2 Growth Stocks to Buy in July

When it comes to growth stocks, the headlines have been occupied by large US technology companies. And rightly so, as Nvidia And Microsoft have recently achieved spectacular results.

But it’s not just companies in the AI ​​race that have strong growth prospects. I think there are exciting opportunities elsewhere right now.

Shift right

Rising interest rates have been a real drag on the economy. Shift right Share price (LSE:RMV). Despite a 25% increase in sales, the stock price is still about the same as it was five years ago.

The main reason is that interest rates have risen from less than 1% in 2019 to more than 5% recently. This has made borrowing more expensive and caused a slowdown in demand in the real estate market.

The biggest risk for Rightmove is the possibility that this continues. Inflation hit the official 2% target last month, but the Bank of England appears reluctant to cut rates.

There are some positive signs, however. Lenders have found ways to offer mortgages with lower deposit requirements, which is helping house prices hold up well.

Additionally, both the Conservatives and Labour are promising to invest in housing after the election, which is expected to translate into strong demand for the UK’s largest online property platform.

The Rightmove share price has struggled recently in a higher interest rate environment. But now might be a good time to consider buying the stock going forward.

Broadridge Financial

Listed in the United States Broadridge Financial Solutions (NYSE:BR) is probably not on the radar of many UK investors. But I think it’s a really interesting stock that could be a great investment.

The company distributes investor materials to shareholders of other companies. This is a task it could do itself, but it is time-consuming and expensive.

Broadridge’s scale means it can do this at a fraction of the cost. As the need for investor communication is unlikely to disappear, the company has a dominant position in an important industry.

It’s a powerful combination. However, despite the stock’s decline since the start of the year, a price-to-earnings (P/E) ratio of 33 means there’s clear risk for investors.

The company’s competitive position, however, gives it good growth opportunities. The most conservative analyst estimates expect earnings per share to reach $9.20 by 2026.

If this happens, the current share price implies a P/E ratio of around 21. On this basis, I think the stock is worth considering for investors looking for long-term returns.

Investing for the long term

The best time to buy stocks is often when investors are looking away. And I think that’s currently the case with Rightmove and Broadridge.

With Rightmove, lower interest rates are the key to future growth. This should benefit both the stock price and the underlying business.

In the case of Broadridge, the business is less cyclical. Its dominant position should allow it to increase profits through gradual price increases, which should push the stock price higher.