3 Super Growth Stocks: ARM Holdings plc, easyJet plc And Standard Life Plc

These 3 stocks could boost your portfolio returns: ARM Holdings plc (LON: ARM), easyJet plc (LON: EZJ) and Standard Life Plc (LON: SL)

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.


On the face of it, ARM (LSE: ARM) (NASDAQ: ARMH.US) may not appear to be such an attractive growth stock. After all, in the last two years it has posted a fall in earnings of 1% and a rise of 25% respectively. This growth rate indicates that, while ARM remains a high-quality technology company with a highly appealing business model, its super-fast growth days may well be behind it. And, with a price to earnings (P/E) ratio of 35.5, it seems to lack value as well as strong growth appeal.

However, looking ahead, things are about to change for ARM, with the company forecast to post a rise of 75% in its bottom line in the current year. As such, investor sentiment has improved significantly this year, with ARM’s shares being up 13% since 1 January. And, with ARM set to enjoy further growth over the long run from the increased development and sales of products within the so-called internet of things, it appears to have a very bright future, with its price to earnings growth (PEG) ratio of 0.5 indicating that further share price rises could lie ahead.


Despite making its first half-year profit since 2002, shares in easyJet (LSE: EZJ) are down by 8% today. That’s because the market is concerned about comments made by the company regarding the third quarter of the year, which easyJet expects to be tougher than it had previously anticipated.

In fact, easyJet now expects third quarter revenue per seat to fall by around 4% and this is likely to cause its profit for the full year to be behind previous guidance. The key reason for the fall is disruption from the air traffic control strikes in France in April, while tougher than expected trading conditions have also pegged-back easyJet’s growth in recent weeks.

Still, easyJet is expected to increase its bottom line by 20% in the current year and by a further 12% next year. And, with its shares trading on a PEG ratio of just 0.7, they offer a wide margin of safety which means that they appear to offer excellent value for money, even if there are further downgrades to its forecasts.

Standard Life

It is rare to find a company with stunning growth prospects trading at a great price. It is even rarer to find one that also offers a better yield than the wider index. However, Standard Life (LSE: SL) does just that, with the insurance company currently forecast to increase its bottom line by a whopping 71% this year and by a further 19% next year. That’s much more impressive than the FTSE 100’s growth rate and, despite this, Standard Life has a PEG ratio of just 0.2, which indicates that its shares could be due for an upward re-rating.

And, with Standard Life having a yield of 4.4% from a dividend that is covered 1.3 times by profit, it seems to be well-worth buying at the present time.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Peter Stephens owns shares of Standard Life. The Motley Fool UK has recommended ARM Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

With a spare £500 I’d buy these UK shares

A financial services giant, a FTSE 250 distributor, a FTSE 100 tech stock, and a gold miner are on the…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Should I buy this defensive FTSE 100 stock for growth and returns?

This Fool takes a closer look at a FTSE 100 stock to see if it could boost his holdings via…

Read more »

Young female analyst working at her desk in the office
Investing Articles

I robbed Mr Market of this cheap FTSE stock!

This FTSE 250 stock has crashed by almost 30% in six months. But I recently bought into this battered business…

Read more »

Mature people enjoying time together during road trip
Investing Articles

3 reasons I’m backing NIO shares to soar!

NIO shares have bounced up and down this year. But where will the share price go next? My bet is…

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

Up 300%, is the Hurricane Energy share price an opportunity too good to miss?

This Fool looks at why the Hurricane Energy share price has soared in the past 12 months. Should he buy…

Read more »

Middle-aged white man pulling an aggrieved face while looking at a screen
Investing Articles

The BT share price crashes 20% in a month. Buy now?

The BT share price has crashed by almost a fifth since coming close to £2 on 12 July. After this…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

How I’d invest £1,000 in growth shares today to target £5,000 in a decade

Our writer reckons he could do well by choosing the right growth shares today and holding them in his portfolio…

Read more »

Shot of a senior man drinking coffee and looking thoughtfully out of a window
Investing Articles

How passive income from stocks can speed up early retirement

By investing patiently over the years, buying quality shares has given me enough passive income to retire 10 or even…

Read more »