Just released: our 3 top small-cap stocks to consider buying in August [PREMIUM PICKS]

Small-cap shares tend to be more volatile than larger companies, so we suggest investors should look to build up a portfolio of at least 15 small-cap stocks.

Mark Rogers

As the founder of The Twelfth Magpie, Mark approaches the stock market with the same old-fashioned business instincts and values that he honed growing up around the family business. An investor for 25 years, Mark specialises in unearthing top-quality under-the-radar investments in the small-cap market. He currently serves as Director of Investing for Twelfth Magpie services and Managing Director of The Twelfth Magpie.

Published 15 August, 2025 12:18 pm BST

| More on: BMY

Premium content from Motley Fool Hidden Winners UK

Our monthly Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of small-cap recommendations, to help Fools build out their stock portfolios.

“Best Buys Now” Pick #1:

Bloomsbury Publishing (LSE:BMY)

Why we like it: “Bloomsbury’s (LSE: BMY) best known for being the publisher of the Harry Potter series of books in the UK. The books continue to be bestsellers some 26 years after the boy wizard’s first appearance. Much like share investors hoping to spot the next Microsoft before anyone else, the same is true in publishing where taking a risk on an unknown talent can pay enormous dividends in the long run. The company appears to have unearthed another gem in fantasy author Sarah J. Maas, whose latest book, House of Flame and Shadow, helped the company perform far ahead of analysts’ expectations.

Should you buy Bloomsbury Publishing Plc shares today?

Before you decide, please take a moment to review this report first. Despite ongoing uncertainties from US tariffs to global conflicts, Mark Rogers and his team believe many UK shares still trade at substantial discounts, offering savvy investors plenty of potential opportunities to learn about.

That’s why this could be an ideal time to secure this valuable research – Mark’s analysts have scoured the markets to reveal 5 of his favourite long-term ‘Buys’. Please, don’t make any big decisions before seeing them.

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“The success of House of Flame and Shadow has driven demand for the author’s previous 15 books published by Bloomsbury as readers want to buy the whole set to be up to date. Bloomsbury says fantasy has grown in popularity around the world – with the sci-fi and fantasy genre growing by 54% in the last five years, according to Nielsen Bookscan. While there’s likely to be an element of feast and famine with consumer sales, as audience’s tastes are unpredictable, investors can be given comfort by the further six books Bloomsbury has under contract with Sarah J Maas, which seem likely to sell well.”

Why we like it now: Bloomsbury Publishing offers a compelling mix of growth and resilience. Blockbuster authors like Sarah J. Maas and J.K. Rowling continue to drive strong consumer sales, with recent and upcoming releases topping bestseller charts. The integration of Rowman & Littlefield’s academic business — the company’s largest acquisition — expands its high-margin, recurring digital revenue base, with 5,300+ titles already digitised. Consensus forecasts remain robust, with FY25 pre-tax profit projected at £41.6m on £335.9m revenue. Supported by its diversified “portfolio of portfolios” strategy and the long-term Bloomsbury 2030 vision, BMY is well-positioned to deliver sustained earnings growth and shareholder value.