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.
