Unstoppable Growth Stocks to Watch This July – Don’t Miss Out!

Two Thriving Growth Stocks That Are Worth a Closer Look

When it comes to investing, some well-established businesses with strong brand recognition and a proven track record can still offer exciting potential for growth. As an investor, I have my eye on two companies that fit this description: Coca-Cola HBC and Kainos Group. Let’s delve into why these stocks are worth considering.

Coca-Cola HBC

1. Strategic Partner: While many may associate Coca-Cola with the iconic beverage brand, Coca-Cola HBC is actually a major bottling company that partners with the popular soft drink giant. In addition to bottling Coca-Cola products, the company also produces and distributes other soft drinks, giving it a diverse revenue stream.

2. Enduring Brand Power: Despite concerns about economic uncertainty and rising inflation impacting profit margins, the enduring strength of the Coca-Cola brand, along with Coca-Cola HBC’s impressive financial performance and global reach, make it a compelling investment opportunity.

3. Revenue Growth: In 2023, Coca-Cola HBC reported record revenue of £8.46bn, showcasing its ability to thrive in the market. With a well-known brand name and widespread global presence, the company is well-positioned for continued growth.

4. Dividend Yield: Coca-Cola HBC currently offers a dividend yield of 2.9%, providing investors with a passive income opportunity. While dividends are never guaranteed, the company’s solid financials suggest potential for dividend growth.

5. Valuation: Trading at a price-to-earnings ratio of just 12, Coca-Cola HBC shares are considered reasonably priced by many investors, further adding to their appeal.

Kainos Group

1. Tech Specialization: Kainos Group is a UK-based company that specializes in software implementation, with a particular focus on the popular Workday software used by companies worldwide.

2. Growth Potential: The company’s expertise in implementing Workday solutions and its commitment to integrating artificial intelligence (AI) into its services present significant growth opportunities. Additionally, as a smaller player in the market, Kainos Group has room to expand and mature further.

3. Risks: While AI integration is a growth driver for Kainos Group, there is a risk that advancements in AI technology could potentially replace the need for its services in the future, impacting earnings and returns. It’s important to monitor this development closely.

4. Dividend Yield: Similar to Coca-Cola HBC, Kainos Group offers a dividend yield of 2.5%, providing investors with an additional potential source of passive income.

In conclusion, both Coca-Cola HBC and Kainos Group present compelling opportunities for growth-oriented investors. With strong brand recognition, solid financial performance, and promising growth prospects, these stocks are definitely worth considering for a well-rounded investment portfolio. Keep an eye on these companies as they continue to navigate the ever-changing market landscape.