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I’d buy these 2 FTSE 100 stocks for growth in an ISA

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I love buying FTSE 100 stocks for growth. It’s hugely satisfying looking at a stock pick that has doubled or tripled in value, and thinking: I got that one right.

Here I’m picking out two FTSE 100 stocks with momentum on their side. Although both are now too big to continue rising at the same speed, I still think there’s more growth to come.

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JD Sports Fashion (LSE: JD) has delivered a total return of 1,830% measured over 10 years, way more than most FTSE 100 stocks, according to AJ Bell. The vast majority of this, 1,800%, came from share price growth. It would have turned £10,000 into £193,000 in that time.

I’m going for growth

Lately though, the JD Sports share price has stalled. It has fallen 7% over the last 12 turbulent months, although this is better than an average drop of 12% across all FTSE 100 stocks.

I actually think this could be a buying opportunity for me. Last month, JD Sports said full-year pre-tax profit should be “significantly” ahead of market expectations, coming in at more than £400m, rather than the anticipated £295m. Despite lockdowns and shuttered stores, Britons still demand their trainers and athleisure wear.

The JD Sports Fashion share price could rebound if vaccines liberate us from lockdown, and shoppers go on a spree with their accumulated savings. My worry is that its customer base, which is relatively young, will be disproportionately hit by job losses. This FTSE 100 stock is also a little expensive, trading at 23.71 times earnings, although not that expensive. With management raising £464m to hit the acquisition trail, I think the future looks promising.

I am not expecting another 1,830% growth over the next decade, even if we do enjoy another ‘roaring twenties’ as some claim. That would lift the JD Sports market cap from today’s £8.46bn to an unthinkable £163bn! It’s a big boy now, but I think it still has room to expand overseas.

Only one FTSE 100 stock has grown faster over the last decade, and that’s construction equipment rental supplier Ashtead Group (LSE: AHT). It has been helped by the strong US economy, where it generates the majority of its revenues.

Over the last decade, Ashtead has generated a total return of 2,170%, turning £10,000 into £227,000, beating all other FTSE 100 stocks, AJ Bell says. Of that, all but 2,050% came from share price growth, because again, investors get only a measly dividend. I doubt they are complaining.

Two of my favourite FTSE 100 stocks

In contrast to JD Sports, Ashtead has powered on during the pandemic, its share price trading an incredible 45% higher than a year ago. That also makes it a little expensive, at 22.3 times earnings, but again, not that expensive.

I think the Ashtead share price could enjoy another lift, as President Biden pushes through his $1.9trn American Rescue Plan. My concern is that Ashtead has cut its capital expenditure lately, and that could hit future returns. The other is that the pandemic will persist, but as we have seen, Ashtead may weather that better than many FTSE 100 stocks.

I’d buy both inside a Stocks and Shares ISA and take that growth tax-free.

I like this growth stock too.

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Harvey Jones 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.