10 Best UK Growth Stocks to Buy Now

This article looks at the best UK growth stocks to buy now.

The start of this year has marked interesting developments for the UK market. The main stock market index has increased 5.86% since the beginning of 2025, and despite global economic uncertainties, UK equities are trading at significant discounts compared to their US counterparts. The valuation gap suggests potential opportunities for growth-seeking investors.

Reflecting on the 2024 market, economic uncertainties and fluctuations were dominating factors, which required investors to examine stock performances more closely. Interestingly, smaller companies performed the best in the UK market, delivering returns of 13.78%, while the larger companies were close behind, with a return of 9.66%. In an unpredictable environment, high institutional and hedge fund ownership in growth companies indicates strong investor confidence, which could mean potential for long-term value creation.

Growth stocks are stocks that tend to outperform the broader market. They are company stocks that are likely to grow at a significantly higher rate than the average growth for the market. These companies often reinvest their profits to fuel further growth rather than paying dividends. Investors are typically attracted to growth stocks due to the potential for attractive capital appreciation over time. More often, these are smaller stocks or startups that gain a sudden uptick due to the industry or tech push.

Growth Stocks Vs Value Stocks

Growth stocks are typically priced higher relative to current earnings due to anticipated future growth. They typically trade at a high price-to-earnings (P/E) ratio. Compared to them, value stocks are priced lower relative to their fundamentals and are seen as undervalued in the market. While growth stocks tend to operate in dynamic industries such as tech, value companies may be in more established industries and offer dividends. In 2024, value investing slightly outperformed growth in the UK, which necessitates the need to create a diversified investment approach.

Identifying Growth Stocks

While most growth stocks are small companies with market potential, they can also be larger firms where the company has a growth mindset and its share values continue to rise. There are still some common traits that all growth stocks share. The foremost characteristic is the company’s constant stronger financial performance compared to its peers. If the company is growing at a percentage higher than the average growth of the market, it has growth potential better than its peers. Secondly, growth stocks are typically companies that have a stronger or unique product line with a loyal customer base. They have investments in technology to build an edge over competitors. With a strong focus on innovation, they ensure they are ahead in the race to capture greater market shares in their industry. They might also be companies that have high potential to grow in the future, perhaps through a market build-up, expecting to reach key milestones in the future.

While these shares can have high potential and, thus, be attractive to investors, they can also be high-risk, with stock expectations going south.

In the current market scenario, growth stocks offer several advantages. Primarily, there is the potential for significant increases in stock value as companies expand. Growth stocks can act as a hedge against inflation, as companies with strong growth can outrun inflation. Positive outlooks and focus on innovative sectors can also accumulate investor interest and elevate stock prices. It is, however, key to consider the inherent risks to avoid drastic declines.

Our Methodology:

To compile our list of the 10 best UK growth stocks to buy now, we screened the 20 largest companies in the UK in growth-related industries. We then ranked our choices by revenue growth potential and hedge fund sentiments.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points. (see more details here).

10. Lloyds Banking Group plc (NYSE:LYG)

Revenue growth past 5 years: 15.55%

Number of hedge fund holders: 10

Lloyds Banking Group plc (NYSE:LYG) is a leading UK-based financial services firm serving retail and commercial customers. The financial services player operates through well-established brands such as Lloyds Bank, Halifax, and Scottish Widows, the Group offering a comprehensive suite of services, including retail and commercial banking, insurance, pensions, and wealth management. Commanding a substantial presence in the UK financial sector, Lloyds holds a 21% market share of current account balances and serves approximately 15 million retail customers, establishing its significant role in the industry.

The UK finance industry has seen increased regulatory scrutiny in recent years. Lloyds Banking Group plc (NYSE:LYG) saw a 20% decrease in pre-tax profits in 2024, which was largely attributed to an additional £700 million provision set aside to address potential claims related to historical mis-selling in car finance, bringing the total provision for this issue to £1.2 billion. However, the banking sector collectively also witnessed the return of over £10 billion to shareholders through dividends and share buybacks in 2024. For major players like Lloyds, this suggests favorable base rates and effective risk management practices across the industry.

Lloyds Banking Group plc (NYSE:LYG) is expected to grow earnings and revenue by 11.1% and 5.9% per annum, respectively, suggesting a good growth trajectory. The stock is currently trading at a Price-to-Earnings (P/E) ratio of 11x, which is slightly below the US Banks industry average of 11.7x. This suggests there is potential for offering capital appreciation for investors. Lloyds anticipates a significant growth in net interest income, expecting it to reach £13.5 billion by 2025. The optimistic outlook is driven by improvements in asset quality and robust capital generation. The strong shareholder returns, stable earnings, and strategic growth initiatives make it a compelling UK growth stock with upside potential.

9. Cushman & Wakefield plc (NYSE:CWK)

Revenue growth past 5 years: 2.08%

Number of hedge fund holders: 18

Cushman & Wakefield plc (NYSE:CWK) is a leading United Kingdom-based global commercial real estate services firm. The company has a presence in approximately 400 offices across 60 countries and offers a comprehensive range of services across various sectors, such as office, industrial, retail, and multifamily real estate. The clientele includes a diverse group consisting of investors, owners, and occupiers.

Cushman & Wakefield plc (NYSE:CWK) reported a revenue of $2.6 billion in Q4 2024, marking a 3% increase compared to the same period in 2023. This growth was attributable to a 35% surge in global capital markets revenue and the fifth consecutive quarter of year-over-year global leasing growth. The company also achieved improvements in net cash flow from operations and free cash flow for the full year, which increased over $55 million compared to 2023. Cushman & Wakefield plc (NYSE:CWK) saw fourth-quarter sales fall short of analyst expectations, with revenues rising by only 3% year-over-year. The company’s earnings, though, showcased resilience, with a 10% increase in Q4 as a bounce-back from a 9% decline in the prior report.

Cushman & Wakefield plc (NYSE:CWK) expects its EPS to grow by 18.4% per annum, suggesting an attractive position for investors. Earnings are expected to grow by 19.3% per annum, which is a faster growth rate than the US market’s growth rate of 14.2% per year. The stock has an Enterprise Value/EBITDA of 8.59 and a P/E Ratio of 21.45.

The P/E Ratio is within a reasonable range for growth-oriented stocks. Meanwhile, EV/EBITDA suggests a fair valuation, indicating a balanced outlook where investors acknowledge its revenue growth and stable earnings but remain cautious of market conditions.

8. Autolus Therapeutics plc (NASDAQ:AUTL)

Revenue growth past 5 years: 190.29%

Number of hedge fund holders: 20

Autolus Therapeutics plc (NASDAQ:AUTL) is a UK-based clinical-stage biopharmaceutical company that focuses on the development of next-generation T-cell therapies for the treatment of cancer and autoimmune diseases. The company leverages advanced cell programming and manufacturing technologies to provide innovative solutions in the field of immuno-oncology.

Autolus Therapeutics plc (NASDAQ:AUTL) achieved a breakthrough milestone in November 2024 with the U.S. Food and Drug Administration’s approval of Aucatzyl, a CAR-T cell therapy designed to treat acute lymphoblastic leukemia (ALL). This therapy is significant for its unique mechanism that binds to cancer cells for a shorter duration and can potentially reduce severe side effects associated with earlier CAR-T treatments. With the therapy demonstrating promising clinical outcomes, the company anticipates robust demand for Aucatzyl as a strong competitor against existing treatments.

As the global biotechnology sector is rapidly expanding, with market size projected to grow from $483 billion in 2024 to $546 billion by 2025, Autolus Therapeutics plc (NASDAQ:AUTL) is positioned to benefit from a burgeoning industry. The expansion is driven by breakthroughs in biopharmaceuticals, increased FDA drug approvals, and a boost in life sciences research. Autolus’  focus on cutting-edge CAR-T cell therapies aligns with the sector’s trajectory towards innovative cancer treatments.

With the successful commercialization of Aucatzyl, the company is expected to scale up its revenue, with projections estimating an exponential increase from $50.2 million in 2025 to $972 million by 2030. Autolus is also exploring the application of its CAR-T cell technology in treating autoimmune diseases, potentially opening new revenue streams and expanding its therapeutic portfolio.

Autolus Therapeutics plc (NASDAQ:AUTL) is one of the best UK growth stocks to buy in the biotechnology industry. Together with an innovative approach to CAR-T cell therapy, strategic financial backing, and a clear roadmap for future developments, the company is awaiting to be launched into a growth upswing. With the global demand for advanced cancer treatments on the rise, Autolus is well-equipped to capitalize on emerging opportunities.

7. AngloGold Ashanti Plc (NYSE:AU)

Revenue growth past 5 years: 11.31%

Number of hedge fund holders: 21

AngloGold Ashanti Plc (NYSE:AU) is a global mining company boasting a diverse, high-quality portfolio of gold, silver, and copper projects. With significant assets in Ghana, Australia, the United States, and Argentina, the company is recognized as the fourth largest gold producer. AU is one of the best UK growth stocks to buy.

In September 2024, AngloGold Ashanti Plc (NYSE:AU) announced plans to acquire Centamin, an Egyptian gold mining company, for $2.5 billion. This move aligns with the company’s strategy to expand its footprint in high-potential regions and optimize its asset base.

AngloGold Ashanti Plc (NYSE:AU) reported a revenue of $5.79 billion, a substantial increase from previous years, driven by higher gold prices and increased production volumes. The company’s positive financial performance and ability to harness operational efficiency have boosted investor confidence. The stock’s upward trajectory reflects the ability to navigate industry challenges and a positive sentiment toward AngloGold’s growth strategy.

AngloGold Ashanti Plc (NYSE:AU) has a diversified asset base, and its strategic presence in geopolitically stable regions is a strong positive in the mining industry. The demand for gold as a safe-haven asset persists, positioning AngloGold Ashanti’s revenue growth potential in the coming years. The P/E of 12.59 is relatively moderate, indicating a fair valuation based on earnings, with room for upside potential if gold prices remain strong. The acquisition of Centamin positions the company to benefit from synergies and expanded resource bases. With this strategic consolidation, the company is likely to drive long-term value creation for shareholders and strengthen its market position.

Overall, AngloGold Ashanti Plc (NYSE:AU) is in a unique position to harness the industry’s attractiveness and enhance its revenue potential through strategic directions. The company’s proactive approach and commitment to operational excellence puts it in a favourable position to capitalize on emerging opportunities in the global gold market.

6. Barclays PLC (NYSE:BCS)

Revenue growth past 5 years: 14.12%

Number of hedge fund holders: 21

Leading British multinational universal bank, Barclays PLC (NYSE:BCS) offers a comprehensive range of services, including retail and commercial banking, investment banking, wealth management, and more. Headquartered in London, England, the bank has a global presence spanning over 40 countries and a workforce exceeding 100,000 employees as a significant player in the global financial industry.

Barclays PLC (NYSE:BCS) reported a pre-tax profit of £8.1 billion in 2024, an impressive 24% increase from the previous year. The strong performance was mainly driven by its investment banking sector and domestic retail division. The investment banking arm contributed £11.8 billion to the total income due to favorable market conditions, particularly in the U.S. With the integration of Tesco Bank’s credit cards, loans, and savings operations, the domestic retail division significantly picked up. This strategic acquisition solidified the Barclays PLC (NYSE:BCS) footprint in the UK retail banking sector, strengthening its market position.

The broader banking sector, especially in the UK, has been marked with economic uncertainties and regulatory changes. For future-readiness, Barclays is proactively planning its outlook and has set key objectives to focus on reducing costs by £2 billion by 2026, achieving a return on tangible equity (RoTE) of over 12%, and returning £10 billion to shareholders over the three-year period. The bank projects a net interest income of £12.2 billion in 2025, up from £11.2 billion in 2024, and targets a group total income of around £30 billion, with plans to reduce its cost-to-income ratio to the high 50s. These goals reflect Barclays’ commitment to enhancing shareholder value. The bank’s proactive approach to navigating challenges is likely to instill investor confidence and continued interest.

As a major global player in the financial industry, Barclays PLC (NYSE:BCS), is in a unique position to continue on a growth trajectory.

5. Ferroglobe PLC (NASDAQ:GSM)

Revenue growth past 5 years: 7.10%

Number of hedge fund holders: 26

Prominent global producer of silicon metal and silicon- and manganese-based specialty alloys, Ferroglobe PLC (NASDAQ:GSM), caters to diverse crucial industries such as solar energy, electronics, automotive, and construction. The company has a significant presence in the metallurgical sector. It has established itself as a leading supplier in the Western world with operations spanning across North America, Europe, and South America, through 25 production facilities.

Ferroglobe PLC (NASDAQ:GSM) reported a 4% decline in revenue, totaling $434 million for Q3 2024, due to lower volumes across all segments. Despite slowed revenues, Ferroglobe had an accrual ratio of -0.17 in 2024. This reflects that it has a strong, good cash conversion and that the earnings understate its free cash flow. The company had a free cash flow of $164 million in 2024, significantly more than the statutory profit of $5.24 million. This free cash flow improvement over the 12 months is attractive to shareholders. Forecasts predict the strong earning potential of the Ferroglobe PLC (NASDAQ:GSM) stock.

The stock price has grown 296% higher over five years. During this time, Ferroglobe PLC (NASDAQ:GSM) became profitable, which often marks a major turnaround point that indicates quick earning growth in the future. The company currently reflects a trailing twelve-month revenue of $1.64 billion and a net income of $5.24 million. Despite a difficult year, these figures underscore Ferroglobe’s potential for revenue growth. The company’s growth can be significantly fuelled by strategic expansions and favorable trade measures in the U.S. market. A trailing P/E of 114.67 suggests the stock is highly valued relative to its past earnings, which can be due to the expectation of further growth.

4. Navigator Holdings Ltd. (NYSE:NVGS)

Revenue growth past 5 years: 16.34%

Number of hedge fund holders: 29

Navigator Holdings Ltd. (NYSE:NVGS) is a prominent player in the maritime transportation sector, operating in the seaborne movement of liquefied gases such as liquefied petroleum gas (LPG), petrochemical gases, and ammonia. The company has established itself as a global leader in handysize liquefied gas carriers. It holds a 50% stake in an ethylene export marine terminal at Morgan’s Point, Texas, with a capacity to export over one million tons of ethylene annually.

Navigator Holdings Ltd. (NYSE:NVGS) showcased a strong financial performance in Q3 2024, with revenues touching $141.8 million, a 3% increase driven by higher time charter equivalent (TCE) rates. The company’s adjusted EBITDA was at $67.7 million, while net income attributable to stockholders was $18.2 million. The fleet maintained a high utilization rate of 90.9%. The year was marked with a fair share of challenges such as disruptions from Hurricane Beryl, however, Navigator displayed resilience and operational efficiency.

Navigator Holdings Ltd. (NYSE:NVGS) made some notable strategic investments, including the expansion of its ethylene export terminal and the acquisition of ethylene-capable vessels through the Navigator Greater Bay Joint Venture. As the liquefied gas transportation industry continues to see increased demand for petrochemical gases and cleaner energy sources, the company is well-positioned to capitalize on these market trends. The strategic moves not only enhance Navigator’s service offerings but also solidify its market positioning in the face of evolving industry demands.

From a stock point of view, Navigator Holdings Ltd. (NYSE:NVGS) makes a compelling growth stock. The company has been consistent with revenue growth, strategic financial decisions, and agile market positioning. These attributes increase its attractiveness to investors seeking exposure to the maritime transportation sector. Robust cash reserves, exceeding $127 million as of September 30, 2024, reflect the company’s financial strengths and growth potential.

3. Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA)

Revenue growth past 5 years: 140.87%

Number of hedge fund holders: 31

Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) is a commercial-stage biopharmaceutical company focusing on the development and delivery of innovative therapies for patients suffering from debilitating cardiovascular and autoimmune diseases. Headquartered in London, UK, Kiniksa’s portfolio includes immune-modulating assets designed to address a range of inflammatory conditions. The company’s flagship product, ARCALYST, has been a key catalyst in cementing Kiniksa’s position in the biopharmaceutical industry. It is among the best UK growth stocks to buy.

ARCALYST is approved for the treatment of recurrent pericarditis, and since being launched in April 2021, it has seen significant adoption among healthcare providers. The success of the therapy has demonstrated Kiniksa’s commitment to addressing critical medical needs in the cardiovascular space.

Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) showcased robust sales for ARCALYST with a revenue growth of 79% year-over-year, reaching $417.0 million in 2024 and $122.5 million for Q4 2024. The robust figures highlight the strong market demand for ARCALYST and showcase the company’s effective commercial strategies and market position. The company has a cash position of $243.6 million as of December 31, 2024, a notable increase from $206.4 million a year earlier. Despite the strong performance of ARCALYST, the company reported a net loss of $8.9 million for Q4 and $43.2 million for the full year. Kiniksa, however, expects its current operating plan to remain cash flow positive on an annual basis, demonstrating prudent financial management and operational efficiency.

Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) has provided optimistic guidance for 2025, projecting ARCALYST net product revenue between $560 million and $580 million. This forecast is reliant on the continued adoption of ARCALYST and the company’s strategic focus on expanding its product pipeline. The stock has a 3-year return of 89.48%, suggesting that it has experienced strong stock price appreciation over the past three years, also reflecting a substantial growth in shareholder value.

2. Birkenstock Holding plc (NYSE:BIRK)

Revenue growth past 5 years: 19.41%

Number of hedge fund holders: 36

German footwear manufacturer, Birkenstock Holding plc (NYSE:BIRK) is celebrated for its iconic sandals and shoes featuring contoured cork footbeds. The brand of footwear has a unique personality and a strong presence in the global footwear industry. Birkenstock’s product portfolio includes a diverse range of sandals, shoes, closed-toe silhouettes, skincare products, and accessories, catering to a wide audience across various markets. The company’s focus on both quality and comfort has solidified its position as a leading brand in the footwear sector.

Birkenstock Holding plc (NYSE:BIRK) presented robust financial results in the first quarter of 2025. Revenue increased by 19% to €361.7 million, driven by strong demand during the holiday season. Particularly in the Asia-Pacific region, revenues surged by 47% to €47.1 million. Net income for the quarter reached €20.12 million, a significant turnaround from the net loss of €7.15 million in the same period the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 25% to €102.1 million, reflecting the company’s operational efficiency and strategic market position.

While gross margins declined to 58.8% from 62.1% in 2024 due to increased production capacity and a higher proportion of wholesale revenue, Birkenstock Holding plc (NYSE:BIRK) remained optimistic about its future profitability. The company anticipates improved gross profit margins, aiming for a long-term target of 60% through enhanced production capabilities and strategic price adjustments. The company projects revenue growth between 15% and 17% for the fiscal year 2025, capitalizing on robust performance in both wholesale and retail channels.

Strategically, Birkenstock Holding plc (NYSE:BIRK) is targeting the expansion of its product categories to encompass and increase its retail footprint globally. It has plans to open additional stores and enhance its direct-to-consumer channels to meet the growing demand for its unique products. Boasting strong brand loyalty and effective market strategies, Birkenstock’s growth trajectory remains positive for sustained revenue growth and profitability in the coming years.

1. ARM Holdings PLC (NASDAQ:ARM)

Revenue growth past 5 years: 17.71%

Number of hedge fund holders: 38

British semiconductor and software design company ARM Holdings PLC (NASDAQ:ARM) specializes in designing central processing unit (CPU) cores that implement the ARM architecture, which is widely used across various devices from smartphones to data centers. The company licenses its technology as intellectual property, enabling a vast ecosystem of partners to produce Arm-based processors.

With the rise of AI and increased smartphone usage, the semiconductor industry is experiencing a surge in demand. As a key player, ARM Holdings PLC (NASDAQ:ARM) commands a strategic position, which is evident through its collaborations with major tech companies. Arm has secured a significant contract with Meta to develop its chip, which marks a strategic shift from its traditional licensing model to direct chip production.

ARM Holdings PLC (NASDAQ:ARM) announced a 19% increase in revenue, reaching $983 million in Q3 2024, surpassing analyst expectations of $949.3 million. Net income for the same period rose to $252 million, an impressive increase of $87 million from the previous year.

ARM Holdings PLC (NASDAQ:ARM)’s revenue growth potential is further reflected by its projections for the coming years. Boosted by the demand for chips powering data centers and AI applications, the company expects revenue growth in the mid-20% range in the fiscal 2025. Financial analysts consider it as one of the best UK growth stocks because of its exposure to the generative AI megatrend and its leading ecosystem and pricing power. Arm’s impressive licensing performance, driven by growing AI workload demands, will continue to benefit the company.

Overall ARM Holdings PLC (NASDAQ:ARM) ranks first on our list of the best UK growth stocks. While we acknowledge the potential for ARM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap. 

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