2 UK shares that could have a big future ahead

Despite the US getting most of the attention from investors, I think a portfolio of UK shares can be just as exciting. Here are two on my radar.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

photo of Union Jack flags bunting in local street party

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

In the high-stakes world of emerging technologies, two UK-based companies are turning heads with their ground-breaking innovations. ITM Power (LSE:ITM) and Oxford Nanopore Technologies (LSE:ONT) are not just pushing boundaries, they’re redefining entire industries. So while many investors look across the pond for exciting investments, let’s dive into why these two UK shares might be the talk of investors for years to come.

ITM Power

First up, ITM Power – the ‘green’ hydrogen specialist. This Sheffield-based company is making an impact in clean energy. Imagine a world where heavy industries and long-haul transportation run on nothing but water vapour.

Its Proton exchange membrane (PEM) electrolysers can split water into hydrogen and oxygen, producing green hydrogen that could just be the lifeblood of a zero-emission future. ITM Power’s product range is ready to fuel everything from buses to steel plants. Of course, ‘ready’ doesn’t mean it’s happening now at scale.

Revenue is forecast to surge by a whopping 37.79% annually over the next five years. This is the kind of growth that gets me interested. However, it’s not all smooth sailing – the firm is currently in the red and is expected to remain so for the next three years.

The growth is heavily reliant on supportive government policies and subsidies for clean energy. Any changes in political landscapes or reduction in green energy incentives could significantly impact the future of the company.

Oxford Nanopore Technologies

Oxford Nanopore is revolutionising how we read the book of life itself. Its nanopore-based sequencing platforms are like the ultimate speed-readers for DNA and RNA.

Picture a device smaller than a smartphone that can unravel the genetic code of a virus in real-time. From portable DNA devices to lab powerhouses like PromethION, the company hopes to make tech breakthroughs in personalised medicine, epidemiology, and even the search for extraterrestrial life.

The firm’s financial trajectory looks good. With projected annual revenue growth of 20%, it’s on a steady upward climb. But it’s also currently unprofitable. Given the cutting-edge nature of its technology, the company faces potential risks related to patent infringement claims or challenges to existing patents. This could lead to costly legal battles and potential limitations on its product offerings.

But as we’ve seen many times in the biotech sector, today’s research costs often translate to tomorrow’s blockbuster products.

Both have faced their share of market turbulence. ITM Power’s stock took a 15% dip over the past year, while Oxford Nanopore experienced a steeper 55% decline as shareholders were diluted.

Both operate in highly competitive sectors where technological leaps can reshape the landscape overnight. They’re also burning through cash as they race towards profitability. I wouldn’t be surprised at all to see the negative trends continue for the shares, but investing is a long-term game, and requires patience.

Worth a closer look

Both ITM Power and Oxford Nanopore Technologies represent two of the UK’s most exciting technological prospects. They’re not just businesses; they’re visionaries crafting the future of energy and biotechnology. One of my favourite parts of investing is finding companies that offer a tantalising glimpse into what the future might hold, and these two tick all the boxes.

While these two sparkle with potential, unprofitable companies in the growth stage have plenty of risks too, so I’ll be cautiously adding them to my watchlist.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Gordon Best has no position in any of the shares mentioned. The Motley Fool UK has recommended Itm Power Plc. 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.

More on Investing Articles

Investing Articles

Why the FTSE 100 may outperform the S&P 500 as the Santa Rally begins!

History shows us that buying FTSE shares in December can deliver brilliant returns. Here are our man Royston Wild's plans…

Read more »

White female supervisor working at an oil rig
Investing Articles

Is soaring Rockhopper Exploration a hidden gem on the UK stock market?

This UK stock has outperformed the wider market over the past month amid renewed optimism around its Falkland Islands projects.

Read more »

New year resolutions 2025 on desk. 2025 resolutions list with notebook, coffee cup on table.
Growth Shares

Down 47% in a year, this could be the 2025 FTSE 250 comeback king

Jon Smith explains why one FTSE 250 share, that he previously turned his nose up at, could be due a…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Dividend Shares

Why now could be a once-in-a-decade opportunity to build this passive income stream

Jon Smith explains why he feels interest rates could fall further in early 2025 and what this means for passive…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Down 23% in a day but up 148% in 2 months, is this $7 growth stock a buy for me?

Why was there a massive fall in the share price of Archer Aviation (NYSE:ACHR) yesterday? And is this a growth…

Read more »

Investing Articles

£10,000 to invest? Here’s why saving instead of buying UK shares could cost me a fortune

Looking to maximise returns on your hard-earned cash? Royston Wild explains why investing in UK shares is the best option…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

Here are analysts’ S&P 500 forecasts for 2025

The S&P 500 index has delivered strong returns this year. And analysts at major Wall Street firms expect 2025 to…

Read more »

Frustrated young white male looking disconsolate while sat on his sofa holding a beer
Investing Articles

Buying this UK share was my biggest ISA mistake in 2024

Harvey Jones had high hopes for Wickes Group when he bought the shares in September. Yet instead of holding the…

Read more »