Rolls-Royce (LSE: RR) is a long-term growth share that you can’t afford to miss. Although the group has struggled over the past year or two, City analysts believe that the company’s earnings per share are set to expend by 10% next year.
The company currently trades at a forward P/E of 15.7, falling to 14.5 by 2016, which may seem expensive, but it’s worth paying a premium for Rolls’ shares.
You see over the next decade or so, it’s estimated that the world will need an additional $3trn worth of new commercial aircraft. As Rolls is at the forefront of the commercial jet engine market, the company is set to profit for this trend.
Rolls currently offers a dividend yield of 2.5%.
Return to profit
International Consolidated Airlines (LSE: IAG) profits are surging as the company’s Spanish subsidiary, Iberia, returns to growth and fuel costs drop. The company’s earnings per shares (EPS) are set to expand by 54.2% this year and IAG’s shares currently trade at a forward P/E of 13.6.
What’s more, IAG EPS are set to expand a further 40% during 2016 as yet more cost savings filter through the group’s structure. On this basis, IAG is trading at a 2016 P/E of 8.8.
City analysts believe that IAG will initiate a 1.7% dividend yield this year.
As the UK’s housing boom continues, Taylor Wimpey’s (LSE: TW) profits are set to surge over the next two years.
Taylor is currently trading at a forward P/E of 10.1 and City analysts expect the company’s EPS to grow around 34% during 2015. On that basis the company is trading at a PEG ratio of 0.3, indicating growth at a reasonable price.
Additionally, unlike most growth shares, Taylor also offers a hefty dividend yield. Indeed, the company is set to support a dividend yield in excess of 6% for the next two years.
So, with these figures in mind, it looks as if Taylor offers a rare combination of both growth and income that could be too hard to pass up.
Payment processor Optimal Payments (LSE: OPAY) is a high-growth, cash-generative, cash-rich company that’s trading at a rock-bottom valuation. The company is currently trading at a forward P/E of 12.1 and EPS growth of 24% is expected this year.
Further, EPS growth of 14% is expected during 2016, so Optimal is trading at a 2016 P/E of 11.3. Optimal offers no dividend is on offer but the group’s rapid growth more than makes up for the lack of income. The shares currently trade at a PEG ratio of 0.5.
Return to fame
High-street retailer Game (LSE: GMD) returned to the market last year, after being taken over by a private equity group during 2012.
Now the company is rapidly returning to growth. Game currently trades at a forward P/E of 11.2 and EPS growth of 63% expected this year. In addition, City analysts expect Game’s EPS to jump a further 20% during 2016 and on this basis the company is currently trading at a 2016 P/E of 10.9.
City analysts expect the company to initiate a dividend this year. A yield of 5.6% is expected based on current figures.
So, if you're looking for the best growth opportunities on the market then Rolls, IAG, Taylor, Optimal and Game could be the best picks for your portfolio.
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Rupert Hargreaves 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.