2 UK growth shares to buy in September

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Today, I’m looking at two top UK growth shares I think are top buys next month.

A top stock I already own

Games Workshop (LSE: GAW) has a long record of consistent earnings growth. This history reflects its proud position at the top of a niche retail segment (fantasy wargaming), one which therefore withstands the pressures of economic downturns on broader consumer spending.

It also underlines the strength of the FTSE 250 firm’s online proposition which allowed it to keep growing profits despite the closure of its shops during the pandemic.

This top UK growth share was on my shopping list for some time. And last year’s resilient performance in tough times encouraged me to take the plunge and add it to my Stocks and Shares ISA. I think there’s a lot more to come from Games Workshop too as it expands in international markets and steps up its exposure to popular media.

Last year, it inked a deal with games developer Frontier Developments to bring its Warhammer fantasy franchise to consoles and PCs in 2023. The company has also been exploring the possibility of launching a television series which would boost sales of its miniatures and potentially deliver blockbuster revenues in its own right.

However, it’s worth remembering Games Workshop commands a hefty valuation today. City brokers think annual earnings will rise 5% in the current fiscal year, leaving the business trading on a forward price-to-earnings (P/E) ratio of 30 times.

Such a heady rating leaves little room for anything other than a continued stream of good trading news. Otherwise the wargame goliath could see its share price fall off a cliff.

Games Workshop UK Stock

Another great UK growth share!

I believe Empiric Student Property (LSE: ESP) could be another great UK growth share for long-term investors like me to buy.

Okay, City analysts expect earnings at the property provider to fall again in 2021 as Covid-19 continues to hit occupancy levels (its student accommodation was only 65% filled during the first half of this year). But I’m expecting profits to bounce back strongly as the pandemic gradually recedes. Indeed, brokers think annual earnings will soar 108% in 2022.

There simply aren’t enough places for university students to stay in the UK. As property investment firm CBRE has recently commented: “There remains an acute supply and demand imbalance across most markets,” a problem “which has been further impacted by construction delays as a result of the Covid-19 lockdown.”

This is an issue which will take a long time and a monumental level of effort to soothe. And it means rents at accommodation providers should remain on an upward trajectory for some time to come.

British universities have been popular places for overseas students to come and study at for centuries. And I think this will continue to support UK growth shares like Empiric Student Property, despite the threat that student immigration rules could, theoretically, change.

The post 2 UK growth shares to buy in September appeared first on The Motley Fool UK.

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More reading

  • Is this FTSE 250 pick the best growth stock out there?
  • What’s next for the Games Workshop (GAW) share price?
  • 1 FTSE 250 growth stock I’d buy today
  • 4 penny stocks to buy in August

Royston Wild owns shares of Games Workshop. The Motley Fool UK owns shares of and has recommended Games Workshop. The Motley Fool UK has recommended Frontier Developments. 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.