These three stocks have all released results today, but are any of them worth adding to your portfolio right now?
Shares in power solutions specialist Aggreko (LSE: AGK) have fallen by 12% today after it released a disappointing set of first half results. A lower oil price has continued to impact negatively on a number of its key markets, with Aggreko’s sales falling by 12% and trading profit being 27% lower than in H1 2015.
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Aggreko faces a challenging outlook, but has maintained its dividend and guidance for the full year. And its order intake in the Power Solutions Utility division of 875MW shows that it’s making progress nonetheless. However, an increase in business debtor provisions of $17m shows that its near-term financial outlook remains highly uncertain.
For the full year, Aggreko is expected to report a fall in earnings of 6%. With its shares trading on a price-to-earnings (P/E) ratio of 15.9, it seems to be overvalued right now given the downbeat prospects within a number of its key markets. Therefore, there may be superior risk/reward opportunities available elsewhere.
Also reporting today was collagen products specialist Devro (LSE: DVRO). Its shares have declined by 6% as its sales for the first half were only marginally higher than in the same period in 2015. Despite this, underlying profit for the period was ahead of 2015’s number by over 15% as improved manufacturing efficiencies, lower input costs and exchange rate benefits more than offset the negative impact of lower sales volumes.
Looking ahead, Devro’s transformation programme has reached its final phase, with the next stage of its strategic development being focused on growing sales. Devro intends to do this through improved commercial capabilities and increased product differentiation.
Devro is on track to meet its full year guidance, with the company forecast to increase its earnings by 7%. It’s then due to record a rise in earnings of 15% next year and with its shares trading on a price-to-earnings growth (PEG) ratio of just 1, it seems to offer excellent value for money at the present time.
Meanwhile, Moneysupermarket (LSE: MONY) has today announced that its CEO will step down on or before the company’s AGM in May 2017. It has also released an impressive set of first half results that show a rise in sales of 10% and an increase in statutory after-tax profit of 25%. These rises were led by strong performances in the company’s Money and Home Services segments, with momentum now returning in the Insurance division.
Looking ahead, the company is on target to meet full-year expectations, with its bottom line forecast to rise by 5% this year. Further growth of 8% is pencilled-in for next year and while this is in line with the expected growth rate of the wider market, Moneysupermarket’s valuation seems to be rather high. It has a PEG ratio of 2.2 and while saving money may become more relevant following the EU referendum as the UK economy experiences an uncertain period, there could be better investment opportunities available elsewhere.