In a recent article I looked at three big dividend payers whose share prices could explode and keep on charging as 2019 progresses.
Here I’m running the rule over three terrific growth stocks to buy as well. Come and take a look.
In good health
Spire Healthcare Group (LSE: SPI) is a company that City brokers are predicting big things for. A 20% earnings bump is predicted for 2019, a figure that also leaves it dealing on a dirt-cheap forward P/E ratio of 9.9 times.
This figure is well inside the widely-regarded bargain benchmark of 10 times and not indicative of Spire’s exceptional profits potential as Britain’s ageing population likely drives demand for its private hospital care in the years ahead.
The business may have disappointed in mid-January when it announced that revenues growth would prove elusive in 2018, but signs of stronger trading in the second half have helped investor appetite to recover following an initial blip. And signs of further progress on this front, allied with news on its cost-reduction strategy when it announces full-year results on Thursday, February 28, could help its share price to continue rising.
A dependable earnings grower
Macfarlane Group (LSE: MACF) may not be expected to deliver the same sort of profits growth in 2019 as Spire. It’s expected to report a more modest 10% rise, but this is a projection that’s still not to be sniffed at.
Besides, the long record of earnings growth that the protective packaging giant has delivered over many years makes it worthy of attention from growth hunters. Particularly so as it deals on a prospective earnings multiple of just 11.7 times despite this pedigree.
Indeed, I reckon this low rating may give its share price licence to charge when full-year results are distributed on February 21. If November’s last update is anything to go by we could be in for a treat — back then, Macfarlane said that a sales jump of 13% during January-October meant that pre-tax profits were “well above” the levels of a year earlier.
Profits to double?
If you’re only interested in stocks predicted to report spectacular earnings growth in the near term, then Hochschild Mining (LSE: HOC) might be more to your liking.
City analysts expect the business to report a 94% earnings rise in 2019 because of the bright outlook for precious metal prices. I reckon bullion values could gain further traction in February alone as key macroeconomic and geopolitical issues, like a fresh US government shutdown and additional bickering over Brexit, threaten to blow up, a scenario that would drag the gold producers higher too.
Hochschild managed to raise production for six years on the spin, but total gold and silver output is predicted to fall this year, to 457,000 gold equivalent ounces and 37m silver equivalent ounces respectively. The long-term outlook remains robust as the Peruvian digger ramps up development of its assets like Inmaculada. In my opinion a forward PEG ratio of 0.3 times is exceptional value for a share with such compelling growth prospects.
