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3 Of My Favourite Growth Stocks: easyJet plc, BTG plc And CRH PLC (UK)


easyJet’s (LSE: EZJ) passenger statistics (released today) show that the company is making encouraging progress and is continuing to benefit from an upsurge in business passengers. For the month of March, the number of passengers on easyJet’s flights increased by 7.5%, with its load factor also increasing from 91.5% to 92.6%. These are very impressive figures and bode well for the company’s medium term outlook.

Of course, all airline companies are set to benefit from a lower oil price, with fuel being one of their major costs. And, looking ahead, easyJet’s growth profile remains very strong, with the company forecast to increase its bottom line by 17% in the current year, and by a further 13% next year. With its shares currently trading on a price to earnings (P/E) ratio of just 13.8, it seems to offer excellent value for money, too.


While the pharmaceutical business is hugely volatile, there are vast capital gains on offer for those companies that can increase sales and profitability at a rapid rate. One such company is BTG (LSE: BTG), which is forecast to post a rise in earnings of 28% in the current year, followed by growth of 51% next year. Clearly, these are stunning numbers and, while they may be subject to change in the intervening period, they show that BTG has huge growth potential.

Despite this, BTG trades on a very moderate rating. Certainly, its P/E ratio of 36.2 is high in absolute terms, but when it is combined with the company’s growth potential it equates to a price to earnings growth (PEG) ratio of just 0.5. As such, BTG appears to be ripe for a strong share price rise moving forward.


Also offering stunning growth prospects is construction company CRH (LSE: CRH). Its rise in net profit of 33% last year, while spectacular, is set to be beaten this year as CRH is expected to post an increase in earnings of 48%. This is due to be followed by growth of 31% next year, which means that over the three year period CRH’s earnings could grow by a whopping 2.5 times, which would be a superb result.

In spite of this vast potential, CRH still offers a very wide margin of safety. For example, it trades on a P/E ratio of just 20.9 which, when you consider the company’s superb growth prospects, seems to be a very attractive price to pay.

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Peter Stephens owns shares of CRH. The Motley Fool UK has recommended BTG. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.