The good news is that there are still plenty of opportunities for investors as we start the second half of the year. With that in mind, here are three stocks I’d buy today.

Apple

One I like the look of as we start Q3 is Apple (NASDAQ: AAPL). It’s been a bit of a laggard this year, due to the fact that investors have been focused on ‘reopening‘ stocks. However, recently, Apple stock has started rising again. In June, it shot up from $125 to $140.

I think Apple shares have the potential to keep rising. The reopening trade appears to be losing its momentum and we’re now seeing institutional money flow into ‘growth-at-a-reasonable-price’ stocks. Apple certainly offers growth at a reasonable price. This year, its net profit is expected to rise 51%. Yet its forward-looking P/E ratio is just 27.

One risk here is the threat of regulatory action against the company. This could impact profit margins going forward. Overall, however, I believe the stock has a very attractive risk/reward profile.

Boohoo

Another stock I see as a ‘buy’ right now is Boohoo (LSE: BOO). The fast-growing online fashion retailer owns a number of well-known brands including Boohoo, PrettyLittleThing, Nasty Gal and, more recently, Debenhams.

There are a number of reasons I’m bullish here. One is that growth’s very strong. In a recent trading update, the company reported a revenue gain of 32% for the three months to 31 May.

Another is that broker sentiment is improving. Recently, analysts at Liberum upgraded the stock to ‘buy,’ saying the shares are cheap at present. I agree – I think the stock’s forward-looking P/E ratio of 29 is a steal. It’s worth noting that the median price target here is about 470p – well above the current share price.

A third reason I’m bullish is that an insider just bought a load of stock. Last month, board member Iain McDonald spent just under £330,000 on shares. This suggests he’s confident about the future.

Some risks to consider here include competition from rivals such as ASOS, and reputational issues. Both could impact profitability going forward. However, I think these risks are priced into the stock.

Fiverr

Finally, I’d also buy shares in Fiverr International (NYSE: FVRR). It operates one of the world’s largest freelance employment platforms. It’s currently trading about 25% below its 2021 high and I think it’s a good time to buy the stock.

This company has a lot of momentum right now. Recently, it reported a “massive start” to 2021 with revenue for the first quarter of the year up 100%.

I expect Fiverr to continue growing rapidly in the years ahead. In the near term, it should benefit as economic activity picks up and businesses hire more staff. Many businesses will turn to freelancers for flexibility. In the long run, it should benefit as the employment model evolves and the ‘gig economy’ grows.

This is a more speculative stock. Currently, the company isn’t making a profit, which increases risk. The stock is also highly volatile.

I’m comfortable with the risks though. I think the long-term potential here is significant.

The post Best shares to buy: 3 stocks I’d snap up in July appeared first on The Motley Fool UK.

This year however, Tesla’s performance has been a little underwhelming. Year to date, TSLA stock is only up about 4%. That’s less than the return from the S&P 500 (about 10%).

Here, I’m going to highlight three US growth stocks that are outperforming Tesla this year. All have delivered double-digit returns in 2021, beating the broader market. 

Microsoft is beating Tesla

One growth stock that’s doing really well in 2021 is technology powerhouse Microsoft (NASDAQ: MSFT). It’s up about 15% year-to-date.

Microsoft’s strong performance doesn’t surprise me. This is a company with heaps of momentum right now. It’s also a fund manager’s dream – revenue growth is strong (and looks sustainable), free cash flow is fantastic, return on capital employed is high, and the balance sheet is robust. It’s easy to see why Terry Smith (aka ‘Britain’s Warren Buffett’) likes the stock.

Would I buy Microsoft for my portfolio today? Yes. In my view, the stock’s valuation (forward P/E ratio of 32) isn’t stretched. There are risks to the investment case (such as competition from Big Tech rivals). However, overall, I see a lot of appeal in Microsoft. I can see this company getting a lot bigger in the years ahead as its cloud division grows.

Airbnb is crushing TSLA

Another stock that’s beaten Tesla this year so far is Airbnb (NASDAQ: ABNB). Year-to-date, it’s up about 20%.

Airbnb shares have risen in 2021 for a few reasons. Firstly, results haven’t been as bad as some investors thought they would. Secondly, many brokers have raised their price targets recently. Citigroup, for example, recently raised its price target to $197 from $165. Third, investors have piled into the stock on the back of vaccine/reopening optimism.

Would I buy Airbnb shares today? No. Right now, the valuation ($106bn) is a bit high for me. There’s also uncertainty related to Covid-19. That said, this is a stock I’d like to own at some point. If it pulls back, I may buy it for my portfolio.

Fiverr has outperformed Tesla

Finally, freelance employment platform operator Fiverr (NASDAQ: FVRR) has also outperformed Tesla this year. Year-to-date, it’s up about 13%.

Fiverr is another company with a lot of momentum at present. Just look at the company’s fourth-quarter 2020 results posted in February. For the quarter, revenue was up a huge 89%. Looking ahead, the company said it expects continued business momentum with revenue growth of between 46% to 50% for 2021.

Would I buy this growth stock today? Yes. It’s not my favourite play in the freelance employment space – my top pick is Upwork. However, I think Fiverr is worth buying too, due to the fact the freelance employment market is booming right now and looks set to get much bigger in the years ahead.

I’ll point out that Fiverr is a higher-risk, speculative stock. Its earnings are still very low and the valuation is high (the price-to-sales ratio is 27). The stock is likely to be volatile.

I’m comfortable with the risks though. I think the long-term potential here is significant. 

The post 3 stocks that are outperforming Tesla this year appeared first on The Motley Fool UK.

I’d buy Apple stock today

One tech stock I’d snap up after the recent pullback is Apple (NASDAQ: AAPL). Back in late January, its share price was near $145. Today however, the stock can be bought for around $120.

I’m bullish on Apple for a number of reasons. Firstly, it’s a world-class business. Not only does it have one of the most powerful global brands, but it also has a very high customer retention rate due to the ecosystem it’s built. A survey last year found that 84% of iPhone owners plan to purchase another Apple handset when they replace their current phone.

Secondly, Apple still has plenty of room for growth. The company has ambitions to be a big player in both healthcare and autonomous driving.

There are risks to consider, of course. Competition from rivals such as Samsung and regulatory action against big tech firms are two that come to mind.

Overall, however, the long-term risk/reward proposition here is attractive, in my view. I see the stock’s forward-looking price-to-earnings ratio (P/E) of 26 as quite reasonable.

Work-from-home stock

Another tech stock I like the look of after the recent correction is Okta (NASDAQ: OKTA). It’s a leading provider of identity management solutions. It has a distinguished list of clients that includes the likes of FedEx, WPP, and Made.com. Okta’s share price was near $300 in February. Today, it’s near $225.

Okta is growing at a rapid rate right now, driven by the need for organisations to protect themselves from cyber criminals. Its recent Q4 results, for example, showed revenue growth of 40%. Clearly, the company has momentum at present.

However, this is a higher-risk stock. That’s because the company is only generating small profits right now. For the fiscal year just passed, Non-GAAP diluted net income per share was just $0.11. The company’s recently-announced acquisition of customer and employee identity platform provider Auth0 for $6.5bn also adds risk.

I think the stock has significant long-term growth potential however. In today’s digital/work-from-home world, businesses can’t afford to ignore identity management.

Enormous growth potential

Finally, I’d also buy shares in Fiverr International (NASDAQ: FIVERR). This is a fast-growing company that operates an online freelance employment platform. Its share price was up near $335 in mid-February. However, since then, it’s fallen to around $230.

The reason I’m bullish here is that I expect the freelance market to grow significantly over the next decade. Freelancing is a win-win for both workers and businesses. For the former, it offers flexibility and the potential to earn great money. For the latter, it opens up a whole new world of hiring possibilities and helps to save costs.

Fiverr has generated very strong growth in recent years. In 2020, revenue came in at $189.5m, up 77% year-on-year. I think this is just the beginning of the growth story however.

Now, Fiverr is a small-cap stock (by US standards) with a market-cap of just $8bn and very small profits. This means it’s likely to be highly volatile. This type of stock isn’t suitable for those who are risk averse.

I’m comfortable with the risks however. I think this tech stock has enormous long-term growth potential.

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