2 UK growth stocks I’d buy over Argo Blockchain

first_img Edward Sheldon owns shares in Keywords Studios, Microsoft and Hargreaves Lansdown. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Activision Blizzard and Microsoft. The Motley Fool UK has recommended Electronic Arts, Hargreaves Lansdown, and 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” See all posts by Edward Sheldon, CFAcenter_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Edward Sheldon, CFA | Thursday, 11th March, 2021 | More on: KWS TM17 Argo Blockchain is one of the most popular stocks in the UK right now. Last week, it was the third most purchased stock on Hargreaves Lansdown.However, ARB isn’t a stock I’d buy for my portfolio. While the company appears to be growing rapidly, there are a few risks that concern me. One is the high valuation (its market-cap is £870m and its forward-looking P/E ratio is about 350). Another is the fact its revenues and share price are unpredictable because they’re closely linked to the price of Bitcoin.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…That said, there are plenty of UK growth stocks I would buy for my portfolio today. Here’s a look at two of them.A play on the new Xbox and Playstation consolesOne UK growth stock I like right now is Keywords Studios (LSE: KWS). It’s a leading provider of technical services, such as software engineering, testing, and art creation, to video game developers. It serves nearly all of the big hitters in gaming such as Electronic Arts (FIFA), Activision Blizzard (Call of Duty), Epic Games (Fortnite) and Microsoft.The video gaming industry is growing at a phenomenal rate. According to Mordor Intelligence, the global market was valued at $162bn in 2020 and is expected to reach $296bn by 2026. That represents annualised growth of more than 10%.I see Keywords as a great ‘picks-and-shovels’ play on this high-growth industry. No matter what games or consoles are dominant in the years ahead, it should benefit.One risk here is the stock’s valuation. Currently, the forward-looking price-to-earnings (P/E) ratio is about 39. This means it’s priced for strong growth. But if growth does disappoint, the share price is also likely to fall. It’s worth noting that Keywords’ share price has been quite volatile in the past.All things considered however, I think this is a top UK growth stock. I see it as a safer pick than Argo Blockchain.Another top UK video game stockSticking with the video gaming theme, I also like the look of Team17 (LSE: TM17). It’s a leading UK independent video game developer. Its games – which are available on multiple gaming platforms – include Worms Rumble, Overcooked: All You Can Eat, Monster Sanctuary, and The Survivalists.This is a company growing at an impressive rate. Between FY2015 and FY2019, revenue jumped from £10.4m to £61.8m. Recently, it advised that for the year ended 31 December 2020, it delivered year-on-year revenue and adjusted EBITDA growth of 34% and 36% respectively – ahead of the board’s expectations. It also said it looks ahead to 2021 with confidence in its pipeline.There are risks to the investment case, of course. One is that future game releases could be disappointing. This could impact the share price. The stock’s current forward-looking P/E ratio of 36.6 doesn’t leave a huge margin for error.Overall however, I see a lot of appeal in this growth stock. This is a very profitable company growing at a fast pace. Again, I’d buy the stock over Argo Blockchain. Enter Your Email Address 2 UK growth stocks I’d buy over Argo Blockchainlast_img

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