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Airtel Africa 

What it does: Airtel Africa provides telecommunications and mobile money services in 14 African countries. 

By Royston Wild. Airtel Africa’s (LSE: AAF) share price has slumped in recent weeks. I’d use this as an opportunity to buy a top growth stock at a discount. 

Today the telecoms business trades on a forward price-to-earnings (P/E) ratio of 6.5 times. This is far below what, say, FTSE 100 rival Vodafone trades on (the earnings multiple here sits at 10.8 times).

City analysts think Airtel’s annual earnings will rise 12% in this financial year. They are tipped to increase 11% next year, too. 

I’d buy the business to capitalise on soaring demand for telecoms and financial services products in Africa. It is the second-largest telecoms provider on the continent, and has been growing revenues and earnings by double-digit percentages for the past 17 quarters. 

Product penetration across Airtel’s portfolio remains quite low. Meanwhile, personal wealth levels in its markets are increasing sharply. I think this perfect blend should deliver excellent long-term earnings growth at the company. 

Royston Wild does not own shares in Airtel Africa. 

Somero Enterprises

What it does: Somero Enterprises designs and sells concrete levelling equipment used by construction companies worldwide.

By Zaven Boyrazian. Somero Enterprises (LSE:SOM) is a designer and manufacturer of laser-guided concrete-laying screed machines. It’s hardly the most exciting business out there, but it plays a pivotal role in the US construction industry.

With the American congress recently passing a $1trn infrastructure investment bill, management has had little trouble finding customers for its products. So, it’s hardly surprising that the group recently hit record revenues.

Despite this, Somero shares have tumbled more than 20% over the last 12 months. It seems investors are getting increasingly agitated about supply chain disruptions, which are having a significant impact on its non-US operations.

However, while frustrating, this is ultimately a short-term problem. And seeing a solid high-growth company trading at a P/E ratio of 7.3 looks too cheap in my eyes. That’s why I’m tempted to bolster my existing position by buying more at today’s stock price.

Zaven Boyrazian owns shares in Somero Enterprises.

Chemring Group

What it does: Chemring Group designs, develops, and manufactures advanced technologies for the defence industry.

By Charlie Carman. China’s rise and the Russo-Ukrainian war have boosted demand for products developed by Chemring Group (LSE: CHG). Defence budgets are expected to increase across its four home markets: the UK, the US, Norway, and Australia.

The group’s order book reached £678m in September, covering expected full-year 2022 revenues. New contracts with NATO members for the company’s countermeasures and energetics business indicate a robust manufacturing pipeline for 2023 and beyond.

Chemring’s other main arm focused on sensors and information also looks healthy. In H1 2022, this division generated 21% revenue growth and a 27% hike in operating profit.

Granted, net debt is currently £18.5m, which could limit future growth prospects. However, a 52% reduction in this figure since H1 2021 shows a positive trajectory.

In my view, significant barriers to entry in the sector contribute to the defence stock’s long-term potential, provided it remains at the forefront of developing state-of-the-art technologies.

Charlie Carman does not own shares in Chemring Group. 

Darktrace

What it does: Darktrace is a cybersecurity company, and uses AI to develop autonomous detection of cyber threats.

By Alan Oscroft. A couple of brokers have price targets on Darktrace (LSE: DARK) of around twice the current share price. I’d never buy the stock based on that, but it’s inspired me to re-examine the company.

The shares got a little overheated last year, but then crashed after some negative reports. Over 12 months, Darktrace shares have now lost around 60% of their value.

Darktrace recently reported a 46% rise in full-year revenue, with a small net profit of $1.5m. It also confirmed 2023 guidance for a 31-34% increase in annual recurring revenue. Predicted adjusted EBITDA margin is in the 15-18% range.

The company has since reported a 29% year-on-year increase in net new customers in its first quarter, reiterating its full-year guidance.

We’re looking at a forecast P/E multiple of 130 as far out as 2024. So there’s definitely valuation risk there. But I think it could be the start of sustainable growth.

Alan Oscroft does not own Darktrace shares.

Marks and Spencer

What it does: M&S is one of the UK’s biggest retailers. It specialises in selling clothing, beauty, home products, and food products. 

By John Choong. Marks and Spencer (LSE: MKS) shares are currently trading at a P/E ratio of 7. Despite the grocery industry being known for its low margins, I think M&S could be an exception and be an excellent growth stock for the long term.

It’s no secret that Marks and Spencer’s products are priced on the higher side. Therefore, it may seem contradictive to buy its stock when consumers are ‘down trading’. However, I believe that the retailer’s target market (middle and upper class) isn’t necessarily trading down in groceries. Instead, they’re trading down in eating out, and choosing to seek value in purchasing M&S’ great-tasting packaged meals. After all, Tesco indicated this trend in consumer behaviour.

With the grocer’s latest cost-savings plan and exciting lines of clothing to be launched, I think the company’s top and bottom lines should benefit over the long term as it continues to fulfil its growth plans. As such, I think M&S shares have the potential to head higher from their current levels.

John Choong has positions in Marks and Spencer.

Safestore

What it does: Safestore is a leading supplier of self-storage services in the UK and continental Europe

By Christopher Ruane. The Safestore (LSE: SAFE) share price over the past year might not suggest a compelling growth story. The shares are down 25% in 12 months.

But I think that offers an attractive buying opportunity for me to increase my stake and would consider doing so if I had spare money to invest.

In the most recent quarter, revenue grew 15% compared to the same period last year. That is part of a pattern of long-term growth I expect to continue. Self-storage continues to see growing demand in the UK. Safestore’s well-established brand can help it benefit from that. The company is developing a pipeline of new properties equivalent to around 14% of its current floor space.

A worsening economy could lead some tenants to try and cut their costs by reducing storage space. That might hurt profits. But I am upbeat about the company’s prospects and see strong growth opportunities ahead.

Christopher Ruane owns shares in Safestore.

Rightmove

What it does: Rightmove is the UK’s most popular property portal, providing advertising services to new home developers and estate agents.

By Paul Summers: Shares in property site Rightmove (LSE: RMV) have tumbled nearly 40% in 2022 as investors have become increasingly skittish over the impact of higher interest rates on the UK housing market. I regard this as an opportunity.

At face value, a P/E ratio of 21 doesn’t seem like a bargain. However, it’s far less than the five-year average of 32. This presents as an even better deal when Rightmove’s massive market share, healthy financial position, and staggeringly high margins are taken into account. 

A recovery won’t happen overnight and things could easily get worse for the stock depending on what the Bank of England decides to do about rates in early November. But it does feel like a lot of fear is already priced in.

And let’s not forget that Rightmove makes money even if the properties it lists fail to attract buyers or renters.

Paul Summers has no position in Rightmove.

Rightmove

What it does: Rightmove makes money by listing estate agents on its website and selling additional advertising products.

By Stephen Wright. My Best British growth stock to buy in November is Rightmove (LSE:RMV). I think that now could be a terrific time to add to my investment in this stock.

Right now, the UK property market is under pressure. Rising interest rates have been making mortgages more expensive and slowing down the demand for housing. 

As a result, shares in Rightmove have fallen by around 37% since the start of the year. But I’m seeing this as an opportunity. 

The company has a dominant position in an industry that typically has high margins and it generates significant amounts of cash. There might be some turbulence in the near future, but I think that the business will do well as the economy recovers.

Furthermore, the company has been buying back its own stock over the last few months. To me, this indicates that management also sees the stock as undervalued.

Stephen Wright owns shares in Rightmove.

Diageo

What it does: Diageo is a global leader in alcoholic beverages with products sold in more than 180 countries.

By Ben McPoland. Diageo (LSE: DGE) has been firing on all cylinders for many years. The British drinks giant has a portfolio of over 200 brands, including Guinness, Johnnie Walker and Baileys.

The share price is down this year, though, with the looming possibility of a global recession. Consumers, however, don’t tend to give up their favourite tipple, even during economic downturns. They are unlikely to switch from something like Johnnie Walker (the world’s most popular Scotch whisky) to a cheaper alternative. People basically put these drinks into the “affordable luxury” category.

This consumer loyalty to Diageo’s brands gives it a powerful competitive edge. And, due to its wide global presence, the company stands to benefit as disposable incomes rise in regions like Asia and Latin America.

The shares trade at a P/E ratio of 24, which isn’t particularly cheap. But I think the premium price is warranted for Diageo.

Ben McPoland owns shares of Diageo. 

Overly fearful sentiment in property

Rightmove (LSE:RMV) is one company that has been caught up in the recent sell-off. The stock is down almost 20% in the past month and 33% in the past year.

The property marketplace generates revenue from the advertisers and estate agents that list on the site. In this way, it can make money regardless of whether properties are listed for sale or to rent. One of the largest positives for the business is driving customers to the website, generating hits in the process.

I understand that people could be selling the stock due to concerns around the property market. Rising interest rates will make buying a home more expensive. Yet I don’t think this fundamentally ruins the Rightmove business model. After all, if people can’t afford to buy, they will still visit Rightmove and look for properties to rent.

On that basis, I think the 20% fall more than compensates for any fears around the market in general. I think it looks like a great level to be buying the share. It’s on my watchlist to purchase in the coming month.

A FTSE 100 stalwart

The drop in the FTSE 100 has also dragged down Scottish Mortgage Investment Trust (LSE:SMT). It might surprise some, given that the fund only holds 1.9% of invested money in UK assets. However, the stock market stumble has been evident worldwide. The US stock market has also had a tough time recently. So, the 33.56% of allocation to the US has also been negatively impacted.

In the past year, the share price is down 48.4%. However, one point worth noting is the difference between the share price and the net asset value. In theory, these should be the same. If the trust owns 75 stocks, the value of these stocks combined should correlate to the price of the trust. It’s hard to accurately price this in real time, but the latest valuation shows that the share price is 10.18% lower than the net asset value.

This is one reason why I think it should be a stock on my watchlist now. Within the space of the next year, I’d expect the discount to return to a fair value.

Another reason why I like the stock is because I’m optimistic about the outlook for two of the largest areas the trust is invested in. These are healthcare and technology, comprising just under a third of the portfolio. By purchasing shares in the trust, I get exposure to these sectors, leaving the individual stock selection to the professionals.

Thanks to the fall in the FTSE 100, I’m considering buying both of the above stocks before the market rallies back.

Here are three beaten-down stocks that I reckon the market is underestimating long term.

The UK’s leading online auto platform

Auto Trader (LSE: AUTO) is the UK’s largest online car sales platform. It’s a digital marketplace where individuals and car dealerships can advertise and sell vehicles. Crucially, the company doesn’t hold car stock itself, which makes the company very profitable.

The share price of Auto Trader is down 28% so far this year. The market naturally seems worried about the impact a recession could have on the demand for used cars.

Yet for now, demand remains robust. Full-year revenue rose to £432.7m this year, which is 17% higher than pre-pandemic levels. Operating profit rose 88% year on year to £303.6m. These are healthy numbers.

I like the company’s low cost base, which means most of the revenue from new users advertising on the platform becomes profit. It also has a few attractive avenues of growth left to pursue, such as car finance options on the site and vehicle leasing.

Data giant

Experian (LSE: EXPN) shares are down 25% this year. Again, the market seems concerned about the impact a recession and higher interest rates could have on demand for the company’s credit checks. Fewer people taking out loans won’t be great for Experian, which makes most of its money selling credit reports to banks and credit card companies.

However, on the flip side, a recession and rising bills could be exactly the time when people will be seeking credit. Either way, Experian has a dominant position in its industry, with credit information on 1.4bn people and 191m businesses worldwide. Over the long term, I see worldwide demand for credit (and Experian’s services) growing strongly.

One risk I see with Experian, though, is its valuation. With a current price-to-earnings (P/E) ratio of 24, that is much higher than the FTSE 100 average.

Still number one

Rightmove (LSE: RMV) runs the UK’s largest online property website. It’s extremely profitable, with an operating margin of 73%. Customers now spend an average of 1.5bn minutes on its site per month.

Yet the company faces headwinds with rising mortgage rates and a predicted slowdown in the housing market. This is reflected in the share price, which is down 39% since January.

Even so, Rightmove remains the go-to portal for buying and selling property in the UK, with an 84% market share. I expect it to easily survive any downturn and keep growing its profits for years to come.

Strong companies not only survive economic downturns, they usually emerge stronger from them. I think that’ll be the case with all three stocks here.

Experian has worked its way to the top of my buy list for November. With more bad economic news likely in the coming weeks, I’m waiting to see if Auto Trader and Rightmove shares fall further before pulling the trigger.

Rightmove

Rightmove (LSE:RMV) is a stock that’s firmly on my radar at the moment. The stock has been expensive for some time, but its share price has fallen significantly since the start of the year.

As a result, the stock has reached a level where it’s my top stock to buy for my portfolio today. I’m looking to add to my investment in Rightmove shares at today’s prices.

The company faces some very obvious headwinds. Rising interest rates mean more expensive mortgages and that’s likely to reduce the number of listings on the company’s platform.

I expect the housing market to recover, though. And when it does, I think that Rightmove’s margins and cash generation mean it will be a terrific business to own in my portfolio.

Netflix

It’s not so long ago that Netflix shares traded at a price that put it way beyond anything I’d consider. But the shares are down almost 62% since the start of the year.

The company has been losing subscribers in its key North American markets and there’s a risk this might continue. But at today’s prices, I’d buy the stock.

Despite the loss of subscribers, Netflix is still the dominant participant in the streaming market. And I expect this to be significant going forward.

The introduction of its new ad-supported tier should help increase both revenue and profits. That’s why this is a top stock for me to buy today.

Experian

A second FTSE 100 stock that I would buy right now is Experian. I think that the company is one of the most difficult businesses in the UK to disrupt.

This is another stock that is significantly cheaper than it once was. Experian shares are down 26% since the beginning of January.

Demand for Experian’s services has been high recently, as low interest rates have been fuelling demand for loans. But as interest rates rise, there’s a risk that Experian’s profits might falter.

As with Rightmove, I think that the downturn that the market is anticipating will prove to be temporary. And with a long time to invest, I’m looking to buy shares today.

Berkshire Hathaway

Lastly, I believe this could be a great time to add to my investment in Berkshire Hathaway. Higher interest rates could, I think, really suit Warren Buffett’s company.

Unlike the others, Berkshire Hathaway stock hasn’t fallen by that much. The stock is only down 11% this year.

I’ve been a Berkshire shareholder for some time now. And I think that the company has been waiting patiently for times such as these.

Berkshire has around $70bn available to deploy. And I think that higher interest rates and tighter economic conditions are likely to bring about investment opportunities.

Stocks to buy today

I don’t know whether these stocks are going to go higher or lower in the near future. But I’d buy them today because I think that the underlying businesses have bright future prospects.

Potentially misplaced concerns

One example I like is Rightmove (LSE:RMV). The share price has fallen by 28.6% over the past year, with 18% of this move happening in just the past month.

The main concern here is the potential issues in the housing market. With interest rates rising, higher mortgage costs might dampen demand for property. This could decrease Rightmove’s revenue streams from agents that list properties on the online portal.

I think the stock is cheap for two main reasons. I feel investors are overly pessimistic about the business. Even if the market for new home purchases slows, rental demand remains high. After all, if people can’t afford to buy, they’ll rent. In such a way, Rightmove should see higher interest in lettings versus sales. Ultimately, traffic still comes to the website.

My second thought is that property is a cyclical sector. We’re seeing the slowdown phase at the moment. Even though it might not feel great to buy when the share price is falling, what’s my alternative? Buying during a boom when the share price is already flying higher? I’d much rather buy now to pre-empt a future move, even if it’s for the long term.

A defensive cheap share

A second company I like is Admiral (LSE:ADM). The insurance provider has endured a tough period, with the share price down by 36% over the past year. In the half-year report, it spoke of “progress against the backdrop of a more turbulent cycle than usual, and high levels of inflation”.

I accept that it’s a tough time right now, with premiums having to rise in response to inflationary pressure. Yet I think the business is in a good position. It’s still growing the customer base, one of the key long-term metrics I look at to see if the business is fundamentally sound.

It also has a broad range of offerings and isn’t restricted to just servicing one area of the market. This will help it going forward. It appears that motor claims are the area most under pressure at the moment. Yet household insurance and Admiral finance divisions should help to cushion the negative impact going forward.

The price-to-earnings ratio at the moment is 9.75. Anything below 10 starts to get me interested as a potentially undervalued company. Further, the share price has now erased all of the “pandemic premium”. This was the surge it saw in 2020 and 2021 as investors rushed to buy defensive stocks. Now that the stock is priced under its 2020 lows, I feel it’s much better value for me to step in and purchase.

I want to buy both stocks shortly when I have more free cash.

But as a long-term investor, I’m looking at this pullback as a buying opportunity. With that in mind, here’s where I’m seeing value in the FTSE 100 right now.

Attractive long-term growth story

Let’s start with the healthcare sector. Here, I’m seeing value on offer from hip and knee replacement specialist Smith & Nephew (LSE: SN). At present, it’s trading on a forward-looking price-to-earnings (P/E) ratio of 13.

I own Smith & Nephew shares and I plan to buy more soon. I like the fact it’s a relatively ‘defensive’ company with an attractive long-term growth story (the world’s ageing population should drive demand for joint replacements).

I also like the nice dividend yield on offer. At present, the yield here is over 3%.

It’s worth pointing out that, like a lot of companies, Smith & Nephew is facing a few challenges at present due to supply chains and inflation. However, I think a lot of this is already factored into the share price.

Big dividend increase

Moving on to the financial services sector, I’m also seeing value in wealth manager St. James’s Place (LSE: STJ). Its share price has come down from above 1,700p to near 1,000p this year. It also has a P/E ratio of 13.

The reason I’m bullish here is that managing wealth these days is incredibly challenging. High stock market volatility, falling bond prices, tax changes, inflation… these are just some of the challenges we all face. This complexity should boost demand for the company’s services.

Looking beyond this, one big appeal of STJ is the dividend. This year, the company is projected to pay out 54.9p per share, which equates to a yield of around 5.5% at the current share price. It’s worth noting that the group just raised its interim dividend by a whopping 35%.

A risk to consider here is that STJ’s share price tends to fluctuate quite a bit with market volatility. If the FTSE 100 continues falling, returns from this stock could be disappointing.

In the long run however, I think the stock has the potential to generate solid total returns (capital gains and dividends) for me. I’m very tempted to add it to my portfolio.

A FTSE 100 profit machine

Finally, I like the look of online property powerhouse Rightmove (LSE: RMV) right now. The stock (which I already own) is currently trading on a forward-looking P/E ratio of a little under 20.

Now obviously the UK property market could be in for a challenging period due to the fact interest rates are rising so quickly (although this could be offset by the cut to stamp duty). This could have implications for Rightmove in the near term.

However, looking further out, I think this FTSE 100 company will continue to prosper. Britons remain obsessed with property, and Rightmove is the leader in the property portal space with a market share of over 80%.

It’s worth noting that Rightmove is also an extremely profitable company. Last year, its return on capital was about 280%. Over the long run, companies that generate high returns on capital tend to be good investments.

With the stock currently trading below 500p, down from near 800p late last year, I think it’s a good time to buy more shares for my portfolio.

Here are two that have really caught my eye.

Experian

Like many UK-listed companies, credit checker Experian (LSE: EXPN) is having a pretty lousy 2022. As I type, the shares are down 28%. That gets my attention.

Yes, there are risks here. It’s reasonable to suppose that a slowdown in spending will mean a reduced need for its services. Put simply, there’s no need to check a person’s repayment history if they’re not applying for loans and cards.

On the other hand, it’s also logical to think that this is precisely the time when people and businesses will be seeking credit in an effort to cope with higher energy bills. So, perhaps trading will prove resilient?

Regardless, Experian’s shares now change hands at a price-to-earnings (P/E) ratio of 21. While not screamingly cheap at face value, we need to put this in context. It’s five-year average on this metric is a heady 31. Seen from this perspective, the current price looks like a cracking deal for a company that consistently generates fat margins compared to other stocks in the FTSE 100.

Another bonus is the income on offer. A very affordable-looking, near-2% yield also means I’m being paid to be patient.

Rightmove

A second top stock to buy, at least in my opinion, is property portal Rightmove (LSE: RMV). Like Experian, this firm is having a rotten 2022 with shares tanking 39% as I type. Quite a lot of this fall has only come in the last month as the market has become jittery over how further hikes in interest rates will impact the housing market.

I’m not about to say that the market is overreacting here. With people already struggling with higher energy bills, it’s logical to suspect that moving to a new property won’t be high on their agendas. That could impact profits at housebuilders, building suppliers, and, frankly, any company involved in the sector.

Despite this, Rightmove is the sort of stock I’d be looking to hoover up on such concerns. As an online business, its costs are way below those of your typical bricks and mortar-related firm. Returns on the capital — essentially what a company gets back for the money it puts in — are consistently among the highest in the whole UK market. Theoretically, this should help my money compound at a better rate compared to a business that throws cash around but for little benefit. Speaking of cash, Rightmove’s finances look seriously robust.

At 21 times forecast earnings, shares in this market leader are also substantially cheaper than their five-year average (32 times). Lovely!

Buyer beware

As interested as I am in acquiring shares in Experian and Rightmove, one needs to be aware that their prices may continue falling for some time to come. Given this, it might be better for me to commit to drip-feeding money into these stocks.

That said, I wonder how much pain is already priced in. With markets in an absolute funk, it won’t take much good news to bring out the bulls. Adopting a long-term perspective will also help.

Are any of these worth investing in at today’s prices? To find out, I look to Warren Buffett’s advice.

Buffett’s approach

At the 2000 Berkshire Hathaway Annual Shareholder meeting, Buffett said the following about growth stocks:

Let’s just take a company that has marvellous prospects, is paying you nothing now, and you buy it at a valuation of about $500bn. Now if you feel that 10% is the appropriate rate of return – and you can pick the figure – that means that if it pays you nothing this year, but starts paying next year, it has to be able to pay you $55bn in perpetuity each year. But if it’s not going to pay until the third year, then it has to pay you $60.5bn in perpetuity to justify the present price.

According to Buffett, whether a stock is a good investment or not comes down to the cash it will produce. And the longer it takes for the company to produce the cash, the more it has to produce to justify its current share price.

With interest rates forecast to reach 4%, I think it’s reasonable to require a 7% return to justify the risk of investing in stocks. So let’s see how Croda, Diploma, and Rightmove shape up using Warren Buffett’s approach.

Valuing growth stocks

Croda shares have fallen by 33% since the beginning of the year. As a result, the company now has a market cap of £9.2bn.

At these prices, a 7% annual return implies £644m in cash each year starting immediately. Croda’s annual free cash flow is currently around £145m.

Diploma has a market cap of just under £3bn. The company’s share price is now around 30% lower than it was since the start of the year.

To justify an investment at these prices Diploma needs to generate £210m in free cash annually. Over the last 12 months, Diploma produced £107m in free cash.

Lastly, Rightmove shares trade at a price implying a market cap of just under £5bn. That’s following a 25% decline in the company’s share price since January.

A 7% annual return implies free cash generation of £350bn annually. Last year, Rightmove’s free cash flow came in at £191m.

2 growth stocks I’d buy today

I think that Croda shares look expensive at current prices. Diploma and Rightmove, on the other hand, look attractive to me.

A 7% average return implies 30% annual growth in free cash flow for Croda. That seems like a lot to me and I’m not prepared to invest on that basis. 

For Diploma and Rightmove, the equation looks much more favourable. Free cash flow growth of 10%-15% annually would see each company generate a return of over 7% on average.

In my view, this kind of growth might well be realistic. As a result, I’d be happy buying either Diploma or Rightmove shares at today’s prices for my portfolio.

Right now, there are four UK stocks on my radar. With a spare £500, I’d look to divide it into four lots of £125 and invest equally into each of them.

Experian

Top of my list is Experian. I think that this is a business straight out of the Warren Buffett playbook for investing.

Experian operates in an industry with limited competition. Its credit reports are a vital tool for lenders in evaluating the creditworthiness of borrowers.

The company’s business has high barriers to entry. It builds its reports by drawing on a huge database, which is nearly impossible to replicate.

Rising interest rates might slow the business down in the near future. But I think that this is going to provide me with an opportunity to buy shares at attractive prices.

Diploma

I’m also looking at Diploma shares. This isn’t a stock that gets much attention, but I think it could be a great investment for me.

Diploma is a collection of smaller businesses that focuses on the distribution of industrial components. It concentrates on niche markets, which helps protect it from competitors.

As a result, the company achieves huge returns on its fixed assets. Its most recent financial statements indicate that it generated £116m using £80m in property, plant, and equipment.

The stock is a little expensive at current prices. But the quality of the overall company should, I think, prevail over time.

Rightmove

I already own shares in Rightmove, but I’d buy more of them today if I had a spare £500. The company owns the UK’s largest property platform.

The platform’s size provides Rightmove with a huge competitive advantage. It generates roughly twice as many visits per month as its nearest competitor.

More visitors makes the platform a more attractive place for vendors to advertise. This attracts even more viewers.

A slowing property market might dampen interest in Rightmove’s services. But I don’t think that the slowdown in UK housing is likely to be enduring.

Endeavour Mining

Lastly, I’d buy shares in the Endeavour Mining. The company is a gold mining business with some of the lowest costs of production anywhere in the world.

The stock is 6% higher than it was a year ago. But I think that it’s trading at an attractive price nonetheless. 

Gold prices are likely to be volatile over time. And this provides an element of risk with this type of investment – the company’s profitability is likely to fluctuate.

In my view, though, the company’s low production costs should mean that its business proves durable. That’s why I’d invest £125 of a spare £500 in shares of Endeavour Mining today.

Investing

Investment managers are suffering from funds outflows right now, with investors shunning risk. But I wasn’t expecting to see such a big profit fall at Jupiter Fund Management (LSE: JUP).

Underlying pre-tax profit slumped to £29.7m, from £78.2m in the first half of 2021. But the Jupiter share price is down only 5% at the time of writing. Maybe investors already feared the worst, having seen a 55% drop over the past 12 months.

Profits suffered from reduction in performance-related fees, which is hardly surprising. Excluding net performance fees, the profit dip looked less painful, down from £79.8m to £53.9m.

This does show the risks of investing in fund managers. But if I want long-term growth shares, I know I have to expect it from time to time.

Moving

Turning to another sector under pressure, I see the Rightmove (LSE: RMV) share price has also fallen 55% in the past 12 months.

After Friday’s H1 results, the shares dipped another percent or so. The outlook for the estate agent business in the second half of the year might be a bit cloudy. But the first half, at least, saw a 9% increase in revenue with underlying earnings per share up 7%.

The company boosted its interim dividend by 10%, which I’d say shows confidence. And Rightmove has been returning cash through share buybacks too.

Rightmove’s profits have been erratic in recent years. But forecasters do see earnings growing, if slowly, over the next few years. Is this another growth candidate to buy while it’s down?

Testing

To complete a trio of fallers on the day, I turn to Intertek (LSE: ITRK). Shares in the testing and inspection specialist are down 5% as I write, having fallen 43% over 12 months.

Intertek recorded a 9.5% rise in revenue at constant exchange rates, with like-for-like revenue up 4.9%. Adjusted operating profit increased by 4% too, and I’m seeing decent results all round here.

So why isn’t the market impressed? It might be because the company didn’t increase its interim dividend, maintaining it at last year’s 34.3p. But Intertek is not really an income stock anyway, and analysts are again predicting continued earnings growth over the next couple of years.

On the same day, Intertek announced the acquisition of Clean Energy Associates, described as “a market-leading independent provider of quality assurance, supply chain traceability and technical services to the fast-growing solar energy and energy storage sectors.”

Growth?

Rightmove and Intertek are both on relatively lofty valuations, after their share price falls. So that might well hold back their share prices in the shorter term. But I can’t help thinking I’m looking at a couple of long-term growth opportunities here.

Jupiter, meanwhile, is one I’ve always liked. But I do expect to see share price volatility over the years.