Doubling my money is an attractive factor for investors like me to jump on the opportunity when it’s offered. To do this, picking up the best UK shares to buy now, amongst the sea of mediocre stocks, is the key to increasing wealth.
With that in mind, I have selected three UK shares I’m looking to buy now for my portfolio that I think have the potential to double over the long term.
Digital transformation benefits investors
My first pick amongst UK shares to buy now is S4 Capital. It’s a tech-led media company that has benefited from the pandemic’s acceleration of digital transformation. This resulted in a 98% increase in revenue, as reported in its half-year earnings for 2021.
What’s more, the recent merger announcement with 4 Mile Analytics is expected to augment the media firm’s global analytics capabilities and expand its client base.
While observing the financials, what is concerning for me is the huge dependence on a digital advertisements. In 2020, this accounted for over 50% of total revenue. Moreover, the company officials expect this to further increase every year moving forward. With privacy becoming a more regulated space, the group may have to overcome many hurdles in the future.
Nevertheless, I believe the business, like many technology stocks, could be able to continue delivering near triple-digit growth. And that’s why it’s on my list of top UK shares to buy now.
UK’s fourth-largest home builder
UK’s fourth-biggest housebuilder is next on my list of UK shares to buy now. The reason Bellway Homes has attracted my attention is its smart move of acquiring sites during Covid-19 when the demand was full-time low. As a result, the company now owns some high-demand properties. Moreover, the recent earnings report has shown improved earnings and a 135% increase in the dividend on a year-on-year basis.
Despite the outstanding progress, higher inflation and increased price of raw material could re-route the builder toward a shaky path in the near future. But with long-term demand for housing unlikely to disappear, I remain optimistic about this firm.
A top UK share to buy now in the electronics market
When talking about UK shares to buy and not include the booming electronics market might seem unjust. Therefore, my pick for the best UK shares to buy now within this sector is Volex.
Volex recently acquired Prodamex SA de CV and Terminal & Cable TC Inc, which is expected to increase the manufacturing capability in Central Mexico. As a result of worthwhile acquisitions and strong underlying growth, Volex has made it to my list of best UK shares to buy now.
The sales of electric vehicle charging products continue to increase. In addition to it, consumer electronics is the highest sales-generating segment of the company. Despite Volex’s revenue growth, the company had to bear higher freight costs. In addition to this, rising copper prices ultimately pulled the profit margins down.
Nevertheless, the 450% increase in share price, in less than eighteen months, has spiked my interest in this stock. From the lowest of 88p to the highest of 493p, the share undoubtedly grabbed my attention and is on my list of UK shares to buy now.
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Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies, assets, and strategies mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.
