I think these are my best growth shares to buy with £1,000

i think these are my best growth shares to buy with £1,000

Abstract 3d arrows with rocket

It has been a funny year for growth stocks. In some areas, these have been the hottest shares to buy. Yet in some other sectors, the star growth names have disappointed in performance. So when I’m thinking about which stocks to buy now for 2024, here are my selective picks.

A contrarian area to consider

The first area I’d allocate some of my £1,000 to is retail. This might sound odd, given the doomsayers talking about the death of the high street. Of course, demand from consumers is more online, but there’s no reason why a company can’t offer both online and physical capabilities and perform very well.

For example, that’s the case with Pets At Home. The UK’s go-to retailer for pet supplies is continuing to grow. The latest results for H1 showed consumer revenue up 8.6% year-on-year.

It has a good mix of generating revenue both in-store and online and I don’t see this changing anytime soon. People like to have the ability to try and see goods (particularly in the pet market), even if they then go online and buy it there. A risk is that consumers change their spending habits, or that they tighten their belts if the economy worsens in 2024

The share price is up 21% over the past year. I feel there’s more potential for this to run next year.

Time to arm up

Another area of growth I like is aerospace and defence. Let’s be real, the need for government spending on defence has stepped up several gears over the past year.

Some might think that this is a mature sector without any real potential for growth. This isn’t correct. For example, Babcock International shares are up 39% over the past year. The company specialises in critical services related to international defence.

With an increase in the order book and recent wins with new contracts, 2024 is looking like it could be very profitable for the business. Of course, I’m not in any way supporting conflicts by wanting to buy the stock. Rather, it’s a sad reality that scuffles are becoming more pronounced around the world.

This sector is competitive though, so I’d consider spreading my money around two or three stocks to diversify my risk.

Using my £1,000

I’m considering buying the two shares with a portion of my available cash. With the whole amount, I’d aim to pick four stocks from the two sectors, to allocate £250 in each.

The aim here is to have enough in each one so that should I see large growth next year, it’ll make a financial difference to me. At the same time, by splitting up the money to different shares, I reduce my risk of putting everything on black and it coming up red.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More reading

Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has recommended Pets At Home Group Plc. 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.

News Related

OTHER NEWS

FA confident that Man Utd starlet will pick England over Ghana

Kobbie Mainoo made his first start for Man Utd at Everton (Photo: Getty) The Football Association are reportedly confident that Manchester United starlet Kobbie Mainoo will choose to represent England ... Read more »

World Darts Championship draw throws up tricky tests for big names

Michael Smith will begin the defence of his world title on the opening night (Picture: Getty Images) The 2024 World Darts Championship is less than three weeks away and the ... Read more »

Pioneering flight to use repurposed cooking oil to cross Atlantic

For the first time a long haul commercial aircraft is flying across the Atlantic using 100% sustainable aviation fuel (SAF). A long haul commercial flight is flying to the US ... Read more »

King meets world business and finance figures at Buckingham Palace

The King has met business and finance leaders from across the world at a Buckingham Palace reception to mark the conclusion of the UK’s Global Investment Summit. Charles was introduced ... Read more »

What Lou Holtz thinks of Ohio State's loss to Michigan: 'They aren't real happy'

After Ohio State’s 30-24 loss to Michigan Saturday, many college football fans were wondering where Lou Holtz was. In his postgame interview after the Buckeyes beat Notre Dame 17-14 in ... Read more »

Darius Slay wouldn't have minded being penalized on controversial no-call

Darius Slay wouldn’t have minded being penalized on controversial no-call No matter which team you were rooting for on Sunday, we can all agree that the officiating job performed by ... Read more »

Mac Jones discusses Patriots future after latest benching

New England Patriots quarterback Mac Jones (10) Quarterback Mac Jones remains committed to finding success with the New England Patriots even though his future is up in the air following ... Read more »
Top List in the World