Sometimes it takes time for good companies operating in growing industries to get the share price increases they deserve. While this can be frustrating, patient investors with time to hold on to stocks can sit back, ride out meager short term returns and bank the profits.
Three years can seem like a long time, however some businesses and industries need this to get into fifth gear and convince other investors to take a plunge, thus boosting the share price.
Themes ranging from the growth of online gaming, to a resurgence in international trade should be strong support for companies operating in those areas which have cheap and attractive share prices right now.
Telegraph Money asked the professional stock pickers to identify companies that should pay investors back handsomely if held for three years.
This is part three of our series on which stocks to own depending on how long you have to invest. The first two installments looked at the next six months as lockdown eases, and next year as life returns to normal.
Computer gaming is booming – and not just because we are all trapped in our homes. Improving computer power and the ubiquity of social media and online multiplayer games has meant that more of us are spending our time building forts on Minecraft or battling enemies on Call of Duty.
Frontier Developments is a British game developer best known for making the Rollercoaster Tycoon series, Jurassic World Evolution and more recently, Planet Zoo. But its most exciting titles are still to come, according to Jon Hudson of Premier Miton Investors.
In March it announced a multi-year deal with Formula 1 to make a game and earlier this month they reached an agreement with Games Workshop to develop a game for the popular Warhammer franchise, which is due for release in 2023.
It has also been significantly increasing its workforce which will allow the company to release games more frequently, noted Mr Hudson.
“The shares have performed well, but the exciting release schedule over the coming years should ensure there is plenty more growth,” he said.
Its share price has risen over 60pc this year and it trades on a price-to-earnings (p/e) ratio of 43.
— to www.telegraph.co.uk