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He FTSE 100 He's had a good run over the last month. In the process it has reached new all-time highs and is currently trading at 8,374 points. If it gains another 10% over the course of the next six months, we will be above 9,000 points.
To help drive this upwards, growth shares should help. Here are two that I think could contribute to the cause.
Getting back to the basic
First is Marks and Spencer (LSE: MKS). first FTSE 250 The stock enjoyed a promotion to the main index and is continuing the rally that helped it rise in the first place. Over the past year, the stock is up 62%.
The business has enjoyed a revival following a renovation carried out in recent years. In fact, the 2023 annual report was titled “remodeling M&S”. The company is now starting to see the fruits of the labor. Cost reductions of £400m over the last five years mean it operates from a more agile and efficient base.
The focus on omnichannel growth is helping all divisions achieve better results. For example, the winter holiday trading update highlighted revenue growth of 10.5% in Food, but also 4.8% in Apparel & Home. This shows me that the business does not depend only on one area, but that the entire group is doing well.
As a risk, continued inflationary pressure affects profit margins. This is something the management team needs to keep a close eye on to ensure costs don't get out of control.
The Bank stocks You May Have Forgotten
Another growth idea that I like is Chartered Standard (LSE: STAN). The global bank sometimes flies under the radar in the FTSE 100 relative to its peers, but this doesn't mean it is worth discounting.
The stock is up 24% over the past year and recently posted a great set of quarterly results. In an environment where other banks failed to meet expectations, Standard Chartered beat analyst forecasts in terms of both revenue and net profit.
Importantly, the bank also maintained full-year guidance, which reassured investors. It is true that this year is an uncertain time for banks, due to the possibility of interest rate cuts. Plus, with a slowdown in China and places like the UK going in and out of recession, it's hard to know who to turn to.
However, thanks to diversifying operations and the countries it operates with, Standard Chartered appears to be weathering the storm better than most at the moment. Of course, there is a risk that things could go wrong later this year. However, for the moment, I think it could continue to outperform and help the FTSE 100 bid of 9,000 points.
I'm considering adding both stocks to my portfolio when I have some free cash.
