Best stocks to buy now: 2 growth shares

Rupert Hargreaves explains why he believes these are some of the best stocks to buy now for his portfolio of growth shares.

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When it comes to finding the best stocks to buy now, I think several growth shares shouldn’t be overlooked. Here are two growth investments I’d buy for my portfolio today. 

Best stocks to buy now for growth

Rising stock markets and the increasing wealth of the middle class is leading to increased demand for wealth management services. It’s also driving up demand for alternative assets, such as specialist bonds. 

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With this being the case, I believe Intermediate Capital (LSE: ICP) is one of the best stocks to buy now. The specialist asset manager has seen steady growth in its assets under management over the past few years.

As these have expanded, so has fee income. Net profit has more than doubled over the past six years. This growth has also allowed the company to increase its dividend from 17.8p per share in 2016 to around 56p for 2021. 

Due to the tailwinds outlined above, I think the company’s growth can continue, although it may slow as the group becomes bigger. 

Demand for the alternative asset manager’s products and services may also decline if there’s a sudden increase in interest rates. Rising rates may reduce the appeal of specialist bond instruments among investors. 

This risk aside, I think this is one of the best growth shares to buy right now and I wouldn’t hesitate to add it to my portfolio. 

As a champion of growth shares

The other company I believe is one of the best stocks to buy now in the growth sector is Frasers Group (LSE: FRAS).  The owner of the Sports Direct brand, Frasers has been buying up other struggling high street brands over the past few years. It’s even begun buying retail parks.

This has helped build the group into a retail giant with substantial economies of scale. As the economy reopens and consumer confidence grows, I think Frasers’ efforts to consolidate the high street over the past few years will start to pay off

Unfortunately, its growth is far from guaranteed. The retail sector is incredibly competitive, and while Sports Direct might have been able to conquer the sports retail market over the past decade, there is no guarantee it’ll remain the top dog. It could face multiple challenges such as higher costs and cheaper products from competitors. 

Still, while the company might face some challenges as we advance, I am attracted to its low-cost offering and growth potential. 

The one downside to buying shares in the retailer today is its valuation. The stock is trading at a forward price-to-earnings (P/E) multiple of 27.5. I don’t think that leaves much room for error if Frasers’ growth doesn’t live up to expectations. 

Nonetheless, despite the above risks and current valuation of the equity, I’d buy the company for my portfolio of growth shares right now. 

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Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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