3 UK top tech shares to buy
Many investors overlook the UK when they’re searching for tech shares to buy. I think that’s a mistake. There are plenty of home-grown technology companies here in the UK experiencing rapid growth.
With that in mind, here are three top tech stocks I’d buy for my portfolio today.
Tech shares to buy
The first organisation is Moonpig Group (LSE: MOON). Some might argue this isn’t really a tech stock but more of a cards and gift retailer. That is a valid point, but it ignores the company’s tech focus.
I think it’s unlikely the business would be as successful as it is, if it hadn’t invested so much money in technology to streamline the order process for customers.
Today, the company benefits from repeat orders from its customer base, which it can support through marketing efforts and reminders. These marketing initiatives are paying off.
In July, the group announced that revenue in its current financial year would range £250m-£260m, implying growth of as much as 50%. In its latest trading update, management upgraded this projection to £270m-£285m.
This growth is the reason why I think Moonpig is one of the best tech shares to buy today. That’s why I’d buy the company for my portfolio.
Challenges it might face as we advance include higher costs and increased competition in the gifting sector.
Trust is key
Trustpilot (LSE: TRST) is one of the world’s most trusted consumer review websites. In an increasingly digitised world, building trust between consumers and businesses has never been more critical.
Trustpilot has witnessed rapid growth over the past few years as both businesses and consumers both want to improve their visibility with each other. I think this trend will continue. Digitisation isn’t slowing down, and neither are bad actors. The need for a trustworthy review platform is only increasing.
Those are the reasons why I think this is one of the best tech shares to buy today. However, trust can evaporate overnight. As such, the most considerable risk the group faces is that customers start to mistrust the platform. This could lead to a sudden drop off in activity.
Digital solutions
The final company on my list of the top tech shares to buy today is the software group Kainos (LSE: KNOS).
Established in 1986, the organisation develops digital solutions to help organisations work more efficiently. 2020 represented the 10th consecutive year of revenue growth for Kainos. And as companies become increasingly digitally focused, I think this trend will continue.
Some of its biggest customers include the UK Home Office and the NHS, which stands testament to the organisation’s ability to attract and retain clients.
Once again, this is an incredibly competitive sector, so competition will be a significant challenge for the company. Still, considering its growth potential and existing market position, I’d buy the stock.
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Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Kainos. 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.