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2 UK shares I’d buy now to double my money

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Share price growth is what a lot of investors seek. I like income and share price growth, but either is welcome! I have been scanning the stock market for UK shares I think could see price growth over the next several years. Here are a couple I think could double my money.

A rising digital advertising powerhouse

After Sir Martin Sorrell left WPP, which he had grown from a shell company to an advertising giant, he set out to do the same thing again.

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But, as he had already seen at WPP, the world was changing. Clients wanted digital first strategies and data was becoming increasingly valuable. Freed from his legacy operation, Sir Martin was able to put this into practice by building an entirely new type of digital media agency embedding those principles. His growth strategy of acquisitions had worked at WPP and he kept that while jettisoning old practices which had outlived their utility.

The result is S4 Capital. It’s no secret that I think this holding has growth potential – in fact I picked it as my top British share for 2021. But it’s had a rough few weeks. It’s down almost 15% since the start of the year, albeit that still puts it at a price more than double where it sat a year ago.

I’m unclear why the price of these UK shares has fallen. It could be as part of the wider tech pullback, or because no new acquisition has been announced for a few weeks and the market expects a constant deal stream. It could also be that other investors, like me, were unsettled to see the first share sales by directors last month.

Whatever the reason, I retain confidence in the story. S4 is the only listed company I know whose public three-year vision is to double revenues and profits organically. Digital advertising is a fast growing space and Sir Martin’s hand on the tiller inspires my confidence. From its lower price, I think it could double in coming years.

These UK shares

Shares in transport operator Go-Ahead have doubled since October. Could they do it again in the next several years?

The return of train and bus passengers as lockdowns lift should help revenue somewhat, although the recent price increase suggests that some of that is already in the share price. But Go-Ahead is in the fortunate position that most of its revenue is guaranteed, even if passenger numbers are low. In fact, 90% of Go-Ahead revenues come from contracts with no revenue risk from shifts in passenger demand.

Until the pandemic struck, the company’s dividend was just over a pound a year. At the current share price, that would suggest a yield of 8.5% if dividends resume at the same level. Dividends have not restarted yet and when they do, reduced passenger demand could lead the company to adopt a cautious level and pay out less than before.

But if dividends do come back at the same level, the high yield looks very tasty. I would expect it to bring in more investors, which with higher passenger demand could push these UK shares up to where they sat before the pandemic, almost double where they are now. From there, it’s a short step to doubling from today’s price.

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christopherruane owns shares of S4 Capital plc. The Motley Fool UK has no position in any of the shares mentioned. 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.

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