Just released: our top 3 stocks to buy in August [PREMIUM PICKS]

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Our monthly Best Buys are now designed to highlight three of our team's favorite, most timely Buys from our growing list of small-cap recommendations, to help Foles build their stock portfolio.

Why we love it: “Established in 1883, Goodwin (LSE: GDWN) is one of our favorite 'family companies' in the UK – boasting a long, distinguished history of creating wealth for the lucky few shareholders who have uncovered it. Family-run businesses, in our experience, are often cut from a different cloth than your average listed company – there are few greater motivators in a management team than continuing to protect a proud legacy, especially when so much of your family's wealth is tied up. in business.“The company still operates its historic metal foundry business in Stoke, but has expanded to include manufacturing subsidiaries around the world – 70% of Goodwin's sales come from overseas, serving the global oil and gas markets, the mining industry, and more. . It places great emphasis on the quality of its offerings, positioning itself as a key supplier to blue-chip companies in the production of specialty components such as check valves and slurry pumps. It may not be glamorous, and investors won't impress too many people by talking about Goodwin's products down the pub or at a dinner party. But Goodwin makes a big profit from his position in these 'boring' areas of technology, and shows the importance of learning something simple. “

Why we love you now: Goodwin announced the first positive results on August 7. For the financial year ended 30 April, revenue increased by 27%. The board has proposed to increase the dividend by 133 pence, from 115 pence per share. Strategic investments in the nuclear waste storage industry and key components to advance the naval and shipbuilding markets in the Mechanical Engineering division have been realized. The Group demonstrated strong profitability, reducing its gearing ratio from 47.8% to 35.1% while still generating £16.42 million in future growth costs.