Just released: the 3 best growth-focused stocks to consider buying in May [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due to a combination of business performance and potentially attractive share valuation.

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The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Premium content from Motley Fool Share Advisor UK

Our monthly Fire Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of growth-focused Fire recommendations, to help Fools build out their portfolios.

“Best Buys Now” Pick #1:

PayPal (NASDAQ:PYPL)

  • PayPal’s Q1 earnings showed net revenues increasing by 2% at constant currency, and while this isn’t stellar growth, underlying PayPal branded volume growth was decent at 6%.
  • The company is focusing on profitable, “durable” growth, rather than a higher proportion of low-margin processing volumes.
  • To that end, underlying dollar margin growth (an important profit measure) grew at 8%, a slightly faster rate than the previous quarter.
  • The company has cut costs in recent years as part of an efficiency drive, helping operating margins move higher, with margins increasing by a further 257 basis points to 20.7% in Q1. These improvements also highlight the scalable nature of payment processing.

“Best Buys Now” Pick #2:

Redacted

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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 assessed. Consider taking independent financial advice.

Ian Pierce own shares of PayPal. The Motley Fool UK has recommended PayPal. 

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