Keystone Law is a so-called ‘platform-based’ law firm that lets offices work from home – surprise, surprise in a time of COVID – but it may be time to give it some additional attention.
Yahoo Finance sees Keytone picked as having ‘massive potential (LSE: KEYS).
Another UK growth stock I think has massive potential is Keystone Law (LSE: KEYS). It’s an innovative ‘platform-based’ law firm that’s disrupting the legal industry by enabling lawyers to work from home or their own offices.
We recently reported about the firm setting up its Middle East office.
Named ‘Law Fimr of the Year’ recently, Keystone employ over 350 lawyers and believes its ‘addressable market’ is 50,000 lawyers.
Founder and CEO James Knight owns around 34 per cent of the shares, meaning management’s interests are aligned with those of shareholders.
As Yahoo! note, Keystone’s growth has been underwhelming this year due to Covid-19, in large part due to the weak demand for legal services. “However, looking forward, growth is expected to pick up as economic activity rebounds. Next year, analysts expect revenue and net profit to rise 15% and 19% respectively.
The firm recently added 14 new partners to its growing complement, across litigation, property and commercial divisions and its unconventional model has perhaps hit at an opportune time given the COVID crisis.
Stockopedia also noted the potential for Keystone. The site noted that there is evidence of it scoring well against some important financial and technical measures of quality and momentum.
Research shows that high quality stocks tend to be resilient, cash-generating businesses that can compound investment returns over time. Likewise, strong momentum in price and earnings is a pointer to positive trends that have the potential to continue.
Keystone’s share price has grown almost 150 per cent over the last three years. It will be well worth looking at how the model responds to the current pandemic and its overall disrupter influence to see how it performs in the coming year and beyond.