Boohoo shares’ recent acquisitions The company has agreed to acquire all of the e-commerce and digital assets and associated intellectual property rights, including customer data, related business information, and inventory of the Burton, Dorothy Perkins and Wallis brands from Arcadia Group Limited. Boohoo will pay £25.2m from its cash resources. In addition to the strong brands, the deal will significantly increase the company’s active customers. Another advantage is it helps to grow Boohoo’s market share across a broader demographic.  Another important recent acquisition is the intellectual property assets including customer data and related business information and selected contracts of Debenhams for £55m in cash. The company is not acquiring any stores or stock. The deal will help the company to increase online market share along with expansion into the beauty, sports, and homeware market.  Risks to consider in Boohoo shares The company’s recent acquisitions might incur some additional costs in the near term, and there’s no assurance they will add value to the company. Boohoo might also be a victim of the cut-throat competition in the online retail space. The UK government is also planning to implement a 2% online sales tax on e-commerce sellers and marketplaces. The online tax could have a negative impact on online retail companies including Boohoo. Boohoo shares are currently trading at a price-to-earnings (P/E) ratio of 55. In spite of the various advantages of investing in the company, I would like to wait for a lower entry price as I feel the P/E ratio is expensive at the moment. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? 2 UK growth stocks I’d buy in February Should I buy or avoid Boohoo shares? Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. 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. The post Boohoo shares: should I buy the stock today? appeared first on The Motley Fool UK.
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  21. Where is the Boohoo share price going in June? (04/06/2021 - The Motley Fool UK)
    We Boohoo (LSE: BOO) shareholders haven’t had a great 2021 so far, with our shares down 9% since the start of the year. But we’ve just seen a bit of an uptick in the past couple of days, so where is the share price likely to go in June? Based purely on my opinion that Boohoo shares are undervalued, I reckon it should go up. But I do see some factors that appear to be holding it back. For one thing, the attraction of online sellers that propelled so many of them upwards in 2020 is subsiding. When high street stores are all closed, that’s good news for online retail, for sure. But that’s over now. And I think the early pandemic climb in 2020 was overdone. Well, overdone for the short term if it was based solely on the store closures effect, that is. With a long-term view to the company’s potential growth, I reckon the Boohoo share price was still good value, even at its high point last year. Boohoo share price volatility But the past year or so does highlight for me a couple of the risks of buying Boohoo shares. One is that, as with just about any growth share, there’s a lot of sentiment behind the price. And that sentiment can often turn sour. I think Boohoo should be one of June’s winners. But sentiment leads to volatility, and there’s every chance we could see a couple of bearish summer months. The Boohoo share price is up 35% over the past two years, which is a great result. But it’s down nearly 30% since mid-June last year. So depending on when an investor might have bought, Boohoo could be anything from a big winner to a big loser right now. And that’s in the space of just two years. The other big risk is it’s actually very hard to put a rational valuation on the stock. We’re now looking at a trailing P/E of over 40. There’s a lot of future growth already built into that valuation. I might simply have got my assessment wrong, and the shares might be overvalued. I don’t think so, but there’s uncertainty here. Slowing growth? There’s one other thing I reckon could be holding the Boohoo share price back from a bullish summer. It comes from the company’s last set of results. They were just fine, in my view. But the outlook for the current year will have disappointed some investors. Boohoo expects revenue growth of around 25%, which might sound good. But it does follow on from a year with 40% growth. And when revenue growth for a stock like this starts to slow, we often see a period of weakness. So to sum up. I think Boohoo deserves to gain in June. But there are short-term factors I think could hold it back. Still, I say that’s a good thing for investors who are still in a net buying phase. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Here’s what I’m doing about Boohoo shares Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? What’s next for the Boohoo share price? Alan Oscroft owns shares of boohoo group. The Motley Fool UK has recommended boohoo group. 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. The post Where is the Boohoo share price going in June? appeared first on The Motley Fool UK.
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  22. I’m avoiding the BP share price. I prefer this FTSE AIM stock for 2021 instead (09/02/2021 - The Motley Fool UK)
    The price of Brent crude oil has recovered from the economic downturn in 2020. BP (LSE:BP) and other oil companies suffered badly from the impact of Covid-19. Recently, the BP share price has been fluctuating. Could 2021 see a recovery on the horizon for the FTSE 100 giant? BP share price woes BP lost approximately 45% of its share price value in the space of a month between February and March 2020. At its lowest point, shares were trading for $233 per share. As I write this, I can buy shares for $260 a share. This is only a 10% increase in total over around 11 months. Brent crude is currently trading close to $60 per barrel, which is similar to pre-Covid levels and 13-month highs. Despite the recovery in the oil price, I’m not overly buoyed by the BP share price for 2021 and beyond. I’m concerned about the risks that the oil producer faces. The Covid-19 saga continues to rumble on, with new strains dominating the headlines so far this year. This means further restrictions could well affect the demand for oil. There are also political factors that could affect the oil industry. Sanctions against Iran being lifted could mean a wave of unwanted oil released onto the market, which would drive current prices down. A major positive in my eyes is BP’s commitment towards green energy. It wants to generate 50 gigawatts (GW) of renewable energy such as wind, solar and hydropower in its portfolio by 2030. This is an increase up from just 2.5 GW currently. FTSE AIM opportunity ASOS (LSE:ASC) recently announced the acquisition of the Topshop and Miss Selfridge brands from Arcadia in a deal worth £330m. The online fast fashion retailer has been going from strength to strength over the years. I think these acquisitions could catapult it even further, and 2021 could be an exciting year for the company. While the high street shopping experience dwindled even further due to Covid-19, online-only brands have flourished. Since the market crash low, ASC has seen an astonishing 375% increase in its share price, which is the opposite tracjectory of the BP share price. ASC’s shrewd investment in Topshop and Miss Selfridge could add hundreds of millions to its coffers. In 2020, the fallen Arcadia brands generated approximately £265m. I believe these figures could climb further by appearing on the ASOS platform, backed by its savvy digital marketing expertise. Risk and reward For me there are too many risks involved with BP. I do not even see it as a contrarian buy-and-hold investment right now, despite the fact it is one of the major oil players in the world and has a long history in the FTSE 100. ASOS has improved in growing its profits, which have increased from 1% to nearly 5% in the last year. As with any stock, there are risks involved. ASC continues to invest massively in warehouses, which could affect profitability and efficiency if sales do stagnate. That’s because warehouses are fixed, unavoidable costs. In addition, the FTSE AIM star, and other online fast fashion retailers, are under the microscope to ensure environmental and socially friendly practises. A recent supplier scandal at rival Boohoo rocked the company’s share price. I would still rather invest my hard earned cash in ASOS over the BP share price right now. Here is another stock I am avoiding in 2021. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading BP’s share price is rising! Should I buy the FTSE 100 stock now or buy other UK shares for my ISA? The Boohoo share price has underperformed Asos. Should I buy the stock? The Lloyds share price is recovering but here’s why I won’t buy back in Royal Dutch Shell vs the BP share price: which is right for me? The oil price recovery should drive up the BP share price, but I expect a bumpy ride Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended ASOS. 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. The post I’m avoiding the BP share price. I prefer this FTSE AIM stock for 2021 instead appeared first on The Motley Fool UK.
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  23. Here are the UK growth stocks I own right now (19/04/2021 - The Motley Fool UK)
    UK growth stocks have played a valuable role in my investment portfolio in recent years. While many of my blue-chip FTSE 100 dividend stocks have delivered underwhelming returns, most of my growth stocks have risen in value, powering my portfolio higher. Today, I’m going to give Motley Fool readers some insight into my portfolio by listing the 13 UK growth stocks I currently own. Combined, these stocks represent about 25% of my overall portfolio. My UK growth stocks Within my UK growth stocks chart above,  you can see my two largest holdings are online fashion retailers ASOS and Boohoo. I own these stocks because I expect the e-commerce industry to get much bigger in the years ahead and I think these companies should benefit. After ASC and BOO, my next largest growth stock holdings are property website group Rightmove and IT infrastructure company Softcat. I like these companies because they have good long-term growth track records and are very profitable. DotDigital, Alpha FX, and Keystone Law are three more under-the-radar UK growth stocks I own. DotDigital is an innovative tech company that offers a digital marketing platform. Alpha FX is a founder-led financial services firm that specialises in foreign exchange risk management. Keystone is a disruptive platform-based law firm. All three companies are growing rapidly and are very profitable. The next three holdings, GB Group, Keywords Studios, and Gamma Communications are all UK tech stocks. GB Group specialises in identity management while Keywords Studios offers technical services to the video game industry. Gamma provides unified communication services, helping businesses enable their employers to work remotely. I think all three are well-placed for growth in today’s digital world. Finally, I have smaller positions in 5G network testing specialist Calnex Solutions, JD Sports Fashion, and Clipper Logistics. Higher-risk shares I’ll stress that all of these stocks are higher-risk. Many of them are small-cap stocks which means their share prices can be very volatile at times. Additionally, most trade at high valuations meaning there’s valuation risk. If growth slows, their share prices could fall. However, I’m comfortable with these risks. They also represent a relatively small proportion of my overall stock portfolio. So, if one or two of these stocks were to underperform, my overall portfolio wouldn’t take a huge hit. How my growth stocks have performed In terms of performance, my growth stocks have performed quite well. With the exception of Calnex and Gamma (which are both relatively new holdings for me) all of these stocks have delivered double- or triple-digit returns. Stock Gain/loss % ASOS 195% Boohoo 37% Rightmove 28% Softcat 75% Dotdigital 114% Alpha FX 110% Keystone Law 23% GB Group 145% Keywords Studios 152% Gamma Communications 4% Calnex Solutions -7% JD Sports Fashion 183% Clipper Logistics 29% What’s my secret to success? Well, for starters, I focus on companies that are already profitable and generating consistent growth. I find this dramatically increases the chance of success with UK growth stocks. Secondly, I tend to focus on companies that are highly profitable. Most of these have a very high return on capital employed (ROCE). Softcat, for example, has a five-year average ROCE of 62%. Third, I tend to buy my growth stocks during periods of stock market volatility. This often provides more attractive entry points. Finally, I hold my growth stocks for the long term. These gains haven’t come overnight. In most cases, they’ve come over several years. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading UK shares to buy now: how I’d invest £2,000 today The HSBC share price is rising. Is now the time to buy? Here’s why I think the Barclays share price could climb in 2021/22 2 of the best UK high-dividend shares Hargreaves Lansdown investors are buying GSK shares. Should I? Edward Sheldon owns shares in Alpha FX, ASOS, boohoo group, Calnex Solutions, JD Sports Fashion, GB Group, Keystone Law, Clipper Logistics, dotDigital Group, Gamma Communications, Keywords Studios, Rightmove, and Softcat. The Motley Fool UK has recommended Alpha FX, ASOS, boohoo group, Clipper Logistics, dotDigital Group, Gamma Communications, Keywords Studios, Rightmove, and Softcat. 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. The post Here are the UK growth stocks I own right now appeared first on The Motley Fool UK.
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  24. UK e-commerce stocks: here are some of my top picks for 2021 (26/04/2021 - The Motley Fool UK)
    When it comes to growth industries, it’s hard to ignore e-commerce. Over the last five years, global online retail sales have grown from around $1.5trn to around $4.3trn. By 2027, e-sales are expected to reach a whopping $10trn. For investors, this extraordinary industry growth is creating many lucrative opportunities. With that in mind, here’s a look at my top UK e-commerce stocks for 2021 and beyond. UK e-commerce stocks: online retailers Let’s start with e-tailers. In this sub-sector of the online shopping market, my preferred plays are fashion retailers ASOS and Boohoo. These are pureplay online retailers. In other words, they’ve no physical stores. Both of these businesses are growing at a rapid rate. ASOS, for example, has registered five-year annualised sales growth of 23%. Boohoo has done even better, generating five-year annualised revenue growth of about 55%. Going forward, both companies look set for continued growth. That said, e-commerce is a competitive industry and these companies face intense competition from the likes of Zalando and Amazon. Another UK online retailer I think is worth mentioning here is Ocado. It’s the leader in the grocery market. It’s growing at a fast pace but losing money currently due to the investments it’s making in its warehouse automation division. There are also some companies that generate a proportion of their sales online such as JD Sports Fashion. I think JD is well-placed to benefit from the ‘casualisation’ trend and the increasing demand for premium athletic footwear. Like ASOS and Boohoo though, it faces plenty of competition. Warehouse stocks Another area of the e-commerce value chain that can provide investors with opportunities is warehousing and logistics. My preferred plays here are Tritax Big Box REIT, Urban Logistics, and Clipper Logistics. Tritax and Urban Logistics provide crucial warehousing services to retailers such as Amazon and delivery companies such as DHL. Clipper, meanwhile, provides a range of services to retailers including warehousing, delivery, and returns management. Two other companies worth a mention are Segro and Warehouse REIT, which both manage warehouses. All of these companies look well-positioned to benefit from the growth of e-commerce, in my view. However, they do face risks. In economic downturns, warehousing companies cannot always collect all their rent. Packaging stocks Packaging companies are also worth checking out when looking at e-commerce stocks. After all, nearly everything we buy online comes in some form of cardboard box or plastic packaging. My preferred play here is DS Smith. It’s a packaging powerhouse with a focus on sustainable packaging. Three other UK companies in this space worth a mention are Mondi, Smurfit Kappa, and Macfarlane. I’ll point out that packaging is quite cyclical. These companies can suffer during economic contractions. Online shopping stocks: I’m investing globally It’s worth noting that many of the most dominant e-commerce stocks are listed overseas. For example, companies such as Amazon, Shopify, and eBay are all listed in the US. The US also has plenty of payments companies such as Mastercard, Visa, and PayPal, which are all benefiting from the growth of e-commerce too. I personally own both UK and US e-commerce stocks in my portfolio. I figure that this is the best approach to get broad, diversified exposure to this high-growth industry. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 British dividend stocks I’d buy for passive income 3 UK funds I’ve been buying for my Stocks and Shares ISA How to prove financial hardship The Helium One share price is surging. Should I buy now? The Shell share price crashed 50% in 2 years. I’d buy RDSB now Edward Sheldon owns shares in ASOS, Boohoo, JD Sports Fashion, Tritax Big Box, Clipper Logistics, DS Smith, Mondi, Amazon, Shopify, Mastercard, and PayPal. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Mastercard, PayPal Holdings, Shopify, and Visa. The Motley Fool UK has recommended ASOS, boohoo group, Clipper Logistics, DS Smith, eBay, Tritax Big Box REIT, and Warehouse REIT and recommends the following options: long January 2022 $1920 calls on Amazon, short June 2021 $65 calls on eBay, short January 2022 $1940 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. 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. The post UK e-commerce stocks: here are some of my top picks for 2021 appeared first on The Motley Fool UK.
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  25. Boohoo’s share price has fallen. Should I buy the stock now? (08/03/2021 - The Motley Fool UK)
    Boohoo’s (LSE: BOO) share price has been volatile in 2021. At times, it’s surged higher. On other occasions, it has pulled back sharply. Recently, the stock has pulled back again. As I write, it’s now close to its 2021 lows. Is this a buying opportunity for me? Let’s take a look at the investment case. What I like about Boohoo There are a number of things I like about Boohoo. For starters, it owns a number of powerful brands including PrettyLittleThing, Nasty Gal, MissPap and, of course, Boohoo. This year, it’s added more top brands to its portfolio including Debenhams, Dorothy Perkins, and Burton. These new additions could boost growth significantly. I particularly like the Debenhams acquisition. Its UK website gets approximately 300m visits per year. Secondly, Boohoo and its brands have incredible social media presence. On Instagram, for example, PrettyLittleThing has 13.1m followers (up from 12.5m in September) while Boohoo has 7.2m followers. Through Instagram, consumers can click through to purchase goods. Third, the company is growing at a phenomenal rate. Its last trading update in January showed total revenue growth of 40% for the four months to 31 December. There aren’t many retailers in the UK generating that kind of top-line growth. Finally, the company is financially strong and very profitable. Over the last three years, return on capital employed (ROCE) has averaged 22%. US import ban? Boohoo isn’t perfect however. The company seems to be regularly in the news for all the wrong reasons. For example, just last week, Sky News reported Boohoo and many of its suppliers are facing the possibility of a US import ban because of widespread allegations over the use of “slave labour”. According to Sky, US Customs and Border Protection (CBP) has seen enough evidence to launch an investigation into the company. Boohoo replied that it’s confident in the actions it’s taking to ensure all of its products meet the CBP criteria on preventing the product of forced labour entering the US. It also advised it hasn’t been notified of any investigation. However, this issue adds uncertainty to the investment case. US sales are currently about 25% of group total. So, a US ban would be a huge setback for the company. Is Boohoo’s share price a bargain? Turning to the valuation, Boohoo shares currently trade on a forward-looking P/E ratio of about 31. Normally, I’d say that’s an attractive valuation for a company growing as fast as Boohoo. However, given the uncertainty over the US investigation, that valuation does add some risk. My view on BOO shares Overall, I’m cautiously optimistic in relation to the outlook for Boohoo shares. There are certainly risks to be aware of. However, in my view, the company continues to have significant growth potential. I’d be willing to buy a small amount of shares for my portfolio today after the recent pullback. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Boohoo shares in my portfolio? The Boohoo share price is sliding: should I buy the stock today? A high-growth UK share I’d buy in my ISA and hold for 10 years Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Edward Sheldon owns shares in Boohoo. The Motley Fool UK has recommended boohoo group. 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. The post Boohoo’s share price has fallen. Should I buy the stock now? appeared first on The Motley Fool UK.
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  26. Should I buy Boohoo shares in my portfolio? (04/03/2021 - The Motley Fool UK)
    Boohoo (LSE: BOO) shares have been the AIM-darling, especially during the pandemic when the online retailer has seen a surge in sales. But the company is in the limelight again and not for the right reasons. New slave labour allegations against Boohoo have been made, which I’ll cover in detail. Will I be buying Boohoo shares now? No, and here’s why. Latest allegations Boohoo and its suppliers are facing the possibility of a US import ban due to allegations over the use of slave labour. In fact, Duncan Jepson, who runs the charity Liberty Shared, has claimed that Boohoo isn’t doing enough to stop forced labour in its suppliers’ Leicester factories. There are now reports that the US Customs and Border Protection (CBP) has seen enough evidence to launch an investigation after petitions from the campaigning British lawyer. If these allegations are true then I reckon there could be some severe implications for the company. If the US did block Boohoo’s products then its revenues would be hit. The company generates 20% of its sales from the region. Boohoo’s reputation and investor confidence would also be hit. If the allegations are proven true, I’d expect the shares to fall significantly. Boohoo released a statement in response to the media commentary. The company stated it hadn’t been informed of any investigation by the CBP, and that it is confident that it’s meeting the CBP’s criteria on preventing forced labour. Boohoo also stated that it’s willing to work with any authority to provide assurance that its products meet the required standards. Previous problems I must admit, I’m not surprised over the latest allegation regarding Boohoo. But it makes me uncomfortable investing in the stock. The company has had its fair share of problems, which have yet to be resolved. This isn’t the first time Boohoo has had slave labour allegations made against it. In 2019, it became the centre of  a scandal relating to exploitation of workers at its suppliers’ factories in Leicester. As a result, the company carried out a series of measures to reassure investors. One of these measures included hiring Sir Brian Leveson in November 2020 to provide independent oversight of its ‘Agenda for Change’ programme. This initiative’s focus is on key areas such as corporate governance and supply chain standards. However, I’m not convinced that the company is doing enough from a governance point of view. So I won’t be buying Boohoo shares for now.  The CPB’s inquiry may confirm that Boohoo is complying with standards. But it makes me wary over investing in the shares in my portfolio. Sales growth I can’t deny Boohoo’s phenomenal revenue growth. I expect this to continue. The combination of its own brands along with the recent acquisitions should help boost sales. It recently purchased the Debenhams brand and website, but not its stores. In its recent trading update, Boohoo expects full-year revenue growth to be between 36% and 38%, up from its previous guidance of 28% to 32%. I think this is very impressive. But for me, I reckon the concerns over governance are an overhang on the stock. For now, I continue to monitor Boohoo shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Boohoo share price is sliding: should I buy the stock today? A high-growth UK share I’d buy in my ISA and hold for 10 years Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. 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. The post Should I buy Boohoo shares in my portfolio? appeared first on The Motley Fool UK.
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  27. Is this news just what’s needed to boost the Marks & Spencer share price? (11/03/2021 - The Motley Fool UK)
    Marks & Spencer (LSE: MKS) has been struggling for years. While it’s always been good at selling food, its record in the clothing business has been wanting. Year upon year, M&S just can’t seem to buy in the clothing that people want — leaving more competent rivals to clean up. The effect on the Marks & Spencer share price has been devastating. Over the past five years, the shares have fallen approximately 50%. Over 10 years, we’re also looking at a drop of around 50%. What about 20 years? Guess what? A loss of about 50%. It looks like there’s something of a trend here, but there have been intermittent ups and downs in between. In fact, those who were phenomenally unlucky and bought in April 2007 have seen the M&S share price plunge nearly 80%. So what’s the latest M&S approach to trying to fix the problems? Well, it’s going to sell other people clothes. Under a new Brands at M&S banner, the company is going to offer clothing from 11 rival producers. It will only be online, mind, so it won’t do anything to help footfall at high street stores. But then, little can be done about that until the Covid lockdown eases anyway. And if online selling gets a boost, maybe we could eventually see these new brands appearing in stores? Turbocharging growth? M&S says the venture is intended to “adapt its clothing business to be more relevant, more often to customers, including introducing exciting partner brands to turbocharge online growth.” I don’t know about turbocharge, but I think any kind of charge would be a help — especially if the M&S share price sees any benefit. So what of those partner brands? In the next few months, we’re going to see Hobbs, Jack & Jones, Triumph, Seasalt Cornwall, Phase Eight and others appearing on the website. They’re all well known and popular brands. And speaking of well known brands, M&S bought the Jaeger brand from administrators in January. It was previously owned by Edinburgh Woollen Mill Group, which sadly went bust. The deal doesn’t include the stores, and it sounds like it could be a canny move. Will this make a difference for M&S as an investment? I’m really not sure. Director of Brands Neil Harrison reckons the new mix will offer the firm’s customers something new. But M&S needs to reach the many more millions out there relying on retailers like Next, Boohoo, and ASOS, who are masters of the online selling art. I think latching on to a handful of popular brands might help it do just that. Marks & Spencer share price rebound We’re coming out of the Covid-19 crisis — which led to M&S recording its first ever loss as a public company. And with shoppers hopefully returning, it seems like a good time for a new plan. The Marks & Spencer share price has picked up since November too, for a relatively modest 15% fall since mid-February last year. But I suspect M&S’s wider transformation plan still has some way to go before we’ll see much improvement on the bottom line, and I’ll wait and see. For now, my rag trade investment cash is staying in Boohoo shares. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’d avoid the MKS share price and buy these cheap UK stocks instead Alan Oscroft owns shares of boohoo group. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended ASOS and boohoo group. 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. The post Is this news just what’s needed to boost the Marks & Spencer share price? appeared first on The Motley Fool UK.
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  28. Could Boohoo shares be star buys of the summer? (18/06/2021 - The Motley Fool UK)
    The Boohoo (LSE:BOO) share price has been choppy over the past year. The fast fashion retailer has seen equally fast swings in sentiment from investors. The share price is down 16% over a one-year period, although up 4% over the past six months. With first-quarter results released earlier this week, could the direction for Boohoo shares be higher? Recent results In the three months to the end of May, Boohoo saw a 32% increase in revenue when compared to the same period last year. This growth was driven by the UK and USA, with other markets showing a decrease. It spent money on some big investments with an outlay of £143.5 million. This was mainly around new offices and distribution centres. Although this decreased the cash balance, I’m not too concerned. Investing in infrastructure like this is a long-term benefit for the company, and for Boohoo shares in general. The other interesting element in its results was the report by Sir Brian Leveson on its supply chain initiative, Agenda for Change. This is specifically geared around the issues thrown up last year about low pay and unsafe working conditions in Leicester. It included some positive developments, but it’s too early to assess the results as this is a multi-year project. Yet it’s clear that Boohoo is using this as another way of gauging performance, aside from finances. Reasons to be positive I think Boohoo shares could accelerate higher this summer and beyond as organic consumer demand rises. The easing of lockdown restrictions will likely see many looking to refresh their wardrobes as socialising and events become more frequent. The segment of the fashion industry that Boohoo operates in should allow it to capture this demand. After all, it’s mostly geared to a younger consumer who’s keen to socialise. Further, the integration of brands such as Dorothy Perkins and Burton from the failed Arcadia empire is already helping revenue. Looking forward, Boohoo shares should benefit from this increased diversification. Caution with Boohoo shares There are some risks that I see for Boohoo shares. The business has stated that it’s committed to changing and improving standards within the company and with suppliers. But this isn’t something that can be fixed overnight. There could be more damaging practices that will come to light as the spotlight is shone on it. Ultimately, this could hamper the reputation of Boohoo and see a fall in the share price. Another risk is that Boohoo might actually lose out on some custom as customers decide to trade up to other brands. Over the past year, the amount saved by people in the UK has shot up. Now that people are feeling more confident about the state of the economy, it should encourage spending. Even for myself, my lack of purchases over the past year mean that now I’m happier to buy something a little bit more expensive now. Overall, I do think the benefits outweigh the risks for Boohoo shares, and I think they will rise this summer and beyond. However, I don’t see the firm as a star buy for my portfolio, and I think there are better opportunities elsewhere. The post Could Boohoo shares be star buys of the summer? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Will the Boohoo share price recover in 2021? Are Boohoo shares worth buying today? Why the Boohoo share price still looks cheap Should I buy Boohoo shares? Where is the Boohoo share price going in June? Jonathansmith1 has no position in any shares mentioned. The Motley Fool UK has recommended boohoo group. 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.
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  29. 2 UK stocks I’d buy for a K-shaped recovery (15/02/2021 - The Motley Fool UK)
    In terms of the shape of the economic recovery ahead, I believe there’s a good chance it will be ‘K-shaped.’ With this form of recovery, some areas of the economy get stronger, while others get weaker. Fundsmith portfolio manager Terry Smith appears to share my view. In his recent letter to investors, he wrote that the concept might “help to explain what may happen.” Here, I’m going to discuss two UK stocks I’d buy for a K-shaped recovery. In my view, both are well placed for the ‘new normal’. An online retailer for a K-shaped recovery One UK stock that strikes me as a good way to play a K-shaped economic recovery is online fashion retailer Boohoo (LSE:BOO). While high street retailers have struggled over the last year, its sales have exploded. For the four months ended 31 December, for example, revenue was up 40%. Boohoo has a number of things going for it at present. Firstly, it’s benefitting from the shift to online shopping. Between now and 2025, online fashion sales are expected to boom. Secondly, it’s benefitting from a number of lifestyle trends. The increased focus on health and wellness is boosting demand for athleisure wear. Meanwhile, the increase in the number of people working from home is boosting demand for loungewear. Boohoo has made a number of acquisitions recently that could boost growth significantly. Last month, it acquired the Debenhams brand. This month, it has picked up the Dorothy Perkins, Burton, and Wallis brands. The company believes these brands strengthen its position as a leader in the global fashion and beauty e-commerce markets. There are some risks to be aware of here. One is integration risk. There is no guarantee the recent acquisitions will be successful. Another is a potential UK tax on online retailers. There’s also some valuation risk, as the forward-looking P/E of 35 doesn’t leave a huge margin of safety. Overall however, I see a lot of appeal in Boohoo shares. I see it as a good play for a K-shaped recovery. A UK disruptor Another UK stock that I believe could do well in a K-shaped recovery is Keystone Law (LSE: KEYS). It’s an innovative platform-based legal firm that allows its lawyers to work remotely and is therefore very scalable. Last year, it was named ‘Law Firm of the Year’ at the Lawyer Awards. Keystone posted a very encouraging trading update last month in which it advised that trading throughout December and early January had been “exceptionally strong”. As a result of this performance, the group advised that adjusted profit before tax for the period would be “materially ahead” of market expectations. Looking ahead, Keystone is expected to keep growing. City analysts expect the company to generate revenue and net profit growth of about 10.4% and 9.8% respectively this financial year. KEYS shares currently trade on a forward-looking P/E ratio of about 40. This means there is certainly some valuation risk here. If future performance is poor, the shares are likely to fall. It’s also worth noting that this is a small-cap company with a market cap of less than £200m. Stocks of this size can be highly volatile. All things considered, however, I think this growth stock looks attractive. I see it as a good one to own in my portfolio for a K-shaped recovery. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? 2 UK growth stocks I’d buy in February Should I buy or avoid Boohoo shares? I was right about the Boohoo share price last October. Here’s my plan for 2021 Edward Sheldon owns shares in Boohoo and Keystone Law and has a position in Fundsmith.  The Motley Fool UK has recommended boohoo group. 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. The post 2 UK stocks I’d buy for a K-shaped recovery appeared first on The Motley Fool UK.
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  30. I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock (15/07/2021 - The Motley Fool UK)
    Rolls-Royce (LSE:RR.) had a 2020 to forget. And the Rolls-Royce share price has continued to fall in 2021. I prefer another FTSE stock that I believe is a good option for my portfolio. Rolls-Royce share price continues to falter in 2021 Rolls-Royce was already having issues prior to Covid-19, like the Trent 1000 engine problem which cost $1bn to rectify. The pandemic saw RR cut approximately 9,000 jobs and was staring down the barrel of a multi-billion dollar loss for 2020.  As I write, the Rolls-Royce share price is down by nearly 15% in 2021. I can currently buy shares in RR for 92p per share. In 2020 alone, its share price fell by 54% from 234p to 107p per share.  I believe there could be better days ahead for Rolls-Royce, however. It has undergone a cost-cutting exercise which will help save it over £1bn. Next, the aviation sector as a whole will eventually return to what it was pre-Covid-19 although this may take a few years. Finally, the rollout of the vaccine will help normality resume and, in turn, help RR. Rolls-Royce is due to release first-half results in August. I am not buoyed by the Rolls-Royce share price currently but will check out these results. For now, I will avoid Rolls-Royce for my portfolio and look to other FTSE stocks. FTSE AIM stock falls to make it cheap ASOS (LSE:ASC) released its most recent results today. A negative reaction has caused a drop in its share price. I think this could be a prime buying opportunity to add ASOS shares to my portfolio. Unlike the Rolls-Royce share price, the ASOS share price has performed well in 2021 until the beginning of July. It rose by 5% from 4881p per share to 5150p. As I write, the ASOS shares are trading for 3920p per share. This is a remarkable 23% dip in 2021 overall. At current levels it is at its cheapest point since August last year. Traditional clothing retailers were hit hard by the Covid-19 pandemic but e-commerce clothing giants such as ASOS benefited. In ASOS’s trading statement for the four months to June, retail sales rose by 36% year-on-year to £1.24bn. UK sales rose by 60% year-on-year while international sales rose 15% compared to the same period last year. Despite ASOS experiencing strong sales, I believe investors have reacted negatively to news that trading had slowed in recent weeks. The final three weeks of the trading period was described as “more muted” due to Covid-19 uncertainty and poor weather. ASOS said it expects such trading volatility to continue in the short term. In addition to this, global supply chain issues with freight and delivery will hamper ASOS too. My verdict on ASOS I think comparing just the ASOS share price and Rolls-Royce share price to consider which to buy would be the wrong way of looking at things. There is lots more to consider and I much prefer FTSE AIM incumbent ASOS despite its share price drop today. I am fully aware of the challenges ASOS faces with headwinds expected from supply chain issues and the ongoing pandemic affecting operations and sales. Despite that, its share price drop has presented an excellent opportunity to add ASOS shares to my portfolio just now. The post I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The ASOS share price collapses to 11-month lows! Is now the time to buy? The Rolls-Royce share price continues to fall: should I buy now? The Rolls-Royce share price is falling. Is the stock one to buy? Why is Rolls-Royce a penny stock? What’s going on with the Rolls-Royce share price? Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended ASOS. 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.
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  31. The ASOS share price is up 23% in 2021. Can it keep growing? (19/02/2021 - The Motley Fool UK)
    It’s no secret that online retail has been one of the biggest winners emerging from the pandemic. At the high street’s expense, e-commerce stores have been booming with many of us mostly confined to our homes under lockdown restrictions. This is a trend that was very much gathering pace before Covid-19 entered our lives. The pandemic just greatly accelerated that move. As a result, the ASOS (LSE:ASC) share price has rocketed 60% in the last 12 months. The shares have even increased 23% in 2021 so far. But how much room does the share price have to grow from here? Here’s what I think. Top purchase Perhaps the biggest news to come out concerning ASOS in recent months is the acquisition of Arcadia Group brands Topshop and Miss Selfridge in a deal worth over £300m.  This acquisition does not include the physical stores. In my opinion this was a wise move by ASOS, as online retail is its expertise and will make the purchase better value for the group as a whole. The deal only strengthens the brand reputation and market share held by ASOS for online fast fashion and gives it full control over brands that were big wholesale partners. The FTSE AIM company’s financials have been going from strength to strength throughout the pandemic. In its most recent earnings report, it said full-year 2021 pre-tax profit is set to be at the top end of current market expectations. Asos added its “exceptional” UK growth indicated “strength of market position as well as restrictions on non-essential retail stores through the peak period“. Crucially, it’s my opinion that ASOS’s profit growth is down to a fundamental and long-term structural change in how we shop. My thoughts are backed up by analysts at Bank of America, who recently upgraded the ASOS share price to ‘buy’ based on that assumption. As my colleague Edward Sheldon referenced, BoA analysts said “the pandemic seems to have irreversibly accelerated changes in consumer behaviour.” Online sales tax As with any investment however, there is still a risk to the ASOS share price today. The fear with any stock that rises so much over a short period of time is that it becomes overpriced or even a bubble waiting to burst. Trading with a price-to-earnings ratio of 45, the ASOS share price does seem particularly expensive at the moment. Any bad news could send it sharply downwards. Another factor that could weigh on the shares over the next few months is the fact that the UK government said it would look to introduce an online sales tax in response to the e-commerce boom and high street decline. Newspaper reports said Treasury officials had called technology companies and retailers to a meeting before the budget in March to discuss how an online sales tax would work. The tax would be a way of examining the “excessive profits” being made by the likes of ASOS, Amazon, Ocado and more during the pandemic. I will certainly keep an eye on how the situation develops with this policy. But I think the shift towards online shopping is here to stay, even after lockdown restrictions are long forgotten. For that reason I’m bullish on the ASOS share price right now. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading 3 of the best UK shares to buy now ASOS share price: I think it’s set to go higher I’m avoiding the BP share price. I prefer this FTSE AIM stock for 2021 instead The Boohoo share price has underperformed Asos. Should I buy the stock? The Lloyds share price is recovering but here’s why I won’t buy back in John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. conorcoyle owns shares of Ocado Group. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended ASOS and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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. The post The ASOS share price is up 23% in 2021. Can it keep growing? appeared first on The Motley Fool UK.
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  32. Are Boohoo shares worth buying today? (17/06/2021 - The Motley Fool UK)
    I’ve been bearish on Boohoo (LSE: BOO) shares for sometime. And the stock hasn’t delivered great returns in 2021 so far. It’s down almost 5% since the beginning of the year. The shares have fallen over 20% in the last 12 months. So is this a buying opportunity? I’m not convinced it is and so I’ll only be watching the stock closely for the time being. But Boohoo released a trading update earlier this week, at which I think it’s worth taking a closer look. Trading update In the three months to the end of May, the company delivered a 32% increase in total sales to £486.1m. A lot of this performance was generated from the US and UK. During the period, Boohoo managed to integrate and relaunch the brands it purchased in the pandemic. These include, Dorothy Perkins, Wallis and Burton. It also relaunched Debenhams for fashion, beauty and homewares. And it has “an exciting pipeline of brands” for its digital department store. This all sounds great. The easing of lockdown restrictions especially in the UK has continued to boost sales. Clearly customers are still buying clothes to go out and embrace their new-found social lives after lockdown. Boohoo now has a larger portfolio of brands as it snapped up some of the pandemic’s high-street victims. This has served the online retailer well as it gives its customers more choice. The outlook The company has maintained its forward guidance. It expects the year ending 28 February 2022 to see “revenue growth of around 25% and adjusted EBITDA margins to be in the region of 9.5-10%”. Its medium-term guidance also remains unchanged. Boohoo believes it can deliver “25% sales growth per annum and a 10% adjusted EBITDA margin”. To me, the fact that it expects to generates these kind of figures is good. But I think Boohoo is setting the bar high for sales growth and is making life difficult for itself. In my opinion, if investors believe that it can always smash expectations, that sets it up to disappoint. I’m not dismissing the company’s growth. It’s strong, but clearly not enough for Boohoo to raise earnings guidance. The market has probably seen this as a disappointment and that’s why the shares haven’t rallied after the announcement. My concerns I still don’t think the company has repaired its reputation after the Leicester supply chain scandal. Boohoo did publish its UK supplier list in March and it remains on track to announce the names of its global suppliers in September. But I don’t think this is enough yet. And judging by the poor share price performance, I don’t think the market is convinced either. I can’t help but worry if the firm has more skeletons in its closet. Rectifying its reputation is a work in progress and may continue to place pressure on Boohoo shares. The company is starting to be more transparent, but this will take time. For now, I’m not ready to dip my toe in and so, as I said, I’ll only be watching the stock. The post Are Boohoo shares worth buying today? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why the Boohoo share price still looks cheap Should I buy Boohoo shares? Where is the Boohoo share price going in June? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. 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.
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  33. The ASOS share price crash: is this now the bargain of 2021? (19/07/2021 - The Motley Fool UK)
    Last week’s calamitous crash in the ASOS (LSE: ASC) share price showed new investors just how brutal the stock market can sometimes be. Can the AIM-listed, online fashion giant’s stock now be considered the bargain of 2021? Here’s my take. ASOS share price: a warning… Let’s start with a bit of context. In terms of trading, ASOS has been one of the few real beneficiaries from multiple UK lockdowns. With no stores to browse, it was predictable that young consumers would gravitate towards the company’s website for their fashion fix.  For a while, sales were buoyant as people stocked up on less formal gear to make it through working from home. The ASOS share price did very well too. It rose from a low of 1,060p in April 2020 to just under 6,000p a year later. That’s an incredible gain of over 450%! The problem is that momentum such as this can’t last forever. When news of slowing sales came last week, it was equally inevitable that some investors would be unhappy. Another thing that may have exacerbated the fall in the ASOS share price was its relatively small ‘free float’. This is the percentage of a company’s stock that’s available to trade on the stock exchange. For ASOS, this sits at a little less than 70%, according to Stockopedia. Most companies of its size have free floats nearer 100%. In practice, this can make moves up or down more violent. …or an opportunity? There’s another way of looking at this. Will any of the setbacks mentioned in last week’s update still be relevant in, say, five years? I’d be surprised.  Yes, Covid-19 is proving a stubborn beast to beat. However, two-thirds of adults have now received both jabs in the UK. While an increase in infections is very likely as all restrictions are removed, Boris Johnson appears committed to his belief that there’s no turning back now. Supply chain pressures should also be transitory.   On top of this, ASOS’s growth strategy should have borne fruit by then. Let’s not forget that the firm recently acquired brands such as Topshop and Miss Selfridge. These should complement organic growth and help increase the company’s share of its target market here and abroad. Great opportunity Having tumbled last week, shares in ASOS now trade at 26 times forecast earnings. That’s still nowhere near the sort of multiple that would get value investors salivating. However, it’s a much lower valuation than ASOS has previously traded at. Moreover, investors shouldn’t compare an online giant with, say, a struggling airline or energy provider. Sure, things could be tricky for a while. The mooted online sales tax would be another headwind for the company. Even so, this is very much a ‘known’ risk and one management has no doubt factored into its planning.  So, while suggesting that the ASOS share price crash now makes it the bargain of the year may be taking things too far, I do think Thursday’s reaction was overdone. I therefore consider this a great opportunity for me to build a position in a company that’ll likely be worth far more than £4bn in a few years.  The time to buy stock in a quality growth story is when the momentum jockeys have temporarily jumped off. I think that time has arrived here. The post The ASOS share price crash: is this now the bargain of 2021? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Why is the ASOS share price falling? The ASOS share price just tanked. Here’s what I’d do now I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock The ASOS share price collapses to 11-month lows! Is now the time to buy? 2 AIM stocks to buy in July Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS. 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.
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  34. The Boohoo share price is gaining in June. Here’s why I’d buy (19/06/2021 - The Motley Fool UK)
    Boohoo Group (LSE: BOO) delivered a trading update this week, and the market reaction was somewhat muted. For the three months to May, the online fast-fashion retailer reported 32% revenue growth compared to the same period last year. But on the day of the announcement, the Boohoo share price barely moved. As a Boohoo shareholder, I immediately liked the results. But why didn’t the market share my bullishness? Well, I quickly reminded myself of the unusual circumstances we find ourselves in. The first three months of the year still happened in partial lockdown. That means the period doesn’t cover the full lifting of restrictions just yet. And judging by the enormous queues I saw at Primark when that reopened, people do seem keen to get back to the unpleasant crush of real stores. Still, the latest sales figure does represent a 91% rise over two years, which I found very encouraging. UK sales grew 95% over two years, still providing the bulk of Boohoo’s income. But US sales are growing rapidly, up 157% in the same two-year period. The total still came to a shade less than half of UK sales. And considering the potential size of the American market, I can see that possibly becoming the biggest driver of the Boohoo share price in the medium term. Boohoo share price reaction While the market might have reacted unenthusiastically, Boohoo shares had been gaining in anticipation. And as I write on Friday, the Boohoo share price is up 2.5% on the month, ahead of both the FTSE 100 and AIM. Still, I do see things holding it back. And one clue came in the form of another update delivered at the same time. On Tuesday, alongside the trading update, Boohoo gave us what it called an ‘Update on Agenda for Change’. And that’s the kind of thing that would usually make me a bit twitchy from an investor’s perspective. I try hard to buy shares in companies that have got things right and don’t need change. Surely only troubled companies need an agenda don’t they? This is nothing new, mind. It’s all about well-publicised issues with the Boohoo supply chain and the ethics thereof. The company now has “Responsible Sourcing and Ethical Trade teams” in place, which all sounds comforting. But I can see a drag on the Boohoo share price persisting until this change thing is all sorted out. Firm developments Thankfully, there are concrete developments behind it all. Boohoo “published in March its full UK manufacturing list with a commitment to publish its global supplier list in September of this year, and continues to review its entire manufacturing supplier base.” There were still lots of what I saw as “feel good” words too though. The year ended February brought adjusted EPS of 8.67p. On the current Boohoo share price, that’s a P/E of around 38. That’s the lowest from Boohoo for some years. And I reckon there’s still plenty of future growth potential to make me want to buy more. Still, I wouldn’t be surprised to see share price weakness until we’ve had a full post-Covid year. Oh, and until that change stuff concludes. The post The Boohoo share price is gaining in June. Here’s why I’d buy appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Could Boohoo shares be star buys of the summer? Will the Boohoo share price recover in 2021? Are Boohoo shares worth buying today? Why the Boohoo share price still looks cheap Should I buy Boohoo shares? Alan Oscroft owns shares of boohoo group. The Motley Fool UK has recommended boohoo group. 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.
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  35. Can the ASOS share price keep rising? (08/04/2021 - The Motley Fool UK)
    Online fashion retailer ASOS (LSE: ASC) posted a great set of first-half results this morning that showed a significant increase in profits. Here, I’m going to take a look at those H1 results. I’ll also discuss what I think they could mean for the ASOS share price going forward. ASOS: a huge rise in profits  The H1 numbers from ASOS today are impressive, in my view. For the six months to 28 February, group revenue was up 25% at constant currency to £1,975.9m, while adjusted pre-tax profit leapt 275% to £112.9m. Diluted earnings per share (EPS) came in at 81.9p, up 198% year-on-year. At the end of the period, the company had a net cash balance of £92m versus net debt of £164m at the same time last year. Operational progress Moving away from the headline figures, there were also plenty of other highlights in the interim results. For example, over the period, the company’s active customer base increased by 1.5m to 24.9m. That represents an increase of 6.4%. Meanwhile, in February, its websites attracted 248.6m visits during the month, up from 214.1m in February 2020. That represents growth of 16%. In relation to the Topshop acquisition, ASOS advised the integration is progressing to plan and that costs are now expected to be around £10m and not £20m as previously advised. It also said it had seen “particularly strong growth” in US site visits following the announcement of the Topshop acquisition. Additionally, ASOS said it launched its Truly Global Retail (TGR) system in March. It believes this new system will provide it with more accurate, relevant and timely information that will enable better decision-making, and greater agility. Outlook In terms of the outlook, ASOS said FY2021 expectations have increased in line with the first half performance. Looking ahead, it said it’s well-positioned to capture demand for ‘event-led’ products when lifestyles normalise. However, the company retained its cautious view on the near-term consumer outlook due to Covid-19 uncertainty and “uncertain 20-something economic prospects.” CEO Nick Beighton added: “Looking ahead, while we are mindful of the short-term uncertainty and potential economic consequences of the continuing pandemic, we are confident in the momentum we have built, and excited about delivering on our ambition of being the number one destination for fashion-loving 20-somethings.” Can the ASOS share price climb higher?  The ASOS share price has had a great run over the last year, rising about 170%. And looking at these strong H1 results, I think it has the potential to move even higher. Currently, the consensus analyst earnings per share forecast for the year ending 31 August is 140.7p. Yet after delivering 81.9p in earnings in H1, I’d expect this figure to rise in the months ahead. This could boost the share price. As for the valuation, I think it’s reasonable. Let’s say ASOS can generate EPS of 150p this financial year. That would put the stock on a forward-looking P/E ratio of about 38, which I think is fair given the company’s track record and future growth prospects. Of course, I could be wrong about the ASOS share price. If shoppers return to the high street in droves after Covid-19 restrictions, ASOS sales and profits could take a hit. If this happens, the share price could fall. Right now, however, I’m bullish on ASOS shares. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the ASOS share price continue to climb? ASOS shares are rising: here’s what I would like to do 3 of the best shares to buy as the ISA deadline approaches Edward Sheldon owns shares in ASOS. The Motley Fool UK has recommended ASOS. 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. The post Can the ASOS share price keep rising? appeared first on The Motley Fool UK.
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  36. Why did ASOS shares fall despite great results? (09/04/2021 - The Motley Fool UK)
    ASOS (LSE:ASC) is a big-name UK retailer. As well as selling branded clothing on its website, it also sells own lines, mainly targeting young adults. Given the powerful online presence and distribution network it has, the pandemic has been good for business. But after the announcement of stellar half-year results yesterday, ASOS shares actually fell. What’s going on here? Positive results ASOS shares closed Wednesday just below 5,800p, but closed yesterday just above 5,600p. As I write, the shares are down another 4% today. Usually I would note such a move in line with a disappointing set of results. But the results were quite the opposite. Half-year numbers through to the end of February 2021 showed revenue growth of 24%. This helped to generate an adjusted profit before tax of £112.9m. I use the word adjusted as this doesn’t take into account the outlay for acquisition of the Topshop brands from the failed Arcadia group. The growth in financials also boosted its cash position, something that’s a welcome buffer to have during uncertain times. As of the end of February, net cash stood at £92m, even with the acquisition outlay of circa £266m. All of this sounds positive, and to be fair ASOS shares did jump in the very short term on release. However, for much of Thursday and today, the price has been falling.  Reasons for the fall in ASOS shares There are several reasons why I think ASOS shares have fallen. Firstly, I think the expectation of good results had already been priced in. Since the start of 2021, ASOS shares are up 13%. Over the past year, this increases to over 140%. So I do think that investors were already expecting strong figures to come out. Confirmation of those figures, if anything, was a slight anti-climax. This also ties in to an old finance phrase to “buy the rumour, sell the fact”. Often shares rally based on speculation that results will be good, and then sell off when the reality happens. Another reason I think ASOS shares took a hit was because it acknowledged the benefit that Covid-19 has provided. It estimated that the Covid-19 tailwind accounted for £48.5m in profit before tax. Although it also saw higher costs due to the pandemic, the net impact was definitely positive. So the concern here is that the great performance may not be replicated going forward if the impact of the pandemic subsides. For most companies, this would be a good thing as the pandemic has been a drag, but for ASOS this might be a negative. Hence, the fall in the shares. One final reason why ASOS shares might have fallen is due to the news of a new debt issuance worth around £500m. This is to generate cash to refinance the acquisition of the Arcadia brands mentioned earlier. I don’t personally see this as a huge issue, but the taking on of additional debt could be a worry for investors. Overall, I don’t see any major issues with ASOS shares, so would look to buy on this short term dip. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading Is the ASOS share price too low? Can the ASOS share price keep rising? Can the ASOS share price continue to climb? ASOS shares are rising: here’s what I would like to do 3 of the best shares to buy as the ISA deadline approaches jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS. 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. The post Why did ASOS shares fall despite great results? appeared first on The Motley Fool UK.
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  37. Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? (10/05/2021 - The Motley Fool UK)
    If I didn’t already own Boohoo (LSE: BOO) shares, I’d be buying now, after last week’s bumper profits boost. The online fast-fashion giant reported a 41% jump in revenue, with bottom line adjusted EPS gaining 47%. But the Boohoo share price has slipped back a bit since the results were announced. And over the past 12 months, it’s down 8.5%. We are still looking at a 30% increase over the past two years, covering the whole of the Covid-19 crash period. But it’s been a very volatile ride, with huge swings. Why would I buy now? I invested in Boohoo because I think the company has a great long-term future and the shares were attractively valued. I still think that. But I also think I’m seeing a contrarian buying opportunity. It’s perhaps a risky investment, with the company still very much in a growth phase. And there’s been some negative news of late. Boohoo now owns an impressive array of brands, with Debenhams famously added to the stable. But that’s leading to some problems. Customers have found the same clothing priced differently under different brands. And we’ve had stories of garments being relabelled from one brand and sold under another. That’s not good for customer loyalty, it’s not good for investors, and it’s not good for the Boohoo share price. End of lockdown Before I get to the positives, I think I’m seeing another short-term phenomenon. That’s a post-lockdown slump for online businesses that were doing so well during the crash. While we couldn’t get out to the high street, internet shopping had it sewn up. The shares stormed ahead as a result. By June last year, Boohoo was well ahead of its pre-pandemic price. But that was overly enthusiastic, and we’re seeing the aftermath. And, as usual with share prices, I reckon the market is overreacting again, but in the other direction. But those full-year results were sparkling, weren’t they? As well as strong profit growth, Boohoo results showed two things I think should support the Boohoo share price going forward. Firstly, margins are fat. Boohoo boasted a gross profit margin of 54.2%, up slightly from the previous year’s 54%. And then there’s what I like best of all. Cash. At the end of the year in February, Boohoo had £276m net cash on the books.  Boohoo share price weakness Never mind picking through the ruins of all those big companies shouldering growing debt due to the pandemic, looking for the best recovery hope. Well, actually, I think that can be a profitable strategy too. But while some giants were struggling, Boohoo’s cash pile jumped by £35.4m. Operating cash flow gained too, at £201m (up from £127m). There’s a slight greyness over the outlook, mind. The company says it expects around 25% revenue growth in the current year. While many companies would be delighted with that, it’s a fair drop from the current 41% growth. That will surely underlie the Boohoo share price weakness too. But when growth stocks see growth fall back a bit, I think that can be a great time for long-term investors to top up. I might just do that. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading What’s next for the Boohoo share price? The Boohoo share price is up 627% in 5 years! Will history repeat? Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? 2 of the best UK and US stocks to buy today Alan Oscroft owns shares of boohoo group. The Motley Fool UK has recommended boohoo group. 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. The post Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? appeared first on The Motley Fool UK.
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  38. My 7 top FTSE shares for April and beyond (28/03/2021 - The Motley Fool UK)
    Although many FTSE shares have been tearing upwards over the past few months, some of my favourites received a pummelling from the markets. However, I think the mood music is changing and these great stocks could be about to shine again. I’d aim to put every one of these seven shares in my Stocks and Shares ISA for April and beyond. Pharmaceuticals Ever since AstraZeneca released its Covid-19 vaccine — and gave it to the world at cost price — the market battered the stock. They say no good turn goes unpunished and I reckon that’s the case here. But City analysts expect earnings to grow in the years ahead, so I’d buy for the ongoing growth story. However, the valuation is quite full and leaves little room for an earnings miss. It’s still possible for the downtrend to continue from here. Online fashion clothing  Online fashion retailer Asos (LSE: ASC) is a clear industry leader I expect to go from strength to strength in the years ahead. But the valuation is high and immediate growth prospects don’t shoot the lights out. It’s possible the gap between valuation and growth could contract acting as a drag on the stock’s progress. Boohoo (LSE: BOO) is another stalwart hoovering up once-proud bricks-and-mortar fashion clothing brands just like Asos has been. The firm has been under scrutiny because of alleged dodgy supply chains. However, earnings growth remains brisk. The valuation looks rich, but I think the quality of the underlying business justifies that. Nonetheless, the stock has been volatile. And the high rating could normalise downwards if earnings growth slows in the future. However, I’d buy the stock. Fast-moving consumer goods Soft drinks maker Britvic (LSE: BVIC) operates in a defensive, cash-generating sector and ticks many boxes for me. The valuation looks fair. However, the stock has essentially travelled sideways for seven years. If growth in earnings fails to pick up, I could endure another frustrating seven years from here. Nevertheless, I’m keen on the stock today. Fast-moving consumer goods business Reckitt Benckiser operates in an attractive, defensive sector. City analysts expect a high single-digit earnings rebound ahead and that could arrest the slide in the share price. However, the valuation remains elevated. Maybe companies like this aren’t as valuable as I once believed. One possibility is valuation shrinkage could drag on share-price progress ahead. But I’d accept that risk and buy some of the shares now. Other sectors Information technology infrastructure services provider Computacenter has seen its business grow steadily for a number of years. The stock has done well too. But earnings growth has slowed to a trickle while the valuation remains elevated. I could be disappointed with this one if growth in earnings doesn’t pick up again soon. But I’m inclined to put my faith in the company and buy the stock. Energy transmission company National Grid has been a steady dividend payer for years. But high borrowings and regulatory changes could yet sour the investment potential of the stock. Nevertheless, I still think the firm’s unique position in the nation’s energy infrastructure is attractive.  I’d be inclined to embrace the risks and buy all seven of these stocks for their potential in April and beyond. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Items that are VAT exempt in the UK Who is Cathie Wood? Barclays’ share price is beating the market in 2021: what next? 3 funds to buy for a Stocks and Shares ISA The 50-30-20 rule: how to make it work for you Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended ASOS, boohoo group, and Britvic. 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. The post My 7 top FTSE shares for April and beyond appeared first on The Motley Fool UK.
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  39. ASOS shares down over 15% as customer demand falls (15/07/2021 - Seeking Alpha)

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  40. Here’s what I’m doing about Boohoo shares (11/05/2021 - The Motley Fool UK)
    Boohoo (LSE: BOO) shares can be volatile. But last week, the fashion company released its full-year results. I was not surprised by the stellar numbers, especially as it has emerged as a pandemic winner. But the stock price tells a different story. For now, I’ll continue to monitor Boohoo shares. I still have concerns over the company’s ethics and supply-chain issues. I do not think these problems have disappeared and are likely to continue to overhang the stock. But I reckon the full-year numbers are worth analysing. So here are my thoughts. The results Boohoo saw a surge in sales last year. Revenue increased by 41% to £1.7bn. Profit before tax also jumped by 35% to £125m. These are impressive figures and the growth was phenomenal. As I previously mentioned, I’m not astonished by this performance. Boohoo operates solely online and hence has been shielded from lockdown restrictions. Also, it has managed to successfully adapt its products to the desire for comfy clothes to wear at home and gym gear during the pandemic. The outlook The board remains bullish for the next year. It expects to deliver full-year revenue growth of 25%. If this is achieved, I’d still be impressed at a performance in high double-digits. But I guess the pandemic sales surge will have to end at some point. I don’t expect it to carry on forever. This could hinder Boohoo shares. Even management has highlighted that “trading in the first few weeks of the financial year has been encouraging, however, the economic outlook remains uncertain”.  And the company is “experiencing significantly elevated levels of carriage and freight costs”. This is expected to continue in the next financial year. My concern is that it may eat away at profit margins. I think investors need to be cautious with Boohoo shares, especially as economies are starting to ease lockdown restrictions. I expect the company will be facing more competition from other store-based fast fashion retailers such as Primark that have now reopened their shops. After a year stuck indoors, most customers are likely to socialise outdoors and visit shops. I know I’d  rather venture outside than look at a computer screen. My concerns That said, I still expect it to do well. But the question I ask myself is, if the company is delivering fantastic results, why is this not reflected in Boohoo shares? Since the beginning of the year, the stock is down 6% and over the past 12 months the share price has decreased 13%. Well, I think there are worries over ethical, corporate governance and supply chain issues. I reckon  the company will continue to face scrutiny over these problems. Boohoo has made attempts to calm investors’ nerves by reviewing its supplier list, and issuing a major sustainability strategy. But I can’t help but wonder what else is going to come out of the woodwork. If it can sort out these problems once and for all, I reckon there is significant upside for Boohoo shares. But the firm is not in that position yet. Any flare-up of these ongoing concerns could put strain on its global expansion plans. For now, I’m holding fire on buying Boohoo shares. But as a long-term investor, I’ll be watching the stock like a hawk. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? What’s next for the Boohoo share price? The Boohoo share price is up 627% in 5 years! Will history repeat? Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. 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. The post Here’s what I’m doing about Boohoo shares appeared first on The Motley Fool UK.
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  41. The ASOS share price just tanked. Here’s what I’d do now (16/07/2021 - The Motley Fool UK)
    Shares in online fashion retailer ASOS (LSE: ASC) had a bad day yesterday. When the market closed at 4.30pm, the ASOS share price was sitting at 3,854p, 18.1% below its closing price on Wednesday. Here, I’m going to look at why ASOS’s share price tanked. I’ll also explain how I’d approach the stock now. Why ASOS’s share price tanked ASOS’s share price crashed yesterday after the company posted a trading update for the four months to 30 June. It’s fair to say the market was unimpressed with the update. There were definitely some positives in the report. For example, the group delivered total revenue growth of 21% for the four-month period, including 36% growth in the UK and 20% growth in the US. Meanwhile, its customer base at the end of the period was up 1.2m year-on-year. The group also reported it had a strong cash position and balance sheet at the end of June. However, there were certain things that spooked investors. One was the fact that the company said trading in the last three weeks of the period was “more muted” due to Covid-19 uncertainty and poor weather. ASOS noted that these conditions could persist in the near term. For the final period of its financial year (ending 31 August), it expects growth to be inline with the same period last year (15%). Another issue for some investors was the fact that, while the company said full-year profit before tax would be in line with its expectations, it didn’t actually provide any details about these expectations. A third issue was that the company said it expects global supply chain pressures to continue. How I’d play ASC shares now In my view, the 18% share price fall yesterday was excessive. I think it’s created a great buying opportunity here. While ASOS might be set to experience some challenges in the short-term due to Covid and/or the reopening of the economy, the long-term growth story here remains intact. Over the next decade, the online fashion market is set to grow significantly, powered by increased smartphone access globally, new payment technologies, advances in augmented reality (companies offering virtual changing rooms), and rising levels of wealth in developing economies. According to Statista, the global fashion e-commerce market is set to grow to $1.2trn by 2025, up from $725bn in 2020. I expect ASOS to benefit from this industry growth because it’s a leader in its industry. Not only does it offer a world-class product range, but it also offers a top-notch experience for users including fast delivery and easy returns. Overall, it’s way ahead of most retailers.  It’s worth noting that in yesterday’s trading update, ASOS said the long-term opportunity is “greater than ever.” It also said it’s excited about the size of the prize ahead. This reinforces my view that the long-term story here is attractive. Of course, the stock isn’t without risk. ASOS operates in a highly competitive industry. And many brands are now selling direct to consumer. This could impact future growth. However, after yesterday’s share price fall I think the risk/reward proposition here is attractive. With the stock now trading on a forward-looking P/E ratio of less than 30, I see it as a ‘buy’. The post The ASOS share price just tanked. Here’s what I’d do now appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock The ASOS share price collapses to 11-month lows! Is now the time to buy? 2 AIM stocks to buy in July Edward Sheldon owns shares of ASOS. The Motley Fool UK has recommended ASOS. 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.
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  42. Can the ASOS share price continue to climb? (07/04/2021 - The Motley Fool UK)
    The ASOS (LSE:ASC) share price has been on fire over the last 12 months, rising from 1,060p all the way to around 5,800p today. That’s nearly a 450% surge in a relatively short space of time. What caused the share price to skyrocket? And should I be adding the company to my growth portfolio?  The rising ASOS share price With high-street shops having to close their doors to the public in March last year, most retailers’ sales performance suffered considerably. However, ASOS is an online pureplay business and in the same way as most of its bricks-and-mortar competitors did. In April 2020, its management team reported that the last three weeks of March 2020 saw a significant slowdown in online sales. However, despite this initial hiccup, the company went on to perform exceptionally well, resulting in a rising share price. The company released a series of positive trading updates throughout last year, showing a consistent increase in online sales worldwide. And by December, ASOS had exceeded market expectations, growing its overall revenue by 23% to over £1.36bn. One major contributing factor to this impressive growth appears to stem from the addition of 2.8m new active customers compared during the period. What’s more, it recently added four new brands to its portfolio (Topshop, Topman, Miss Selfridge, and HIIT) by acquisition for £265m. Collectively, these new additions could add an additional 3.3m, active customers. Needless to say, if ASOS can seamlessly integrate these brands on its online platform, the sales performance in 2021 could be even more impressive. Risks to consider As the vaccine rollout continues, lockdown restrictions around the world have begun easing. Here in the UK, high street fashion shops are set to reopen their doors from next week. This may hurt online fashion sales, which may create short-term volatility in the ASOS share price. Something else worth considering is the rising number of online-focused retailers. Over the years, e-commerce has been gaining popularity, and the pandemic has only accelerated its adoption. It already represents around 27% of total consumer spending today and the UK government has begun looking into adding a new sales tax for online businesses. The bottom line ASOS has invested in its own brands, purchased powerful external brands and added successful third-party brands via wholesale. It faces a lot of competition in the online fashion market. Yet it has proved itself to be quite resilient to competitive pressures. This is something I look for when searching when identifying investment opportunities.  However, due to its rising share price, the stock does look rather expensive, trading at a P/E ratio of 47. If the company can continue to deliver its current growth rates, then I believe the ASOS share price can rise higher. But that’s a big ‘if’. Personally, I think there are far cheaper growth opportunities available to me today. I won’t be adding any ASOS shares to my portfolio, at least not at the current share price. One of these cheaper opportunities is… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading ASOS shares are rising: here’s what I would like to do 3 of the best shares to buy as the ISA deadline approaches Zaven Boyrazian does not own shares in ASOS. The Motley Fool UK has recommended ASOS. 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. The post Can the ASOS share price continue to climb? appeared first on The Motley Fool UK.
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  43. Is it time to buy Superdry shares? (13/04/2021 - The Motley Fool UK)
    Like most listed companies with a high street presence, fashion retailer Superdry (LSE: SDRY) was pummelled by the coronavirus in 2020. By mid-March last year, its shares were changing hands for just over 100p. Since then however, they’ve bounced roughly 150%! Could there be more to come now the company’s been allowed to re-open its stores? Superdry shares: positives and negatives Based on the general reaction from consumers, things certainly look encouraging. By yesterday afternoon, reports suggested that high street footfall was nearly double that recorded last week. Although Superdry wasn’t explicitly mentioned, I’d imagine more than a few people wandered into its stores.  There are also reasons to be positive on the company’s ongoing ‘reset’ after years of underperformance. Back in January, CEO and founder Julian Dunkerton said Superdry was making “great progress” with its “influencer-led, digital marketing strategy.” This included a new partnership with football star Neymar Jr. As someone with 143m followers on social media, that looks to be quite a coup for the business.  But will all this be sufficient to resurrect its image among younger shoppers? I’m not so sure. Long gone are the days when Superdry was the fashion brand to be seen wearing. Online giants such as Boohoo and ASOS, I’d argue, are now far more popular with Superdry’s original demographic. On top of this, the company’s balance sheet is a lot less robust than it once was. To be clear, it’ll be a feat for the company to return to the days when the shares changed hands for 2,000p a pop (2018).  A more general argument against buying shares in any UK retailer now is that the rush to the shops will prove short-lived as savings made during lockdown run out. Alternatively, those who are able to continue spending will be more likely to go on holiday abroad or enjoy more time in pubs and restaurants.  Superdry is a great example of the adage that investors should buy ‘when there’s blood on the streets’. Notwithstanding this, I wonder if the rally is almost done. Better bet? One example of a company I’d buy over Superdry shares right now is XP Power (LSE: XPP). A world away from the high street, the mid-cap manufactures critical power control components. Its share price is up over 9% this morning following the release of a decent trading update.  While order intake over the three months to the end of March was pretty much flat relative to the same period in 2020, it was actually up 32% from the previous quarter. Partly due to a buoyant semiconductor sector, this goes some way to showing how well XPP has recovered from the pandemic. All told, revenue rose 16% to £57.1m over Q1. Based on the current demand for its products, I can see this rebound continuing. Aside from this, XPP’s balance sheet looks solid with only £18.4m in net debt. Although not an income stock, news that the mid-cap would return 18p per share in dividends for Q1 is another sign of confidence. Sure, nothing can be guaranteed. XP acknowledged today that Covid-19 uncertainty could still impact business. Moreover, at 25 times earnings, the shares weren’t exactly cheap before markets opened this morning. They’ll now be even more expensive! Nevertheless, I’d buy this hot growth stock over a still-troubled retailer any day.   FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I’d add Superdry shares to my ISA today Paul Summers owns shares of boohoo group. The Motley Fool UK has recommended ASOS, boohoo group, and XP Power. 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. The post Is it time to buy Superdry shares? appeared first on The Motley Fool UK.
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  44. 3 UK shares I’d buy with £1,000 (26/04/2021 - The Motley Fool UK)
    If I had £1,000 to invest in UK shares today, I’d buy a portfolio of growth stocks. So here are three companies I’d add without hesitation. UK shares I’d buy The first I’d buy with an investment of £1k is Boohoo (LSE: BBO). This fast-fashion business is profiting from the continuing rise of online retail, and it seems to be a well-managed enterprise. It has a strong balance sheet and has been using the pandemic to swoop on struggling peers, buying up growth at a low price.  If the company can continue to remain relevant with customers and buy additional growth without overpaying, I think this could make an excellent investment for the next few years. That said, if management does start to overpay on acquisitions and misread key fashion trends, growth could come to a sudden halt. The list of retail businesses that have collapsed over the past decade is extensive. Boohoo needs to work flat out to make sure it doesn’t go the same way.  Growth investment I think the trends that have become clear over the past 12 months will accelerate. In my opinion, that also bodes well for gaming developer Frontier (LSE: FDEV). One group of analysts believes this company could report earnings growth of as much as 60% in 2022. A slew of game releases, such as F1 simulation and ED Odyssey, could help drive this growth. Frontier’s portfolio of existing titles provides solid foundations from which to grow as well.  These are the reasons why I would buy this company for my £1,000 portfolio. I believe it is one of the best UK shares to own because it’s one of the few ways investors can plug into the booming gaming market. In the UK, at least, there aren’t many other options of high-profile gaming companies achieving such impressive growth rates.  Still, this business doesn’t come without its risks. The stock is currently changing hands at a forward P/E of more than 44. That doesn’t leave much room for error, in my opinion. If Frontier’s growth fails to live up to expectations, this valuation implies the stock could drop substantially.  Changing for the future Magazine publisher Future (LSE: FUTR) has taken a relatively old business model and put a twenty-first-century spin on it. The company has built a portfolio of specialist magazines and used the data derived from these publications to help bolster its advertising business. This has created a virtuous cycle, where the cash generation from old titles helps fund new acquisitions, which generates more cash flow, which funds new purchases… and so on. By using this strategy, the company’s net profit is expected to hit £140m by 2022. That’s up from a loss of -£1.3m in 2015.  Of course, these are just projections at this stage. Future’s growth isn’t guaranteed. The online advertising market is incredibly competitive. As such, if revenues come under pressure, the company may not be able to fund its acquisitions. This may bring growth shuddering to a halt.  Despite this significant challenge, I’d buy the stock for my portfolio of UK shares today.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Why I think the Boohoo share price could keep climbing Top growth stocks for April 2021 Will the Boohoo share price keep climbing? Will Boohoo shares rise after ASOS’s results? 1 top growth stock for April 2021 Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended boohoo group and Frontier Developments. 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. The post 3 UK shares I’d buy with £1,000 appeared first on The Motley Fool UK.
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  45. Nordstrom takes stake in ASOS brands including Topshop (12/07/2021 - Seeking Alpha)

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  46. The ASOS share price collapses to 11-month lows! Is now the time to buy? (15/07/2021 - The Motley Fool UK)
    The ASOS (LSE: ASC) share price has performed terrifically over the past year. Sure, Covid-19 lockdowns have taken a huge bite out of clothing retailers in that time. But even as we’ve spent less on work and leisure attire, the closure of non-essential retail has played into the hands of the e-commerce giants. This particular online retailer had soared more than a third in value during the last 12 months to last night. However, the ASOS share price has dropped 14% on Thursday following a pretty frosty reaction to latest financials. The UK retail share fell to its cheapest since August at one point at £38.95 per share. Strong sales rise In a trading statement for the four months to June, ASOS said that retail sales had risen 26% year-on-year to £1.24bn. At constant currencies turnover was up 30%. In the UK sales at stable exchange rates jumped 60% year-on-year to £526.4m. Meanwhile sales in ASOS’s international territories rose 15% from the corresponding 2020 period to £715.7m. Overseas turnover growth was strongest in the US, up 31% at £144.8m. Revenues cool, supply issues emerge However, UK share investors have taken fright on news that trading has slowed down more recently. ASOS described its activity in the final three weeks of the period as “more muted,” commenting that “continued Covid uncertainty and inclement weather, particularly in the UK, impacted market demand.” ASOS added that it expects trading to remain volatile in the near term given the evolving Covid-19 situation in its markets. Consequently it said that it expects sales growth during the two months to August to be “broadly in line” with the same period last year. Group turnover rose 30% on an underlying basis back then. Softening sales isn’t the only problem ASOS is facing today though. The retailer said that “global freight capacity shortages and delivery delays coming out of key areas of supply” had continued in the last four months. This, along with adverse exchange rates and an unfavourable product mix caused by Covid-19 lockdowns, meant that gross margins fell 150 basis points year-on-year. Time to buy ASOS? The twin threats of growing supply chain problems and the ongoing pandemic are clearly significant to ASOS’s outlook. But these troubles wouldn’t discourage me from adding this UK share to my own stocks portfolio. In fact I’d see the ASOS falling share price as an opportunity to buy. As someone who buys stocks with a long-term view I think the company remains highly attractive. E-commerce continues to grow at an impressive rate, and ASOS itself added 1.2m more active customers between February and June (it had 26.1m active shoppers on its books as of last month). I’m also encouraged by ASOS’s decision over the past year to snap up some of the hottest clothing brands and use them to drive future growth. Indeed, ASOS has recently signed a deal with Nordstrom to sell its Topshop-branded products through the US department store’s website and physical stores. The post The ASOS share price collapses to 11-month lows! Is now the time to buy? appeared first on The Motley Fool UK. But ASOS isn’t the only top growth stock I have my eye on today. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 AIM stocks to buy in July Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS. 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.
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  47. What’s next for the Boohoo share price? (05/05/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has outperformed the market over the past five years. The stock has added 585% since May 2016, compared to a return of 19% for the FTSE All-Share index over the same period.  However, over the past few months, the company has started to lag the market. Indeed, year-to-date Boohoo shares have declined nearly 5%. On the other hand, the FTSE All-Share has added 7%. That’s underperformance of 12% for the year so far.  The question is, should I make the most of this decline and snap up some shares of the fast-fashion business for my portfolio today?  Boohoo share price on offer?  Over the past five years, Boohoo has taken the UK fashion market by storm. The company’s sales have exploded as management has pursued an aggressive growth strategy. The firm has spent tens of millions on marketing and has very low costs. This means it can reinvest more profit than traditional bricks-and-mortar brands, driving a virtuous cycle.  After years of knock-out growth, it now looks as if the business is starting to mature. According to the company’s latest set of full-year results, revenue growth for the current year is expected to fall to ‘only’ around 25%, below the 41% increase in the year to February 2021.  These figures are, in a word, disappointing. The market has got used to the company’s explosive growth, and Boohoo has recently been snapping up new brands to bolster its customer offering. Newly acquired brands include Burton, Wallis and Debenhams. These brands are expected to deliver approximately five percentage points of the group’s overall growth for the year. That implies without these acquisitions, organic growth would be around 20%.  Valuation concerns  This sort of growth would be enough to send shares in most companies skyrocketing. However, there’s already a lot of expectation baked in to the Boohoo share price. As a result, the stock is trading at a price-to-earnings (P/E) multiple of 54.2, which is incredibly high. Even after factoring in the company’s growth, the stock is trading at a PEG ratio of 1.3. A ratio below 1 indicates the investment offers growth at a reasonable price and is therefore undervalued compared to its growth potential.  Still, the company has outperformed its own growth targets in the past. So, I wouldn’t rule out the same happening again. However, in the past, Boohoo has been a market leader. Today competitors are catching up, which could be one reason why its growth has slowed so substantially. If this trend continues, the slower growth rate could be the new normal for the fast-fashion business, which would have a detrimental impact on the Boohoo share price.  After taking all of the above into account, I’m not willing to buy Boohoo shares today. The company is still growing at a double-digit rate, and there’s a chance it could outperform expectations for the year. But its valuation does not leave much room for error. Another disappointment could lead to a re-rating of the shares to a lower multiple.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The Boohoo share price is up 627% in 5 years! Will history repeat? Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? 2 of the best UK and US stocks to buy today Boohoo share price: here’s why I think now is a good time to buy shares Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended boohoo group. 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. The post What’s next for the Boohoo share price? appeared first on The Motley Fool UK.
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  48. Why is the ASOS share price falling? (17/07/2021 - The Motley Fool UK)
    The ASOS (LSE: ASC) share price had performed very well in the past year. However, the shares dropped 18% on Thursday after the company released its trading statement. Here, I want to analyse the stock to understand if the drop is a buying opportunity for my portfolio. Recent trading update ASOS revenue growth was strong for the four months ended 30 June 2021. However, the company announced that trading in the last three weeks was more muted. Management cited the continued Covid-19 uncertainty and inclement weather as contributors to the weak market demand. I believe that this was one of the reasons for the ASOS share price drop. Management has also been cautious on the outlook for the rest of the year due to the rising number of Covid-19 cases. The recent travel restrictions have also delayed holiday plans and have made it difficult for people to plan their wardrobe purchases.  Total group revenue for ASOS grew by 21% to £1.3bn. It was mainly helped by strong growth in the UK, which grew 36%. The growth was also strong in the US as the region grew by 20%. The active customer base increased to 26.1m from 24.9m at the end of February 2021. The company has recently announced a partnership with a US-based multi-channel retailer Nordstrom, which will invest in a minority interest in the company’s brands like Topshop, Topman, Miss Selfridge, and HIIT brands. In my opinion, this is positive since Nordstrom has a good presence in the North American markets. Also, previously it had sold Topshop and Topman clothes in the US when the brands were under Arcadia Group. The ASOS share price – risks to consider ASOS revenue growth has been extraordinary in the past. The company benefited from the pandemic since most high street retail shops were closed. This led to strong demand for online retailers. In my opinion, with the opening of retail, the demand for online retailers might cool. If the trend changes, then it could impact the ASOS share price. Weather conditions have been very uncertain this summer in the UK. Management also mentioned in the earnings call the sudden change in the customer online searches, from summer wear to winter wear observed on their website. Also, Covid-19 cases are increasing globally. Most people are finding it difficult to plan their holidays. This might harm the company’s revenue growth. Global supply chain disruption is another concern for the company. The increase in freight costs due to supply constraints could further strain the company’s profits. The gross margin in the recent quarter dropped 1.5% due to higher freight costs and unfavourable foreign exchange movements. This, in my opinion, is another reason for the ASOS share price to drop.  Bottom Line The company’s revenue has been good in the past. However, I am not convinced to buy the stock due to the current market uncertainty. I will continue to keep the stock on my watchlist for now. The post Why is the ASOS share price falling? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The ASOS share price just tanked. Here’s what I’d do now I’m avoiding the Rolls-Royce share price. I prefer this FTSE AIM stock The ASOS share price collapses to 11-month lows! Is now the time to buy? 2 AIM stocks to buy in July Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS. 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.
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  49. The Next share price soars after smashing sales guidance. Should I still buy? (21/07/2021 - The Motley Fool UK)
    The Next (LSE:NXT) share price soared by over 6% on Wednesday after smashing sales and profit guidance. In a trading statement it released two weeks earlier than planned, the fashion retailer reported several positive figures. Its sales in the 11 weeks to 17 July were up 19% versus two years ago. The company had assumed an increase of 3%. The jump in sales is encouraging and could bode well for the Next share price over the coming months. Who’s buying new clothes? Next puts the boost in clothing sales down to several factors. It reckons there’s pent-up demand with “many customers having made few summer purchases during the last 18 months”. With more people getting out and about, that doesn’t sound too surprising to me. Also, summer clothing got a bump from particularly warm weather in May and June. Next mentioned that some of that growth slowed once the very warm weather passed, but as we all know and feel, it’s been particularly hot this week. I reckon recent hot weather could help sales for the next update. With fewer trips abroad this summer, it sounds like there’s more money being spent in the UK. This should be positive for many UK retailers, in my opinion. Where next for the Next share price? The Next share price is near its all-time highest price. Does that mean it’s too expensive? My answer is no, it’s not. It trades on a price-to-earnings ratio of 15. For a company that’s growing its earnings, I reckon Next shares are relatively cheap. After a big one-day jump in the share price, should I still buy the shares? Yes, I really think I should. I used to own Next shares several years ago. I sold them for reasons I can no longer remember, but its progress and behaviour over the past year reminded me that I should own it as a long-term investment in my Stocks and Shares ISA. A quality operation Next has grown into a formidable FTSE 100 retailer with a market capitalisation of almost £10bn. It’s a well-run business that has adapted to change over many decades. In fact, even before the pandemic, more than 50% of its sales came from online channels. Having such a mix certainly helped in surviving store closures last year. I like businesses that are entrepreneurial and on-the-ball. Next certainly fits this description, in my opinion. Last year it took several opportunities to buy struggling brands and businesses at knock-down prices. Its 25% stake in upmarket fashion brand Reiss and its investment in opening beauty halls should provide further long-term growth.   Other factors to think about Despite being a high-quality company, there are several risks to consider. Next, like all UK retailers, is dependent on the strength of the UK consumer. The retail environment remains uncertain, and customer trends can change quickly. Although many restrictions have recently been removed, uncertainty remains. In addition, fashion retail is highly competitive and competition could grow from low-cost online-only operators like Boohoo and ASOS. That said, Next has proved it can navigate through various challenges. It gives me confidence that it will continue to do so over the coming years. Overall, I’d buy the shares. The post The Next share price soars after smashing sales guidance. Should I still buy? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 cheap FTSE 100 stocks to buy Here’s how I’d invest £1,000 if the FTSE 100 keeps crashing Could this new media company grow quickly? Inflation causing traders to turn to gold UK heatwave! Here are 2 of the best stocks to buy now Harshil Patel owns shares of boohoo group. The Motley Fool UK owns shares of and has recommended Next. The Motley Fool UK has recommended ASOS and boohoo group. 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.
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