We asked our freelance writers to share their best ideas for publicly traded stocks Alternative Investment Market (AIM) with investors – this is what they said for November!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Gamma Communication

What it does: The company provides technology-enabled communications services across the UK and continental Europe.

by Kevin Godbold. Gamma Communication (LSE: GAMA) is a huge beast by AIM standards with a market capitalization of around £1.57b. But it didn’t start that way.

The company listed on the FTSE AIM 10 years ago and has since delivered sustainable growth in revenues, profits, cash flow and dividends. Not all AIM stocks are junk, as this rising star proves.

City analysts expect continued growth, and the company’s recent acquisition expansion in Germany may support ensure that growth. However, as businesses grow, they face threats. Gamma has been winning for a long time and maybe that’s because of one or two losses.

One possibility is that well-financed competitors may begin to eat into the company’s profitable niche in the market. Or maybe Gamma will make an acquisition that will fail.

Nevertheless, recent updates are positive and the outlook is hopeful. I would now focus on the growing business.

Kevin Godbold holds no shares in Gamma Communications.

YouGov

What it does: YouGov is a market research company with most of its revenue coming from the US.

by Alan Oscroft. Several AIM companies have had problems this year, including: YouGov (LSE: TY) one of the worst performers.

In June, the company warned that full-year earnings were likely to be 32% below analyst consensus at the time. Shares have fallen and, despite several signs of recovery in the following months, are currently at a 52-week low.

My biggest fear is that we may get more bad news as we may see further slowdown in demand across the sector.

However, analysts expect solid earnings growth next year, even after the ratings downgrades. They also do not believe that the dividend will suffer, although the projected rate of return is only 2.2%.

We could expect a price-to-earnings (P/E) ratio of 16.5 in 2025, falling below 12 by 2026.

Sentiment in AIM is not sturdy, so the short-term future may be uncertain. However, I see an attractive long-term valuation here.

As YouGov increases its exploit of AI, it could be the one to put AI into AIM.

Alan Oscroft holds no position at YouGov.

War painting

What it does: Warpaint produces color cosmetics under the W7 and Technic brands. It sells them in Tesco and major retailers in the US and Europe, as well as on its own website.

By Harvey Jones. The extensive majority of my portfolio comes from FTSE100along with a little bit of z FTSE 250. I only own one share listed on AIM, but I chose well because it’s a good thing: Warpaint London (LSE: W7L).

Shares of the specialist color cosmetics supplier are up 80.16% over the past 12 months and are up a record 614.84% over the five-year period.

I bought Warpaint after noticing that it had repeatedly raised earnings estimates, boasted huge cash reserves, no debt, and a sturdy dividend record.

On September 17, I was pleased to see first half profits raise by 66% to £12m, while group profit before tax increased by 76% to £10.9m.

Warpaint’s share price jumped on the news, but fell along with the rest of AIM. This may be because investors are concerned that the budget will include inheritance tax relief for the index.

Warpaint stock isn’t economical, trading at 30.16 times higher. The profitability is only 1.67%, but this is largely due to the rapidly growing share price. I hope sales will pick up again once the cost of living crisis subsides, unless consumers switch to more exorbitant brands once they feel a little better. I doubt it though. I will exploit this amount to top up my rate in November.

Harvey Jones owns shares in Warpaint.

Yu Group

What it does: Yü is an independent gas and electricity supplier to businesses across the UK and a sharp meter installer.

Edward Sheldon, CFA. Yu (LSE: YU.) The stock looks really intriguing to me right now. There are several reasons.

First, the company has been experiencing phenomenal revenue and profit growth recently. In the first half of 2024, revenue was up 60% to £313m and earnings per share were up 52% ​​to 88p.

Second, the dividend is growing at an incredible rate. In the first half of the year the payout was increased by a whopping 533% to 19p. Currently, the profitability is approximately 3.5%.

Another reason is that the stock looks dirt economical. As I write this, the company’s price-to-earnings (P/E) ratio is just eight.

When it comes to risks, there are a few to keep in mind. Yü operates in a competitive market. Meanwhile, there is no control over energy prices.

However, I think it is worth taking a closer look at the shares now. Given the low valuation and rising dividend yield, there’s a lot to like.

Edward Sheldon holds no position in the Yü Group.