A strong balance sheet

Shares in Eurasia Mining (LSE:EUA) have been extremely volatile. At the time of writing, they’re trading at 7.5p, down 21% in the past three months.

Much of the recent share price movement has been due to the firm’s exposure to, and operation in, Russia. Given the ongoing conflict, this has complicated its ability to conduct business in Europe and the US. 

The company – a precious metals and platinum group metals (PGMs) miner – hasn’t been profitable recently, registering a pre-tax loss of £3.14m in 2021.

However, there could be rising demand for PGMs in the coming years. These metals, including platinum and palladium, have important uses in efforts to decarbonise, like electric vehicles and solar panels.

Furthermore, the business is still in the process of striking a deal to potentially sell nearly all its assets. An unnamed buyer has completed due diligence and the market awaits an update. A successful deal could be great news for the shares. This deal may involve the sale of much of the firm’s PGM and base metal holdings.

Eurasia Mining also has a total cash balance of £19.15m and debt of just over £400,000. This strongly indicates to me that it’s in a financially healthy state.

Rapid earnings growth

Second, I’m attracted to Keywords Studios (LSE:KWS). In the last month, the shares are down 11.3% and currently trade at 2,376p.

Over a five-year period, the video games firm has produced improving earnings results. Between 2017 and 2021, earnings per share (EPS) grew from ¢31.18 to ¢89.24. By my calculation, this results in a compound annual EPS growth rate of 23.4%. 

In a report for the six months to 30 June, the business expects interim revenue to hit €320m, up 34% year on year.

Additionally, it expects pre-tax profit to climb to €54m, up 35%. This is a strong indication that the company is performing even in the midst of a challenging operating environment. However, the business may begin to feel the impact of inflation in the near future. Despite this, the firm announced the acquisition of Mighty Games and Forgotten Empires, both of which could allow Keywords Studios to tap into new markets. This could ultimately be good news for the share price.

Overall, both of these companies have exciting growth potential, especially during a market dip. With their share prices down recently, I think now could be a good time for me to stock up on shares at low levels. As such, I’ll be adding the shares of both firms to my portfolio soon.

The good news for long-term investors like myself is that the weakness across the AIM has thrown up some very attractive investment opportunities. With that in mind, here’s a look at three stocks I’d buy today.

A top FinTech company

One of my top picks right now is Alpha FX (LSE: FX). It’s a fast-growing, founder-led provider of financial solutions that specialises in FX risk management and mass payments.

A trading update posted last month showed that Alpha FX has plenty of momentum at present. For the six months to 30 June, revenue was up 35% to £46m. Meanwhile, the company grew its client base significantly over the period, increasing its alternative banking accounts by 239%.

After a share price pullback this year, Alpha FX shares are valued attractively, in my view. With analysts expecting earnings per share of 62.2p for 2022, the forward-looking P/E ratio is about 29. I don’t see that as high, given the strong level of growth here.

Of course, if growth slows, the share price could decline given the high valuation. I’m comfortable with this risk however, given Alpha’s track record.

A cybersecurity play

Another AIM stock I’d snap up today is GB Group (LSE: GBG). It’s a leading provider of identity management solutions that serves blue-chip companies globally (HSBC, Volkswagen, and ASOS are just some of its customers).

GB Group shares have plummeted this year and I think the fall is overdone. In the company’s recent full-year results, for the year ended 31 March, it posted record revenue of £242.5m (up 11.4% year-on-year) and adjusted operating profit ahead of original market expectations. And looking ahead, the group said it’s well-placed to successfully achieve its strategic and financial objectives in FY2023 and beyond.

A risk to consider here is that the company could be impacted by the weakening economy. With the stock now trading on a P/E ratio in the low 20s however, I think the risk/reward profile here is attractive.

Video game champion

Finally, I’d also buy Keywords Studios (LSE: KWS). It’s a leading provider of technical services to the video gaming industry. This is another AIM company that has momentum.

Recently, it said it expects to post total revenue growth of around 34% for the six months to 30 June. Adjusted profit before tax is expected to be up around 35% year-on-year. It added that it had seen “robust demand” for all of the group’s services.

“Keywords has started the year very strongly, building on the momentum achieved in 2021,” commented CEO Bertrand Bodson.

It’s worth noting that the growth of the gaming industry could slow down a bit after Covid. This could potentially impact Keywords Studios’ growth. The forward-looking P/E of 32 here doesn’t really leave a margin of safety, so this is a risk to keep in mind.

I’m thinking long term here however, and I reckon this AIM stock should do well as the gaming industry grows over time.

44% compound annual EPS growth rate

The Atalaya Mining (LSE:ATYM) share price has been volatile recently, having fallen 28.5% in the last month. Yet over the last year, it’s down by just 2.7%. At the time of writing, it’s trading at 294p.

Between 2017 and 2021, the company – a copper mining firm operating in Spain – exhibited strong earnings growth. During this time, earnings per share (EPS) rose from ¢15.5 to ¢96.7. By my calculations, this results in a compound annual EPS growth rate of 44.2%. 

While I’m aware that past performance is not necessarily indicative of the future, this earnings growth rate is fast by anyone’s standard. Over the same time period, pre-tax profits increased from €21.91m to €159m. 

While there are threats from cost inflation and rising energy prices, the business still achieved operating cash flow of €28.3m in the first three months of 2022. Furthermore, it had a healthy cash position of €86.8m in March.

Rapid profit growth

The share price of Keywords Studios (LSE:KWS) has been similarly volatile recently. While down 11% in the past year, it’s fallen 16% in the last six months. The shares currently trade at 2,300p.

Between 2017 and 2021, EPS rose from ¢31.18 to ¢89.24. This means that the company – which provides support services for the gaming industry – had a compound annual EPS growth rate of 23.4%. While this is slower than Atalaya Mining, it’s still a very solid rate.

During this period, pre-tax profits also increased from €12m to €48m.

In 2021, revenue increased by 37.1% and pre-tax profits grew by over 50%, year on year. These improving financial results enabled the business to reinstate its dividend, with a yield of 0.1%. While this may not seem much, it’s an improvement from 2020, when the company withdrew its dividend.

In any case, I’m attracted to the firm for its growth potential, not for an income stream.

What’s more, higher game player numbers and a slate of new game launches mean that the coming years may continue to be profitable for the company. However, there is the threat that the cost-of-living crisis leads to a decline in demand for games.  

Overall, both of these firms exhibit consistent and rapid earnings growth. While this is obviously not guaranteed to continue, it’s a good indication of well-run enterprises. In an effort to benefit from quality growth stocks, I’ll be adding both Atalaya Mining and Keyword Studios to my portfolio this month. 

Refurbishing my Stocks and Shares ISA

The ongoing consumer spending crunch doesn’t place home improvements high on the priority list. However, the demand for these products and services isn’t likely to disappear. Beyond the current government initiatives to accelerate new home construction, millions of additional properties are in dire need of repairs.

Approximately 20% of all English homes today were built before World War One. And even with a plethora of new properties entering the market each year, the average age of a house is still hovering around 40.

That’s what’s brought Howden Joinery (LSE:HWDN) onto my radar. The vertically integrated group is known for its expertise in trade kitchens. However, it’s also a leading supplier of joinery products, construction hardware, as well as fitted bedrooms, bathrooms and conservatories, among others.

The ongoing supply chain disruptions have impacted operations resulting in shares of this UK business taking a 16% tumble in the last 12 months. But since these are ultimately short-term problems, the reduced-price tag looks like a buying opportunity for my Stocks and Shares ISA. At least that’s what I think.

Accelerating science with UK shares

An often-forgotten requirement for innovation is scientific research. And while there are countless companies investing capital in the pursuit of new discoveries, the process requires special equipment that’s not easy to come by. It’s undoubtedly a niche market segment, yet Judges Scientific (LSE:JDG) seems to be dominating.

The company owns a vast collection of subsidiaries specialising in the development and manufacture of scientific equipment. Its products range from fire testing all the way to high precision motion control for particle physics labs.

Admittedly, the complex nature of these tools does add a potential pitfall if quality standards aren’t maintained. But with the UK business delivering double-digit revenue, profit and dividend growth, that’s a risk I’m willing to take with my Stocks & Shares ISA.

Gaming still dominates post-Covid

During the 2020 lockdowns, gaming stocks were all the rage. After all, people needed something to pass the time, and video game companies happily obliged. And although most have returned to work, the demand for this entertainment medium continues to grow.

Video game developers often invest considerable capital into these digital projects. And if a title ends up being a flop, it can be the death of an entire firm. Needless to say, that adds a lot of risks.

Fortunately, Keywords Studios (LSE:KWS) is less exposed to such threats. The company provides support and talent services to the world’s largest video game developers. And since its income is not dependent on the financial success of finished titles, it’s seemingly in a much stronger position than most.

The group has deployed an acquisitive growth strategy that’s enabled it to reach dominant status. There is the ongoing risk of an acquisition going wrong, but management has been prudent in its targeting process. That’s why I think this could be one of the best UK companies to add to my ISA today.

I think now is a great time to add some future-focused growth shares to my portfolio. Here are my top UK shares to buy right now operating in exciting sectors that look primed for growth. 

Blue-chip UK share to buy

I have been tracking Diageo (LSE:DGE) since May 2021 when it was trading at 3,250p. It is currently trading at 4,000p, up 23% in 12 months. It has outperformed the FTSE 100 index by nearly 15% during this period and has shrugged off the pandemic crash. 

I value stability a lot, especially in 2022. And I think Diageo’s business strategy fosters steady growth. The company is focusing on strategic acquisitions in target markets like China, India, and South America. These are areas set for big expansion over the next decade and Diageo is working on acquiring top brands overseas. And its dominance of the North American and European markets makes it a steady income generator.

In the recently released half-yearly results (ended 31 December 2021), the company reported net sales of £8bn, up 15.8% from the previous six-month period. Organic sales grew 20% and the company’s operating profit jumped 22.5% to £2.7bn.

My big concern right now is the lack of healthy, non-alcoholic options in its brand portfolio. Lack of diversity means the company will miss out on this growing beverage segment. And acquiring regional distilleries overseas comes with regulatory risks that could increase operating costs. 

But overall, the company looks healthy. Its business strategy is robust and sales have remained high throughout the pandemic period. The business looks well-equipped to maintain its current trajectory over the next decade which is why I think it is one of the top UK shares to buy for my long-term portfolio.

Hacking the video game market

Despite the surge in popularity, some investors are still hesitant to consider gaming shares. This is understandable given how few companies dominate the industry. But Keyword Studios (LSE:KWS) is a gaming share that largely avoids the pitfalls of releasing games. 

Despite being one of the largest gaming shares in the UK, this company does not directly develop or launch games. Instead, it provides a range of services from animation to voice acting for large game studios like Microsoft and Electronic Arts.

Industry numbers show that the number of large game titles released per year is increasing. This means that Keyword Studios could be involved in game production for top companies over the next decade. 

However, the risk of games being shelved during production is high, which could lead to losses for the firm. Also, at 2,368p, its shares are trading at a price-to-earnings ratio of 65 times, which points to it being very overvalued. Any small drop in revenue growth could trigger a big fall.

But the company operates in an exciting industry and has partnerships with global leaders. I would consider an investment in this company if its share price drops to 2,000p. 

So let’s explore two companies that I’m thinking of adding to my portfolio this month with £1,000.

The leader nobody’s heard of

The video game industry enjoyed quite the tailwind during the height of the pandemic. With everyone stuck at home, many turned to this source of entertainment to pass the time. Yet it seems the industry’s growth has continued, even with (almost) everyone heading back to the office.

A growing market opportunity breeds competition. And for most game development studios, that could be a sign of trouble ahead. But not for Keywords Studios (LSE:KWS). And it’s one of the main reasons why it’s on my list of UK shares to buy now.

As a reminder, this is a services company that provides the picks & shovels to leading development studios such as Activision Blizzard and Microsoft. With the revenue stream not exposed to the risk of a title flop, Keywords is in a uniquely strong position. Although there could be notable threats on the horizon. With AI getting smarter, player testing and translation services may soon be a thing of the past, eliminating a good chunk of the group’s revenue stream.

That’s obviously a significant long-term threat. But with income originating from plenty of other services such as 2D & 3D asset creation, programming, and audio FX, I believe the group can adapt. In the meantime, the company is delivering double-digit growth. And yet the share price is down by nearly 20% in the last seven months. That, to me, looks like an excellent buying opportunity for my portfolio.

UK shares to buy now for the digital revolution

Another not-so-well-known business in the British market is Kainos Group (LSE:KNOS). This firm provides a host of support services to companies as well as governments that all aim to digitalise operations. Kainos is the brains behind the digitalisation of patient files in the National Health Service. And they’re also enabling The National Archives to transition its entire operation into the digital world.

Much like Keywords Studios, Kainos’s share price has endured quite the tumble in recent months. In fact, since the start of 2022 alone, it’s fallen by almost 25%. And that’s despite delivering 33% growth in its top-line revenue.

Kainos is not without its risks, of course. With large chunks of the British government relying on its software solutions, any breach in cyber security could have dire legal and financial consequences. Nevertheless, I’m personally willing to take this risk, given the growth opportunity and the reduced price tag. That’s why Kainos is on my personal UK shares-to-buy list.

Factoring in eSports revenue and console sales, the gaming industry is valued at over $300 billion. And with the explosion of mobile gaming, the metaverse surge and the emergence of in-game economics, the industry is now a thriving microcosm that has transformed interactive storytelling.

While the US and China are leaders in this space, the UK is slowly growing into a European powerhouse, with several companies gaining exposure during the pandemic gaming boom. And when it comes to investing in gaming, the UK has an ever-growing list of stocks that have huge valuations and are big global players now.

What are gaming stocks?

Gaming stocks are companies listed on an exchange that primarily design, distribute or market video games. This is a broad classification that includes a variety of service providers, software developers, animators and graphic consultants that predominantly deal with the creation, launch and post-release support of video games.

For investors new to the space, this article will serve as a starter guide to six of the biggest gaming shares listed on the London Stock Exchange. These companies have the largest market caps and form the core of the UK gaming industry, giving you a detailed picture of what the top gaming stocks in the UK have to offer.

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Top gaming shares in the UK

Frontier Developments

The studio behind popular titles like RollerCoaster Tycoon, Elite Dangerous and Jurassic World Evolution has been a British gaming mainstay for nearly three decades now. Frontier Developments has a multi-pronged strategy that involves licensing rights to popular franchises and also maximising post-release revenue through in-game purchases.

The company gained prominence during the pandemic gaming boom when its share price rocketed over 150% in just one year. But this was mainly due to the fact that a lot of its older releases were being purchased or downloaded again as people were stuck at home. This shows the focus on quality as many of its titles have longevity, something that is rare in the gaming world.

Building on their strategy and success during the first lockdown, Frontier Developments acquired the licensing rights to the first F1 simulator game (launch date: summer of 2022). This is an exciting long-term opportunity for the company to expand its sports portfolio much like Electronic Arts did with the FIFA and NBA 2K series. In the gaming world, this is a huge step ahead because sports simulator games generate steady revenue long after the initial release.

Frontier’s business strategy and recent successes have allowed the company to climb the ranks and become one of the largest gaming stocks listed in the UK.

Keywords Studios

The company with the second-largest market cap on this list of £1.96bn is not a game developer in the traditional sense. Keywords Studios offers both creative and technical assistance to large gaming studios that outsource aspects of development. And this also means the company avoids the pitfalls that most game developers face. The financial loss from unsuccessful releases is largely avoided, which is why the company’s financials have grown steadily.

The Dublin-based services company has recorded year-on-year revenue growth for over five years, and 2021 was no different. Being an ‘under the radar’ gaming stock, the company has made it clear that there will be no direct game launches under the Keywords Studios banner. But to grow its influence and impact on the sector, the company has acquired over 60 smaller studios that perform a range of operations including dialogue voicing, record labels for in-game music, customer care, marketing, user testing and 3D technology.

Keywords Studios has quickly risen to prominence as an FTSE AIM stock for investors looking to include gaming shares in their portfolios.

Devolver Digital

This gaming stock listed in the UK is the only big studio with broad exposure to the thriving American gaming market. Based in Texas, Devolver Digital has a very focused business model of building indie games that shake up the market. The company identifies as a developer-friendly platform that gives creators the tools to compete with the big players.

After the success of its Serious Sam series, this studio has been involved with over 50 successful titles, including the sleeper hit Hotline Miami, Carrion, Shadow Warrior and also published the global phenomenon Fall Guys. Devolver Digital is also making a huge push towards metaverse gaming, which is largely considered to be where the industry is headed in the next decade.

This gaming stock was listed on the FTSE AIM index in 2021 and, with its market strategy and global exposure, the company is looking to maximise the potential of indie titles.

Team17 Group

Team17 Group has been belting out hits from the 1990s and has a firm hold of the British indie team games market. With popular titles like Overcooked, the Worms series, Hammerting and Blasphemous, the company’s focus on premium, squad-based, pay-to-play games is clear.

The company works with budding indie creators across the globe, and acts as a distributor as well. Over 100 games have been launched under the Team17 banner since the late 90s, and Team17 continues to dominate the party game genre.

Since 2021, the company has also branched out to educational entertainment and gaming apps targeted at children under 13. This is a huge gaming niche and generates a lot of passive revenue. Team17 recently acquired StoryToys, a big name in the edutainment field to strengthen its position as UK’s top ‘edugaming’ company.

Games Workshop Group

The story of Games Workshop is very unique. After humble beginnings as a board game manufacturer in the mid-70s, the company gained global prominence after the success of its miniature wargame Warhammer 40,000. And in the 90s the company made the smart decision to digitise the Warhammer series and release playable computer games as well. Since then, the company has gone on to produce over 50 extremely successful video games playable across every console.

The franchise model is extremely popular in the video game world, and Games Workshop has perfected the art of creating successful sequels. Using its Warhammer series as the blueprint, the company has created multiple streams of revenue and gained licensing rights to other global franchises like The Lord of the Rings as well.

Given its long history, the dominance of a niche category, longevity and huge market cap make Games Workshop a top UK gaming stock.

Are gaming shares right for you?

Gaming stocks might not be for everyone. Traditionally, gaming shares are slightly volatile given the nature of the industry. The industry has become incredibly competitive, meaning even popular releases often get buried. CD Projekt Red’s Cyberpunk 2077 serves as a reminder of how even highly anticipated games with excellent marketing can fail on initial release.

For investors looking at long-term gains from gaming shares, it is wise to look at the biggest shares, catalogue of games, future projects, takeovers and potential collaborations. All these factors cause price fluctuations. It is easy to get caught up in the hype as video game stocks can quickly generate a lot of interest in short bursts.

But with that being said, the industry looks like it is about to take the next big leap in entertainment with virtual world-building and the metaverse. Gaming could become a rewarding avenue for investors who follow the Foolish investing philosophy of being smart and choosing companies with robust values and financials with long-term gains in mind.

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Going green

The Russian invasion of Ukraine has caused a global shake-up of the crude oil industry. To offset their fossil fuel dependence, the European Union released a docket that detailed plans to fast-track existing renewable energy projects in a bid to “make Europe independent from Russian fossil fuels well before 2030”. And the REPowerEU program plans on achieving this by exploring sustainable energy alternatives.

Greencoat UK Wind (LSE: UKW) is a company that is working towards acquiring and maintaining global wind energy assets. Its share price is already up 8.8% this year. And I think this is a clear sign that investors are cognizant of the change in the global energy market.

I recently wrote about the company’s plan to increase its offshore assets, which generally produce more electricity than onshore farms. News broke yesterday that Greencoat acquired a 50% stake in the German Borkum Riffgrund offshore wind farm for €350m. And the Dublin-based energy trust is also set to invest over $5bn by 2027 into wind farms in Texas and Illinois.

However, by increasing its offshore assets, there is a risk of higher operating and maintenance costs, which could affect revenue. And compared to hydrogen fuel, tidal energy, and nuclear power, wind energy is not as cost-effective.

But wind farms are already a part of the UK’s power grid and a clean energy resource. And global economies see it as a great alternative to crude oil. This is why I think Greencoat is one of the best UK shares for me to buy right now operating in a booming sector. 

Let’s play

Keyword Studios (LSE:KWS) is a services company focused on different aspects of video game production. The company offers animation, design, voiceovers, and post-release support to large global gaming giants like Microsoft, Nintendo, Google, and Electronic Arts. 

As one of the largest gaming shares listed in the UK, Keyword acquires and operates brands that perform a specialised role in the game development space. Keyword’s revenue in 2021 rose to €512m, up 37% from 2020. And pre-tax profit went up 22% to €54m in the same period. This is despite the larger gaming market slowing down in 2021 after the pandemic-driven gaming boom in 2020. 

And the service provider has stated in the past that it will not directly create or distribute games. This means that the firm’s revenue is not tied to new releases, a huge positive in the gaming world. However, game development is tricky and even promising titles are sometimes shelved indefinitely. This could affect revenue in the long run and is a concern to keep in mind. 

But given the sector’s fast expansion in the last 24 months, I think Keyword Studios is one of the top UK shares to buy right now for my long-term portfolio. 

Here, I’m going to focus on two growth stocks that strike me as great ISA investments. I’d be happy to buy both for my own account today.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A top ISA pick for 2022

First up is Amazon (NASDAQ: AMZN), which is listed in the US (yes, these shares can be bought for an ISA). It’s the world’s largest e-commerce company and also the largest cloud computing business.

There are several reasons I see Amazon as a great stock for my ISA. One is that the company is well-placed to benefit from the continued growth of online shopping in the years ahead. According to Grandview Research, the global business-to-consumer e-commerce market is set to grow nearly 10% a year between now and 2028. As the largest player in the industry, Amazon should benefit.

It’s worth noting here that Amazon has seen strong growth in its third-party sales in recent years. In the last quarter of 2021, these came in at $30.3bn, representing more than 30% of total online sales. This is important because these are more profitable than regular sales.

Another reason I’m bullish is that the company looks set to generate huge growth in its cloud division, Amazon Web Services (AWS), in the years ahead. In the last quarter, sales here were up 40%. Fundsmith portfolio manager Terry Smith (who recently bought the stock for his fund) believes there could be decades of growth left.

But Amazon stock isn’t cheap. At present, the forward-looking P/E ratio here is about 70. This adds risk to the investment case. If earnings miss analysts’ estimates, the stock could underperform.

All things considered however, I think the stock’s risk/reward profile is attractive right now.

A UK stock with bags of potential

The second growth stock I want to highlight is Keywords Studios (LSE: KWS), an under-the-radar company that’s listed on the UK’s Alternative Investment Market (AIM). It provides technical services to the video games industry.

Keywords Studios has grown at a rapid pace in recent years (revenues leapt 285% between FY2016 and FY2020) and results for 2021, published last week, showed further growth. For the year, group revenues were up 37% to €512m. Meanwhile, adjusted earnings per share rose 47% to 89.2 euro cents.

Looking ahead, analysts expect the group to keep growing rapidly on the back of video games market strength. But I don’t think this growth is fully priced-in. This year, KWS shares have been caught up in the tech sell-off. As a result, they can now be snapped up around 20% below their 52-week highs, on a P/E ratio of around 30. That strikes me as good value, given the growth prospects.

Of course, there are risks to consider. One is in relation to acquisitions, as Keywords tends to make them regularly. Last year, for example, it bought six companies. But future acquisitions might not go to plan.

Overall however, I see a lot of investment appeal here. I think this growth stock could be a great ISA pick for me this year.

The financial objectives between different investors vary drastically. But in my case, I like to focus on long-term high-growth opportunities. So let’s take a look at two businesses I’m keen to add to my portfolio before the ISA deadline.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Investing in construction automation

The construction industry may seem like an odd place to find high-growth opportunities. But with surging demand for prime warehousing space, courtesy of rapid e-commerce adoption, Somero Enterprises (LSE:SOM) is on fire.

This company design and sells concrete laying screed machines. As dull as that sounds, these devices enable construction crews to become smaller, work faster, and deliver better results.

With labour costs on the rise, the technology is becoming an increasingly popular option. And with the majority of its operations based in the US, Somero is enjoying a pretty substantial tailwind from President Biden’s $1trn infrastructure bill. So it’s no surprise the share price is up over 30% in the last 12 months.

There are, of course, risks. Laying concrete is highly dependent on the weather. If it’s raining, this process isn’t possible as the water compromises the strength of the material. 2019 was a record-breaking year for bad weather, which delayed many construction projects, leading to flat revenue growth. With global warming continuing to worsen, I think it’s likely that weather-related disruptions will occur again in the future.

But with the demand for construction continuing to climb, I feel this is a risk worth taking. That’s why I’m tempted to buy some shares in this business before the ISA deadline next month.

A top growth stock for the ISA deadline

The video game industry continues to grow at a rapid pace. In fact, a report by Fortune Business Insights predicts that the market will grow by 13.2% annually between now and 2028, reaching $546bn (£415bn). Needless to say, that’s a big opportunity for investors. And even more so for Keywords Studios (LSE:KWS).

This company isn’t as well known as development houses such as Activision Blizzard and Electronic Arts. And yet it’s been involved with large quantity of AAA titles released in the last decade. That’s because Keywords is a services business that supplies talent for the entire development pipeline of a game, including programming, 3D & 2D art, player testing, audio design, and even quality assurance.

This approach to doing business has a pretty major advantage. If a newly released title fails to achieve the desired financial performance, the company’s revenue stream is not compromised since its paid either way for its services. But that doesn’t mean it’s completely risk-free.

Becoming the leading support studio in the industry involved a lot of acquisitions over the years. And this aggressive, acquisitive growth strategy continues to be employed today. However, if management starts buying up smaller studios that fail to meet expectations, it could compromise the balance sheet.

So far, Keywords has been prudent in its acquisition targets. That’s why I believe it’s a risk worth taking for my portfolio before the ISA deadline arrives shortly.