Rio Tinto plc, Powerflute Oyj And Spirent Communications Plc: 3 Super Growth Stocks?

One of the challenges for investors is obtaining growth at a reasonable price. Certainly, growth is almost always on offer, but at times the cost of obtaining it can be rather high and this means that, while a company’s financial performance may be strong, its shares could end up being a disappointment.

However, with the recent market correction, growth seems to be much more fairly priced. And, while the prospects for China may be somewhat uncertain, the reality is that in every aspect of the financial world there is no such thing as a safe bet. In other words, risks are everywhere.  But, as investors, if we pay a fair price given the risks and rewards on offer, then in the long run we should benefit via higher total returns.

A strong turnaround play?

One company that appears to be very fairly priced given its growth prospects and risk profile is Rio Tinto (LSE: RIO). A key downside of investing in the stock is its reliance on sales of iron ore, which amounted to over 90% of profit in 2014. This means that it is, to an extent, a play on the iron ore price. But, with Rio Tinto adding real value via its strategy, its share price performance should be strong over the medium to long term.

In fact, Rio Tinto’s increase in production, decrease in costs and sensible capital expenditure policy is set to boost its near-term outlook. Certainly, the current year is due to be very disappointing, with profit set to halve. But, with profit growth of 6% being pencilled in for next year, Rio Tinto could become a strong turnaround play. And, with it trading on a price to earnings (P/E) ratio of 13.2, it offers good value for money given that in the long run demand for iron ore will most likely improve as the emerging world continues to grow and the developed world exits recession.

A good time to buy

Similarly, hardware and software solutions provider, Spirent (LSE: SPT), is also set to endure a challenging 2015. Its bottom line is forecast to fall by 19% which, while disappointing, already appears to have been fully reflected in the company’s share price.

That’s because Spirent’s shares have fallen by 24% in the last year and, with earnings growth of 37% being forecast for next year, now seems to be a good time to buy a slice of the business. That’s especially the case since Spirent trades on a price to earnings growth (PEG) ratio of just 0.5, which indicates that growth is on offer at a very reasonable price.

Strong progress

Meanwhile, Finnish packaging company, Powerflute Oyj (LSE: POWR), has today released an upbeat set of interim results which show that the company is making strong progress. In fact, pretax profit increased to €18m in the first half of the year from just €7m in the same period of last year.

A key reason for this was its acquisition of Corenso, but the company also delivered a 2% rise in packaging revenue and an 8% increase in cores and core board revenue. And, with it being on track to meet its full-year guidance, a PEG ratio of just 0.1 indicates that now could be a good time to buy shares in the business.

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Peter Stephens owns shares of Rio Tinto. 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.