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2 growth shares I’d buy now without any hesitation

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Growth shares have the potential to transform my investment returns. This is particularly true if I’m able to snap them up at a discount to what they are actually worth.

With this in mind, here are a couple of FTSE shares I’d start buying on Monday.

A losing bet… for now

First up is gambling firm 888 (LSE: 888). Having done extremely well during the multiple pandemic-related lockdowns, 888 shares hit the heights of just over 450p almost one year ago. Since then, trading has (inevitably) moderated.

Actually, that’s putting it mildly. A quick glance at the firm’s figures for the first six months of 2022 shows how much the cost-of-living crisis has impacted performance. Total revenue fell 13% to £332.1m. Profit tumbled 66% to £14.4m. Ouch!

Perhaps it’s no wonder the shares have halved in value this year.

Cheap growth share

Despite this, I can’t help but think this might be a contrarian itch worth scratching.

Following the recent acquisition of William Hill’s international assets from US firm Caesars Entertainment, 888 now has a huge opportunity to grow its market share. Moreover, the stock also has a PEG (price/earnings to growth) of just 0.2. That suggests I’d be buying at a seriously low price for the potential on offer.

Obviously, gambling firms are no strangers to headwinds. The ongoing risk of regulation is very much a ‘known unknown’. Competition isn’t exactly thin on the ground either.

Nor do I expect a recovery to be swift. In fact, management believes revenue in the second half of 2022 is likely to be similar to that seen in the first.

So long as I can remain patient, however, I’d feel comfortable buying today.

Post-pandemic loser

A second growth share I’d buy now is AIM-listed music and audio product company Focusrite (LSE: TUNE). Like 888, the business did exceptionally well during the pandemic as musicians and creators took to making content from home.

But purple patches only last so long. As lockdowns eased and normality returned, Focusrite saw demand taper off. Some of this was evident in the firm’s half-year results covering the period to the end of February.

Group revenue of £92.9m was lower than that achieved over the same period a year earlier. And based on the share price action since, it looks like investors are concerned about how the cost-of-living crisis is impacting the company. Focusrite stock is down over 40% in a year and 35% in 2022 alone.

Again, I reckon this may be an excellent opportunity to bag a slice of a high-quality company that consistently generates great returns on the money it invests in the business.

Worse to come?

This is not to say this growth share doesn’t have further to fall. A lot will depend on what Focusrite has to say in its next trading statement, due mid-September, particularly in relation to component supply issues and spiraling freight costs.

On a more optimistic note, a price-to-earnings (P/E) ratio of 18 already looks enticing to me. This is especially if, as the company has suggested, the release of seven new products in H1 looks likely to provide a boost to the full-year numbers.

I think the investment case here remains solid.

The post 2 growth shares I’d buy now without any hesitation appeared first on The Motley Fool UK.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Focusrite. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.