![](http://theinvestingbox.com/wp-content/uploads/2023/08/Looking-at-the-details-4.jpg)
Just released: our 3 top small-cap stocks to buy in August [PREMIUM PICKS]
Premium content from Motley Fool Hidden Winners UK
Our monthly Best Buys Now are designed to highlight our teamâs three favourite, most timely Buys from our growing list of small-cap recommendations, to help Fools build out their stock portfolios.
“Best Buys Now” Pick #1:
Bloomsbury Publishing (LSE:BMY)
Why we like it: âBloomsbury (LSE: BMY) owns the print rights for the Harry Potter books in the UK, and remarkably, the first book in the magical wizard series is the third-bestselling childrenâs book of this year, some 26 years after it was first published. Talk about valuable intellectual property! The company is also nurturing star author Sarah J Maas, publishing 15 titles so far by the popular fantasy novelist, whose catalogue of titles saw a whopping 51% rise in sales in the last year.
âBut while strong sales of consumer titles are welcome, its non-consumer division â representing roughly 37% of total sales last year â could provide a substantial long-term growth driver. The company has transformed into a serious player in education in recent years. Through its digital platform â Bloomsbury Digital Resources (BDR) â the company provides educational resources to academic libraries and institutions. Bloomsbury expects that BDR should achieve organic sales growth of around 40% by 2027/28 â and it also represents a tantalising margin opportunity, in our view.â
Why we like it now: Bloomsbury recently announced record sales (up 15% to £264.1 million) and profit (up 16% to £31.1 million) for the fiscal year ending 28 February 2023, surpassing both market expectations and industry averages. This success is attributed to a surge in digital revenues and international expansion. The companyâs long-term strategy of investing in digital content has paid off with a 41% sales growth in Bloomsbury Digital Resources (BDR), driven by both organic and acquired assets. Bloomsbury has recently signed four book contracts that could fuel earnings for the coming years. HBO Max announced a new Harry Potter TV series in April. A Bollywood adaptation of William Dalrympleâs The Anarchy is being planned, and The Three-Body Problem, the bestselling trilogy, is currently in production at Netflix. In recognition of the robust performance, the board has proposed a 10% increase in the final dividend to 10.34p per share, consistent with their progressive dividend policy. A recent trading update revealed that performance was in line with expectations for the first four months of the full year.
“Best Buys Now” Pick #2:
Redacted
Want All 3 âBest Buys Nowâ Picks? Enter Your Email Address!
The post Just released: our 3 top small-cap stocks to buy in August [PREMIUM PICKS] appeared first on The Motley Fool UK.
Don’t miss this top growth pick for the ‘cost of living crisis’
While the media raves about Google and Amazon, this lesser-known stock has quietly grown 880% – with a:
- Greater than 20X increase in margins
- Nearly 60% compounded revenue growth over 5 years – more than Apple, Amazon and Google!
- A 3,000% earnings explosion
Of course, past performance is no guarantee of future results. However, we think it’s stronger now than ever before. Amazingly, you may never have heard of this company.
Yet there’s a 1-in-3 chance you’ve used one of its 250 brands. Many are household names with millions of monthly website visitors, and that often help consumers compare items, shop around and save.
Now, as the ‘cost of living crisis’ bites, we believe its influence could soar. And that might bring imminent new gains to investors who’re in position today. So please, don’t leave without your FREE report, ‘One Top Growth Stock from The Motley Fool’.
Claim your FREE copy now
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#FFFFFF’);
})()
More reading
- 2 shares I just bought for a hefty second income
- Time to buy this unloved FTSE 100 stock for serious passive income?
- Here’s why this could be the best FTSE 250 income stock to buy right now
- Is this a once-in-a-lifetime opportunity to buy AI stocks?
- If I’d bought £10k of Lloyds shares in the stock market crash, I’d have this much now
The Motley Fool UK has recommended Bloomsbury Publishing Plc.Â