The Boohoo share price is up 627% in 5 years! Will history repeat?

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first_imgThe Boohoo share price is up 627% in 5 years! Will history repeat? Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Focus on M&ABoohoo has had a clear M&A growth strategy in recent years and has made several major acquisitions. This has undoubtedly given the company serious clout in e-commerce and fast fashion.These acquisitions include Karen Millen, PrettyLittleThing and Nasty Gal. More recently it acquired the online side of Debenhams, which brings major customer data with it. It also pivots Boohoo into the lucrative world of beauty, currently a £12bn market in the UK. The company hopes this acquisition will accelerate its ambition to be the leader in fashion and beauty ecommerce.With plenty of cash in the bank, Boohoo is expected to continue with its acquisition spree.While the pandemic devastated traditional high street retailers, their online counterparts see a brighter future ahead. With so many popular brands under its belt, this gives Boohoo a competitive advantage. Its young target market of 16-30 year-olds like to look good both online and off. They also tend to have a disposable income for affordable, fashionable clothes.With this in mind, the growth trajectory for Boohoo may well resemble the past five years. But there are headwinds that can’t be ignored.The fashion industry is one of the biggest contributors to global pollution. With a heightened focus on ESG investing and sustainability, this could lead investors to look elsewhere. It may also lead to higher costs for the company to meet regulatory changes. And if inflation rears its ugly head, then fast fashion may not be as affordable, or the priority purchase it once was.Last summer the company became embroiled in an investigation into worker exploitation at a factory in Leicester making clothes for Boohoo’s Nasty Gal brand. It’s addressing this with plans that include higher supplier standards, offering educational training programmes for staff and suppliers, a new factory in Leicester, and moves to eliminate sub-contracting. Meanwhile, last month it announced it’s investing £50m in a fourth warehouse to increase capacity. This will create up to 1,000 jobs over time.Boohoo financialsBoohoo doesn’t offer a dividend and I think it’s share price is quite expensive. Its price-to-earnings ratio is 62 and earnings per share are 5p.The Boohoo share price is down 21% from its 52-week-high and up 72% from its 52-week-low. I think that perfectly illustrates the fluctuating nature of this stock. I don’t have plans to buy shares in Boohoo at this time. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Kirsteen Mackay Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. 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. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Kirsteen Mackay | Tuesday, 4th May, 2021 | More on: BOO LSEG Fast fashion retailer Boohoo (LSE:BOO) had a mixed year in 2020. The pandemic created disruption and a damning investigation cast a dark cloud over the popular FTSE-AIM stock. But growth in online sales was strong as Covid-19 accelerated the consumer shift to e-commerce. So, is 2021 offering a clean slate and a chance to bring further riches to loyal shareholders, or should buyers beware?Share price volatilityFounded in 2006, the Manchester-based company defied the odds on AIM by going from a penny stock selling cheap clothing, to a fashion empire worth £4.3bn. It launched on the London Stock Exchange in 2014 at 85p a share. By the following year it had fallen to 25p and then soared until mid-2017. Since then, the Boohoo share price has been extremely volatile, but it’s never been back below £1.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…last_img

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