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Should You Stock Up On Smashed-Up Meggitt plc, Hargreaves Lansdown PLC, Dixons Carphone PLC And Burberry Group plc?

Today I am looking at a clutch of bombed-out FTSE stocks that could be poised for a comeback.

Meggitt

Defence giant Meggitt (LSE: MGGT) has suffered extreme share price weakness since the opening stages of April, and the firm has conceded 12% during the past four weeks alone. However, I believe this marks a prime bargain-hunting opportunity for savvy stock hunters — the world isn’t getting any safer, after all, with ISIS forces rampaging across the Middle East and hostilities growing between Russia and the West. Consequently I expect sales at the steadily-improving arms sector to keep ticking higher, supported by recovering economic conditions in the US and UK.

This view is shared by the City, and the number crunchers expect Meggitt to chalk up earnings growth of 6% and 8% in 2015 and 2016 respectively, leaving the Bournemouth firm dealing on P/E multiples of just 13.2 times and 12.2 times for these years — any reading below 15 times is widely considered a steal.

And this promising outlook is anticipated to keep Meggitt’s progressive dividend programme rolling, too. A dividend of 13.75p per share last year is predicted to rise to 15p in 2015, producing a handy yield of 3.2%. And this figure rises to 3.4% for next year due to estimates of a 16.1p reward.

Hargreaves Lansdown

With financial services play Hargreaves Lansdown (LSE: HL) having slumped 9.7% since the the end of May, I reckon now could be the time to bulk up on the business. The firm has successfully navigated the pension reforms introduced during the Spring Budget, while improving investor appetite is also boosting client activity — indeed, Hargreaves Lansdown saw net inflows hit a record £2.8bn during January-April, up from £2.6bn last year.

Although tough conditions earlier this year are expected to result in a 1% earnings decline for the 12 months concluding June 2015, an 18% jump is predicted for 2016. While it is true that Hargreaves Lansdown may still be considered expensive on standard metrics — the company carries P/E ratios of 34.8 times for this year and 29.7 times for 2016 — I reckon the probability of surging investment activity in the years ahead makes the business a strong selection.

Meanwhile, prospective dividends of 32.5p per share and 37.5p for 2015 and 2016 correspondingly help lessen the blow, creating handy-if-unspectacular yields of 2.7% and 3.1%.

Dixons Carphone

For more optimistic investors, improving retail conditions in the UK and Europe could make Dixons Carphone (LSE: DC) an irresistible stock pick — the stock has fallen 4% since the close of May. Of course fresh fears of eurozone collapse could seriously whack consumer activity on the continent, but with the retailer successfully cross-selling across its broad product range, and its core British markers still outperforming, I believe the electronics play could be a shrewd selection.

The City certainly thinks so, and Dixons Carphone is anticipated to follow a 32% bounce for the year concluding April 2015 with further growth of 15% and 11% in 2016 and 2017 correspondingly. These numbers produce very-decent earnings multiples of 16.4 times and 14.8 times for this year and next.

And these projections are predicted to underpin further dividend expansion, and an anticipated 7.8p per share payout for fiscal 2015 is predicted to advance to 9p this year and 10.2p in 2017. As a result Dixons Warehouse’s yield of 1.9% for the current period moves to 2.2% for next year.

Burberry Group

Luxury goods giant Burberry (LSE: BRBY) has shed 7% during the past month, but I remain bullish on the stock owing to its expanding global presence and long-term sales potential in emerging markets. The London firm is splashing the cash to expand its store portfolio and improve its digital services, a strategy that helped revenues gallop 8% higher in the year ending March 2015 to £2.5bn.

Burberry’s unrivalled brand power is pulling up trees in both established and new markets — sales rose at a double-digit rate in The Americas and Europe, Middle East, India and Africa last year — and accordingly the boffins expect earnings growth of 3% and 11% in 2016 and 2017 correspondingly, pushing the P/E multiple from 20.4 times this year to 18.3 times in 2017.

And these solid projections spread to the dividend, too, with Burberry expected to hike last year’s 35.2p per share payment to 38.3p in 2016 and 43.8p next year. As a consequence the yield rises to a decent 2.4% for the current period to 2.7% for next year.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended Burberry and Hargreaves Lansdown. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.