Seeking the most exciting UK growth stocks to add to my portfolio in 2023. Here are two stocks whose stocks could skyrocket over the next decade.
Artificial intelligence (AI) is poised to become the next hot tech trend. As machines get smarter, the business potential is enormous because the work is done faster, more efficiently, and at a much lower cost than “flesh and bones” workers.
Cainos Group (LSE:KNOS) is one of the AI stocks we are considering buying today. For example, they may lack huge R&D budgets like those of US industry giants. microsoft, meta again alphabetBut the pace at which they are winning business is very encouraging.
Revenue surged 26% in the six months to November. and last month FTSE250 The company said the deal remained open.All three divisions are doing very well as new and existing clients maintain a high level of investment in digital solutions.”.
Kainos is expanding rapidly to maximize sales opportunities. The number of employees he hit below 3,000 as of mid-April, up 11% year-on-year.
City analysts expect the company to enjoy solid revenue growth of 10% in 2023. We also believe revenue will continue to grow around that level (up 9% and 11% respectively in 2024 and 2025).
However, investors should consider growing concerns about AI and how this might affect Kainos’ operations. Last week, the UK’s competition watchdog launched a review looking at issues such as the safety, security and accountability of machine-driven thinking.
That said, public skepticism follows the mass adoption of new technologies. Overall, we think AI specialists are the best buyers because of the potential for significant capital gains.
Prudentialof (LSE:PRU) a FTSE100 Shares you already own in your portfolio. I believe earnings here could skyrocket over the next decade as rising wealth levels in emerging markets drive demand for financial products.
CEO Anil Wadhwani claims the company is in great shape.To meet the growing health, protection and savings needs of our customers in Asia and Africa”. City analysts seem to agree.
Current forecasts suggest a 42% increase in annual revenue as key Asian markets reopen after Covid-induced lockdowns. And they expect the business to maintain strong momentum, increasing earnings by 15% and 14% in 2024 and 2025, respectively.
The markets in which The Pru operates have low product penetration. This means that the business has much more room for profit growth than insurers operating in the more mature regions of North America and Europe.
It is true that Prudential faces intense competition in the market. However, I believe the 8.1x future price/earnings ratio (P/E) does not reflect its excellent growth potential. If I have surplus funds to invest, I would like to increase my holdings.
Two very popular UK growth stocks I might buy today were first listed on The Motley Fool UK.
Alphabet executive Suzanne Frey is a member of The Motley Fool’s board of directors. Randy Zuckerberg, the sister of Mark Zuckerberg, former director of market development and spokeswoman for Facebook and her CEO of her platform Meta, is a member of the Motley Fool’s board of directors. Royston Wild has a position at his Prudential Plc. The Motley Fool UK endorses Alphabet, Kainos Group Plc, Meta Platforms, Microsoft and Prudential Plc. The views expressed about the companies mentioned in this article are my own and may differ from the official recommendations I make on subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering diverse insights makes us better investors.
Motley Fool UK 2023