I’m hunting for the best shares to buy this month, and after some searching, I’ve narrowed it down to two businesses. When looking for investment opportunities, I always try to find new ideas. But sometimes, the best options are the ones already in my portfolio. So, let’s take a look at which firms I’m looking to buy £500 more of in September.
A UK leader in international game development
Keywords Studios (LSE:KWS) is a video game services company. It provides AAA studios like Activision Blizzard and CD Projekt Red with additional talent in programming, art, player testing, and quality assurance, among other services, on a project-by-project basis.
Last year, the gaming industry thrived as lockdown restrictions saw many individuals turn to video games to pass the time. However, on the actual development side of things, there was a substantial amount of disruption. And as a consequence, many projects ended up being delayed, resulting in revenue growth for Keywords slowing down.
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Despite this, the group did manage to achieve a respectable 14.7% increase in revenue for 2020. However, what now has me excited is the latest earnings report showing signs that these disruptions are no longer impeding progress. Gross income for the first six months of 2021 came in 37% higher while underlying profits jumped an enormous 80%.
This surging growth is what landed Keywords Studios on my best shares to buy list. However, there may be some trouble ahead. CEO Andrew Day recently retired, and a replacement has yet to be chosen. Changes in leadership can cause uncertainty. And if the new CEO doesn’t live up to expectations, then the stock may take a tumble.
A US leader in payment processing
Chances are, you’ve heard of a little company called Mastercard (NYSE:MA). The firm is one of the largest digital payment processors worldwide and has long had a fierce duopoly with Visa. 2020 was not a particularly good year. With non-essential stores being forced to close their doors, the volume of transactions flowing through its payment network fell considerably. And consequently, revenue actually dropped by 9%.
Now that these restrictions are over, transaction volumes are back on the rise again. But that’s not why the company is on my best shares to buy list. Recently, it formed a partnership with Verizon to take advantage of the latter’s 5G mobile networks. The objective is to use this technology to facilitate payments using smartphones and completely eliminate the need for a point-of-sale device. Needless to say, this technological disruption could be quite a lucrative opportunity. At least, I think so.
Unfortunately, the firm seems to be having a bit of trouble in India. Regulators aren’t too pleased that Mastercard didn’t keep Indian customer transaction data within the country. And consequently, it has been banned from issuing new cards. This is a severe issue in my mind, as India is one of the firm’s primary growth markets. Management has already begun negotiating to lift the ban. But as long as it remains in place, Visa continues to expand its market share relatively uncontested.
The best shares to buy
Despite the risks that these firms face, their growth prospects look promising in my eyes. So, I’m definitely considering adding more shares to my portfolio this month.
