Here’s a growth stock I rate among my best shares to buy now

first_img Image source: Getty Images. I’ve seen On The Beach (LSE: OTB) as a tempting growth stock for a while now. I like simple, straightforward, business models that cater to high demand. Want a holiday on the beach? No need to investigate general packages to see which are best suited. Just head for On The Beach — the clue is in the name.But there’s been a problem. Well, more than one. Firstly, On The Beach shares suffered from that oh-so-common growth stock bubble. When its shares hit a high in 2018, they were trading on a trailing price-to-earnings ratio of 35. For some growth stocks, that can be cheap. But, while I like the approach, this is just a company that’s hit on a slightly different way of selling holidays.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The share price fell back. And then 2020 and the Covid-19 pandemic arrived. Growth shares in general suffered, with those in the travel business hit especially hard. At one point in March, the OTB price had dropped more than 70% year-to-date. But I think those who bought in the summer made a canny move.Second growth stock run?Since November, the OTB share price has rebounded strongly, and we’re now looking at a more modest loss of 25%. We’re likely to see more short-term pain as European travel restrictions continue to bite. But I’m convinced On The Beach is a long-term growth stock selling at a bargain price now.Before I explain why, let’s first have a look at full-year results delivered Thursday, and get them out of the way. The numbers were, in a word, horrible. But they were far from unexpected.In adjusted terms, revenue fell 52%, with pre-tax profit down 98% to just £0.6m. In GAAP terms, it’s even worse, with revenue down 76% and a pre-tax loss of £46.3m. The differences in accounting approaches, including adjusting for the impact of Covid-19 and other one-offs, means it’s hard to take much away from these figures. Well, except it’s not what growth stock investors back in 2018 were expecting.Liquidity statusBut right now, for me, it’s all about the balance sheet. On that score, I reckon chief executive Simon Cooper sums up the company’s key strength when he speaks of “The flexibility and asset light nature of our business model together with our recently strengthened balance sheet.”OTB raised £65.1m from a share placing in May. That left the company with net cash and equivalents of £51m at 30 November (excluding ring-fenced customer prepayments). It also has an undrawn £75m credit facility. How long might all of that last? The company puts its monthly cash burn at £2m in the complete absence of revenue. That indicates no problems on the survival front for the foreseeable future.The question for me is, do I expect On The Beach to get back to profit before its cash runs out? And my answer is a huge yes. I’m seeing a very tempting growth stock here, with an attractive business model, and the financial strength to see it comfortably through the crisis. It’s on my shortlist of ISA candidates. Alan Oscroft | Thursday, 10th December, 2020 | More on: OTB Our 6 ‘Best Buys Now’ Shares Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended On The Beach. 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. Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. “This Stock Could Be Like Buying Amazon in 1997”center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Alan Oscroft Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 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