Are Booker Group plc, easyJet plc and Daejan Holdings plc set to rise by 20%+ after today’s updates?

Should you buy these three stocks right now? Booker Group plc (LON: BOK), easyJet plc (LON: EZJ) and Daejan Holdings plc (LON: DJAN).

| 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 food wholesaler Booker (LSE: BOK) are up by 2% today after it released a solid trading update. The first quarter of the year has seen sales at convenience stores Budgens and Londis rise by 10% versus the same period of last year, while Booker’s wholesale division had a decent quarter. It benefitted from improved customer satisfaction and cash profit, although non-tobacco sales fell by 0.7% on a like-for-like (LFL) basis as food price deflation continued.

Looking ahead, Booker is on track to meet full-year expectations and remains a financially sound business with a strong net cash position. Although Booker is expected to increase its earnings by 13% this year and a further 10% next year, its current valuation appears to price this in. For example, Booker trades on a price-to-earnings growth (PEG) ratio of 1.7 and while this isn’t sky-high, given the continued decline in LFL sales being experienced it seems to offer little in terms of a margin of safety. Therefore, 20% gains seem unlikely over the medium term.

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!

On-going issues

Also reporting today was budget airline easyJet (LSE: EZJ). Its passenger statistics for June show that it continues to deliver improving figures but is still suffering from a significant number of cancellations. For example, easyJet’s passenger numbers rose by 5.8% versus June 2015, with the load factor increasing from 92.7% to 94.1%. However, 852 flights were cancelled versus 487 in June 2015, mainly as a result of French air traffic control strikes.

Further strikes could lie ahead and cause additional disruption for easyJet. Therefore, its share price could continue to come under pressure following its 41% fall since the turn of the year. However, despite this risk and the potential fallout from Brexit, easyJet seems to be worth buying right now. It has a wide margin of safety, as indicated by its PEG ratio of 0.7. Therefore, for long-term investors who can cope with above average volatility and uncertainty, gains of substantially more than 20% are on the cards.

Falling profit

Meanwhile, Daejan Holdings (LSE: DJAN) has also reported today. The property investment company recorded a fall in pre-tax profit in its most recent financial year due to valuation gains made on investment property being lower than in the previous year. In fact, pre-tax profit fell from £278m in 2015 to £173m in 2016, but encouragingly for its investors, Daejan was able to report a rise in total rental income during the same period.

Furthermore, Daejan increased dividends per share for the year to 93p from 88p in the previous year. This puts it on a yield of 1.9%, which is still disappointing even though Daejan’s share price has fallen by 13% since the EU referendum. And due to uncertainty being high and the outlook for property being rather downbeat, there may be better opportunities elsewhere to generate a return of over 20%.

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 owns shares of easyJet. The Motley Fool UK has recommended Booker. 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

Social media and digital online concept, woman using smartphone
Investing Articles

Apple stock: Buffett is long, Burry is short. What should I do?

Our author thinks about whether following Warren Buffet into Apple stock might be a good addition to his portfolio –…

Read more »

Close-up of British bank notes
Investing Articles

5 ‘no-brainer’ dividend shares to buy today

Is there an easy way to narrow down the list of FTSE 100 dividend shares? I try one approach, with…

Read more »

Close-up of British bank notes
Investing Articles

£5,000 to invest? 2 dividend-paying penny stocks I’d hold to 2030

I think these high-yielding penny stocks could help cushion the impact of high inflation on my returns. Here's why I'd…

Read more »

Renewable energies concept collage
Investing Articles

2 green stocks that I think are no-brainer buys for the future

Jon Smith explains two of his favourite green stocks at the moment, one for growth and the other for income…

Read more »

An airplane on a runway
Investing Articles

The Rolls-Royce Share price may be set for take-off!

After an upbeat Civil Aerospace Investor Day, here's why I think the Rolls-Royce share price could be set for take-off…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

2 beaten-down growth stocks to buy as inflation rises

Despite inflationary pressures and recession concerns, I am looking at some top growth stocks to solidify my portfolio over the…

Read more »

Stack of British pound coins falling on list of share prices
Investing Articles

Is the IAG share price too good to miss at current levels?

Jabran Khan delves deeper into the current state of play with the IAG share price and decides if now is…

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

5 of the highest-paying income stocks compared! Which one is best for my portfolio?

Income stocks are certainly in vogue right now amid sky-high inflation. But which of these big dividend payers is the…

Read more »