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The FTSE 100 stormed through the 9,000 mark in July. And some familiar names led the charge, with Rolls-Royce shares up 14% during the month.
At the other end of the scale, shares in housebuilders were among some of the biggest fallers. But I think there are other opportunities worth considering, both from the FTSE 100 and elsewhere.
Bunzl
Bunzl‘s (LSE:BNZL) a growth stock. It’s a distributor of things like carrier bags, food packaging, and safety equipment that aims to expand by acquiring smaller businesses.
The reason I say it’s a growth stock is that you wouldn’t know it by looking at its valuation. In terms of free cash flow, the stock trades at a similar multiple to British American Tobacco.
As I see it though, the businesses are entirely different. With British American Tobacco, the core product is clearly in structural decline – the only question is how fast?
But the situation with Bunzl’s entirely different. The market for consumables isn’t in terminal decline and the market it operates in means the firm still has a lot of scope for growth.
A combination of a difficult macroenvironment and some operational missteps has caused the company to issue a profit warning for this year. But I don’t see this as a long-term issue.
Bunzl’s still expecting its strategy of acquiring and improving businesses to be successful over time. And at today’s prices, I think the stock’s definitely worth considering.
Brown & Brown
Shares in US insurance broker Brown & Brown (NYSE:BRO) fell 16% in July. And I think investors should take a look at the stock while it trades at an unusually cheap multiple.
It trades at a price-to-book (P/B) ratio of 2.6. While shares in different businesses quite rightly trade at different multiples, but this is some way below where the it has been for the last five years.
The cause of the decline is weak organic sales growth (from existing operations) in the second quarter of 2025. This came in at 3.6%, which is well below where it’s been recently.
| QUARTER | ORGANIC SALES GROWTH |
|---|---|
| Q2 2024 | 10.00% |
| Q3 2024 | 9.50% |
| Q4 2024 | 13.80% |
| Q1 2025 | 6.50% |
| Q2 2025 | 3.60% |
This is the result of insurance markets being softer – lower prices mean lower commissions for brokers. This is an ongoing risk and there isn’t much Brown & Brown can do about it.
Inflation however, is showing signs of picking up in the US. And I think this might lead to higher premiums in various categories as the cost of claims increases for insurers.
Like Bunzl, Brown & Brown has a long-term strategy of using acquisitions to create a competitive advantage. With this very much intact, I’m looking at the stock as a potential buying opportunity.
Growth stocks
Bunzl and Brown & Brown have similar growth strategies. They aim to acquire smaller businesses to create scale advantages in industries where demand looks to be relatively stable.
When growth slows, stocks that trade at high multiples can fall sharply. But for investors with a long-term view, this can be a chance to buy shares in strong companies at attractive prices.
The FTSE 100 might be at record highs, but not all stocks are. For investors willing to look around – both within the index and elsewhere – there are good opportunities to consider.
