Brushing aside the warnings of a stock market bubble ready to burst, which have been flying around in recent weeks, broker Peel Hunt today released its list of top growth stocks for 2018.
Based on earnings per share and sales, over the last two years and the next two years' predictions, Peel Hunt's selection ranges from Just Eat to clothing company Boohoo to Nostrum Oil & Gas.
The broker noted that 2017 had been a strong year for growth stocks, with the earnings per share of its selections from 12 months ago increasing by an average of 28 per cent. Top performers included estate agent Purplebricks, support services business Restore, price comparison site GoCompare and retailer B&M.
These were the top ten of Peel Hunt's picks with the largest predicted earnings per share growth in 2018:
| Company | Estimated 2018 earnings per share growth | Reasons for pick |
| Serica Energy | 356 per cent | Around the middle of 2018, Serica is expected to complete the acquisition of reserves in three fields from BP. |
| MP Evans | 50 per cent | The agricultural business is increasingly focused on producing Indonesian Palm oil, which analyst Charles Hunt said makes it easier to understand and a more attractive acquisition target. |
| Nostrum Oil & Gas | 48 per cent | Nostrum intends to complete the acquisition of a gas processing plant in April, which should lift production growth. |
| Atalaya Mining | 48 per cent | Two growth projects at the company are set to make copper output jump. The first is an expansion at the Rio Tinto mine, and the second should be completed by 2020. |
| Just Eat | 39 per cent | The takeaway delivery company has huge opportunities in the form of orders shifting increasingly online, continuing to win discounts for its restaurants by making deals with firms such as Booker and Coca Cola, and broadening into areas such as analytics and insight. |
| The Gym Group | 28 per cent | A a strong self-financed expansion programme was Peel Hunt's main reason for picking the budget exercise chain. The introduction of premium pricing plans could also produce positive results. |
| B&M European Value Retail | 27 per cent | The discount retailer is one of the few adding space in the UK, and its business model is working well. It also has a new chief executive, who Peel Hunt said "looks more than capable". |
| Asos | 27 per cent | Asos has become almost synonymous with online fashion retail. It boasts high levels of innovation and relevant brand churn, and has recently launch ath-leisure and relaunched beauty ranges. |
| Charter Court Financial Services | 26 per cent | The specialist mortgage bank has strong balance sheet growth and operational leverage. What's more, Charter Court should benefit from new underwriting standards for complex landlords. |
| On the Beach | 25 per cent | The holiday website has a structural cost advantage relative to its main tour operator competitors, which is helping it to increase market share and further reduce holiday costs. It has continued to invest and should benefit from moving into new markets. |
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