£5,000 to invest? 5 growth stocks I’d buy and hold in 2021

Here’s a list of the five large- and mid-cap growth stocks I believe could generate huge total returns for investors in 2021.

Rupert Hargreaves ❯

@@ruperthargreav1

Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. As well as writing for the Motley Fool, he is the editor of Hidden Value Stocks, covers value investing for Gurufocus and hedge funds for ValueWalk.com. Rupert began his career as a proprietary currency trader and still trades on a daily basis. Rupert holds professional level qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. He can be found on Twitter @ruperthargreav1

Published 24 December, 2020 9:18 am GMT

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Here’s a list of the five growth stocks I believe could generate huge total returns for investors in 2021. With a possible lump sum of £5,000 to invest, I think buying these equities could be a sensible decision.

Growth stocks to buy

Breedon flies under the radar of most investors. However, as growth stocks go, I think this business has all the hallmarks of a successful investment.

The building materials supplier has a strong track record of growth through acquisitions and organic expansion. Due to the nature of its business, supplying materials such as concrete and aggregate makes it difficult for competitors to grab market share. Starting a new quarry in the UK is quite tricky. This bodes well for future growth, in my opinion.

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The government is also planning to increase spending on infrastructure projects over the next few years, and Breedon may benefit substantially from this increased activity.

Fevertree Drinks also has a lengthy track record as one of the best growth stocks money can buy. Its expansion has slowed in recent years, but that’s not something that worries me. Its brand is still extremely strong, especially among younger consumers.

The business is also highly cash generative, which gives it plenty of financial firepower when it comes to marketing. That should help the company adapt to the new normal in 2021.

YouGov has become a global data and analytics powerhouse over the past five years. This has given the business a substantial competitive advantage and helped it become one of the market’s top growth stocks. In the world of big data, the more you have, the better.

If the group can capitalise on this advantage, I think there are many years of growth in front of the business, no matter what the future holds for the UK economy.

Tech champion

There aren’t a lot of tech companies listed in London. However, Rightmove is one that is.

This corporation is the largest property portal in the UK, and it’s one of the most visited websites in the country. This has helped the firm become one of the London market’s top growth stocks.

Analysts have continually questioned whether or not the business will be able to maintain its competitive advantage in the market. But management has been able to keep customers coming back, and I don’t think this is going to change anytime soon.

Competitors have tried, but they can’t match its size and scale. This is hugely positive for the group’s profit margins. As long as clients continue to return, Rightmove may remain an attractive investment for the next decade.

Finally, I’d take a closer look at recruitment consultancy Robert Walters. This is more of a turnaround play than one of the market’s top growth stocks. Nevertheless, if the global economy returns to growth in 2021, I think the company could see a substantial increase in underlying profit and sales.

That could potentially lead to a substantial increase in the stock price. If an investor’s willing to take on the risk here, the potential reward could be worth the risk.