The Motley Fool

2 growth stocks I’d stash in my ISA today

Image source: Getty Images.

With the 2017/18 ISA deadline just a matter of weeks away, I am looking at two last-minute growth giants investors should consider stashing in their stocks portfolio.

Working hard

PageGroup (LSE: PAGE) hasn’t had the best of it in Wednesday trading after the release of full-year numbers caused investors to hit the sell button with some gusto.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

The recruitment giant was last 6% lower on the day and toiling below 500p again, erasing much of the progress made following its trading update at the turn of the year. This represents a terrific buying opportunity, in my opinion.

PageGroup has slumped after warning that difficult conditions in the UK look set to persist. Gross profits here were 3.8% lower during 2017, and the FTSE 250 company commented: “We remain cautious in several markets as we progress through the year: primarily in the UK, where we will focus on protecting margins.”

Two things to remember, however. PageGroup sources just 20% of gross profits from its home territory. And in my opinion the brilliant progress the business is making in foreign territories provides plenty of fuel for optimism.

In its core Europe, Middle East and Africa (EMEA) division — a unit responsible for close to half of total profits — gross profits exploded 22.2% last year. Meanwhile, in The Americas and Asia Pacific they jumped 21.9% and 14.6% respectively in 2017.

The strength of these overseas territories powered group gross profits 14.6% higher last year to £711.6m. And PageGroup’s global investment plan reinforces my belief that business overseas should continue to boom. Its headcount swelled by 930 last year to take the total to a record 7,029.

City analysts share my optimistic take and are thus expecting the recruiter to keep its long history of earnings creation rolling. An 11% rise is forecast for 2018, and an extra 9% increase is predicted for next year.

Today’s share price reversal leaves it dealing on a forward P/E multiple of 16.5 times. This is very reasonable given its rising might across the globe.

Stick around

I also reckon Scapa Group (LSE: SCPA) is worthy of a place in your shares portfolio today.

Like PageGroup, the business — which makes adhesive-based products for the healthcare and industrial sectors — has a proud record of annual earnings generation. And it is expected to keep the run going with advances of 16% and 11% in the years to March 2018 and 2019 respectively, or so say City brokers.

Scapa might be pricey, the firm rocking up on a forward earnings multiple of 27.3 times. This premium rating is no surprise to me, however, given progress of the company’s profit-boosting self-help scheme.

At Healthcare, margins jumped 190 basis points in April-September, to 16.1%, and at Industrial, they jumped 220 basis points to 11.5%, and they were essential in increasing group trading profit 31.5% higher in the period to £16.7m. And the tape manufacturer has plenty more margin-boosting measures ready to be unleashed.

On top of this, Scapa’s Healthcare unit, a dependable revenues builder given the defensive nature of the market, has a raft of products slated for the next 12 months to give the top line a welcome jolt.

With its robust balance sheet also giving plenty of scope for M&A, I reckon the growth outlook for the near term and beyond is pretty compelling.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild 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.

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.