Palantir Stock- Two UK growth stocks better than NIO, Palantir and Deliveroo
Growth stocks like NIO, Palantir And Deliveroo I’m making a headline. But in the long run, will they offer shareholders? I’m not sure. But for me, these two UK growth stocks are much more likely to result in a rise in stock prices, and I’m watching them as a potential addition to my portfolio.
High quality growth stock
UK Identification Technology Group GB group (LSE: GBG) The increase in trading volume has already raised expectations this year. Management was able to announce that full-year results exceeded consensus expectations, with projected revenues of at least £ 213m and operating profit of over £ 53m.
Increasing online purchases and increasing digital banking are two trends that are likely to continue to boost market share. I think investing in a group is a way to take advantage of the increasing digitalization in our lives. GB also has solid fundamentals and is profitable with a high margin. For me, this makes it a strong growth share.
What are the risks?
Like any technology share, there are technical risks. Technology can become obsolete and competitors can better serve. There is always the risk that a major customer may move to a rival in the future.
There is a risk that the favorable conditions may change sooner. The perception that the GB Group cannot continue to grow can hurt stock prices.
This is especially important for growing stocks. Therefore, the GB group is at valuation risk. Technology companies have a modest earnings growth rate, but price-earnings ratios (P / E) are trading at around 41. For innovative tech companies, this is pretty much in line with other UK tech stocks, but nonetheless. High compared to other sectors.
Potentially rising game stocks
Video game developers and creative partners last month Team17 (LSE: TM17) So it reported 34% revenue growth Unaudited final result.. The game back catalog is generating a source of future revenue. This means that popular games will earn loyalty and revenue over the years to come.As an example, how to think Bloomsbury Still, I make money from songs written many years ago from Harry Potter and songwriters.
The game is also one of the “winners” of the blockade, but even if many customers have the option to do other activities, the growth of the game should continue to be strong. The game is very popular all over the world.
Again, the main risk of this share is valuation. The price-earnings ratio is 42. However, it’s important to remember that stock prices have risen in recent months, and their proportions are not inferior to other similar companies. For example Frontier Developments P / E is 69.
Overall, Team17 Very good fundamentals, Founder and CEO of an entrepreneur in an industry with strong growth potential. It all seems to me a very solid combination.