Here are two of what I think could be some of the best UK shares to buy now. Give me a few minutes to explain why they could help me supercharge my returns.
Fresh trading news could impress
Renold (LSE: RNO) is set to release results for the full year to March 2021 this Friday (16 July). I’m expecting some sunny commentary on trading conditions that could help the industrial chain, gear and coupling maker rise in price. It’s already doubled in value over the past year to current levels of 22p.
This company manufactures products that are used across a wide range of applications. They can be found in escalators and mining equipment, fork lift trucks, rollercoasters and waste-water treatment tanks. The AIM-traded share is therefore in great shape to ride the economic recovery, I feel. What’s more, such products require a high level of precision to enable machinery to work properly and efficiently. This is something that Renold, which started making chains back in the 1860s, has a great reputation for.
Latest financials showed improving trading conditions in the final quarter pushed its order book up 3.6% year-on-year as of March. This is a penny stock that has the bit between its teeth. But remember that the company has embarked on an ambitious restructuring plan, problems related to which could weigh heavily on the company’s share price.
One of the best UK tech shares to buy?
The video games market has grown significantly since spring 2020 as coronavirus lockdowns kept people at home. But don’t be fooled into thinking that the industry is simply flavour of the month right now. In truth gaming has been the fastest-growing home entertainment segment for years now. And City analysts are thinking that it will continue to broadly grow in the years ahead.
Gaming analysis firm Newzoo, for instance, thinks that the global market will be worth $204.6bn by 2023. That compares with $177.8bn last year. I myself have invested in software development and marketing services provider Keywords Studios to make money from this bulging industry. And I think tinyBuild (LSE: TBLD) could be another of the best UK shares to buy to play this theme.
tinyBuild is a video games developer and publisher that benefited greatly from new title releases and Covid-19 lockdowns last year. In fact, revenues soared 35% year-on-year in 2020 as the tech titan beat expectations. And the company, which only started trading on the London Stock Exchange in March, has a packed pipeline of 20 titles that it hopes will keep sales blasting higher.
Incidentally, tinyBuild’s multiplayer Secret Neighbor title topped the Apple App Store charts last month following its release on Sony’s PS4 console in April. Competition is tough as developers compete for gamers’ attention. And the business of games development can be a tricky and expensive business (just ask CD Projekt after its botched launch of Cyberpunk 2077 late last year). But I still think this UK share has plenty of investment potential.
Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.
Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.
The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.
But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.
Royston Wild owns shares of Keywords Studios. The Motley Fool UK owns shares of and has recommended Apple. The Motley Fool UK has recommended Keywords Studios and has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. 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.