I am looking to invest a lump sum of £5,000. I believe the best stocks to buy now are fast-growing businesses that could have the potential to capitalise on the economic recovery over the next few years. With that in mind, here are the top growth shares I would buy right now.
Stocks to buy for international growth
The first company on my list is a bit controversial. Indivior (LSE: INDV) develops and sells medications to treat opiate addictions.
This corporation used to be highly profitable. Unfortunately, a string of lawsuits over the past couple of years has threatened its very survival.
It now seems to be past the worst of these challenges, although I would not rule out further litigation in the future. Nevertheless, management is investing heavily in new growth initiatives, including the injectable drug Sublocade.
The lifting of pandemic restrictions has also helped the company return to growth. The group’s pre-tax profit for the final quarter of 2021 was $39m, compared with a loss of $14m for the same period a year before.
City analysts now believe the company’s net profit can hit $160m in 2022, putting the stock on a forward price-to-earnings (P/E) multiple of 15.8.
Even though the corporation may continue to face challenges such as potential lawsuits and competition from peers, I would buy the stock for my portfolio of growth shares as the business moves back into growth territory.
Unique opportunity
I would invest £2,500 of my £5,000 lump sum in Indivior. The rest I would deploy in the Seraphim Space Investment Trust (LSE: SSIT).
This is a unique opportunity and one of the best stocks to buy now, I feel. The objective of the investment trust is to generate capital growth by investing in a diversified portfolio of firms focused on the final frontier — space and its impact on our lives here on earth.
Space is set to become big business over the next few decades as private companies deploy billions into the market. However, it is also a highly speculative sector. I think most of the enterprises trying to make money from space today will not survive the next few years. The capital requirements are just too large, and the market is becoming incredibly competitive.
Considering these risks, while I want exposure to the sector, I would rather own a diversified trust. Seraphim’s offering is not immune from these risks, but the diversification will help spread the risk.
Seraphim also provides exposure to assets individual investors like myself may not be able to buy directly. The company recently announced that it had made a new $25m investment into private firm ICEYE Oy, the global leader in synthetic aperture radar (SAR) satellite imaging technology.
Despite the risks of getting involved in the space industry, I think this investment trust is one of the best growth stocks to buy now for my portfolio. It is one of the few ways I can build exposure to the rapidly expanding space technology industry.