Image source: Getty Images
He FTSEand especially the FTSE 100has a reputation for being home to some of the best-paying dividend stocks globally. However, that doesn't mean FTSE-listed shares can't deliver global growth.
In fact, Schröder UK mid-cap fund manager Jean Roche says you are more likely to find multibaggers (stocks that rise 100% or more) in the UK stock market than in the US. She also has figures to back this up.
So which stocks have been leading the way in the UK?
Mega returns
Over the last 12 months, a period that includes the last two weeks of 2023, the FTSE All Share index is up 7%. However, some stocks have far exceeded this performance, generating growth of more than 100%. Some of these stocks are household names, but others may be less familiar to investors.
| Stock | Stock price growth in one year |
| Funding circle | 261% |
| CMC Markets | 167% |
| Shares of Banco Metro | 150% |
| Greencore Group | 117% |
| Hochschild Mining Plc | 114% |
| Oxford Biomedical | 113% |
| Trustpilot Group | 111% |
| Rolls-Royce | 103% |
| Group only | 89% |
| curry | 88% |
A quick look highlights that the growth is coming from a wide variety of companies, including financial services like CMC Markets, banks like Metro, engineering giants like Rolls-Royce and retailers like Curry's.
Collectively, these 10 stocks returned 131% over the past 12 months. That means £1,000 invested a year ago would be worth £2,310 today, plus any dividends received during the period.
Find the next big winner
Finding the next big winner is easier said than done. Among UK stocks, investors might consider IAGoffering strong momentum and attractive fundamentals.
However, in the coming years investors may be more likely to find the next multibagger in the United States. This is due to current trends in artificial intelligence (ai) and the buzz around quantum computing.
One stock benefiting from the ai revolution is celestial (NYSE:CLS). The company's success is driven by strong demand for its cloud and communications infrastructure products, crucial to the development of ai. In the last reported quarter, Celestica's Cloud and Connectivity Solutions segment experienced a 42% year-over-year revenue increase, highlighting its strategic position in the ai market.
The company's price-earnings-growth (PEG) ratio of 0.92 suggests that it may be undervalued relative to its growth potential. This is an attractive PEG ratio by historical standards, but it's incredibly cheap compared to the current market. This is particularly true among companies exposed to ai.
However, investors should consider risk factors, including customer concentration. Only 10 clients represent two thirds of sales. Additionally, geopolitical tensions could affect semiconductor supply chains and Celestica needs chips to manufacture its products.
Despite these challenges, Celestica's strong financial performance and strategic positioning in the ai sector make it an attractive investment option for growth-oriented investors. I recently reloaded this stock and it is now the largest holding in my portfolio. My first stock investment is up 280%.
