Are ULS Technology plc (+12%), 32Red plc (-10%) and Fairpoint Group plc (-9%) on the cusp of colossal corrections?

Whether their shares are up or down, ULS Technology plc (LON: ULS), 32Red plc (LON: TTR) and Fairpoint Group plc (LON: FRP) all seem very appealing at the present time.

| 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 Fairpoint Group (LSE: FRP) have slumped by 9% today despite the consumer professional services company releasing a statement to say it’s performing in line with expectations during the first quarter of the year. Although market conditions in the company’s core debt solutions segment remain challenging, it’s focused on cost control and expects to make good progress in the first half of the year in the legal services division.

Fairpoint’s performance is expected to be aided by the acquisition of Colemans and Simpson Millar, with the integration of both companies progressing well. And while the first three months of the year have been quieter than anticipated in conveyancing services, the outlook for the wider company remains upbeat.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

With Fairpoint trading on a price-to-earnings (P/E) ratio of just 6.6, it seems to offer a wide margin of safety. Certainly, further volatility in its share price can’t be ruled out, but for long-term investors it remains a relatively appealing buy at the present time.

Potential target

Also among the major movers today is 32Red (LSE: TTR). It’s down by 10%, although the online gambling company is still up by 80% in the last year. It hasn’t released any significant news flow today to prompt the share price fall and with it having upbeat earnings growth prospects, 32Red seems to be more likely to soar rather than suffer from a colossal correction.

In fact, 32Red is forecast to increase its bottom line by 62% in the current year and by a further 28% next year. This puts it on a price-to-earnings-growth (PEG) ratio of just 0.3, which indicates that now could be a good time to buy it for the long term. That’s especially the case since there’s a considerable amount of consolidation ongoing within the gaming sector and while 32Red may or may not be taken over, it retains bid potential due to its strong financial outlook.

On the up

Meanwhile, shares in ULS Technology (LSE: ULS) have risen by 12% today despite no significant news flow having been released by the company. Of course, market sentiment has been buoyant since ULS released a trading update in mid-April where it stated that results for the year are expected to exceed market expectations.

In fact, ULS announced that revenue is due to be around 28% higher and adjusted profit before tax 31% higher as its strategy of growing the number of trading relationships it has with challenger banks and mortgage intermediaries continues to work well. As a result, ULS’s order book has been well ahead of the same point in the previous year, which bodes well for its long-term future.

Certainly, there are fears surrounding the health of the UK housing market, but with ULS being confident in its outlook and predicting strong growth, its shares look more likely to be positive rather than negative in future.

More on Investing Articles

Portrait of construction engineers working on building site together
Investing Articles

Is this FTSE 100 stock the best housebuilder to invest in?

One FTSE 100 housebuilding stock has outperformed all of its industry peers by a big margin this year. Should I…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

2 cheap dividend growth stocks I’d buy as the economy sinks

I'm searching for the best bargains to buy following recent market volatility. Here are two top dividend growth stocks I…

Read more »

estate agent welcoming a couple to house viewing
Investing Articles

Here’s 1 FTSE stock primed to benefit from the current housing market!

With the current housing market as it is, Jabran Khan explores a related FTSE stock that could provide stable and…

Read more »

Portrait of construction engineers working on building site together
Investing Articles

Here’s why this AIM-listed stock could be one of the best shares to buy!

This Fool is looking for the best shares to buy. Despite macroeconomic issues, this stock could be a great long-term…

Read more »

Elderly father and adult son work in the garden
Investing Articles

This penny stock could be set to soar! Should I buy shares?

This Fool looks closely at a penny stock operating in an exciting growth market that could see its shares rise…

Read more »

Illustration of bull and bear
Investing Articles

The next stock market recovery looks imminent

As the stock market bear gives way to the bull, some stocks are already turning up and I'm ready to…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

2 dividend shares to protect me from soaring inflation

Dividend shares can be an excellent way to keep up with inflation. Our writer explores several options to protect his…

Read more »

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

Is it time to buy Unilever stock?

Unilever stock has underperformed in the last five years. But with its portfolio of powerful brands, should I buy now…

Read more »