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3 FTSE 100 growth stocks I’d buy before it’s too late

I believe auto and aero parts builder GKN (LSE: GKN) is in prime position to enjoy a share price spurt in the weeks ahead.

The Redditch company is due to release its full-year results on Tuesday, February 28. And if GKN can put in a sunny performance similar to its update of October, I reckon investor inflows could step significantly higher.

GKN advised in autumn’s update that, despite challenging conditions for its Land Systems and Aerospace divisions, that group organic sales still edged 2% higher during January-September. The company’s position as a top-tier supplier to major OEMs is helping it to overcome wider troubles in its key markets, and a spree of acquisitions to bolster its product range promises to keep sales moving upwards.

While market demand for GKN has rumbled higher recently — the engineer’s share price struck 19-month tops just last week — I reckon the company’s low valuations leave plenty of room for further gains.

A predicted 13% earnings rise in 2017 results in a P/E ratio of 10.7 times, well below the FTSE 100 forward average of 15 times. And the reading drops to a mere 10.2 times for 2018 thanks to a predicted 5% bottom-line advance.

Build it up

I also reckon housebuilding colossus Taylor Wimpey (LSE: TW) has what it takes to surge in the days ahead.

Trading statements from across the housing industry have remained pretty solid in the months following June’s EU referendum. And I reckon Taylor Wimpey’s own full-year update, also slated for February 28, could prompt fresh buying activity.

While data more recently suggests that home price growth may slow in 2017 (Nationwide said this week average home values rose just 0.2% in January, the weakest since November 2015) I expect ultra-supportive lending conditions and an existing shortage of housing stock to keep prices moving higher, a point made by all of the country’s major construction plays.

Besides, I reckon Taylor Wimpey’s P/E ratio of 9.2 times for 2017 – created by an anticipated 4% earnings improvement — more than bake-in the risks facing the business. Moreover, a gargantuan 8.2% dividend yield for the current period merits serious attention

Packaging perfection

To complete the set, I believe Smurfit Kappa Group’s (LSE: SKG) share price could receive fresh fuel following its own full-year results, currently scheduled for Wednesday, February 8.

Smurfit Kappa rose to record peaks late last month after raising the price of its new and recycled container board, a move that follows those of its industry rivals in recent months.

And demand remains strong for Smurfit Kappa’s packaging solutions — the Dublin business announced in November that volumes rose by 5% during January-September — enabling the business to force through such price hikes.

Unsurprisingly the City expects earnings at the business to keep trekking higher, and has chalked-in earnings expansion of 4% in both 2017 and 2018, resulting in P/E ratios of just 11.3 times and 10.8 times. I reckon this is a steal given Smurfit Kappa’s robust position in a growing market.

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