5 of the best growth shares to buy for 2021

first_img5 of the best growth shares to buy for 2021 See all posts by Rupert Hargreaves Image source: Getty Images Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Rupert Hargreaves | Sunday, 28th February, 2021 center_img Enter Your Email Address 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 £90,259Operating 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. Simply click below to discover how you can take advantage of this. Get the full details on this £5 stock now – while your report is free. I think the best growth shares to buy for 2021 are those firms that may be able to capitalise on the reopening of the economy. Of course, nothing is ever guaranteed when it comes to the stock market and economic conditions. These companies might be able to outperform, but they may also struggle.There’s no guarantee that just because I think these firms will capitalise on the reopening, they will. Companies will always face hidden risks that may not be clear today but could hold back growth. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…So, keeping that in mind, here are five growth shares I’d buy for 2021. Growth shares I think there are currently some incredible bargains in the financial sector. On that basis, I would buy Secure Trust Bank and OSB for my portfolio in 2021. The pandemic has had a significant impact on the financial sector. However, the effect has been nowhere near as bad as expected. Policymakers’ decision to act quickly and flood the market with money to prevent insolvencies has worked well (so far). As the economy begins to open up again, companies like Secure Trust and OSB should be able to capitalise on the recovery. This could drive impressive earnings growth for the year, potentially turning the firms into sought after growth shares.These businesses face some significant risks as well. If the recovery does not take off, as expected, they could suffer additional losses. That would put pressure on the corporations to reduce lending, holding back growth. Financial companies can also be challenging to analyse, so these may not be the best assets for all investors. Best shares to buy for 2021Other companies that may benefit from the recovery are landscaping group Marshalls and construction materials business Breedon. The government has already laid out plans to spend up to £100bn over the next few years on infrastructure projects. That could translate into high demand for aggregate and instructional materials, which would be good news for Breedon.Simultaneously, Marshalls’ management has said the company’s earnings for 2020 and 2021 would surpass expectations, thanks to the UK’s booming housing market. These companies are optimistic about the future, but the construction industry is highly cyclical. The industry’s fortunes can change from year to year, which makes picking growth shares incredibly difficult. Marshalls and Breedon could outperform over the next 12 months, but they may quickly begin to struggle if the industry turns.  Luxury marketWith many consumers stuck at home for much of the past 12 months, online shopping has boomed. Watches of Switzerland, in particular, has seen a significant increase in the demand for luxury watches. I believe this trend will continue. That’s why I would buy this stock as part of a basket of growth shares. Consumers have been happy to spend throughout lockdown, but I think many have held back and will be more willing to spend when the clouds of uncertainty have lifted. That could help the firm generate big profits in 2021. Still, this is a retailer, and retail in the UK is notoriously difficult. Watches of Switzerland faces many risks, such as cheaper competitors, high rents, high business rates, and rising wages. last_img

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