Shares in public transport operator Go-Ahead (LSE: GOG) have slumped by 14% today following the release of a pre-close trading update for the year to 2 July. While the company has kept its expectations for the year as a whole unchanged, Go-Ahead has revised its outlook for the Govia Thameslink Railway (GTR).

Notably, the additional resources being invested in GTR to support service delivery are depressing margins on that contract in the current year, with them set to impact next year’s margins too. Although Go-Ahead expects margins to improve in the long run, it no longer expects to recover the profit shortfalls and therefore margins are due to be 1.5% over the life of the contract, rather than the 3% that was previously expected.

Looking ahead, Go-Ahead is forecast to increase its bottom line by 18% in the next financial year, which would represent an excellent overall result. And with its shares trading on a price-to-earnings growth (PEG) ratio of 0.7, they seem to offer a highly appealing risk/reward ratio so that while further share price falls can’t be ruled out in the short run, longer term, Go-Ahead looks set to deliver strong share price gains.

Upside on offer

Also reporting today was Telecom Plus (LSE: TEP), with the multi-utility provider recording in-line performance for the year to 31 March. Sales increased by 2.1% versus the prior year, while adjusted earnings growth of 7% allowed the company to raise dividends by 15%. This puts Telecom Plus on a dividend yield of 4.7% and with dividends being covered over 1.2 times by profit, further growth could be on the cards over the medium term.

Looking ahead, Telecom Plus is forecast to increase its bottom line by 7% in the current year and by a further 12% next year. Given the challenging trading conditions within the domestic energy market, this would represent an encouraging result. And with Telecom Plus trading on a price-to-earnings growth (PEG) ratio of just 1.3, there seems to be considerable upside on offer over the medium-to-long term.

Furthermore, with the bundling of utilities becoming increasingly popular among consumers, Telecom Plus could become a bigger player within the utilities space and therefore has strong long-term growth appeal.

Take a closer look?

Meanwhile, shares in IGAS (LSE: IGAS) have fallen by 8% today after it released an update that stated it’s seeking to strengthen its capital position through discussions with bondholders and potential investors. For example, it has been discussing the possibility of extending the maturity of its debt, deferring certain interest payments and obtaining the waiver of some financial covenants on the basis that further finance comes into the business.

Furthermore, IGAS is also evaluating options for cash and earnings accretive transactions including farm-outs and other asset portfolio management opportunities. The goal is to achieve a capital structure that’s sustainable given the uncertain outlook for the oil and gas sector. And with IGAS now having operating costs of $30 per barrel of oil equivalent (boe) and cash of £23.6m, as well as one of the largest net shale acreage positions in the UK, it may be worth a closer look for less risk-averse investors.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.