The Motley Fool

Have today’s results thrown up three hidden winners?

Have today’s earnings report thrown up some overlooked gems worth closer inspection?

Equiniti Group

Specialist technology outsourcer Equiniti Group (LSE: EQN) has had a good month, its share price rising nearly 15% in that time, and today’s half-year report has handed it a further lift. Revenue growth was a decent 5.9%, with organic revenue growth of 4.3%. It also reported 12% revenue growth from cross-selling and up-selling to its top 32 key accounts. Net debt has dropped from £471m to £261m, a fall of 44%, reducing company leveraging from 5.5 to 2.9. Acquisitions have been integrated well.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Equiniti’s profits have benefitted as it has signed longstanding contracts with many of the biggest firms in the country, giving it a broad base of revenue streams. As a share registrar it may benefit from the weaker pound, as this may attract further overseas buyers in the wake of the ARM Holdings deal. The company can perform well in troubled economic times, when many companies raise emergency cash through rights issues. Today, chief executive Guy Wakeley hailed a “strong top line and profit progression whilst reducing leverage.” Forecast earnings per share growth of 12% this year and 9% next, and a valuation of 12.48 times earnings, make the stock worth a look. Especially with the yield forecast to rise from 0.4% today to a more impressive 2.8%.

Paragon of virtue

Property firm Paragon Group of Companies (LSE: PAG) posted a 12.1% rise in underlying profits to £109.9m for the nine months to 30 June. That’ solid growth given that normal trading had been disrupted by the stamp duty surcharge on buy-to-let property purchases and by Brexit uncertainty. The referendum result could still swing a nasty surprise, although management said it’s too early to know for sure.

Despite the surcharge, buy-to-let lending for the nine months to 30 June rose 21.2% to £989.6m, although we might expect to see that slow in the future, as landlord caution grows. Paragon’s pipeline has dipped to £339m from £350.6m at the start of the quarter. It has protected itself with a disciplined approach to pricing and credit, hiking minimum affordability tests in January 2016 to reflect looming cuts to landlord tax relief. The buy-to-let market could be bumpy for some time, which is reflected in Paragon’s current valuation of 7.51 times earnings.

Get the power

Energy storage and clean-fuel company ITM Power (LSE: ITM) posted a full-year pre-tax loss of £4.36m this morning, a mild improvement on the £5.72m it lost a year ago, helped by a £300,000 increase in revenue to £1.93m. The £35.79m market cap minnow currently has a total pipeline of £16.32m, with £15.81m of projects under contract and a further £0.51m of contracts in the final stages of negotiation.

Markets responded positively, with the share price up more than 3% in the morning, helping continue the share price recovery of recent months. However, at today’s 16p, it’s still well below its 52-week high of 30p. Clean fuel should be a global growth area and ITM has struck a hydrogen fuel contract with Toyota and a strategic forecourt siting partnership with Shell. In May, ITM hit the headlines by launching London’s first HyFive hydrogen refuelling station and its two working power-to-gas reference plants in Germany are attracting global attention. But early stage technology like this is a risky power play for investors.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Harvey Jones has no position in any shares mentioned. The Motley Fool UK has recommended ARM Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.