I reckon these two UK shares could help investors like me treble their money over the next decade. What do you think?
Software star
Getting exposure to the gaming industry is one terrific way to try and make a fortune over the next decade. The boffins at Grand View Research reckon the global games industry will grow at a stunning compound annual growth rate of 12.9% between now and 2027. They say that “technological proliferation and innovation in both hardware and software are expected to be the key factors driving the growth.”
One UK share I’d happily buy to ride this trend is software services provider Keywords Studios Corporation (LSE: KWS).
The intense bidding war for Codemasters Group Holdings illustrates the hugely positive outlook for this fast-expanding market. Codemasters is a great buy for whoever succeeds in the takeover battle, thanks to top titles like Dirt and F1. But investing in companies that provide the nuts and bolts for software developers like Codemasters is another good idea. And this is where Keywords Studios comes in. It provides a broad range of services to programmers, like helping with gameplay issues and providing sound and art services.
City analysts reckon Keywords Studios’s annual earnings will rise 10% in 2020. And they reckon another 19% increase is on the cards for 2021. Today the video games mammoth trades on a high forward price-to-earnings (or P/E) ratio of 52 times. High on paper, sure. But I think this UK share’s superbright profits outlook is worthy of such a meaty premium.
Another top techie for UK share investors
The world’s growing thirst for technology also bodes well for IT services providers this decade. One particularly lucrative part of this market for UK share investors is that of cybersecurity. The boffins over at Global Market Insights reckon this segment will grow at a CAGR of 15% between 2020 and 2026.
The research house reckons that “as enterprises are migrating their core businesses to digital platforms, the requirement for cyber security policies and initiatives to address the increasing incidents of data breaches is growing rapidly, boosting the market demand.” It’s a trend which is certainly lighting a fire under Kape Technologies’s (LSE: KAPE) revenues column. This UK share saw sales almost double in the six months to June whil recurring revenues shot 140% higher year on year.
City brokers reckon the software giant’s annual earnings will rise 111% in 2020. An 8% rise is predicted for 2021, too, but I reckon this prediction could be subject to large upgrades as Kape’s new product rollouts allow it to exploit this growing market to the max. Today the UK share trades on a forward price-to-earnings (or P/E) ratio of 15 times for next year. I think this fails to reflect its stunning profits-making opportunities in the near term and beyond and makes it a brilliant value buy.
