3 Stocks To Make You Rich? Diageo plc, ARM Holdings plc And Nanoco Group PLC

Are these 3 stocks about to deliver top notch returns? Diageo plc (LON: DGE), ARM Holdings plc (LON: ARM) and Nanoco Group PLC (LON: NANO)

| 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.

Shares in intellectual property-focused company ARM (LSE: ARM) have had a very positive month, rising by over 8% after upbeat results were released. They showed that revenue and earnings are continuing to rise at a rapid rate, as ARM benefits from increased shipments in smartphones and tablets across the globe.

Tremendous opportunity

Interestingly, the company is also diversifying into other areas and has tremendous opportunity to benefit from the planned rise in the ‘Internet of Things’. This could provide the company with renewed growth opportunities, since there have been concerns raised among investors that ARM is becoming a more mature business which will aim to increase dividend payments in future.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

While this is true in some respect, with ARM expected to raise the amount it pays to its shareholders by 22% this year, its earnings growth potential remains very high. This year its bottom line is set to rise by 66%, while next year the figure is 14%. Therefore, further capital gains appear to be on the cards over the medium term.

Bright future

Similarly, Diageo (LSE: DGE) also has a bright future, looking set to benefit from the increasing prevalence of middle class consumers in China and the rest of the emerging world. In China, the incomes of urban dwellers are forecast to rise rapidly in the next five years, with up to three-quarters of them expected to be earning above $9,000 per annum by 2020. This, alongside continued growth in demand for premium spirits in other key markets such as India, indicate that Diageo’s bottom line could be boosted by improving external factors.

Clearly, Diageo has been a disappointment this year. Its shares are up by just 1% since the turn of the year. However, it has considerable capital gain potential due to its growth prospects and, with its shares trading on a price to earnings (P/E) ratio of 20.9 (which is lower than many of its global consumer peers), there is clear upside potential over the long run. Additionally, with a bid for SABMiller having already taken place, the global beverages industry may experience a period of consolidation which could have a further positive impact on Diageo’s share price.

Worth watching

Meanwhile, shares in display and lighting technology company Nanoco (LSE: NANO) are up by almost 10% today on no significant news flow. Its most recent results showed that its pretax loss had widened versus the same period in the prior year, with it increasing to £10.9m from £9.1m in the previous full-year. This was due to higher operating costs as well as exceptional costs linked to its move from AIM to the main market during the year.

Furthermore, with delays in customer sampling expected from its manufacturing plant in South Korea, the recurring revenue from the plant is now expected to be delayed until later on in the current financial year. As such, and with Nanoco expected to remain in the red in the current year, it appears to be a stock worth watching rather than buying at the present time.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Peter Stephens has no position in any shares mentioned. 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

Senior woman wearing glasses using laptop at home
Investing Articles

SSE shares are up 15% since the market correction! Should I buy?

Jabran Khan looks at why SSE shares have been on an upward trajectory in recent weeks and decides if he…

Read more »

One English pound placed on a graph to represent an economic down turn
Investing Articles

After crashing 29%, Spectris shares look cheap to me

After peaking at 4,167p last September, Spectris shares have slumped by over 29%. But I see deep value in the…

Read more »

British Pennies on a Pound Note
Investing Articles

Here is why I added this dirt-cheap FTSE 100 penny stock to my holdings!

Jabran Khan explains why he added this dirt-cheap FTSE 100 stock to his holdings and is excited by its recovery…

Read more »

Woman looking at a jar of pennies
Investing Articles

3 FTSE 100 penny stocks! Which is the cheapest buy?

Our writer examines three penny stocks that feature in the FTSE 100 index to ascertain whether they have a place…

Read more »

Arrowings ascending on a chalkboard
Investing Articles

Is the Vodafone share price an opportunity at current levels?

Jabran Khan looks at the current Vodafone share price and decides if he would add the shares to his holdings…

Read more »

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

4 gems I’d include in my Stocks & Shares ISA

Jon Smith explains some of the top stocks he's thinking about including in his Stocks and Shares ISA a we…

Read more »

Compass pointing towards 'best price'
Investing Articles

At 85p, are Rolls-Royce shares a no-brainer buy? 

The Rolls-Royce share price look very cheap right now. And I think this might be my last chance to buy…

Read more »

positive mental health woman
Investing Articles

My £3-a-day blue-chip passive income plan

Our writer sets out his passive income plan of investing a few pounds each day in top stocks.

Read more »