I’m looking for some of the best UK shares to buy following recent weakness across stock markets. Here are three excellent penny stocks I’m thinking of adding to my stocks portfolio right now.
#1: A leading light in responsible investing
There’s no doubt that responsible investing is becoming more and more important for share pickers. Plenty of evidence exists to back up this line of thought too. And green stocks that are helping to solve the climate crisis are particularly popular right now. This is where Renewi (LSE: RWI) comes in, a penny stock that helps to turn waste products into something useful again. Recycling is a critical part of lawmakers’ strategies to help the environment and Renewi is riding this phenomenon in both Europe and North America. Be aware though, that this UK share has a lot of net debt (around €350m worth, according to latest financials) to tackle. It’s a sum that could have a significant impact on the firm’s future growth plans, as well as the size of dividends.
#2: Life in the fast lane
A bright outlook for car production makes me think Surface Transforms (LSE: SCE) could be another top penny stock for me. Around 92m light vehicles rolled off production lines across the globe in 2019, according to Statista. The research house thinks that strong demand in Asia will drive production to 110m vehicles by 2025 and to 117m by 2030. It’s an environment that will play into the hands of Surface Transforms, a company that builds ceramic brakes for major car manufacturers. I like the steps the business has taken to exploit this ripe trading landscape by building capacity at its site just outside Liverpool too. Product failure is a risk for any company. But a malfunctioning of this UK share’s goods might pose a significant safety risk. And as a consequence, any problems on this front could be particularly catastrophic for the brake-maker.
#3: A penny stock for the video games explosion
I also think Bidstack Group’s (LSE: BIDS) a penny stock that could enjoy mighty profits growth this decade. I myself bought games developer Keywords Studios this month to make money from the staggering growth in the video games market. And I’d buy this UK tech share too, one that allows companies to advertise their brands, products and services during in-game play. The company has added 14 new titles to its portfolio since the end of 2020. And it is also making headway in the fast-growing e-sports arena, an industry that’s tipped to grow by around 8% a year by 2024. Even if some of its rivals have better financial (and thus technological) resources — a problem that could result in lots of failed business bids and client losses — I still think this penny stock is a great buy for the tech revolution.
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Royston Wild owns shares of Keywords Studios. The Motley Fool UK has recommended Keywords Studios. 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.