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It’s Time For Some Bargain Hunting At Vodafone Group plc, Just Eat PLC, Ted Baker plc & Greggs plc

Today I am looking at four FTSE heavyweights set to deliver splendid returns.

Vodafone Group

I believe Vodafone’s (LSE: VOD) extremely deep pockets should help to deliver excellent shareholder gains. Sales in Europe are sailing higher thanks to the firm’s multi-billion Project Spring organic investment scheme, while acquisitions such as Kabel Deutschland and Ono give it brilliant exposure to the lucrative ‘quad-play’ market. On top of this, Vodafone’s huge capex drive across Asia, the Middle East and Africa is also paying off handsomely, and organic revenues in these regions rocketed 6.1% during April-June.

Although the cost of such heavy investment is expected to result in a 4% earnings slide in the year concluding March 2016, a 21% rebound is pencilled in for the following period, pushing a P/E ratio of 44.1 times for this year to 35.7 times for 2017. Although this reading can still be considered high, projected dividends of 11.5p per share for this year and 11.6p for 2017 more than make up for this, yielding 5.1% and 5.2% correspondingly.

Just Eat

Thanks to the enduring appeal of the lazy takeaway, I reckon Just Eat (LSE: JE) is a great selection for those seeking reliable earnings growth. The company continues to increase the number of restaurants it services, a phenomenon that helped total orders leap 52% in the first half to 41.9 million. And sales have been boosted further by massive investment in technology, and 60% of all transactions are now made through the Just Eat app, up from around half a year ago.

Consequently the City expects Just Eat to enjoy earnings growth of 37% this year, resulting in a hugely-expensive P/E ratio of 68.4 times. But predictions of a 57% leap in 2016 drives this number of a far-improved 43.1 times, while a PEG ratio of below the value benchmark of 1 for next year underlines Just Eat’s decent value relative to its long-term growth potential.

Ted Baker

I fully expect sales at fashion house Ted Baker (LSE: TED) to leap higher in the years ahead thanks to its global expansion drive. Steadily-rising demand for the designer’s premium togs have ensured consistent bottom-line growth for many years now, and news that retail sales surged an extra 18.9% during February-May suggests this momentum is not ready to stall any time soon. Ted Baker is also improving its internet footprint, a factor that shoved online sales 46.9% higher in the period.

The retailer is anticipated to print a 19% earnings increase in the 12 months to January 2016, prompting a high P/E multiple of 32.5 times. However, this reading falls to a far more appetising 27.7 times for 2017 thanks to forecasts of a 16% earnings rise. And estimated dividends of 49.2p per share for this year and 54.3p for 2017, yielding a handy 1.6% and 1.7% correspondingly, help to mitigate this premium.

Greggs

Thanks to Britain’s love of warm pasties and a hot cuppa, I believe baking behemoth Greggs (LSE: GRG) is a nailed-on certainty to deliver delicious returns. The company has also splashed the cash to reinvigorate its sandwich menus, roll out new coffee blends and revamp its storefronts to take on the likes Costa Coffee and Pret A Manger, a plan that is clearly working — total sales jumped 6.4% in January-June.

The number crunchers expect Greggs to record a 22% earnings uptick in 2015, and a 7% rise is predicted for the following period. Consequently the caterer deals on P/E multiple of 21.3 times for this year, but which drops to a far-more-palatable reading of 19.9 times for 2016. On top of this, a prospective dividend of 32p per share for this year yields a very handy 2.8%, and is a figure I expect to keep chugging higher in line with earnings.

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Royston Wild 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.