With this in mind, let’s take a look at which shares analysts have been upgrading in the FTSE 350. There might be value here for my portfolio.

The first UK share

Analysts have been upgrading Watches of Switzerland (LSE: WOSG) over the past month. In fact, the target share price for the company has risen 22% over this period. Clearly, things must be going right for the firm to attract such a big upgrade.

This UK share released a second-quarter trading update in November. It said the first-half performance has been better than expected. Revenue grew a huge 44.6%, and full-year guidance was boosted. A US expansion strategy is also under way with acquisitions of five stores agreed.

I can see why analysts have been upgrading the share price. There’s still a risk here as the firm sells luxury jewellery and watches, so sales might fall next year if the economy stalls. Nevertheless, I’m considering buying this stock.

Upgraded after a takeover

The second-most upgraded UK share over one month is Playtech (LSE: PTEC). The target price has risen by 17% over one month.

I previously wrote about this share here. As a quick recap, the company was the subject of a takeover bid from Australian slot machine manufacturer Aristocrat Leisure. The bid for Playtech was 680p, but the share price was trading above this bid price. This normally indicates a potential competing bid to come.

Well, almost two weeks later, Playtech revealed that it received additional interest from JKO Play. The share price is now 750p at time of writing.

On reflection, I have no interest in buying this UK share as I consider trying to front-run a competing bid a risky strategy. There’s also no guarantee JKO will bid higher for the shares. I’ll let Aristocrat Leisure and JKO Play battle it out.

One more UK share to consider

Finally, Marks and Spencer (LSE: MKS) has had its share price target increased by 17% this past month. The stock is up a huge 82% this year, so maybe analysts were catching up with their own share price targets after this stellar rally.

Marks and Spencer released its half-year results this month, and they looked good. Profit before tax was £187.3m, which was higher than the £158.8m the company achieved two years ago prior to Covid. Last year, MKS only managed a loss before tax of £87.6m, so this is a huge turnaround. I understand why analysts have been upgrading the target price for the company.

Commentary from the CEO was somewhat underwhelming though. Supply chain headwinds and Brexit impacts are expected to continue into next year. The forward P/E is 12 which I think correctly values this UK share. I’m keeping it on my watchlist for now.

Playtech’s business and opportunity

Playtech specialises in gambling software for online casinos, online bingo, mobile gaming and sports betting. Revenue is forecasted to rise over 7% in the 12 months to December 2021, and by 22% to £1.4bn in the following financial year ending 2022. I can see the appeal of gambling shares right now as FTSE 100 stocks Entain and Flutter Entertainment have performed very well during the pandemic.

A further huge growth catalyst for gambling shares comes from the US. In May 2018, the US Supreme Court legalised sports betting across the whole country, as prior to this decision a federal ban meant Americans could not legally bet on sports. Now that individual states have been given the green light to legalise sports betting, the industry has been given a huge growth catalyst. GAN, another gambling software provider, recognised this potential and re-listed its shares from London’s Alternative Investment Market to NASDAQ back in May last year.

Bidding wars

So, in a sector that is performing well and with opportunity for growth in the US market, it is understandable why Aristocrat has bid for Playtech. But with the shares trading hands above the bid price, could there be another competing bid to come?

Shareholders in Morrisons had the benefit of experiencing a bidding war this year. Two private equity firms competed to acquire the supermarket chain, with the acquisition eventually being formally approved at a £7bn valuation, or 287p per share. The day before the first takeover bid was announced, shares in Morrisons traded on the market at 178.5p, valuing the company at £4.4bn.

The bidding war raised the value of Morrisons by 59% in a little over four months!

A risk too far

Returns from bidding wars look very attractive, and it’s understandable why I may want to gain this exposure in my own portfolio. However, bidding wars don’t happen too often, and in fact, takeovers can even fail and shares can drop right back down to where they started.

As an example, check out Revolution Bars back in 2017 when shareholders rejected the bid for the company.

For these reasons, trying to chase returns from potential bidding wars just isn’t a strategy for me. There are certain sophisticated investors and hedge funds that attempt this, known as ‘merger arbitrage’, but it is a lot of risk to take on. For me, the best way to gain exposure to the potential bidding war for undervalued UK shares is using an ETF that tracks the FTSE 250. If a bidding war does play out for Playtech, my FTSE 250 ETF will benefit, but while also being diversified across the other 249 stocks in the index.

The Playtech share price surges on acquisition offer

Over the years, Playtech has become an industry leader in the gambling sector. In fact, it’s one of the largest online gaming software suppliers in the world, working alongside other leading firms, including Ladbrokes and William Hill.

Yesterday, management announced an agreement has been made with Aristocrat Leisure for a cash acquisition worth £2.7bn. Aristocrat is an Australian gaming firm that produces software and hardware for casinos. So it’s clear to see why it wanta to buy out Playtech.

The offer translates to a share price of 680p. That’s quite a premium above the closing price of 429.2p last Friday. And given the management team have unanimously agreed to recommend shareholders accept this bid, seeing the stock pop is hardly surprising.

Currently, Playtech shares are actually priced slightly under the acquisition offer at 678.5p. While that’s a tiny margin, investors with a large amount of capital could see this as an opportunity for a small but guaranteed return. Personally, even if I had millions to spare, this wouldn’t tempt me to buy. Why? Because the acquisition is far from guaranteed. Let me explain.

What happens next?

Now that the announcement is out of the way, the next step is to see whether shareholders of both companies are happy with the proposed deal. In the case of Playtech, this will be done at the next General Meeting, which has yet to be scheduled.

A majority vote of 75% in favour is required to receive approval. And assuming this happens, the company will then begin filling all the necessary documents with the courts. After all, every acquisition needs to be approved by regulators to ensure there is no violation of anti-trust laws or that deals don’t compromise national security.

If everything goes according to plan, the acquisition will likely be completed by the second quarter of 2022. But that is a big ‘if’. There are plenty of examples of stocks exploding on an acquisition offer only to collapse again after shareholders or regulators decided to reject the deal. And it’s entirely possible that this may happen to Playtech as well.

The bottom line

Based on the timeline provided by management, it could be another eight months before the deal closes. That’s quite a long time to wait for a measly 1.5p gain. Of course, another company may swoop in with a higher bid. But whether that will happen is entirely down to speculation.

Personally, if I were a Playtech shareholder, I’d use the recent surge in share price as an opportunity to close my position. And then use the capital to invest in other opportunities for my portfolio.

City analysts think earnings will more than double in 2021. This leaves the business trading on a forward price-to-earnings growth (PEG) ratio of 0.2.

This sort of undemanding rating leaves plenty of scope for meaty share price gains if those financials impress. And I think there’s a great chance of another sound update coming down the pipe as the online betting phenomenon drives demand for its broad range of services. 

But it’s possible the Covid-19 crisis could dent earnings growth if lockdowns persist. Indeed, recent longer-than-expected shutdowns in Italy have dented trading at the firm in recent months.

But I still think the rate at which the online gambling sector’s booming — and particularly in the US where Playtech continues to make steady progress — make this a great cheap UK share to buy today and hold for years.

Indeed, experts at Researchandmarkets.com think the global online gambling market will be worth $112.1bn by 2025. That compares with the $72bn it’s estimated to clock in at this year and $64.1bn in 2020.

A cheap UK share I’d buy for the housing boom

Mortgage Advice Bureau (LSE: MAB1) is another cheap UK share set to release half-year results next month. Slated for 28 September, I’m expecting the financial advice provider to confirm that business remains strong.

I’m not going to suggest that buying Mortgage Advice Bureau shares isn’t without risk. Stamp Duty concessions have helped fuel the homebuyer stampede of the past 12 months. The gradual withdrawal of the tax holiday (with the standard rate due to be imposed again in October) could potentially deal a hammerblow to home sales and thus demand for the mortgage advisers’ services.

However, in my opinion, this risk is more than baked into Mortgage Advice Bureau’s share price today. Brokers think this cheap UK share’s earnings will rocket 60% in 2021. This leaves it trading on a PEG multiple of just 0.6. Like Playtech, this means the company trades on a ratio inside the benchmark of 1. A figure below that suggests a stock could be undervalued.

In fact, I expect Mortgage Advice Bureau’s trading to remain strong for some time yet. Sure, the Stamp Duty holiday’s on borrowed time. But massive government support through Help to Buy equity loans and ISAs remain in place to help potential buyers.

There’s also the fact that Bank of England interest rates look set to remain low, keeping the costs of mortgages at rock-bottom rates. Rising competition among Britain’s lenders should also keep a lid on homeowner costs for a long time yet.

I’d happily buy this cheap share for my own portfolio right now.

FTSE 250 gaming giant

Through organic growth and strategic acquisitions, Playtech has grown to be one of the largest online gaming software suppliers in the world. It has lucrative and high-profile license agreements with names such as Warner Bros, Ladbrokes, and William Hill to mention a few. In addition to its B2B arm, it also possesses a substantial footprint in the B2C retail arena as well.

At the time of writing, shares in Playtech are trading for 378p per share. This time last year shares were trading for 27% less at 296p per share. In 2021 to date, Playtech’s share price is actually down approximately 5%. I am not concerned by this and this has mainly been caused by results announced for the pandemic period and anticipation of normality resuming.

Trading update and performance

The update released to the market today confirmed trading was inline with expectations. Playtech pointed to better than anticipated results in B2B which offset some shortcomings in its B2C. Due to the pandemic, different parts of the world have been under different restrictions so its B2C retail outlets may have opened at different times. Online performance was strong. 

Full-year results earlier in the year were affected by Covid-19. This was largely due to the cancellation of sporting events. The positive news from the FY results was that its digital segment grew approximately 30%.

Risk and reward

Like all FTSE 250 stocks, Playtech has risks, including two primary risks that concern me the most. Firstly, it operates in a very highly regulated industry. If these regulations were to change and hinder Playtech, it could affect operations and more importantly its financials.

The second risk with Playtech is that the pandemic is not over. As a global organisation there are different implications for it in different parts of the world. If restrictions come back into force both parts of its B2B and B2C arm can be affected. In addition, sporting events are still at the mercy of the pandemic. These events boost Playtech when they are happening.

Overall I do like Playtech and I would consider it for my portfolio. This trading update has confirmed that it is able to turn around the fortunes of its B2B blip it experienced as reported in full-year results. More importantly, it has a great position in a multi-billion dollar industry. As not only a provider of software but an operator of its own brands, it can position itself to thrive and has been doing so in the past.

Analysts believe that Playtechs annual earnings for 2021 will improve by close to 70%. In addition to that, in October of last year, insiders were buying shares. This is always a good sign for me. If those working for Playtech are happy to invest their cash then I feel confident too.

FTSE gaming giant

Playtech is not your typical online gaming firm. It has grown to become one of the largest online gaming software suppliers in the world. Some of its license agreements are with well-known names such as William Hill, Ladbrokes, and Warner Bros. It also strategically acquires companies that will diversify its offering and enhance its footprint, which is something I admire immensely.

As I write this, Playtech shares are trading for just over 465p. This is nearly 100% higher than this time last year. At its current levels, the FTSE 250 incumbent is trading over 30% higher than pre-crash levels. I believe this is down to strong performance as well as recent full year results. I believe it benefited somewhat during the lockdown as people looked to other forms of entertainment such as gaming when they couldn’t go out to eat, drink, or fly to their favourite holiday destinations.

Full year results and Covid-19

Full year results as a whole are a mixed bag for Playtech as Covid-19 did affect it. I still put it on my best stocks to buy now list despite this impact. Business-to-business performance was the main revenue stream which caused revenue to fall. The cancellation of sporting events also played its part. On a positive note, Playtech’s digital segment grew 30%. This was driven by casino, live casino bingo, and online poker businesses, which thrived.

Best stocks to buy now have risk and reward

The reason I place Playtech on my best stocks to buy now list is due to its unique offering and standing in a multi-billion dollar industry. I do expect further trading updates to reveal a return to profitability from a business-to-business perspective. It also has a favourable track record and is well positioned to ride the wave of online betting becoming big business.

Internet betting has become a key activity in recent times and Playtech is well positioned to ride this wave and benefit. It is believed that the size of the global gaming market will be worth close to $100bn in just three years’ time. I see PTEC having a big chunk of that pot.

Analysts have predicted a nearly 70% improvement in annual earnings for 2021 for Playtech. Furthermore, in October of last year, insiders were buying shares, which always fills me with confidence. If those at the top are confident in investing their money then I also feel better about investing my hard earned cash too.

There are risks associated with Playtech, as with any stock. It is in a very heavily regulated industry. If restrictions and regulations change, this could affect operations and profitability. In addition to this, we are still in the pandemic. Further lockdowns and variants of the virus could mean more negative impact on the B2B side of things as well as cancelled sporting events which will affect revenue streams.

At its current price point, it is firmly on my best stocks to buy now list. I believe it could enhance my portfolio for the long term, which is how I invest. Here is another FTSE stock I really like.

Rupert Hargreaves: IWG

As parts of the world start to move on from the pandemic, companies are re-evaluating their office footprints. Many firms have already announced they’re introducing more flexible working patterns, and this is proving to be good news for IWG (LSE: IWG).

Owner of the Regus brand and one of the largest flexible office space groups globally, IWG has already registered growing interest from corporations looking to scale-down their footprints. This could help support the company’s growth throughout 2021.

The most considerable risk the business faces is another economic slowdown. That could hit demand and slow the return to growth.

Rupert Hargreaves does not own shares in IWG.

Matthew Dumigan: Scottish Mortgage Investment Trust 

After delivering a stellar return over the last five years, Scottish Mortgage Investment Trust (LSE: SMT) has stumbled upon tricky times over recent weeks, watching its price drop sharply since mid-February. 

The increased appeal of cyclical recovery plays and concerns in relation to an overpriced US tech sector appear to be behind the recent sell-off. 

Nevertheless, since I’m confident in the trust’s long-term approach and ability to identify the companies of the future, I would be inclined to see the recent dip as an opportunity to buy shares in this top British stock at a discount price in April. 

Matthew Dumigan has no position in Scottish Mortgage Investment Trust.

Nadia Yaqub: Royal Mail

I’ve recently turned bullish on Royal Mail (LSE: RMG). The company continues to see parcel volume growth due to the online shopping boom. As a result, it has upgraded its full-year revenue guidance. Royal Mail expects to release its results in May.

The company is boosting is infrastructure with an automated parcel hub in the Midlands. It has also come to an agreement with union members and both parties are working together. I think Royal Mail is taking the right steps and a reinstatement of its full dividend could be possible. I reckon the shares could grow further.

Nadia Yaqub does not own shares in Royal Mail.

Jonathan Smith: Greggs

Greggs (LSE:GRG) is a UK-based bakery chain with over 2,000 stores in operation. Recently, full-year results showed a loss of £13.7m, a stark fall from the 2019 profit of £108.3m.

I think the issue here is predominately based around the impact of the pandemic and so think that Greggs specifically are doing well. In fact, the company net opened 28 stores during 2020.

The business is also focusing on diversifying revenue channels, with products now available in supermarkets as well as for home delivery. Both areas should boost profitability into 2021 and beyond.

Jonathan Smith has no position in Greggs.

Christopher Ruane: Unilever

Consumer goods giant Unilever (LSE: ULVR) hasn’t had a great 2021 so far. Its shares have given up some of their gains from last year.

But the company owns brands from Dove to Cif, which are used daily in millions of households worldwide. That does mean some currency risks and post-pandemic hygiene product usage may fall. But with its strong brands, global distribution and spread of businesses, I regard the name as attractive for the long-term. It’s well-established with experienced management.

I see the current price weakness as a buying opportunity for this top British stock in April.

Christopher Ruane owns shares in Unilever.

Jabran Khan: Playtech 

FTSE 100 gaming giant Playtech (LSE:PTEC) is one of the largest gaming software suppliers. Playtech creates and delivers platforms for approximately 140 betting firms across 19 countries.

Gaming is a multi-billion-dollar industry and continues to grow. Recent full-year results confirmed cash preservation and a strong balance sheet. B2B and B2C markets continue to perform well with new agreements signed in previously untapped territories. 

At Playtech’s current price point, I consider it to be a great opportunity. It has recovered some of its loss in price since the market crash but is still nowhere near 2018 highs.

Jabran Khan has no position in any shares mentioned.

Roland Head: Redrow

FTSE 250 housebuilder Redrow (LSE: RDW) says it’s already sold 95% of the houses it expects to build by the end of June. The company’s order book reached a record £1.3bn at the end of December, stretching into the next financial year.

Redrow’s share price has already bounced back strongly from the lows seen in April last year. But with the stock trading at just 1.2 times book value, I think Redrow still looks very affordable.

With more than £200m of net cash on the books, the main risk I can see is that the housing market will slow down later this year. I can’t rule that out. But I think Redrow looks attractive at the moment.

Roland Head has no position in any share mentioned.

Edward Sheldon: London Stock Exchange Group

My top British stock for April is London Stock Exchange Group (LSE: LSEG). It’s a leading financial infrastructure and data company.

London Stock Exchange’s share price has taken a hit recently after the group advised that it will face higher-than-expected costs this year. I see this share price weakness as a buying opportunity. Full-year 2020 results, posted in March, were relatively solid with earnings up 5%. Encouragingly, the dividend was hiked 7% which suggests that management is confident about the future.

Even after the share price fall, the stock isn’t cheap. This is a risk to consider. However, it’s worth noting that since the pullback, several directors have snapped up stock. I see this insider buying as a bullish signal.

Edward Sheldon owns shares in London Stock Exchange Group.

Zaven Boyrazian: ITV

ITV (LSE:ITV) is the UK’s second-largest broadcasting company that generates revenue by selling advertising time to its customers.

Live TV viewership has been declining in recent years, as streaming services like Netflix gain more popularity. However, ITV has acknowledged this and launched its own free streaming service called ITV Hub.

Today more than 33m people have signed up. And viewing hours continue to grow. Predicting viewing habits to produce new popular content is quite a challenge.

But given its successful track record, ITV looks like it can thrive in the new streaming environment, and so it’s a stock I’d like to have in my portfolio.

Zaven Boyrazian does not own shares in ITV or Netflix.

Royston Wild: Naked Wines 

The Naked Wines (LSE: WINE) share price has fallen sharply from the record peaks above 800p struck in February. I think this provides a terrific dip buying opportunity. And particularly with full-year trading results scheduled for Thursday, 15 April. 

I reckon those upcoming financials will remind the market of Naked Wines’s exceptional growth potential. Most recent financials showed sales soar 80% in the six months to September thanks to strong demand from both new and repeat customers.  

It’s critical to remember that recent sales have been driven in large part by Covid-19 lockdowns. Naked Wines therefore faces the possibility that revenues could slow as restrictions ease. Still, I think its robust position in the fast-growing online retail segment will still deliver bubbly sales progress looking ahead.

Royston Wild does not own shares in Naked Wines.

Kirsteen Mackay: Greggs 

FTSE 250 high street hot food shop, Greggs (LSE:GRG) posted a loss for 2020 after lockdowns decimated its sales. However, with lockdowns gradually being lifted in April, I think this top British stock will begin to pick up pace again in April.

2019 profit was £108m, while its 2020 loss was approaching £14m. The business was hugely popular prior to the pandemic and I think it’s likely to return to high-footfall and demand once the high streets reopen. Taking the bull by the horns, the company plans to open 150 new stores this year. It’s also branching into supermarkets and embracing home delivery options. 

Kirsteen Mackay does not own shares in Greggs.

Paul Summers: Stock Spirits

One share that’s caught my eye recently is branded spirits firm Stock Spirits (LSE: STCK). Like industry peer Diageo, I think the mid-cap could do very well once the pandemic has been sent packing. 

Naturally, news of another potential coronavirus wave in Europe isn’t ideal considering the firm’s presence in these markets. Even so, a valuation of just over 15 times earnings isn’t demanding for a company in this sector. Moreover, Stock’s off-trade focus should help to mitigate the impact of further closures to bars and restaurants. The robust balance sheet is another attraction.

Paul Summers has no position in Stock Spirits.

G A Chester: Hikma Pharmaceuticals 

Hikma Pharmaceuticals (LSE: HIK) shares are at a decent discount to their level earlier this year. I think it’s a good opportunity to buy into this specialist in non-branded generic and in-licensed drugs. 

Dollar weakness, a rotation out of defensive stocks into cyclicals, and company guidance for 2021 being below City expectations have all weighed negatively on Hikma. These factors may keep the shares depressed in the short term. 

However, chief executive Siggi Olafsson has a track record of guiding conservatively at the start of the year and upgrading as it progresses. As such, I think Hikma’s current 16 times forecast earnings represents good value. 

G A Chester has no position in Hikma Pharmaceuticals.

Manika Premsingh: Ferrexpo

The FTSE 250 iron ore miner Ferrexpo (LSE: FXPO), much like other industrial metals’ miners, had an unexpectedly good 2020 as commodity prices boomed. 2021 is shaping up quite well too. Its share price is up 35% since the start of the year.

The economy expected to gather steam through this year. A big fiscal stimulus from the US likely to be directed towards infrastructure creation. And China’s huge commodities’ demand is likely to continue growing, albeit at a slower pace than last year.

These developments bode well for Ferrexpo, which still trades at a surprisingly low earnings ratio of 3.6 times, making it a bargain buy for me at this time. 

Manika Premsingh does not own Ferrexpo shares.

Balfour Beatty

Balfour Beatty (LSE: BBY) is the first UK share I want to buy next month. Prior to the pandemic, which shut down most construction across the UK, the industry was contributing approximately £140 billion pounds to the economy.

Balfour Beatty leads the pack in British construction and has the most to gain from the eventual reopening of the country. As governmental infrastructure plans resume, I think that UK construction stocks will receive a big boost for years to come, beginning with easings in April. Infrastructure never stops, and the company has the resources to weather any hardship, which leads me to believe that Balfour Beatty’s share price will be the biggest beneficiary when construction sites reopen.

Of course, there is always the looming threat of a global recession thanks to mounting Covid-19-induced debt, which could see the construction sector as one of the worst-hit, dramatically hurting Balfour Beatty.

Playtech

Of all the top UK shares to buy in April, I wouldn’t have normally thought of a gaming giant, yet I’m itching to add Playtech (LSE: PTEC) to my portfolio before summer.

This is a risky ‘bet’ for me (forgive the pun). A 10.6% decline in B2B revenue in 2020 weighed on Playtech and contributed to a group-wide 25% decline in revenues to €1.07 billion for the year, meaning that it really has a lot of ground to make up if it’s going to stand a chance at seeing its share price grow.

But I think that the gambling software developer will be the biggest winner when fans return to events such as the Olympics and UEFA European Championship. I believe that the return of fans, albeit in a restricted fashion, will see an upsurge in gambling as home-stayers attempt to up the stakes. Especially those fans who have extra disposable income that would have otherwise been spent on social events.

Even though Playtech’s share price has risen more than 130% in the past 12 months, it is still a long way off of its 2017 highs, which makes its current price cheap for me (and my Foolish colleague Jabran Khan agrees).

Virgin Money UK

Much like gamblers, I believe that banks will be among the biggest winners from increased disposable income, making Virgin Money UK (LSE: VMUK) my final top UK share to buy in April.

Banks were hit hard in 2020 as businesses everywhere closed their doors, but with an economic reopening and improved outlook on the horizon, I foresee these losses receding, which should see Virgin Money stage a recovery over the coming years. I am hoping that pent-up frustration from being locked down will lead to increased borrowing as people jet off on holidays and other experiences, beginning this summer, which will only benefit the company.

Of course, banks are still very risky during a pandemic, and although Virgin Money is among my top British shares to buy in April, ultra-low interest rates will put massive pressure on already depressed profit margins, thus increasing my risk in such a position.

FTSE 250 Gaming giant

I believe Playtech is not a typical online gaming firm as it has grown to become one of the largest online gaming software suppliers in the world. In turn, it creates and delivers platforms for approximately 140 betting firms across 19 countries. Some of its licence agreements are with well-known names such as William Hill, Ladbrokes, and Warner Bros. PTEC has also grown rapidly through strategic acquisitions to diversify its offering.

Share price and recent performance

At its current price, I believe PTEC is one of my best stocks to buy now. In January 2020, before Covid-19 affected worldwide markets, PTEC was trading at close to 400p per share. At the height of the crash, its share price tumbled to just 140p. But as I write this, the shares are trading at 431p each. That’s expensive for recent years. But it had been much higher pre-2018 and I believe at its current price point, it’s a dirt-cheap stock based on its record and potential.

Full-year results announced last week made for interesting reading. Covid-19 affected PTEC negatively, but there were some positive takeaways too, in my opinion. Business-to-business performance was the main factor causing group-wide revenues to drop sharply. The cancellation of sporting events impacted profitability too. A 10.6% decline in B2B revenue weighed on the company as a whole and contributed to a group-wide 25% decline in revenues to €1.07bn for the year.

On a more positive note, PTEC’s digital segment grew a very healthy 30%. This was driven by its casino, live casino bingo and online poker businesses, which have thrived during the pandemic.

Despite the impact of Covid-19 on Playtech’s results for 2020, PTEC is on my best stocks to buy now list due to its track record and standing within a multi-billion dollar industry. I believe that when its next trading update is released, it will show a return to previous profitability and growth.

One of my FTSE best stocks to buy now

As with any stock, there are risks. PTEC is in a heavily regulated industry, which could affect operations and profitability. Furthermore, we are still in a pandemic. This means cancelled sporting events and less B2B exposure that could continue to affect PTEC for some time too. 

Aside from the risks, I believe there is a lot to like about Playtech. It has a favourable track record for growth, profitability, and acquisitions over many years. In 2021 it is expected to record a near 70% improvement in annual earnings, which I believe could be great news for investors. At the end of October, insiders were buying the shares, which also fills me with confidence. If those running the company invest their money, surely they have confidence in its viability.

Internet betting has become a key activity in recent times and PTEC has been well positioned to ride the wave and to benefit. It is believed that the size of the global gaming market will be worth close to $100bn in just three years’ time. That would be close to a 40% increase compared to now. PTEC is well positioned to capitalise on this growth. Looking at my best stocks to buy now list, here are two of my other top picks I like right now. 

Marketing marvel

Signs of improving trade at 4Imprint Group (LSE: FOUR) leads me to believe now could be a good time to invest in this UK share. The promotional products manufacturer is scheduled to release full-year financials on 16 March. This could lead to a fresh share price jump in my opinion.

Corporate advertising and marketing budgets tend to leap at the start of any economic recovery. And 4Imprint’s order book is already beginning to reflect this. Latest financials in January showed that order intake had improved to around 70% of pre-pandemic levels in the fourth quarter of 2020.

4Imprint’s has been grabbing market share at an impressive pace in recent years. But bear in mind that the marketing sector in which this UK share operates is hugely competitive. This could potentially put the brakes on the company’s impressive earnings growth of recent years.

The ace of spades

I’m also quite excited to see what UK software share Playtech (LSE: PTEC) will have to say this month. Full-year results are scheduled for release on 11 March. Last time it updated the market in January it advised that results for 2020 would be “ahead of consensus”.

Playtech provides sports and gaming software that allows online betting companies to trade. It is therefore riding the crest of a wave as Internet gambling activity powers ahead. And the company is expanding aggressively to make the most of this expanding market. It entered the lucrative US marketplace in 2020. And this month it inked a deal with US casino operator Greenwood Racing for the licensing of its products across a number of US states.

The constant threat of regulatory clampdowns on betting companies is one that has clear consequences for Playtech. But I still think this UK tech share is an attractive share to buy today. The company trades on a forward price-to-earnings growth (PEG) ratio of 0.2. Any reading below 1 suggests that a stock could be undervalued by the market. Those upcoming financials next month could remind investors of its exciting growth prospects and prompt a sharp re-rating.

Another high-quality UK share

I also reckon plumbing and heating specialist Ferguson (LSE: FERG) could impress when half-year results also come out on 16 March. This is thanks to strong market conditions in its core US marketplace.

Housing starts Stateside fell by a larger-than-expected margin in January. But on the whole conditions in the US homes market are strong and residential property starts in December rose at their fastest pace since 2006. This favourable backdrop explains why City analysts reckon Ferguson’s annual earnings will rise by mid-to-high single digit percentages for the fiscal years to June 2021 and 2022.

Remember that earnings forecasts can fall short. And Ferguson’s high valuation could prompt a sharp share price reversal if trading starts to deteriorate. Today the UK share trades on a forward price-to-earnings (P/E) ratio of 25 times.