2 cheap growth stocks I'd buy in April

With stock markets having fallen in recent months, there are now wider margins of safety on offer. That could provide investors with more favourable risk/reward ratios for the long run.

Certainly there's no guarantee that the recent declines in share prices will now end. Investor sentiment could worsen if the prospects for the world economy come under pressure. But the long-term investment opportunities on offer now appear to be more widespread.

With that in mind, these two growth stocks could be worth buying now for the long term. And both companies appear to offer growth at a reasonable price.

Improving performance

Reporting on Wednesday was digital communications company Next Fifteen(LSE: NFC). The business enjoyed a strong performance in its financial year to 31 January, with revenue increasing by 15% and operating profit moving 20% higher. Organic revenue growth was 5.2%, thanks to a surge in the second half of the year. This trend has continued into the new financial year, which suggests that further growth could be ahead for the business.

Next Fifteen's acquisition strategy also appears to be working well. Its financial position provides opportunities for the company to boost its revenue and profitability, and this could help it perform well in future years.

With a price-to-earnings (P/E) ratio of around 14, it seems to offer good value for money at present. Although interest rate rises and higher inflation could hold back world economy performance to some degree, the overall prospects for global growth seem to be positive. With a low valuation and a solid strategy that has performed well in previous years, Next Fifteen now seems to be a worthwhile buy.

Potential turnaround

While a number of companies have enjoyed strong performance in recent years, easyJet(LSE: EZJ) is not one of them. It has experienced highly challenging trading conditions that have caused two consecutive years of declining earnings. Reduced demand from passengers -- due in part to the threat of terrorism -- has contributed to its disappointing performance. This has left investor sentiment relatively low.

However, with easyJet expected to generate earnings growth of 28% in the current year, followed by 20% next year, it looks set to deliver a turnaround. This could lead to improving investor sentiment, with its price-to-earnings growth (PEG) ratio of 0.6 suggesting that it may offer a wide margin of safety.

Additionally, easyJet is due to increase dividends per share at a rapid rate over the medium term. For example, it's expected to yield 4% in the next financial year. And with dividend payments forecast to be covered twice by profit, they seem to be highly affordable. This could lead to significant income investing potential - especially since the company's bottom line is forecast to rise at a fast pace as passenger numbers increase.

Capital Gains

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Peter Stephens owns shares of easyJet and Next Fifteen Communications. The Motley Fool UK has recommended Next Fifteen Communications. 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.