The Motley Fool

Why I’d buy this secret growth star and this FTSE 100 growth giant

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.

Dial being turned up to 'high'
Image source: Getty Images.

NMC Health (LSE: NMC) probably isn’t the first FTSE 100 company that would spring to mind for most people. Indeed, some readers may not even be aware that this £7.5bn private hospitals group is a member of London’s top index, as it only joined the other elite blue-chips as recently as last September.

However, I believe NMC has every prospect of continuing the growth that powered its shares into the Footsie and that the current valuation remains highly attractive. Along with this growth giant, I see great value in a smaller company that released forecast-beating annual results today.

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!

PEG value

Brexit is something investors in NMC don’t need to be concerned about, which is one of the things I like about this business. The group is the leading private healthcare operator in the United Arab Emirates. It operates or manages over 150 assets across 13 countries and made a net profit of $209.2m on revenue of $1.6bn last year. That’s a good bottom-line margin of 13%, which is another of the things I like about the business.

Last but not least, the company has a terrific record of earnings growth, which continued last year with a 33% rise in adjusted earnings per share (EPS) to $1.036. According to a Reuters consensus, City analysts are forecasting a 42% increase this year to $1.47 (110.5p at current exchange rates), giving a price-to-earnings (P/E) ratio of over 32 at a share price of 3,580p. While the P/E is a premium one, the forecast 42% EPS growth means the price-to-earnings growth (PEG) ratio is 0.8. This ratio is well to the good value side of the PEG fair value marker of one and makes the stock a ‘buy’ in my book.


Marlowe  (LSE: MRL) was formed as a platform to create shareholder value through the acquisition and development of businesses in targeted outsourced service sectors across the UK. Commenting on today’s results, chief executive Alex Dacre said: “In our second year of trading as Marlowe plc we are pleased to report another strong financial performance and a year of substantial progress in developing the scale and breadth of our platform for growth.”

This sort of acquisitive business model doesn’t always appeal to me, but the chief executive has expertise in successfully executing buy-and-build growth strategies and I like the sectors Marlowe is targeting: namely, critical maintenance services in fire protection, security systems, water treatment and air hygiene. As many of these services are mandatory and necessitated by stringent legislation and regulation, I believe the business should prove more resilient than many through the economic cycle.

Today’s results for the company’s financial year ended 31 March saw a 72% increase in revenue to £80.6m (versus a Reuters consensus of £72.75m) and a 35% rise in adjusted EPS to 14p (consensus 12.7p). The shares are currently trading 3% higher on the day at 417p, which gives a market cap of £144m and a trailing P/E just shy of 30. As with NMC, this is a premium P/E but one I believe is justified by the high rate of EPS growth, which looks set to continue with further acquisitions and increasing economies of scale. I’d be happy to buy a slice of this smaller-cap company today, with its potential to become a mid-cap in due course.

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…

G A Chester has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we 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.