Investing in UK shares: 1 growth stock I think could double my money in 2021


first_img Enter Your Email Address On my search for a UK share that could double my money, I also found another stock with the same potential. Here is: Zaven Boyrazian | Wednesday, 17th February, 2021 | More on: JDG 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. Simply click below to discover how you can take advantage of this. See all posts by Zaven Boyrazian Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. 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. The high-calibre small-cap stock flying under the City’s radar Zaven Boyrazian does not own shares in Judges Scientific. The Motley Fool UK has recommended Judges Scientific. 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. Investing in UK shares: 1 growth stock I think could double my money in 2021 The stock market recovery these past few months has created a lot of wealth. But even at today’s levels, I believe there remain many UK shares that could still double my money in 2021. There’s one growth stock in particular that has caught my attention. Could it be the next addition to my portfolio? Let’s take a look.Investing in science with UK sharesJudges Scientific (LSE:JDG) is a specialist developer of scientific instruments and equipment. These products are used in almost every aspect of scientific research across a vast array of industries. To name a few, industrial engineering, pharmaceuticals, healthcare, and even telecommunications actively use instruments designed by this UK stock.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…While the business is heavily reinvesting in research and development (R&D), that’s not the primary growth strategy. Instead, it performs tactical bolt-on acquisitions of existing and established companies to increase its reach. After each transaction, it continues to develop the firms and use the subsequent profits to repay debt and fuel the next acquisition.This approach has led to a portfolio of 17 businesses operating worldwide. In 2020, an additional two firms were acquired.The first was Heath. It designs calorimetry (heat detection) instruments to test the safety of lithium-ion batteries for all electronic devices, including electric vehicles. The second designs vapour deposition systems. This technology applies surface coatings to improve material properties — an essential tool for vehicle manufacturing and even space travel.Investing in UK shares has its risksThe bolt-on acquisition approach to growth has allowed Judges Scientific to become a dominant force in the global market space. However, it also exposes it to a considerable level of risk.Acquisitions are expensive and final. If an acquired business doesn’t meet performance expectations, it will most likely impact the company’s financial health. Simultaneously, the investments required to bring the new business up to par reduce the capital available for the other firms in the portfolio.I find this particularly concerning since the scientific community is constantly making new discoveries. With such rapid innovation, it’s possible for testing instruments and equipment to become obsolete in a relatively short space of time. Thus, continual investment in R&D is needed to keep up. This won’t be possible if the funds are being sucked up by a poor acquisition.Can this grow stock double my money?But while acquisitions will always remain a prominent threat, the growth strategy seems to be working for now. Revenues are growing by a respectable 10% annually on average. This is hardly explosive growth, but net income has nearly doubled year-on-year for the past five years.The profit margins are still relatively low, suggesting plenty of room for improvement. And while Covid-19 had a significant impact on the business in 2020, those disruptions appear to be resolved. Therefore, I see no reason for this growth stock’s profits to stop surging in 2021. Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!last_img read more