Kin and Carta share price soars 300%! Should I buy this UK share today?

first_img Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. Royston Wild | Tuesday, 15th June, 2021 Simply click below to discover how you can take advantage of this. Kin and Carta isn’t the only UK share I’m closely eyeing today, though. This Fool favourite has also caught my attention. Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Kin and Carta share price soars 300%! Should I buy this UK share today? See all posts by Royston Wild I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images The Kin and Carta (LSE: KCT) share price has ballooned during the past 12 months. And thanks to another strong rise today, the tech giant has soared by almost 300% year-on-year.Kin and Carta’s share price is currently up 23% from last night’s close at 243p per share. The IT firm struck its highest for more than five years above 245p earlier in the session. And it’s within a whisker of touching levels not visited since late 2007.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Upgrading expectationsUK share investors are piling into Kin and Carta after the tech giant upgraded its expectations for the year. It said it’s “executing on a strong resumption of growth with accelerating demand for digital transformation” as the impact of Covid-19 begins to retreat.The company — which provides consultancy services to help businesses digitalise their operations — now expects to report net revenue growth of around 10% to £150m in the full year to July. Kin and Carta recorded net revenues of £137.8m in the prior financial year.Underlying profit before tax, meanwhile, is estimated at around £14.5m in fiscal 2021. This would represent growth of between 35% and 40% from the £10.5m profit the IT giant recorded a year earlier.Looking further aheadIt also went on to paint a sunny picture beyond the current financial period. Based on current performance and order backlogs, it expects net revenue growth to accelerate to 20% in financial 2022. It expects its underlying operating margin to increase to between 12% and 13% too.Kin and Carta added that in the medium term, organic net revenues should rise at a compound annual growth rate of around 15%. And operating margins should keep expanding as it continues to scale up its operations.Why I’d buy Kin and Carta todayIt clearly has the bit between its teeth right now. It’s why City analysts think the IT expert will follow an 18% earnings increase in financial 2021 with a 40% jump next year. I’m minded to think that next year’s forecasts will be steadily upgraded too.Companies were already rapidly digitalising their businesses before the Covid-19 crisis hit. Since then evidence is emerging to show that the pandemic has sped up the digital transformation process across the globe. A recent McKinsey survey revealed that “companies have accelerated the digitisation of their customer and supply-chain interactions and of their internal operations by three to four years”. Naturally Kin and Carta is ideally placed to exploit this phenomenon.But it’s important to remember that it operates in a competitive industry and so success is not guaranteed. Profits projections might also take a whack if the economic recovery stutters and business confidence suffers. Still, at current prices I’m seriously thinking about adding the company to my shares portfolio. It trades on a price-to-earnings growth (PEG) ratio of just 0.8 for financial 2022. A reading below 1 suggests a share might be undervalued. Get the full details on this £5 stock now – while your report is free. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. Our 6 ‘Best Buys Now’ Shareslast_img

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