Recently released: the 3 best growth-focused stocks to buy in July [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.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Number three written on white chat bubble on blue background

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

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:

Shopify (NYSE:SHOP)

  • While Shopify derives most of its revenue from taking slices of transactions processed on its platform, the true value is in the ecosystem it creates.
  • Fulfilment, payment processing, point-of-sale systems, and marketing are only a few of the value-added options that merchants have when it comes to using Shopify as a commerce platform, and each of these is a vital piece of its increasingly sticky pie.
  • For small business customers that might lack IT expertise, it’s perhaps unlikely that they would switch e-commerce platforms. For enterprise accounts, they’re likely drawn to Shopify’s competitive pricing (despite price increases), quick implementation and ease of use.
  • In its first quarter, sales grew by 23% to $1.9bn, or 29% underlying when adjusted for the sale of its logistics business. Sales growth was driven by growth in the merchant base, same-store sales of existing merchants, price increases, and higher merchant solutions revenues (such as Shopify Payments).
  • Operating expenses in the period declined by 4% following the sale of the logistics business and lower headcount. Cost-cutting efforts were partially offset by increased marketing spend, which the company is justifying due to continued growth in the merchant base globally (helping sales volume across all merchant stores rise 23% to $60.9bn).
  • In our view the company remains well positioned to continue growing, including continued merchant growth, greater Shopify Payments penetration, impressive international sales, and larger retailers joining the platform.

“Best Buys Now” Pick #2:

Redacted

Want All 3 “Best Buys Now” Picks? Enter Your Email Address!

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.

Mark Stones and Ian Pierce own shares in Shopify. The Motley Fool UK has recommended Shopify.

More on Investing Articles

Investing Articles

3 FTSE 100 shares that could make it rain dividends in 2025

Ben McPoland considers a trio of high-yield FTSE dividend stocks that are set to offer very attractive passive income this…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

On a P/E ratio of 6, is the Centrica share price a bargain?

The Centrica price-to-earnings ratio is in the mid-single digits. This writer weighs some pros and cons of adding the share…

Read more »

Investing Articles

2 top growth stocks to consider for 2025!

These growth stocks are expected to deliver more spectacular earnings increases in 2025. Is it time to consider loading up?

Read more »

Stack of one pound coins falling over
Investing Articles

Can this 10.8% yield from a FTSE 250 share last?

A well-known FTSE 250 share now has a dividend yield not far off 11%. Our writer digs into the business…

Read more »

Investing Articles

How to use a £20k ISA allowance to invest for passive income

The idea of enjoying some passive income in our old age can definitely be a realistic ambition, depending on how…

Read more »

Investing Articles

Down 95%, could the THG share price bounce back in 2025?

The THG share price has tanked in the past year -- and before, too. So will our writer buy in…

Read more »

US Stock

Prediction: AI stocks will outperform again in 2025 and Nvidia will hit $200

Over the last two years, Nvidia stock has soared on the back of AI. Ed Sheldon believes the stock, and…

Read more »

Elevated view over city of London skyline
Investing Articles

10.9%+ yield! Here’s my 2025-2027 M&G dividend forecast

Christopher Ruane explains why, although the M&G dividend yield already tops 10%, he's hopeful it could move even higher over…

Read more »