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Both the FTSE 100 and S&P 500 have notched record highs this week. Consequently, a lot of investors will have been making tidy returns in their Stocks and Shares ISA portfolios.
However, it can be a smart move to keep an eye on valuations. After the strong bull run in recent weeks, many growth shares are trading for lofty prices.
But there are still pockets of value about, in my opinion, presenting potential opportunities. Here are a pair of stocks that I reckon are worth looking at right now.
AI-powered stock
Let’s start with the larger of the two shares, which is also the fifth-biggest firm in the world. I’m talking about Alphabet (NASDAQ: GOOG), the parent company of Google and YouTube.
The stock is down 7% since February, so hasn’t been keeping up with the record-breaking bull market lately. Partly, this is because some investors are still worried about the potential disruptive impact of AI chatbots on Google’s core search business.
Now, there’s no sugar-coating this potential risk, in my opinion. I use Google less than I previously did, turning instead to ChatGPT for many basic questions.
For example, I screenshot a page of a book I’m reading if I don’t understand what the author is on about (unfortunately, that happens quite a bit, especially if it’s science). ChatGPT scans it and serves up a for-dummies breakdown in seconds.
However, when I needed new clothes the other day, I used Google to shop around. This is the real type of activity that Alphabet cannot afford to lose (not someone wanting a basic answer).
Strong numbers
In short then, I don’t know whether Google search is in existential peril long term. All we can do is look at the company’s numbers.
Handily then, Alphabet reported Q2 earnings this week (23 July). It posted a 14% rise in revenue to $96.4bn, with Google Services up 12% and Cloud revenue soaring 32% to $13.6bn. These figures look very strong to me.
Meanwhile, operating income rose 14% to $31.3bn, and earnings per share jumped 22% to $2.31. All these numbers beat expectations.
The stock is trading at 20 times forward earnings, which I think is cheap for a company of Alphabet’s calibre.
Fintech disruptor
Next up is fintech firm Wise (LSE: WISE). The company’s platform aims to let individuals and businesses move money across borders quickly and transparently at far less cost.
In Q1 FY2026, cross-border volume grew 24% year on year to £41.2bn, while customer holdings jumped by 31% to £22.9bn. Underlying income rose 11% to £362m (or 14% on a constant currency basis).
During the quarter, it launched Wise Business in the Philippines, signed a partnership with Raiffeisen Bank, and then announced in July that it would power low-cost international transfers for UniCredit.
However, this also shows how global Wise’s operations are. Therefore, big swings in exchange rates, interest rates, or political instability can dent volumes or revenues. I do expect the stock to be more volatile than average.
Looking ahead though, I’m very bullish here. Wise is positioning itself as the infrastructure layer for global money movement. If it becomes the go-to platform for many individuals, businesses, and banks, its long-term growth potential could be substantial.
The icing on the cake for me is the reasonable 26 times earnings valuation.
