UK share prices are (broadly speaking at least) under severe pressure right now. Rising tension over soaring inflation have served to push many British stocks firmly to the downside, from FTSE 100 goliaths to the smallest penny stocks.
There have been rare causes for cheer, however. The following penny stocks, for example, have all risen in value over the past month. Here are three I’d spend £500 on each right now.
More forecast-beating trading news
The HSS Hire Group (LSE: HSS) share price has risen 9% during the past month. This means that in the last 12 months it’s gained 28% in value. The business hires out tools and construction equipment and is thus highly cyclical. Yet the strength of trading here has allowed its share price to rise despite fears over the British economy. The penny stock hiked its earnings expectations yet again in half-year financials released last month.
Trading at HSS Hire would likely cool again if soaring inflation chokes off the economic recovery. But the business has made huge strides to improve its balance sheet, which should help cushion it against any fresh trading problems. The sale of its All Seasons Hire division last month has pulled its leverage down to just 1x. Its improving financial position will also help it to execute its long-term growth plans.
Sporting great
Science in Sport (LSE: SIS) is also managing to defy the broader gloom enveloping UK share markets. The protein shake manufacturer has risen 2% in value over the past month, taking total 12-month gains to 111%. Sales of its products are booming as consumers’ fitness focus boosts demand for its nutritional products. Revenues at the penny stock jumped 24% in the six months to June, financials last month showed. And encouragingly, new product innovations made up a quarter of this total.
The sports supplement market is one that looks set for further stratospheric growth too. Analysts at Grand View Research think it will be worth $34.5bn by 2028, more than double its size today. I think Science in Sport is a great way to ride this phenomenon despite the threat of intense competition to future sales.
Another penny stock on a roll
Like Science in Sport, Finsbury Food Group (LSE: FIF) has also risen 2% in the last month. Consequently the bread, cake and morning goods manufacturer is up 71% on a 12-month basis. I think its role in a defensive sector (we need to eat regardless of economic conditions, right?) makes it a top buy for these uncertain times.
As a long-term investor, I’m excited by the impressive progress Finsbury Food is making on foreign shores. Sales outside the UK account for just 12% of the group total today. But the rate at which they’re growing demands serious attention. Up 13.4% in the 12 months to June, this was far better than the 1% increase reported on home turf. I’d buy this penny stock despite the threat that rising Covid-19 cases poses to its foodservice business.
Royston Wild 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.
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