Back in April, I was like a kid in a candy shop. The stock market had crashed after President Trump’s tariffs bombshell and I saw dozens of buying opportunities suddenly emerge. The problem was finding the money for them all in my Stocks and Shares ISA!
Now, with the market fully recovered and surging higher, it’s harder to find opportunities. But that doesn’t mean there aren’t any out there.
Here are two growth stocks that I’ve bought in the past week. I think both are worth digging into.
On the money?
The first is a new position: On Holding (NYSE:ONON), the premium sportswear brand. I invested at $41, following a 34% share price fall since January.
In Q2, On’s net sales increased 38.2% at constant currency, with double-digit growth across all geographic regions. This came despite consumer spending weakness and tariff uncertainty, both of which are ongoing challenges to navigate.
But On has managed to navigate them so far. Indeed, the company now expects to achieve a full-year gross profit margin of 60.5% to 61%, and an adjusted EBITDA margin of 17% to17.5%. Both are above previous guidance.
As for valuation, we’re looking at a forward earnings multiple of 27. That strikes me as good value for a disruptive growth company growing sales at 30%.
A Wise move?
The second stock I bought was cross-border payments firm Wise (LSE:WISE). This is a position that I’ve been steadily building, and I snapped up a few more shares when the price recently dropped below £10.
There are a number of reasons why I’m bullish here. Firstly, the firm continues to grow, with cross-border volume rising 27% in constant currency to £41.2bn in its last quarter. Active customers reached 9.8m, up 17% year on year.
Next, Wise is aiming to become the world’s main network for moving money (for consumers, businesses, and banks). This is obviously a colossal market opportunity, valued at around $32trn. And so far, Wise has captured less than 5% of the personal and 1% of the small-medium business markets. Both are expanding, too.
The company is also making great progress attracting banks, due to its faster and cheaper money-moving infrastructure. Blue-chip lenders like Morgan Stanley and Standard Chartered have chosen to use Wise. This year, it has partnered with Raiffeisen and UniCredit.
As our lives become more digital, our financial relationships will extend across borders even more. People work, spend and invest internationally. Businesses now hire and sell everywhere…We’re working to handle trillions, not just billions.
Wise
Another thing I like here is Wise’s disruptive business model. As it grows, it continues to lower its cross-border take rate. This counterintuitive move is designed to keep customers locked in and improve its competitive position.
| Quarter | Q4 FY2024 | Q1 FY2025 | Q2 FY2025 | Q3 FY2025 | Q4 FY2025 | Q1 FY2026 |
|---|---|---|---|---|---|---|
| Cross-border take rate | 0.67% | 0.64% | 0.59% | 0.56% | 0.53% | 0.52% |
Now, there’s risk in this model, because it involves sacrificing profit margins in the short term to drive long-term market share. So, if Wise’s quarterly results disappoint, investors might lose patience and sell off the stock.
However, I’m investing here with a horizon of five to 10 years. Over this timeframe, I expect Wise to become much larger.
At just under £10, the shares are trading at 25 times earnings. For a growth company with such a large market opportunity, I think that’s attractive.
