The Motley Fool

These 2 hidden growth shares could help you retire early

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.

Marketing materials company 4Imprint (LSE: FOUR) has not had the best of it in recent weeks, its share price dropping 10% after a mid-January trading update sent investors packing.

But this represents a fresh buying opportunity, in my opinion, even if the firm deals on a forward P/E ratio of 18.7 times, above the conventional threshold of 15 times widely considered attractive value.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Breakneck performance

4Imprint — which can print company logos on cups, t-shirts, umbrellas and numrous other items — announced that revenues had shot 12% higher during 2016, to £558.2m, a result that propelled pre-tax profit to £34.2m, up 10% year-on-year.

And there is good reason to expect the top line to keep on surging. Orders grew 12% in 2016, to clock in at more than 1 million for the first time, with 4Imprint bringing in 240,000 orders from new clients last year. And the company has a great record of generating repeat business — sales to existing clients shot 15% higher last year.

Whilst the City expects earnings expansion at 4Imprint to slow from the breakneck performance of recent years, bottom-line growth is anticipated to remain more-than respectable. The printer is expected to generate earnings growth of 10% in 2017 and 5% next year.

Besides, with the US economy continuing to grow at a healthy rate — 97% of 4Imprint’s sales are generated Stateside — I reckon these near-term forecasts could be upgraded in the months ahead. I am convinced the gift guru’s huge exposure to the world’s largest economy should create smashing earnings growth in the years ahead.

Build a fortune

Quite unlike 4Imprint, Costain Group (LSE: COST) has seen appetite for its shares fly through the roof in recent times, the company’s share price striding to record peaks just this week.

Yet despite this strength, the engineering colossus still offers terrific value for money in my opinion. For 2017 Costain is expected to create earnings growth of 7%, resulting in a mega-cheap P/E ratio of 12.2 times. And the firm is anticipated to follow this up with an 8% rise next year.

It is easy to understand the City’s optimism following this month’s bubbly financials. Costain advised that revenues leapt by a quarter in 2016, to £1.57bn, a result which also drove underlying pre-tax profit 25% higher, to £37.5m.

And Costain is set fair to keep on reporting impressive revenues growth in the years ahead, in my opinion, as investment in Britain’s energy, water and transportation clicks through the gears.

Indeed, the engineering giant’s order book remained around record levels of £3.9bn last year. But Costain is not content to sit back, and remains busy on the acquisition front — the company’s purchase of Simulations Systems Limited last summer, for example, already helping it seal important road building contracts in England and Wales.

I reckon Costain’s wide-ranging expertise should deliver brilliant earnings growth, as infrastructure spend moves steadily higher.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.