Buying FTSE 100 growth stocks is a good way for me to increase the value of my capital. But not all of them are made equal. I think my ideal investments are in growth stocks that are also safe stocks.
Safe stocks, or defensives as they are often called, are companies whose products and services are in demand even during difficult times. Like the kind we saw last year. This makes them good to buy and hold for the long term because they grow my capital over time while protecting against stock market crashes.
Rentokil Initial is a big FTSE 100 gainer today
There are two such stocks that I want to highlight here. The first is the pest control provider and hygienist Rentokil Initial (LSE: RTO). Its share price is up 6.6%, making it the biggest FTSE 100 gainer as I write, after it released healthy results for the first half of 2021. Its revenues are up 13.3% and net profit is up 54.5% from the same time last year. A weak base from last year’s pandemic setback has contributed to the high growth.
At the same time, I think it is essential to note that the numbers do show recovery from the worst of the pandemic. The company expects to continue growing for the rest of the year as well, even though revenue from disinfection can slow down as the pandemic loosens its grip on the world.
What’s next for the share price
Even though its share price has lost some of its momentum since the stock market rally of November last year, it has managed to stay quite elevated. Also, it has gone on an acquisition drive in the first half of the year, completing 24 across various parts of the world. While I like its ambition to expand further, it remains to be seen whether these will pay off.
On the whole, I like the stock. But because it is pricey, I will still wait for dips before buying more of the stock.
Results paint a mixed picture for Relx
Information and analytics provider Relx (LSE: REL) is another safe growth stock that released its results for the first half of 2021 today. They paint a mixed picture, with a 3% decline in revenue compared to last year, though it shows a 4% increase on a constant exchange rate basis.
Similarly, its reported net profits are up 21% but the adjusted number is up only 2%. On the whole though, I think its results are more good than bad. Investors are happy with its results too, evident in a 3.3% increase in its share price.
Much to like
Like Rentokil Initial, it too has made acquisitions this year, completing five “small acquisitions”. And its outlook is positive too. It expects its performance in terms of revenue, operating profit, and earnings per share to be “slightly above historical trends”. Relx’s long-term share price trend is encouraging as well. It is a buy for me.