Expecting a V-shaped recovery? I think these shares have growth potential

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Andy Ross | Thursday, 9th July, 2020 | More on: CDM SCT Andy Ross owns no share mentioned. The Motley Fool UK has recommended Softcat. 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. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” 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.center_img See all posts by Andy Ross Investors have been talking about a V-shaped recovery. What that means is a sharp upturn from the dramatic stock market fall we saw earlier this year. If it happens, there could be dramatic gains. These growth shares could, in my view, be among the winners.Red hot sectorThere’s been quite a buzz around gaming and especially around Codemasters (LSE: CDM) in recent months. It’s not hard to see why. With schools off and many people not working, gaming has become a hot sector. It’s one of the industries that has benefitted from the virus. Codemasters, producer of racing games, has seen its share price increase by about 20% so far this year.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…The shares are not cheap – but then that’s often the case for high-growth shares. Other stock market listed gaming companies also have high price-to-earnings ratios. The key point whether the company can keep on delivering strong growth and meet investors’ expectations. I believe it can. That means the share price has growth potential. Helping this is the fact that Codemasters has been able to confirm a date for the Fast & Furious game which was delayed due to the rescheduling of the film. It will now be launched in the second quarter of the financial year.The group serves a niche that will keep paying a premium for games year after year. A move to digital sales is helping further bolster margins. Codemasters strikes me as a great growth share.A growth share that’s having to adapt Softcat (LSE: SCT) is another highly rated share with growth potential. The technology company, known as a reseller, has a trailing P/E of 32. I’ve been very positive about Softcat in the past and continue to think it should do well. However, the business may face some additional challenges now if employees increasingly work from home. I’m sure it can adapt. The company has said that it’s had fewer orders but the ones it has secured have tended to be higher value. With a diverse range of customers I don’t see this change as troubling for shareholders.The CEO has said of the situation: “Some of the relationships we already had with customers have probably deepened, and those bonds have been forged in an even stronger fashion through remote working… but we found that cold calling has been more challenging”.Overall, given that Covid-19 has shone a light on the need for companies to have good technology to support safe remote working, there are tailwinds for the share price.Softcat is less of an obvious winner than Codemasters from the current situation. But it still has potential to grow within the UK and Ireland and beyond.Both these shares are highly rated and aren’t really hidden gems. They do have qualities that make them winners, and often top performing shares keep winning. That’s why if a V-shaped recovery can be sustained, I think these shares have huge growth potential. Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Expecting a V-shaped recovery? I think these shares have growth potential 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.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *