I’ve been hunting for some of the best shares to buy now with £2,000. For example, I like the look of social housing energy services company Sureserve (LSE: SURE).
In May, its half-year results report had the headline: “Continued momentum, high revenue visibility and strong order book drives confident outlook for full year”.
High earnings visibility
The figures were impressive. Revenues, profits and the order book were all up by meaty double-digit percentages compared to a year earlier. Non-executive chairman Nick Winks said the business benefits from “high” visibility of revenue. And that’s because of its long-term local authority and housing association contracts.
Winks acknowledged that general economic headwinds exist affecting the company’s costs. But he was “confident” in the prospects of the business for the rest of the trading year to September. City analysts predict an uplift of almost 43% in earnings for 2022 and a further rise of nearly 8% in 2023.
Although any business can miss its estimates, the forward-looking earnings multiple is just below 10 for 2023. I think that’s undemanding. However, Sureserve doesn’t currently pay a shareholder dividend. But I like the way the company is building on previous earnings growth and expanding organically and via bolt-on acquisitions.
Profitable international expansion
I’m also keen on global luxury goods manufacturer, retailer and wholesaler Burberry (LSE: BRBY). In July’s first-quarter trading update, the company revealed that lockdowns in China had affected the results. Comparable store sales increased by just 1% year-on-year. However, excluding mainland China, comparable store sales grew by an encouraging 16%.
The directors said the macro-economic environment is causing some near-term uncertainty. However, the performance in China has improved since stores reopened in June.
City analysts expect earnings to increase by almost 27% in the current trading year and by just over 4% the following year. Meanwhile, set against those expectations, the forward-looking earnings multiple is just below 15. That’s with the share price near 1,793p. And the anticipated dividend yield is above 3%.
It’s possible for Burberry to run into operational setbacks ahead. But the company’s earnings are on an upward trajectory. And I’d buy some of the shares to hold for the long term as operational progress unfolds in the years ahead.
Growing markets
My final pick is Morgan Advanced Materials (LSE: MGAM). The business manufactures specialist products using carbon, advanced ceramics and composites. And in July, the first-half results report revealed solid progress in revenue and adjusted earnings.
The directors said the full-year figures would likely come in at “the top end” of analysts’ previous forecasts. And chief executive Pete Raby said the “robust” revenue expansion arose because of growing markets and the firm’s strategy. However, he warned that there will likely be a “moderation” of growth rates in the second half because of challenges in the economy.
City analysts expect earnings to grow by just under 15% in 2022 and by almost 6% in 2023. Meanwhile, with the share price near 305p, the forward-looking earnings multiple is just below an undemanding 10 for 2023. However, that could work out higher if the company misses its estimates because of operational or trading difficulties.
Nevertheless, I’d take the chance with a long-term hold while collecting the dividend, which is yielding above 3%.
