3 UK growth stocks I’d buy in October

first_img3 UK growth stocks I’d buy in October I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Edward Sheldon owns shares in Diageo and Gamma Communications. The Motley Fool UK has recommended Diageo. 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.center_img As we begin October, economic uncertainty remains high. Here in the UK, we have Brexit on the horizon. Meanwhile, in the US, the Presidential election is only a little over a month away.I wouldn’t let this uncertainty put you off investing, however. As always, there are plenty of attractive opportunities right now. Here’s a look at three UK growth stocks I’d buy in October.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A top insider just bought hereOne growth stock that I believe looks very attractive right now is Diageo (LSE: DGE). It’s an alcoholic beverages giant that owns a world-class portfolio of spirits brands. Its share price has plummeted this year due to Covid-19. I think this is a fantastic buying opportunity.Diageo faces some challenges at the moment. Realistically, it will continue to do so until we see mass vaccination for the coronavirus.However, recent news from the company has been encouraging. Earlier this week, Diageo advised that the US side of the business has been performing strongly and ahead of expectations. It also said that the outlook for the first half of the year has improved recently.Interestingly, Diageo’s CFO recently purchased some shares in the company. That’s a good sign, in my view. It suggests that the insider is confident about the future.DGE shares currently trade on a forward-looking P/E ratio of 21 using the FY2022 earnings forecast. I think that’s good value.Work-from-home growth stockIn the mid-cap space, I like the look of Gamma Communications (LSE: GAMA). It’s a leading provider of communication solutions to businesses. Naturally, its services are in high demand at the moment due to the work-from-home trend.Gamma issued a great set of half-year results in September. For the six months ending 30 June, revenue was up 12% while adjusted earnings per share were up 22%. The dividend was increased by 11%. That’s a fantastic performance in the current economic climate.Aside from strong recent performances, there are a few other things I like about Gamma. One is its high level of profitability. Over the last three years, return on capital employed has averaged 24%, which is excellent. Another is its strong balance sheet. Gamma currently sports a forward-looking P/E ratio of about 33. So, it’s not exactly cheap. However, I think this high-quality growth stock deserves a premium valuation. I’d buy today.Largest ever contract winFinally, in the small-cap space, I think Cerillion (LSE: CER) could be a good stock to buy in October. It’s a leading provider of cloud-based (SaaS) billing, charging, and customer management systems. Its vision is to be the enabler of seamless digital experiences for the world’s communications and subscription businesses.In September, Cerillion landed its largest ever contract – an £11.2m deal with a “major UK provider of enterprise connectivity solutions.” The contract is for the supply and implementation of Cerillion’s pre-integrated end-to-end customer relationship management (CRM) and billing solution. This deal demonstrates the quality of its solutions and the company’s growth momentum right now.Cerillion is a very small company. Its market cap is just £93m at present. This means there could be significant share price upside if the company can continue to land major contracts. Its forward-looking P/E ratio is 27, which I see as reasonable, given recent growth. All things considered, I think this growth stock looks pretty exciting. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Edward Sheldon, CFA | Thursday, 1st October, 2020 | More on: CER DGE GAMA Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. See all posts by Edward Sheldon, CFAlast_img read more