Today I am looking at four stock giants set to deliver stonking earnings growth.
I am convinced Californian tech giant Apple (NASDAQ: AAPL.US) is one of the hottest growth stocks available on global stockmarkets. The company’s premium-priced goods are as much of a fashion statement as an essential commodity in today’s wired world, a formidable combination in highly-competitive marketplaces. Indeed, while the rest of the smartphone and tablet PC manufacturers face are battling market saturation, sales of iPhones and iPads continue to disappear over the horizon.
And this trend does not look about to cease any time soon — indeed, Apple shifted 13 million iPhone 6s and 6s Plus models in the first few days of the new model going on sale, and many suppliers believe the handset will set a new record for the evergreen phone range. The City expects Apple to have enjoyed a 42% earnings rise in the 12 months to September 2015, and a 6% advance is pencilled in for 2016, producing an ultra-cheap P/E multiple of 11.1 times. I reckon this is a steal.
I believe that drinks leviathan Britvic’s (LSE: BVIC) terrific global exposure also leaves it in great shape to deliver stunning bottom-line growth in the coming years. The firm saw sales outside of the British Isles and France gallop 6.8% higher during April-June, and the purchase of Brazil’s ebba completed just this week promises to boost its operations further. The country is the world’s sixth biggest soft drinks market.
Helped by market-leading brands like Robinsons, Tango and 7UP, the City expects Britvic to have recorded an 11% earnings advance in the 12 months to September 2015. And a extra 6% rise is chalked in for the new period, leaving the business changing hands on a very attractive P/E multiple of just 13.7 times.
Like Britvic, I believe that broadcasting giant ITV’s (LSE: ITV) global expansion strategy should propel profits through the roof in the years ahead. The creator of the likes of household hits like Downton Abbey and The X Factor is the fastest growing production company in the US, and is also enjoying terrific success at its studios spanning Australia, France, Germany and Scandinavia.
On top of this, ITV also continues to see ad sales stomp steadily higher — net advertising revenues advanced 5% in January-June, to £838m. Against this backdrop the number City expects ITV to keep its terrific growth story rolling with expansion of 16% of 2015, resulting in a very-decent P/E multiple of 15.5 times. And this number drops to 14.2 times for next year amid forecasts of a 10% bottom-line improvement.
Thanks to a growing disparity between the number of houses on the market and insatiable homebuyer appetite, I believe the long-term earnings picture at construction play Persimmon (LSE: PSN) is exceptional. The average British residential property went for £195,585 in September, according to Nationwide, an impressive 3.8% year-on-year increase. And I believe prices should continue stomping higher as improving wage packets and employment boost affordability.
Persimmon saw revenues leap 11% during the first half to £1.33bn, while forward sales were 12% higher as of the close of June, at more than £1.71bn. And the number crunchers expect this positive trend to keep on rolling, resulting in earnings growth of 25% and 10% in 2015 and 2016 respectively. Given subsequent P/E ratios of just 13.8 times and 12.6 times for these years, I believe the housebuilder is a terrific growth pick.
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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of Apple. The Motley Fool UK has recommended Britvic. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.