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Important: This article is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy, sell, or hold any security. Past growth is not a reliable indicator of future performance. Investing involves risk and you may get back less than you invest. Please consult a qualified financial adviser authorised by the FCA before making any investment decisions.
The FTSE 100 is often characterised as a value and income index — dominated by mining companies, banks, and oil majors. That characterisation is partly accurate but misses a growing number of UK-listed businesses with strong historical growth records and international operations.
This article profiles five such companies, using Openbook's reward scoring model as a reference point, and sets out the key factors investors typically research.
What Investors Look for in Growth Stocks
Investors focused on capital growth typically research several characteristics:
- Revenue growth consistency — has growth been sustained over multiple years or dependent on one-off factors?
- Margin expansion — does growth convert into profit, or is it bought through investment?
- Revenue quality — recurring subscription or contractual revenue is typically valued more highly than project-based revenue
- International exposure — UK-only revenue limits the addressable market
- Valuation — faster-growing businesses typically trade at higher multiples; investors weigh whether those multiples are justified
Openbook's reward score captures elements of growth, profitability, and momentum in a single 0–100 model output. Use the Openbook screener to explore scores across FTSE stocks.
1. AstraZeneca (AZN.L)
Openbook Reward Score: 68 / 100 | Growth Score: 74 / 100
AstraZeneca is the FTSE 100's largest company and has recorded compound revenue growth of approximately 18% annually between 2020 and 2025. Its oncology franchise — including Tagrisso, Enhertu, and Calquence — has been the primary driver.
Key research areas: pipeline sustainability beyond current blockbusters; valuation at approximately 30x forward earnings; patent cliff risk on Tagrisso from the late 2020s.
For a more detailed breakdown, see our AstraZeneca research note.
2. Rolls-Royce (RR.L)
Openbook Reward Score: 72 / 100 | Growth Score: 81 / 100
Rolls-Royce's recovery since 2022 has been well documented. The civil aerospace division's revenue model — paid per flying hour on installed engines — creates significant operating leverage as aviation volumes recover and grow. The defence and Power Systems divisions add diversification.
Key research areas: the sustainability of flying hour growth; supply chain constraints; the valuation after a substantial re-rating; the long-term SMR programme.
For a more detailed breakdown, see our [Rolls-Royce research note](/news/insights/rolls-royce-share-price-forecast-2026).
3. Halma (HLMA.L)
Openbook Reward Score: 71 / 100 | Growth Score: 69 / 100
Halma is a specialist safety and environmental technology group that acquires niche businesses — in areas including fire detection, water quality monitoring, and medical devices — and operates them through a decentralised model. Revenue has grown in every year for more than two decades, and the dividend has been raised for over 45 consecutive years.
Key research areas: the quality and availability of acquisition targets; whether the decentralised model continues to work at increasing scale; valuation, which is typically at a significant premium to the FTSE average (reflecting the consistent track record).
4. Experian (EXPN.L)
Openbook Reward Score: 66 / 100 | Growth Score: 63 / 100
Experian operates credit bureaus in the UK, US, Brazil, and a growing number of markets. Its consumer business — helping individuals monitor and improve their credit profiles — has grown to over 160 million members globally. The model is highly scalable: data is collected once and monetised across financial services, insurance, and fraud prevention clients.
Key research areas: competitive dynamics in the US credit bureau market; the pace of growth in Latin America; data privacy regulation that could affect how credit data is collected and used.
5. Diploma (DPLM.L)
Openbook Reward Score: 63 / 100 | Growth Score: 61 / 100
Diploma distributes specialised technical products — seals, controls, and life science consumables — through a network of businesses in the UK, North America, and Europe. Like Halma, it operates a serial acquisition model focused on niche, high-margin distribution niches. Revenue has compounded at around 15% annually over five years.
Key research areas: integration risk from its acquisition pace; whether high industrial distribution margins are defensible as customers seek to consolidate suppliers; balance sheet leverage following recent acquisitions.
Factors That Often Affect Growth Stock Valuations
Growth stocks typically trade at higher price-to-earnings multiples than income stocks because investors are paying for future earnings potential rather than current income. This creates specific risks worth understanding:
De-rating risk. If growth disappoints — even slightly — stocks trading on high multiples can fall significantly as the market revises down both earnings estimates and the multiple applied to those earnings.
Interest rate sensitivity. Growth stocks are typically more sensitive to interest rate movements than value stocks. Higher rates reduce the present value of future earnings, which can compress multiples.
Competitive disruption. Businesses valued for their growth can be affected by new competitors, technology changes, or shifts in customer behaviour that alter their long-term trajectory.
These risks do not mean growth stocks should be avoided — but they are important factors to weigh alongside the opportunity.
Start exploring UK stocks on Openbook →
This article is produced for educational purposes only and does not constitute a financial promotion, investment advice, or a personal recommendation. Past performance and historical growth rates are not reliable indicators of future results. The value of investments can fall as well as rise and you may get back less than you invest. Openbook scores are model outputs based on historical financial data and do not predict future performance. Openbook Analytics is not authorised by the Financial Conduct Authority to provide investment advice.
