This is where things get interesting. Some analysts now believe a handful of mid‑cap names could double or more over the next year. Three that keep popping up in my stock screener are Telecom Plus (LSE: TEP), Craneware, and GlobalData (LSE: DATA).

But cheap does not automatically mean good value. So it is worth lifting the bonnet and checking what we’re really looking at.

Telecom Plus

Telecom Plus is a multi‑utility provider selling gas, electricity, broadband, and phone contracts under its Utility Warehouse brand. It is unusual in that it grows mainly by word‑of‑mouth referrals, which helps keep marketing costs down and customers sticky. On paper, it looks very appealing for a defensive business: a 7.56% dividend yield, a solid price-to-earnings (P/E) ratio of 15.7, and a chunky 28.8% return on equity (ROE).

The main risks are that utilities are tightly regulated and competition is fierce. With an historically high payout ratio, some have questioned just how far that big dividend can stretch if growth slows.

Still, analysts are optimistic, with the average 12‑month price target expecting 100% growth from here. That suggests the market might be underestimating its ability to keep adding customers and turning that into profit.

Craneware

Craneware sells management software to hospitals for billing, pricing, and reimbursement – a niche, but important, part of the healthcare system. Earnings are up 45% year on year, helped by rising revenue, strong margins around 30%, and ongoing demand as hospitals digitise their back‑offices.

On top of that, Craneware has very little debt compared to equity, which gives it more resilience if interest rates stay higher for longer. The flip side is that the shares already trade on a high valuation and can be volatile – any slowdown in US hospital spending or IT budgets could quickly knock sentiment.

GlobalData

GlobalData is a data and analytics group that sells subscription research to companies and governments across sectors like healthcare, technology, and consumer goods. In its latest year, it delivered 12.8% revenue growth, helped by recent acquisitions and an ‘AI‑first’ push to make its platform more useful to clients.

Earnings are up 16.7% so far this year, and analysts see scope for further margin expansion as management executes its growth plan. The debt‑to‑equity ratio of 0.63 is manageable, but it’s higher than Craneware’s, so the balance sheet is not quite as pristine.

Key risks here are that some of that growth has come from deals rather than pure organic progress. If a recession rears its ugly head, data and research spending could be cut, hurting profits.

Final thoughts

All three shares have credible growth opportunities, but Telecom Plus stands out to me as one worth considering. It combines essential services, strong profitability, and a very generous yield.

All that at a valuation that doesn’t look too stretched for a potential long‑term compounder.

Of course, none of these should be ‘bet the farm’ ideas. But as part of a diversified portfolio – especially inside an ISA where gains and dividends are shielded from UK tax – a careful allocation could add some real excitement to long‑term returns.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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Here’s one that has far more potential, according to City analysts.

The UK tech stock you’ve never heard of

The stock in focus today is GlobalData (LSE: DATA). It’s an under-the-radar technology company that provides an analytics and insights platform – embedded with artificial intelligence (AI) technology – designed to help organisations get more out of their data.

Listed on the UK’s Alternative Investment Market (AIM), it currently trades for just £1.41. Its market-cap is £1.15bn however, meaning that it’s a well-established company and not some early-stage tech start-up.

Analysts are bullish

Zooming in on analysts’ forecasts here, the average price target’s £2.38, around 69% above the current share price. If that share price was to be hit, a £2,000 investment could grow to £3,376. Meanwhile, a £5,000 investment could grow to £8,440.

Going back to Rolls-Royce, the average price target there is £9.18, which is about 15% below the current share price. So analysts clearly see a lot more potential in this tech stock.

I’ill point out however, that analysts’ forecasts should always be taken with a grain of salt. Investment research isn’t an exact science and forecasts often turn out to be off the mark.

I see tons of potential

Taking a closer look at this company however, I can see why analysts like it. For starters, it’s growing at a healthy clip (helped by acquisitions). This year, revenue’s forecast to come in at £329m, an increase of 15% year on year.

Secondly, the valuation looks quite low for a data/tech company. With analysts forecasting earnings per share of 8.66p this year, the forward-looking price-to-earnings (P/E) ratio’s only 16.4.

Third, the company has a lot of quality. Return on capital (a key measure of profitability) is quite high while the balance sheet’s strong.

Finally, the company plans to move its stock to the UK’s main market later this year (it could join the FTSE 250 index). This could lead to significantly more interest from institutional investors (many of these investors can’t buy AIM stocks) and light up its share price.

“As we enter the second half, we look forward to joining the Main Market and believe that our continued investment in the business and platform, our strong balance sheet, cash flows and significant M&A firepower offers shareholders a compelling long-term opportunity for strong returns”.
GlobalData H1 results

Worth a look?

Of course, it’s not perfect. The main risk for me is competition. Data analytics is a competitive industry and it’s hard to know if this company has a genuine advantage.

Economic weakness is another key risk. This could lead to less spending on data analytics from businesses.

It’s also worth mentioning that right now, the company’s in the midst of a transformation period designed to boost growth. This hurt earnings in the first half of 2025 and it could continue to do so in the near term.

Weighing everything up however, I see a lot of appeal here. I believe this stock’s worth considering today.

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In years gone by though, the GlobalData share price was on fire. Between 2010 and 2020, it surged 1,800%!

Might this now be a hidden gem for investors to consider? Let’s take a closer look.

What it does

GlobalData makes money by selling data analytics and industry insights to organisations and businesses. It provides these to multiple sectors, including healthcare, technology, banking, and energy. 

At the end of 2024, the company served nearly 5,000 clients worldwide, with around 75% of its revenue subscription-based. It’s partial to a bolt-on acquisition, and made four last year for a total cost of £88m. These will all be “earnings accretive”, the firm says.

Historically, GlobalData has aimed for underlying revenue growth of 10%. Last year, however, revenue came in at £285.5m, representing underlying growth of just 4%.

On the plus side, the adjusted EBITDA margin held steady at 41%, and over 42,000 users are now subscribed to its AI Hub.

Bidders circling

The company is in the middle of a three-year Growth Transformation Plan (2024–2026). It’s targeting £500m annualised revenue by the end of 2026.

As part of this, it sold a 40% stake in its healthcare business to Inflexion last year for £451m. This massively strengthened the balance sheet and provides flexibility for acquisitions. Boosted by paying less debt costs, the firm’s earnings are set to more than double by 2027.

According to forecasts, this puts the stock’s forward-looking price-to-earnings ratio for 2026 at just 15. That’s cheap for an established data firm. Indeed, if its growth plan is successful, it could turn out to be an absolute bargain. 

Perhaps that’s why private equity groups have been sniffing around. However, the tech company recently ended all takeover talks.

GlobalData announces today that it has terminated discussions…The Board remains highly confident in the future prospects of GlobalData.

GlobalData, June 2025

Risks

Around half of total revenue comes from the UK and US. Therefore, a recession in either or both could see reduced enterprise spending, especially among mid-tier clients. A severe downturn could even derail the three-year growth targets.

Another thing worth mentioning here is that GlobalData rebased its 2024 dividend, shifting capital priorities toward acquisitions. The total dividend fell 46%, from 4.6p to 2.5p, and is forecast to fall again this year. 

Some investors might find this disappointing, considering there had been regular double-digit increases in previous years. The forecast yield now stands at just 1.1%.

Potential hidden gem?

As an AIM-listed stock, GlobalData doesn’t get loads of analyst coverage. But of the five brokers that do follow it, all rate it as a Strong Buy.

Moreover, their one-year average price target is 256p, which is a whopping 69% above the current level! No guarantees it’ll ever reach that, of course.

Looking ahead, the firm plans to move to the main market. This should see it join the FTSE 250, which could spark more investor interest and support a higher valuation.

Weighing things up, my view is that this may indeed be a hidden gem, and is therefore worth considering at 151p.

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Eye-watering earnings growth

Alpha FX’s (LSE:AFX) share price is up nearly 10% in the last year, while over the past three months it’s down 24%. At the time of writing, the shares are trading at 1,820p.

One way I like to gauge how quickly a growth stock is expanding is by looking at its historical earnings per share (EPS) growth. Between 2017 and 2021, the company’s EPS rose from 17.5p to 58.3p. 

By my calculations, this means that the firm – a business providing financial solutions within foreign exchange – had a compound annual EPS growth rate, or the constant rate of return per year, of 27.2%. This is both strong and consistent, but it’s no guarantee of future performance, of course.

In its full-year results, the business reported that revenue had risen 68% to £77.5m, while pre-tax profits nearly doubled to £33.18m, year on year. 

It’s also interesting to note that this company is debt free, having managed to build up a strong cash balance over recent years.

In addition, client numbers increased by 27% and average revenue per customer grew by 32%. Furthermore, the dividend payment rose from 8p to 11p, from 2020 to 2021, although I’m slightly concerned about the potential impact from the broader economic climate of rampant inflation.  

Growth through acquisitions

Next GlobalData (LSE:DATA) may also offer me attractive growth. In the past year, the shares are down 44%, while in the last three months they’re down 25%. At the time of writing, they’re trading at 960p.

Its EPS grew from 17.21p to 30.8p between 2017 and 2021, resulting in a compound annual EPS growth rate of 12.35%. While this isn’t as high as Alpha FX, it’s certainly competitive.

Between 2020 and 2021, revenue increased from £178.4m to £189.3m, while pre-tax profits rose from £28.6m to £32.6m. 

The business – an industrial intelligence firm – has made two acquisitions recently, expanding its reach into the automotive and agribusiness industries for “fuller scale and capabilities”.

It also paid a dividend in 2021 of 19.3p, up 14% on 2020. There is always, however, the threats posed by wage and cost inflation.

Overall, these two companies present me with appealing buying opportunities for long-term growth. The share prices have both fallen in recent times, so it’s potentially an attractive time to load up on the shares. I therefore think I will be adding these businesses to my portfolio very soon. 

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What is the Alternative Investment Market?

The AIM is a sub-market of the London Stock Exchange (LSE). It is designed to help smaller firms access capital from the public market. The AIM allows these firms to raise capital by listing on a public exchange with more regulatory flexibility than the main LSE stock market.

The AIM is often seen as a more specialised unit of the LSE, catering to smaller, riskier firms. These firms are often more speculative in nature. This is in part due to the AIM’s more relaxed regulations and listing requirements. Since launching in 1995, the AIM has helped more than 3,865 companies raise more than £115bn.

As it stands, the AIM is home to over 850 firms with a combined market capitalisation of over £100bn. When a firm seeks an initial public offering (IPO) and listing on the AIM, they do this to access more capital. Often due to their size, they are not at the level to list on a large exchange. The process for a company listing on the AIM is similar to a traditional IPO, just with less strict requirements.

One major difference I found was the role that nominee advisers, often referred to as ‘nomads’, play in the process. These nomads are seen as the regulatory system for the AIM. They advise companies pre-IPO and after. One gripe frequently raised about this relationship is that nomads are responsible for regulatory compliance, but also profit in the form of fees from the firm they list. The regulation for firms listed on the AIM is often referred to as being ‘light touch’ compared to a major index.

Best stocks to buy now #1

My first pick from the FTSE AIM is growth stock AB Dynamics (LSE:ABDP). I believe it is a perfect example of an AIM success story. AB is involved in the automobile industry. It provides testing equipment and advanced measurement services to car producers in the UK and overseas.

Launched in 1982, AB Dynamics is not a new up-and-coming stock. In fact, it has continued to grow on a slow and steady basis. This is one of the main aspects I like about it. It floated on the AIM in 2013 for 115p. It reached all-time highs of 2,750p in November 2019. If I had invested at IPO stage, I would have seen a return of 2,291% at the shares’ highest levels.

As I write, shares are trading for 1,860p per share. At this time last year, shares were trading for 2,140p. This decrease in share price does not worry me. In fact, I see it as an opportunity to buy cheaper shares. The dip is attributed to the pandemic and the lack of new cars being produced in recent times. Economic pressures have also affected the automobile industry. I believe as the economic reopening continues, AB Dynamics could benefit and its share price rise closer to previous highs. 

Reviewing past performance, AB has reported year-on-year revenue and gross profit growth for the past four years. I understand past performance is not a guarantee for the future but I use it as a gauge when researching the best stocks to buy now.

The risks with AB Dynamics are closely linked to the economy, the pandemic, and reopening. If new car production continues to falter, AB Dynamics could see demand for its services reduced. This will affect its performance and financials, as well as investor sentiment, and its share price could suffer.

Overall, I would consider adding AB Dynamics shares to my portfolio right now. The global car industry is experiencing production issues, but I feel this is a short to medium term issue. I invest for the long term. I expect to see AB prosper longer term, offering me a good return.

Best stocks to buy now #2

The next FTSE AIM stock I like is GlobalData (LSE:DATA). Global is a data and analytics consulting firm with a global footprint and reach. Launched in 1999, I would argue it moved into an innovative sector before that sector really took off. After all, data and analytics wasn’t really a prominent concept in 1999, compared to the role data plays in our lives currently.

GlobalData listed on the FTSE AIM back in 2009 for 89p. As I write, shares are trading for 1390p. If I had invested when it was first listed, I would have seen a return of 1,461%! Shares have continued on an upward trajectory since its listing and are currently trading just over pre-crash levels. With a market-cap of over £1.4bn, it could soon join the main FTSE index. It is one of the largest listed firms on the FTSE AIM based on market cap.

There are a few reasons I class GlobalData as one of my best stocks to buy now on the FTSE AIM. Firstly, like AB Dynamics, Global has a good track record of performance. It has seen revenue and gross profit grow year on year for the past four years. In addition to that, it regularly acquires businesses to boost its profile and offering. Acquisitions excite me as a potential investor as it shows willingness to grow, which could increase my returns.

There are risks with GlobalData, however. Competition is rife in the data and analytics sector. There are several well known names that operate in the space, which could affect its market share. These household names could affect performance and in turn, financials too. In addition, acquisitions don’t always work out. Sometimes, firms can overpay for the business they are buying and this can affect the balance sheet and the share price.

Overall, I would add GlobalData shares to my portfolio right now. I expect its growth journey to continue, especially as data and analytics services are in higher demand than ever. 

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However, investor sentiment appears to be buoyant due to the potential for graphene’s use in a wide range of applications. This could mean that demand increases significantly in future years, which could boost the company’s profitability.

Of course, there are other growth stocks that have doubled in recent years. One such company that reported on Monday could be a strong performer over the medium term.

High growth

Step forward data and insights specialist GlobalData (LSE: DATA). It reported strong revenue growth across all of its regions, with revenue visibility also improving. The company has been able to strengthen its business infrastructure and commercial scale, while also continuing an acquisition programme that has enabled it to grow in recent years. And with new committed banking facilities of £75m, it appears to have the financial capacity to engage in further M&A activity.

GlobalData also announced that it’s in advanced discussions regarding the potential acquisition of data and analytics provider Research Views. While there’s no certainty that the deal will go through, it shows that the company remains bullish about its future prospects. And having grown revenue and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) by 22% and 14% respectively in the 2017 financial year, it appears to be performing well.

The stock has risen by 140% in the last five years. With its forecast to grow its bottom line by 21% this year, followed by further growth of 20% next year, it appears to be in a strong position to generate further capital growth. As such, now could be the right time to buy while it has a price-to-earnings growth (PEG) ratio of just 1.2.

Risk/reward

Of course, Versarien could continue to post high share price growth over the medium term. Investor appetite for riskier, yet more rewarding shares appears to be high. The recent stock market correction is unlikely to change this stance, which could mean that the company’s valuation continues to rise even though it already trades on supremely high metrics.

Furthermore, there is the potential for success in the trials being run Versarien. Ultimately, it’s not yet known whether graphene can be used in a wide variety of applications but its potential appears to be high. There seems to be a good chance that it will become a more widely-used material over the medium term. As such, for investors who are less risk averse and comfortable with a volatile share price, Versarien could be a worthwhile investment for the long run.

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