2 UK shares that I think will grow rapidly in the future

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Let’s be sincere, no one can predict the future of UK stocks or any other.

sadasda

However, I can employ the information available to make an informed prediction about which stocks are likely to be successful in the future.

The two actions that I think will do this are: HSBC (LSE:HSBA) and Michelmersh Brick Holdings (LSE:MBH).

I’d buy both stocks if I had some cash to invest today. Here’s why!

HSBC

The shares of this Asian-focused banking powerhouse currently look to be among the most attractive on the FTSE.

The $120 billion market cap company has a great market position, a great presence in over 60 countries, and a solid track record. But I’m more interested in the future than the past.

HSBC’s access to the lucrative Chinese market is invigorating. This region, where wealth levels are set to enhance exponentially in the coming years, is one where HSBC already has a powerful presence. I think profits and returns could skyrocket.

The obvious risk is economic headwinds. The recent struggles to grow in the region are a prime example of this, which have in turn damaged global economic balance and held back many markets. But this is a cyclical risk that I am willing to live with when it comes to banking stocks like HSBC.

Continuing with my growth theory, the stock offers a very attractive dividend yield of over 7%. For comparison, FTSE100 the average is 3.6%. However, I understand that dividends are never guaranteed.

Finally, the stock looks like a great value based on its price-to-earnings ratio of just 6.9.

An attractive foundation, a potentially invigorating future ahead of the company, and an established brand and business – what more could you want?

Michelmersh Brick Holdings

Michelmersh Brick Holdings — a company that manufactures and sells bricks, tiles and other construction products — is a far cry from the fast-paced world of financial services.

Michelmersh may not have the brand and clout of HSBC, but it does have a number of advantages. First, it produces its own products, which can facilitate with pricing and operating costs.

Looking ahead, demand for bricks and building aggregates will continue to grow, particularly in the UK. Housing imbalances, as well as the need to build infrastructure for a growing UK population, could catapult Michelmersh’s profits and returns upwards.

Speaking of returns, the dividend yield of 4.7% is attractive. Furthermore, the stock looks good value for money with a price-to-earnings ratio of just 11.

Michelmersh is prone to economic turbulence for several reasons. The fresh government has spoken of a financial black hole, which could mean that infrastructure projects will be postponed. Another problem is inflation, which could hamper profitability and demand. These aspects could reduce profits and returns, as well as growth.

Overall, I think Michelmersh is a slightly lesser known company compared to the more well-known names operating in so-called prestigious industries.

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sadasda

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