With the Stocks and Shares ISA deadline just over a month away, I’m searching for the best shares to buy right now. While there are undoubtedly plenty of fantastic businesses out there, I recently spotted two that look particularly promising for my portfolio. Let’s take a closer look.
A rising star in the speciality chemicals space
The chemicals industry is often overlooked when searching for growth stocks. But Treatt (LSE:TET) has been on a roll in recent years. The stock has taken a beating in 2022, dropping by over 20%. But over the last five years, the performance has been far more impressive, with shareholders enjoying a nearly 200% return!
As a reminder, this business designs and produces flavours and fragrances for the consumer healthcare, beauty, and beverages industries.
The latter has been a particular source of growth as health-conscious individuals seek to eliminate sugars from their diet. By working directly with soft-drinks companies, Treatt uses all-natural ingredients to design bespoke sugar-free alternative flavourings.
Since the group is effectively a manufacturing business with a heavy sprinkle of science, it’s dependent on supply chains. Disruptions have been relatively minimal, but rising raw materials costs as inflation rises could start eating into profit margins.
However, the company does appear to have some pricing power to mitigate these adverse effects. And that’s a favourable trait I like to see when looking for the best shares to buy now. Hence why I’m considering it for my portfolio today.
Is this one of the best shares to buy right now?
The construction industry is another sector that doesn’t get much love from growth investors. Yet it’s hard to know why when looking at Somero Enterprises (LSE:SOM). The company designs and manufactures concrete-laying screed machines that can do the job of around 15 people significantly faster and to a higher-quality finish.
This automation solution has proven to be exceptionally popular among construction firms. So, it’s no surprise that the share price has nearly doubled in the last five years. While Treatt may have delivered better returns, it’s worth noting that 2019 had record-breaking storms that postponed customer projects, swiftly followed by a pandemic.
Laying concrete in the rain compromises its integrity, so construction projects are at the mercy of the weather. This results in delays for Somero’s revenue stream. And with global warming continuing to get worse, prolonged bad weather will undoubtedly make a return in the future.
But with the pandemic loosening its grip on the world and a massive government-funded capital injection into US infrastructure, I believe Somero Enterprises could be about to enjoy some enormous tailwinds. In fact, looking at its latest trading update, it seems these tailwinds may have already started blowing, with revenue expected to be ahead of expectations. That’s why I think it could be one of the best shares to buy now for my portfolio.
Zaven Boyrazian owns Somero Enterprises, Inc. The Motley Fool UK has recommended Somero Enterprises, Inc. and Treatt. 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.
