I have been looking for attractive FTSE 100 UK shares to buy for my portfolio in 2022. I am concentrating on companies with tremendous growth potential, as I think these businesses will be able to capitalise on the economic recovery over the next year.
With that in mind, here are three I would buy for my portfolio today based on their growth prospects.
FTSE 100 growth
The first business is the financial services and credit rating agency Experian (LSE: EXPN). This company helps corporations and consumers analyse their financial credit information and find products fitting their credit profiles.
Consumer confidence is returning as the economy is opening up, leading to rising demand for credit products. As a result, analysts expect the firm’s growth to accelerate in the next two years. The City is projecting earnings growth of 22% for the current year, followed by growth of 14% in 2023.
The biggest challenge the company is likely to face over the next few years is competition, as it is one of the three leading credit agencies. However, it does have a solid competitive advantage in the form of data. With decades of consumer data under its belt, I think the business is well-placed to continue to grow in the years ahead.
UK shares to buy
While Experian’s competitive advantage is its data trove, Coca Cola HBC‘s (LSE: CCH) advantage is its bottling contract across Europe with the drinks giant Coca-Cola.
This competitive advantage essentially gives the group a guaranteed income stream. Management has been building on this solid base through acquisitions and efficiency initiatives.
With earnings growth averaging 6.3% for the past six years, the company is hardly a growth champion. But I believe this is one of the best FTSE 100 shares to add to my portfolio, considering the competitive advantage outlined above. It may not be the fastest growing business, but gains are relatively steady and predictable. This quality is relatively rare among blue-chip stocks.
Still, it is not immune to challenges. Some headwinds the company could face include rising wage and materials costs. These could hit profit margins and reduce growth.
International expansion
The final FTSE 100 growth stock on my list is Entain (LSE: ENT). Over the past decade, this company has gone from strength to strength through a combination of organic growth and acquisitions.
The pandemic generated a windfall for the business, as stuck-at-home consumers turned to its online gaming platforms to pass the time. The group is using this windfall to help support growth around the world. Considering its track record of expansion, I am excited by this potential.
That said, gambling is a highly regulated industry. It is also highly competitive. Both of these could act as headwinds to the group’s expansion in the years ahead.
Despite these risks, I think the company’s international presence gives it scope to expand rapidly over the coming years.
Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Coca-Cola HBC and Experian. 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.
