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Today I’m discussing a handful of growth heroes whose share values could spike in the weeks ahead.
Robert Walters
In a recent article I spoke of PageGroup and explained why its share price could pick up the pace following the release of new financial results in July.
I reckon fellow recruitment specialist Robert Walters, judging from the strength of its own trading updates in recent times, could follow suit and punch some decent gains on the price charts, too. This particular business is all set to produce second-quarter numbers on Tuesday, July 9.
Robert Walters’s share price is riding the crest of a wave right now, up 22% since the start of 2019 and supported by some solid trading news in that time. Last time out in April it advised that gross profits were up 10% at group level thanks to strong trading across all three core trading units of Asia, the UK and Europe.
Yet despite this recent upswing in the value of the company it still trades on an undemanding forward P/E ratio of 14.1 times. This is especially cheap, I believe, given Robert Walters’s long record of increasing annual earnings by double-digit percentages, as well as the signs that its exceptional growth story looks set to extend long into the future (a 10% rise is anticipated by City boffins for 2019 alone).
For those seeking a proven growth stock on a budget you can’t go wrong here, in my opinion. And especially with another set of tremendous financials potentially in the offing.
Unite Group
Student accommodation provider Unite Group is another stock that has the bit firmly between its teeth. Advancing a fifth since the beginning of January, a run that has helped its share price rise by around 150% during the past five years, the impact of Brexit on flows of foreign students from abroad clearly isn’t something that the market is particularly worried about.
And quite rightly, in my book. Britain’s universities will remain a magnet for academics regardless of the country’s future inside or outside of the European Union, as they have done for centuries, and this is why Unite remains confident enough to keep expanding its portfolio of student properties. Just last month its Unite UK Student Accommodation Fund raised £250m from external investors with which it can pursue additional investment opportunities down the line.
Unite’s latest set of financials in April certainly underlined the strength of demand for its accommodation despite the current political uncertainty, the company reporting that 79% of bed spaces for the 2019/2020 academic year were let, up fractionally from the same point a year earlier. And I’m expecting another solid set of trading details when half-year results come out on Tuesday July 23.
Like at Robert Walters, the number crunchers are expecting yearly earnings at Unite to keep rising by double-digit percentages too. Okay, a forward P/E ratio of 24.9 times may be expensive on paper, though I reckon a rock-solid profits outlook, allied with the potential for some more serious share price gains in the coming sessions, still makes the FTSE 250 firm a great buy today.