The 5 best-performing UK shares in February 2023

Investment company abrdn‘s Interactive Investor (II) has compiled a list of the top five performing UK shares from FTSE All Share index in February.

And one principle that many investors follow is that momentum in business operations and stock prices can continue for a long time. The stock rose last month, but will it continue to outperform? This is what I think.

Takeover talk

The biggest riser last month was feature, up by 40.5%. The company earns its living organizing international exhibitions and conferences.

On February 21, the directors announced an initial and conditional takeover offer from Providence Equity LLP proposing 105p per share. And as I write, the shares are just above 103p.

I am not interested in playing the remaining 2p per share because of the risk of the proposed deal falling through. So, for me, Hyve is the ‘avoid’ for now.

But II considers a global consulting and engineering company John Wood Group changed to +37.9%. And the company revealed on February 22 that it has received three unsolicited, preliminary and conditional proposals to buy the business. And the latest to submit a cash offer of 230p per share.

The stock is close to 2017p today. But with Hyve, I’m not interested because of the downside risk if all the interest comes to nothing. So, for me, John Wood is another ‘avoid’.

Strong business recovery

The third highest climber in February was Rolls-Royce Holdings, a British engineering company and aero engine manufacturer. Stock increased by 37.1%.

On the 23rd of last month, the company released its full-year results and an enthusiastic outlook statement. And this is just what the stock price needs. Meanwhile, City analysts have increased earnings just above 50% for 2024. And against these expectations, the number of expected earnings is just below 23.

It’s not cheap, but Rolls-Royce has got its mojo back. So I would put the stock on watch and look for a good entry point.

The fourth best stock is Oxford Biomedics, up 29.1%. And this is a speculative integrated cell and gene therapy company with zero profits.

Stocks made steady progress over the month on little news. But on February 20, the company announced a new chief executive, Dr Frank Mathias, due to start on March 27. But this is not for widows and orphans because profits are invisible. However, it’s okay for some fun money for those who really like it. I will put it on watch for this time.

fast growth

Meanwhile, in number five, Darktrace made steady progress to rise by 25.6%. Trading is an autonomous cyber security artificial intelligence (AI) company. And it made its first profit in the trading year until June 2022 with a rapid escalation in the current year.

The February news stream contains several product release announcements. And today’s half-year report and strong outlook statement. Meanwhile, City analysts expect earnings to rise by around 40% in the trading year to June 2024.

But with the share price close to 268p today, the expected earnings multiple sits near 48. So the rapid growth looks like it’s worth it. And for that reason, I will put the stock at this time while looking for a better entry point.