The Motley Fool

Top 3 growth shares to buy in November 2021

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Businessman leading a chart upwards
Image source: Getty Images.

I’m always on the lookout for growth shares to buy for my portfolio. Here are three I would consider this month.

Lab instrument specialist: Judges Scientific

I reckon scientific instrument manufacturer Judges Scientific (LSE: JDG) could continue its impressive record of long-term growth.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

The company’s approach is simple. It buys up instrument makers, using a disciplined approach to valuation to avoid overpaying. The benefits of being part of a larger company can allow such subsidiaries room to grow and extra financial flexibility. But head office doesn’t interfere too much with operations. As precision is important in scientific instruments, customers are willing to pay a premium for quality products. That gives Judges pricing power and has allowed it to raise its dividend by double digits for a few years in a row.

There are risks, though. For example, sustained lab closures in some markets could dent revenues and profits over the next couple of years.

International sportswear retailer: JD Sports

While JD Sports (LSE: JD) may seem like a homegrown success story, much of its recent growth trajectory is down to its international expansion. That builds on what the retail giant has learnt in four decades of operation. It is expert at identifying customer needs, buying the right assortment of products, and merchandising them well.

That shows through in JD’s performance. Its blockbuster interim results – which saw the company’s best ever half-year profits – suggest that the growth trajectory continues. But it isn’t all smooth sailing. For example, if logistics problems continue, they could hurt growth and profits to boot. Over the long term, however, I continue to see substantial opportunities for growth. I think that could propel the JD Sports share price to new highs.

Established drinks maker: Diageo

Looking at drinks trends in recent years, from the popularity of niche premium spirits to a growing interest in alcohol-free alternatives, one company that seems to benefit from many of them is manufacturer Diageo (LSE: DGE). With premium spirits brands like Aviator Gin, teetotal tipple Seedlip, and massive premium brands like Johnnie Walker, the company is a powerhouse in the lucrative drinks market.

It isn’t resting on its laurels, as the huge new Johnnie Walker whisky centre on Edinburgh’s Princes Street shows. I expect continued growth in coming years. That will hopefully come from a combination of careful brand stewardship, customer demand for premium drinks and pricing power. But there are risks here too. Seedlip might not be enough to protect the company’s revenues from a growing tendency among younger drinkers to shun alcohol.

Growth shares to buy and hold

High-quality growth shares can be expensive. These three shares aren’t cheap based on a price-to-earnings valuation. Share price performance in any given period could be hurt by weak results. Over the long term, however, I reckon their high-quality operations in different fields can support both revenue and profit growth. I would happily add all three to my portfolio this month.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Christopher Ruane has no position in any shares mentioned. The Motley Fool UK has recommended Diageo and Judges Scientific. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.