Tech-based media

As a quick reminder, Future is an international media and digital publishing business. It creates, provides, and maintains technology, and has relationships with leading brands throughout the world to bolster their presence and keep them in contact with their customers. Some of its technology includes website platforms, lead generation tools, and email delivery systems.

So what’s happening with Future shares currently? Well, as I write, they’re trading for 1,751p. At this time last year, the stock was trading for 3,594p, which is a 51% decline over a 12-month period. I believe the shares have dropped due to recent macroeconomic headwinds as well geopolitical factors. Furthermore, the business’ acquisition-led approach can be seen as risky, which affects investor sentiment too. I am not concerned by the share price drop. In fact, it could present a buying opportunity.

The best shares to buy have risks too

As mentioned above, acquisition-led business models are often seen as high-risk. This is because there is a greater chance of two major issues. Firstly, anyone can overpay for a business. Overpaying can affect a balance sheet, investor sentiment, operations, and eventually returns too. Next, if a newly added business fails to amalgamate into the existing offering, this can affect operations and performance. More importantly, it can often be costly to dispose of a failed acquisition. This is something I must be wary of relating to Future.

Even with technology adoption rising, I noted that Future performed exceptionally well during the pandemic period. This will have been due to consumers spending less time out and about socialising, and more time on their devices. I can’t help but think that perhaps this performance was a one-off and now that restrictions are easing, it may not be able to maintain its trading momentum.

The bull case and my verdict

So to the positives of Future shares then. Firstly, I note that it has an excellent track record of performance. I do understand that past performance is not a guarantee of the future, however. Looking back, I can see it has grown revenue and profit for the past four years in a row.

Next, Future shares pay a dividend, which would boost my passive income stream. Now the current dividend yield is minimal, under 1% in fact, but if it can continue growing performance, I don’t see why it can’t gradually increase this. I am aware that dividends can be cancelled at any time, however.

Finally, Future makes money from advertising on its websites and platforms, as well as affiliate fees such as those when someone purchases something from comparison sites, like GoCompare. With the reliance on smartphones and tablets for day-to-day activities, I believe Future could see its revenue and profit increase in the future.

Overall, I would add Future shares to my holdings. For me the positives outweigh the negatives and I believe Future shares could provide consistent returns for my portfolio in the future.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

BAE Systems 

What it does: BAE Systems is one of the world’s leading defence companies and a major supplier to UK and US armed forces.  

By Royston Wild. Defence giant BAE Systems (LSE: BA) is the best-performing FTSE 100 share over the past six months at the time of writing. 

In fact, it’s risen around 40% in value in the year to date. And more recently its share price has remained rock-solid whilst other UK shares have toiled in this new bear market. 

I think the Footsie firm remains an ideal growth stock for me to buy today. Soaring inflation and growing recessionary risks pose a threat to more cyclical stocks. Defence stocks like BAE Systems, on the other hand, can expect trading conditions to remain robust in the near term, meaning investor selling should be kept to a minimum. 

Government defence spending is something that remains broadly resistant to wider economic conditions. War is a constant of history and countries have to be prepared to defend themselves at a moment’s notice. 

This explains why City analysts think BAE Systems’ annual earnings will rise 7% in both 2022 and 2023. This is despite the threat that supply chain problems pose to its operations. 

Royston Wild does not own shares in BAE Systems. 

Experian

What it does: Experian provides credit data to lenders to allow them to assess the creditworthiness of potential borrowers.

By Stephen Wright. I’m keeping things simple with my top UK growth share for July. 

In my view, a good growth stock is one that grows. Specifically, it grows its earnings and then uses those earnings to generate more earnings. This is exactly what Experian (LSE:EXPN) does. 

The company’s strong growth is protected by a high barrier to entry. Experian has a huge database of credit information that it bases its credit scores on, and this would be difficult for a smaller competitor to emulate.

Furthermore, most mortgages require a tri-merge report. Experian’s credit report is part of this, which makes me think that the business will continue to do well going forward.

I’m impressed by the company’s growth and I think that shares trade at a reasonable price at the moment. As such, I’m looking at adding to my investment in Experian stock in July.

Stephen Wright owns shares in Experian.

Coats

What it does: Coats is the world’s leading industrial thread manufacturer. It operates in sectors including fashion, energy and telecoms.

By Roland Head. Thread maker Coats (LSE: COA) is a business that many investors have never heard of, even though we probably all use its products.

This British business has been trading for more than 250 years and operates in 50 countries, with annual sales over $1.5bn.

Analysts expect Coats’ earnings to rise by 13% this year and by 17% in 2022. Despite this positive outlook, the shares currently trade on just 10 times forecast earnings. I reckon that’s too cheap for a business which generated a 21% return on equity last year.

I admit that Coats has disappointed the market before. Demand for some of the company’s products could also fall in a recession.

However, I think the diversity of Coats’ customers should provide protection against localised problems. I’m also impressed by the changes being put in place by CEO Rajiv Sharma. I expect strong growth over the next few years.

Roland Head owns shares in Coats.

JD Sports Fashion

What it does: JD Sports Fashion is a retailer of athletic footwear and athleisure clothing that operates globally.

By Edward Sheldon, CFA. Shares in JD Sports Fashion (LSE: JD) have taken a huge hit in 2022, and I think this has presented me with a great opportunity to buy the growth stock in July.

JD’s full-year FY2022 results, posted in June, were very encouraging to my mind. For the 52 weeks ended 29 January 2022, revenue came in at £8.56bn, up 39% year on year. Meanwhile, adjusted earnings per share (EPS) jumped to 12.8p versus 6.4p a year earlier.

Looking ahead, I’m not expecting growth to continue at this pace. However, in the long run, I expect demand for casual attire to boost revenues and profits significantly.

One risk to consider here is a pullback in consumer spending due to the cost-of-living crisis. This could hit sales. However, with the stock now trading on a forward-looking P/E ratio of under 10, I think a lot of this risk is priced into the stock already.

Edward Sheldon has no position in JD Sports.

Future

What it does: Future is a massive media conglomerate serving digital media on a variety of topics to a global audience of over 300 million people.

By  Zaven Boyrazian. Investing in a media publishing house may sound old fashioned. But it’s proven to be a lucrative move for shareholders of Future (LSE:FUTR). The company is one of the largest media groups in the world, with over 250 websites under its umbrella, including TechRadar, Country Life, and its recently acquired Who What Wear. And over the last five years, the stock is up 700%!

Revenue is primarily generated through advertising and subscriptions. But with more service platforms like GoCompare emerging in its brand portfolio, the company has begun earning considerable income through affiliate fees.

Despite delivering high-double digit growth so far this year, shares have since taken quite a tumble thanks to investor sentiment waning. There are undoubtedly risks surrounding management’s primarily acquisition-driven approach. However, with an excellent track record, I can’t help but see this slump as a buying opportunity for my investment portfolio.

Zaven Boyrazian does not own shares in Future.

Molten Ventures

What it does: Molten Ventures is a UK-based tech-focused venture capital firm with a track record of backing now-listed businesses from very early stages.

By Andrew Woods. Molten Ventures (LSE:GROW) performed well during the pandemic. For the year ended March, between 2021 and 2022, pre-tax profit grew from £267m to £325m. The value of the firm’s gross portfolio also rose from £984m to £1.53bn over the same period.

The company’s most exciting performance, however, is in its earnings-per-share (EPS) growth. Between 2018 and 2022, EPS rose from 89p per share to 200p. By my calculation, this means the firm had a compound annual EPS growth rate of 17.6%. While past performance is not necessarily indicative of future performance, this growth rate is extremely attractive.

The company’s most recent net asset value (NAV) was 937p per share in March. While this is now a few months old, it’s clear that the current share price of 460p is a significant discount. Despite this, the broader economic environment has hit tech stocks particularly hard. There may be a further slide as inflation increases and interest rates continue to rise.

Andrew Woods does not own shares in Molten Ventures.

Renalytix

What it does: Renalytix develops and sells medical devices that can diagnose risk indicators for kidney disease.

By Christopher Ruane. I own shares in Renalytix (LSE:RENX) and so far it has been an absolute dog! The shares have lost 85% of their value in the past year alone. Definitely there are still risks here, such as the substantial costs required to sell the company’s system into more healthcare providers.

But I also see a potentially fantastic opportunity if things go well. There is clinical evidence that the technology can help improve diagnostic outcomes. A presentation this month revealed its positive impact at a leading New York healthcare provider.

Kidney disease is the direct cause of over a million deaths globally each year. If Renalytix can sell its innovative, proven system into more healthcare groups, the scalability of its business model could generate higher revenues without adding costs at the same speed. In the long term I remain optimistic about the outlook, but recognise the risks involved.

Christopher Ruane owns shares in Renalytix.

Spirax-Sarco Engineering

What it does: Sprirax-Sarco Engineering is a UK-based industrial engineering company focused on thermal energy management

By Paul Summers: Cheltenham-based Sprirax-Sarco Engineering (LSE: SPX) is a high-quality company I’ve been monitoring for a while now. A world leader at what it does, the FTSE 100 member has long generated high margins and returns on the capital it invests. It’s these hallmarks that have been found to reward growth investors like me handsomely over time.

The only problem with all this is that the stock has always looked extremely expensive. Until now, that is. A 40% slide in the share price in 2022 leaves Spirax trading at almost 28 times earnings. Granted, that’s still not cheap. However, the idea of beginning to build a position here for the long term now looks far more palatable. 

There’s always a chance things could get worse before they get better if we get a recession. However, high customer loyalty should mean the pain should be temporary.

Paul Summers does not own shares in Spirax-Sarco Engineering

Carnival

What it does: Carnival operates a list of renowned cruise line brands. It sells deals and cruise packages to popular destinations.

By John Choong. Carnival (LSE:CCL) was close to hitting a five-year low in June, but positive guidance provided in its most recent trading update sent its share price rocketing by more than 10%. While this is minuscule on the wider scale of things, there are reasons to be optimistic about a potential recovery.

Despite the firm missing analysts’ estimates on earnings per share, revenue and room occupancy rate, revenue grew by almost 50%. More importantly, I was impressed with the company’s future bookings. The figure came in nearly double of Q1 2022, marking its best figure since the beginning of the pandemic. This is something to cheer for, because future bookings bring in the much-needed cash Carnival requires to return to profitability.

Provided that travel tailwinds continue to persist, Carnival could pull off a monumental recovery, pay off its debt gradually, and even achieve positive free cash flow soon. As such, grabbing shares at the current price could be a steal for years to come.

John Choong has no position in Carnival

So what caused this phenomenal triple-digit surge? Well, 2021 was filled with a string of encouraging trading updates and business announcements. Many of these helped to propel this stock to new highs.

Materially ahead

One month into 2021, Future reported high levels of online engagement during the Black Friday period. It expected full-year profits to be “materially ahead of current market expectations”.

Online engagement is a key metric for this digital media platform, particularly as advertising forms a large part of its revenues. It owns over 200 magazine brands including TechRadar, Marie Claire and Tom’s Guide. Content is at the centre of its business model. It aims to monetise this content via diversified revenue streams that include magazine subscriptions, and licensing deals in addition to advertising.  

During the year, Future added several new brands. It bought Dennis Publishing for £300m in a deal that it expected to be materially earnings enhancing. This added magazine brands including Moneyweek and Computer Active. In addition to purchasing several other brands it also announced a joint venture to produce Marie Claire US.  

A shining FTSE 250 stock

The stock was propelled higher after reporting record half-year results in May that were materially ahead of market expectations. Future achieved strong organic growth and an improvement in profit margin. It was an “exceptionally strong first half” with sales up 89% to £273m. It attributed this success to the diversity of its revenue streams and a scalable operating model.

Another encouraging trading update followed in July, giving the share price another push up. Here, CEO Zillah Byng-Thorne reflected on strong cash generation and pointed to robust digital advertising revenue.

The share price then drifted for a few months, until November when it reported its full-year results. It was a positive report that gained a favourable market reaction with the share price achieving its strongest one-day move since September 2020. Strong trading momentum continued into the second half of the year with revenue up 79% to £607m from £340m in 2020. It also achieved 23% organic growth. In addition, Future reported improved quality of earnings, driving its profit margin higher versus the prior year. It highlighted its cash-generating abilities and raised its dividend payments for the year.

Targeting America

Part of Future’s strategy is to focus on the United States – a large market with great potential. In relation to this strategy, Byng-Thorne commented: “Growth was accelerated in the US and we are confident about our ability to capitalise on the opportunity in North America.”

Future ended 2021 with another positive update, when it reported a strong Black Friday performance. It drove over 1.6m of sales transactions and achieved $137m in US e-commerce sales in the period covering Black Friday and Cyber Monday. It all meant that by the end of the year, Future’s share price closed up by that impressive 120%, near its all-time-high level.

First on my list is media platform Future (LSE:FUTR). It’s a global platform that owns a lot of specialist title. For instance, it owns dozens of popular magazines, including techradar, tom’s guide, and Moneyweek. In general, I reckon print media is likely to decline over time, but Future has multiple and diversified revenue streams. These days, most of its earnings come from digital adverts and e-commerce products. It can produce content once, then distribute and monetise it in many innovative ways. By using its proprietary technology, it should be able to scale and add new revenue streams.

Quality UK shares

When looking for the best UK shares, I like to see sales, profit and margins all climbing higher. And that’s exactly what I can see with Future. In fact, earnings have grown by 72% a year over the past six years. I reckon that’s pretty impressive.

It’s also got a great track record and is focusing on attractive, growing markets like the US. Although listed in the UK, Future has a much larger, global audience with 305m online users.

Looking to the future

One of the ways in which it has been growing the business is through buying other smaller content providers and publishers. Many are instantly earnings enhancing, but a word of warning. It can be a challenge integrating other businesses into an organisation, especially if work cultures vary. Also, it faces intense competition, so Future will need to keep innovating to stay ahead.  Overall, I’d say it’s an exciting growth stock and I’d definitely consider it for my ISA.

Exciting growth stock

The next UK share I’d consider is another company that demonstrates both quality and growth. It’s Alpha FX (LSE:AFX), which is focused on providing financial solutions. With a market capitalisation of under £1bn, it’s a smaller (but not small) company. But I reckon that’s a good thing. I’ve often found smaller companies to be particularly lucrative, if chosen carefully.

Alpha FX focuses on two areas: foreign exchange risk management and alternative banking. The latter of these is a new addition to the business. Overall, business seems to be going well. Sales and profits have been steadily climbing over many years. It has a diversified client base from a range of sectors, and client numbers are growing.

Driven by its founder

The business is debt-free and benefits from a strong balance sheet. I also like that the firm is founder-led. I generally like to find quality UK shares that ideally offer a double-digit return on capital. With a return on capital figure of over 25%, Alpha FX firmly ticks this box for me.

There are some things to bear in mind, however. As with many industries, it may have seen an increase in staffing costs in recent months. I’m expecting a trading update in January so I’ll be interested to know if that was the case. Also, its alternative banking business is relatively new. Whether its success from the FX risk management business can be replicated is still uncertain.

Overall, I like what I see. I reckon this growing small-cap stock could certainly be worth considering for my portfolio.

I have to understand these risks as an investor. But a stock market crash may also be an opportune time to buy shares that have become cheaper.

With this in mind, here are two high-quality stocks I’d buy if a crash does happen.

A UK stock to buy

The first company I’d look to buy is Future (LSE: FUTR). It’s a digital publisher focused on areas such as games, film and technology. The company owns brands such as PC Gamer and Digital Camera, among others.

The share price has had a stellar run over the past 12 months as it’s surged 111% as I write today. Looking back even further and the share price was around 100p in 2016, compared to 3,698p now. This is an incredible return, so I question whether this can continue.

But if a stock market crash happens, I may be able to pick up some Future shares at a cheaper price. The stock fell significantly during the first Covid-related sell-off in March 2020, after all. However, as the company is an online media publisher, another lockdown should not impact the business. In fact, revenue increased by 53% in the company’s fiscal year 2020 (the 12 months to September 2020), and a further 79% in fiscal year 2021. Not only this, but Future has been able to steadily increase its operating margin over recent years. This says to me that the profitability of the company should remain high going forward.

There are certainly risks to consider, regardless of whether the shares become cheaper in a stock market crash. For example, Future is highly acquisitive. Any new acquisition will have to be integrated well to ensure business continuity.

A US stock to buy

The next stock I’d consider buying is Microsoft (NASDAQ: MSFT). It’s a member of the Big Tech group of companies in the US. I’m sure most people will have heard about Microsoft today as its software is used throughout homes and workplaces. The company has also been growing its cloud computing service, Microsoft Azure, which I view as an exciting prospect today.

I think this is a quality company, and it shows the characteristics I look for when buying shares. It achieves sky-high operating margins, and double-digit returns on its capital. Microsoft also generates significant levels of free cash flow, which is the cash left over after capital expenditures. This leaves room for the company to increase the dividend, or buy back its shares, which is great to see as a potential shareholder.

The reason I’d look to buy the shares in a stock market crash is due to the current valuation. The forward price-to-earnings (P/E) ratio is over 36 as I write today. This is quite high in my view. But if the shares became cheaper I’d snap them up for my portfolio.

I’d have to keep in mind that Big Tech companies are vulnerable to greater levels of regulation. This is a growing risk in the US right now and may impact Microsoft’s business going forward.

Future

One company that’s knocked the ball out of the park has been media group Future (LSE: FUTR). Its shares have leapt 105% in the year to date as the company’s strategy of snapping up publishing assets continues to pay off and profits have soared. That’s a superb return compared to the 13% achieved by the FTSE 250 index as a whole.

At £4.5bn, Future is now knocking loudly on the door of the FTSE 100. Whether it manages to gain entry in 2022 is open to debate though. Having grown strongly during the pandemic, I wonder whether performance will moderate as we emerge on the other side. Some profit-taking looks inevitable too. 

However, I’m inclined to be optimistic. Margins are steadily improving and free cash flow is strong. Perhaps most importantly, the company announced in November that FY22 adjusted results would likely be “materially above current expectations“.

So, based on a valuation of 24 times earnings, I wouldn’t be against adding Future to my own portfolio.

Indivior

Another second-tier winner in 2021 is pharmaceuticals business Indivior (LSE: INDV). Its stock has delivered a near-150% gain — thanks to the company repeatedly raising its guidance on earnings. The supplier of medicines to treat drug abuse and mental illness has also been buying back its stock, further supporting the ascent of its share price. 

Looking ahead, analysts are expecting Indivior to grow earnings per share by 45% in 2022. This leaves the stock on a P/E of 16. Sadly, I don’t think the demand for its products is likely to fall dramatically on a longer timeline either, potentially making Indivior an ideal buy-and-hold candidate.

That said, it’s worth noting that this stock has shown itself to be highly volatile in the past. Back in 2020, for example, the price crashed 30% in just one day after news that former parent company Reckitt had filed a lawsuit against it. That’s the sort of movement we might associate with a penny stock. It also makes me doubt whether I’d want to add the stock to my own portfolio, particularly as Indivior doesn’t offer a dividend as compensation. 

Watches of Switzerland

A third FTSE 250 member that’s done extremely well for shareholders has been Watches of Switzerland (LSE: WOSG). The premium timepiece seller’s value has climbed just over 155%, serving as a reminder to me that momentum can continue for a lot longer than one may expect. Every time I’ve assumed a pullback will occur, the share price has only moved higher. Investing is hard.

Like Future, however, I do question what may happen to the stock when the pandemic has finally passed. I suspect shoppers will want to use their cash on experiences rather than posh watches. As such, I still maintain that some kind of retreat wouldn’t be a surprise in 2022. The current valuation seems to make the risky assumption that management will execute its plans perfectly.

As good as recent trading in the UK and the US has been, a P/E of 37 looks too dear to me. WOSG stays on my watchlist for now. 

Media company Future (LSE: FUTR) has seen a 97% increase in its share price over the past year. And if that’s not impressive enough, over the last three years, it has seen a huge 540% increase in its share price. This is an extremely promising place for me to start figuring out whether it would make a good buy for me even now. 

Strong results for Future

Its latest financial results would certainly suggest so. The publisher of brands like The Week and MoneyWeek reported a fine set of numbers last week for its financial year ended 30 September 2021. Its revenues grew by a significant 79% compared to the year before, its pre-tax profits were up 107% and cash generated from operations increased by 117%. 

These latest figures only add to its consistent growth over the years. It also expects this growth to continue in the next year. In its outlook, the Future Group says that growth could accelerate in the second half of financial year 2022. It has also upgraded its expectations and now believes its adjusted numbers for next year will be “materially above current expectations”. 

Analysts optimistic about the FTSE 250 stock

It is little wonder then,  that analysts’ estimates compiled by the Financial Times expect its share price to rise by around 33% in the next 12 months. The more optimistic ones expected that it could rise by another 56%. However, not everyone is equally bullish. There are some analysts who expect a price fall by 37% as well. 

What could go wrong

Immediately, I can see at least one reason why this is the case. In relative terms, the stock is super-expensive. At 56 times, its price-to-earnings (P/E) ratio is far higher than that for many other FTSE 250 stocks. Of course there is a reason for this: it has done quite well, even at a time when many other companies have languished. So clearly, investors are willing to pay a premium for it. Additionally, its outlook continues to make the stock look promising. 

However, I think that if we finally put the pandemic behind us in the near future, it might look less attractive as an investment candidate for my portfolio. Stocks that are still struggling today might be more attractive — and affordable — investment options at that point.

My takeaway

On the whole though, I like the stock for its long-term potential. If I am willing to hold it for the next five years, for instance, there is a good chance that it will be a rewarding one to buy. Keeping this in mind, it is on my list of stocks to buy in 2022. It might not double my money next year, but I am hopeful it will do so over time.

Media giant

Future is an international media and digital publishing firm. It produces and maintains technology and works with leading brands throughout the world to enhance their presence and reach out to their customer bases. Some of its proprietary technology includes website platforms, email delivery systems, and lead generation tools.

As I write, shares in Future are trading for 3,644p. A year ago they were trading for 1,792p, which is a 103% return! The FTSE 250 index in the same time period has only increased close to 13%. Future shares yesterday jumped 15% due to positive results.

Fantastic results continue

Future’s full-year results announced yesterday were extremely impressive. I am not surprised the share price jumped as a result. Future reported revenue had increased by 79% to £606.8m compared to last year. Operating profit increased 127% to £115.3m too. Cash generated grew by a mammoth 115%. From an operational perspective, organic growth was reported in all key territories, which is a good sign.

The good results prompted Future to declare a dividend of 2.8p per share. This is up from 1.6p last year. Shares that pay a dividend and could make me a passive income are usually an attractive prospect. Especially when they seem to be performing well and growing organically, which Future is if these results are anything to go by.

Future also has an excellent track record of performance and growth. I understand past performance is not a guarantee of the future. I tend to review this as a gauge. Revenue and operating profit have both increased year on year for the past four years.

FTSE 250 stocks have risks

I have two concerns with Future. Firstly, in its full-year results, it was confirmed that Covid-19 boosted the business in terms of growth and performance. Could this mean if the pandemic settles down we may not see such levels of growth once more? In addition to this, I have an issue with the current valuation of Future shares. At current levels it sports a price-to-earnings ratio of 56, which is a bit high for my liking. I could add shares at this level but if any negative news knocked the price down, I could lose out.

Overall I like Future as a company and its growth and results are there for all to see. I would consider buying shares for my portfolio but I think I will wait for them to fall a bit. Performance and growth will continue in my opinion but I want to buy shares a bit cheaper than current levels. There are other FTSE 250 stocks that are performing well that are better priced for my portfolio currently.

But some stocks moved higher on the London market this morning. And multi-platform media and digital publisher Future (LSE: FUTR) shot up by almost 15%. And over the past 12 months, it’s up about 117%. Something appears to be going well in the business. So should I buy the stock now?

Stunning results

The catalyst behind today’s move higher was the release of the full-year results report. Back in July, the company said it expected the 2021 results to be “materially ahead of market expectations”. And today’s figures put numbers on the outperformance. The report must look like a thing of beauty to existing shareholders — it showcases a stunning outcome for the business.

For the trading year to 30 September, revenue shot up 79% compared to the prior year. Cash from operations leapt 115% and adjusted diluted earnings per share by 77%.

But this isn’t some bounce-back from a coronavirus slump last year — there was none. Future has powered through the pandemic with impressive increases in earnings year after year. The directors expressed their satisfaction and “confidence” in the outlook by slapping 75% on the shareholder dividend for the year.

Chief executive Zillah Byng-Thorne said in the report the “exceptional” results build on the long-term record of business growth. She thinks the strong performance arose because of the diversity of revenue streams in the business. Operations have a global reach and the “operating leverage” in the business model also helped drive progress.

High hopes for further growth in America

Byng-Thorne said 23% organic growth was because of the company’s “trusted content” attracting a high-value audience. And growth accelerated in the US where she’s “confident” the business will capitalise on the opportunity.

Around 35% of revenue came from the US in the period, with growth of about 25% compared to the prior year. However, performance in the region was below the 131% gain in revenues the business achieved with its operations in the UK.

As well as organic progress, Future is striding ahead with its programme of acquisitions. The year saw the company take over GoCo Group, Mozo, Marie Claire US, CinemaBlend and, after the period ended, Dennis.

A Covid winner

Byng-Thorne said Future’s business was boosted by Covid-19. But she expects growth to accelerate again in the second half of the current trading year. Meanwhile, City analysts have pencilled in an uplift in earnings of around 12% for the current year to September 2022. And that suggests the rate of growth will slow from the robust triple- and double-digit figures we’ve been seeing over the past few years.

With the share price near 3,666p, the forward-looking earnings multiple is almost 26 when set against that earnings estimate. I think that’s pricey and the high valuation adds risks for investors now.

So I’d be a little cautious about buying the stock today. Nevertheless, I think the business could have a bright future, so I’ll keep the stock on watch, waiting for a better-value entry point.

Rupert Hargreaves: Drax

Power generation group Drax (LSE: DRX) used to operate one of the largest coal power stations in Western Europe. It has since reduced emissions by over 90%. 

It is not stopping there. By introducing Carbon Capture and Storage technologies, management believes the company can deliver “millions of tonnes of negative emissions” annually from 2030. 

This path is unlikely to be risk-free. Challenges the company may face include additional regulations and rising costs. 

Nevertheless, considering Drax’s growth potential, I would buy the stock today. 

Rupert Hargreaves does not own shares in Drax.

Charlie Keough: BP 

My best stock pick for November is BP (LSE: BP). At the time of writing, the last 12 months have seen returns of 75% – and I can only see this continuing.  

What excites me about BP is that the firm is clearly looking towards the future. It has adopted a clear strategy to increase renewable production through attainable targets. It estimates it will be generating 50GW by 2030. That’s enough to power 15 million homes. 

While the switch from gas and oil to renewable could cause some short-term issues, I think BP is a great long-term addition to my portfolio.  

Charlie Keough does not own shares in BP.

Zaven Boyrazian: Games Workshop

Games Workshop (LSE:GAW) is the mastermind behind the immensely popular Warhammer franchise. What started out as a fun tabletop adventure has evolved into a fully fletched world, sprawling into video games, books, tv shows and even films.

The bulk of income is generated from selling figurines to play the classic tabletop game. However, additional revenue originates from IP licensing agreements and a recently launched streaming service called Warhammer+.

The stock was hit hard in September following rising freight costs triggered by the pandemic. But these appear to be short-term problems. So, personally, I think the recent decline presents an excellent buying opportunity this month.

Zaven Boyrazian does not own shares in Games Workshop.

Edward Sheldon: ASOS

My best British stock pick for November is online fashion retailer ASOS (LSE: ASC). Its share price has fallen recently and I think this has created a good entry point for long-term investors like myself.

ASOS does have a few challenges to work through right now. Firstly, it looks set to face higher input costs and supply chain challenges in the near term. This could hit profits. Secondly, the company needs to find a new CEO. Recently, Nick Beighton announced that he would be stepping down.

I’m not overly concerned by these challenges, however, as I think ASOS will overcome them. I expect the stock to recover in the medium term as the growth story associated with the e-commerce boom is still very much intact.

Edward Sheldon owns shares in ASOS.

Paul Summers: Luceco

After a brutal couple of months for its share price, I think LED lighting firm Luceco (LSE: LUCE) now looks great value. 

Sentiment around the company has soured due to concerns over supply chain holdups and significant cost inflation. As problematic as these are, I question whether either should trouble a long-term Foolish investor. A P/E of 17 at the time of writing takes at least some of this into account and looks very reasonable for a company generating great returns on capital in a niche area. There’s even a 2.2% yield to comfort holders while they await a recovery. 

Paul Summers has no position in Luceco

Harshil Patel: Future 

My best stock pick for November is magazine and website publisher Future (LSE:FUTR). It’s a US-focused and digital media platform.  

Future owns over 200 brands, including Techradar, Digital Photographer and Marie Claire.  

It had a string of encouraging trading updates this year and I reckon the positive trend could continue. As a content creator, it earns from digital advertising. This space could thrive over the coming months as we approach Black Friday sales and the Christmas holidays. 

Economic uncertainties and pandemic concerns remain, but overall, I reckon it’s a decent growth company with momentum on its side.  

Harshil Patel does not own shares in Future.

Roland Head: Kingfisher

B&Q and Screwfix owner Kingfisher (LSE: KGF) has had a bumper two years. Demand for DIY products surged during the pandemic, as many of us spent more time at home.

In my view, the events of the last 18 months have accelerated the group’s much-needed turnaround and clarified its strategic direction.

Home improvement is a lifelong habit for most homeowners and a growing number of renters. But demand could slow as life returns to normal, so Kingfisher needs to show it can retain its new-won customers. If it does, I think it could do well.

Roland Head does not own shares in Kingfisher.