2 ‘secret’ UK stocks to buy in 2022!

I’m on the lookout for top-quality shares that others may have missed. I’m thinking these could be two of the best ‘secret’ UK stocks to buy.

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I’m hunting for the best shares to buy for my portfolio that most investors may have missed. Here are two ‘secret’ UK stocks I’d buy to try and make a stack of cash in 2022 and beyond.

Powering up my portfolio

The video games market is tipped to double in size between 2020 and the end of the decade. It’s the sort of industry growth that as an investor I find hard to ignore. It’s also a trend I’m considering exploiting by buying shares in developer Team17 Group (LSE: TM17). I already own shares in software development services provider Keywords Studios, incidentally.

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Team17 is the brains behind many popular titles including Overcooked! and The Escapists. It has been taking steps to pump up its product pipeline and in 2020 it launched a record 10 brand-spanking-new games. I actually believe Team17 could become a takeover target as consolidation in the games industry takes off. Take-Two Interactive has just sealed a $12.7bn deal for FarmVille creator Zynga to bolster its games portfolio.

I am concerned by Team17’s high valuation, however. The tech stock currently trades on a forward price-to-earnings ratio of 42.7 times. Such a reading could prompt a sharp share price drop if earnings forecasts start to look fragile. For example in the event that a title receives a poor critical reception that subsequently smacks sales.

Team17’s share price has struggled for momentum more recently. Over the past year it’s actually fallen 12% in value. However, as a long-term investor I think this drop could be an attractive investment opportunity.

Heating up nicely

Manufacturers in the UK face a significant threat to earnings as supply-side problems mount. Kettle safety control manufacturer Strix Group  (LSE: KETL) has warned in recent months that supply chain disruption and soaring raw material costs remain dangers for its business.

This threatens to be a lasting problem too following Britain’s exit from the EU. Two-thirds of UK manufacturers have seen their businesses affected by Brexit red tape, according to a new survey. Some 56% of respondents expected these problems to worsen in 2022 too as new customs checks come into force and new product labelling rules begin.

The question is whether these obstacles are enough to discourage me to invest in a particular UK share. In the case of Strix Group I believe the profits outlook is bright despite these supply-side problems.  Sales at the business soared 58% in the first six months of 2021, latest data shows. This was thanks to solid organic growth as well as the acquisition of water filtration specialist LAICA in 2020.

The business aims to double turnover over a five-year period and recently opened a new manufacturing facility in China to help it achieve this goals. The company has risen almost 30% in value over the past 12 months but at 290p is down considerably from August’s record highs above 380p. I reckon this provides me with an excellent dip buying opportunity.

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Royston Wild owns Keywords Studios. The Motley Fool UK has recommended Keywords Studios and Take-Two Interactive. 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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