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A steady stream of contract successes from the automotive sector looks set to keep earnings at Carclo (LSE: CAR) surging in the years ahead, in my opinion — here’s why!

Carclo advised last month that at its LED Technologies arm, its Wipac supercar lighting products keep on making a huge impact with the world’s car manufacturers, with the business noting that the segment “continues to win new lighting programmes within the low volume sector”.

And Carclo added that it “remains focused on securing a further mid volume programme in the new financial year, which will support the anticipated strong growth of this business”.

But the huge potential riches afforded by the fast-growing premium and supercar segments are not the only reasons to get excited about. Carclo’s Technical Products division is also gaining momentum, helped by shrewd bolt-on buys like Precision Tool & Die in October. And the West Yorkshire business is looking to ride this wave by turbocharging its manufacturing capacity in China and India.

The City expects Carclo to keep its record of double-digit earnings rises trucking long into the future, and predict a 13% rise in the year to March 2017 to be followed by increases of 13% and 21% in fiscal 2018 and 2019 correspondingly.

And these projections make the engineer stunning value for money, in my mind. For the current period Carclo deals on a P/E ratio of just 12 times, and the multiple topples to a mere 10.6 times for next year and 8.8 times for 2019.

Furthermore, sub-1 PEG multiples through to the close of 2019 illustrate Carclo’s stunning value relative to its growth prospects.

Gun show

Rapid expansion over at The Gym Group (LSE: GYM) also leaves it in great shape to deliver excellent profits growth in the years ahead.

The get-fit fanatic boasted 89 facilities at the end of last year, up from 74 sites a year earlier and a figure in line with its target of opening 15-20 gyms per annum. And The Gym Group expects to meet the upper end of this goal in the current year.

Not only is the Surrey-based business effectively hitching onto Britain’s growing fitness craze, but The Gym Group’s focus on the value end of the market in particular is delivering strong revenues growth. The top line expanded 22.6% last year, the company announced in January, while membership numbers swelled to 448,000 by December from 376,000 a year earlier.

Like Carclo, the Square Mile also expects The Gym Group to rack up eye-popping earnings growth in the years ahead, the firm anticipated to have bounced into the black in 2016. Indeed, expansion of 43% and 25% is presently predicted for 2017 and 2018 respectively.

While subsequent P/E ratios of 25.7 times and 20.6 times may appear toppy on paper, PEG readings of 0.6 times for this year and 0.8 times for 2018 underline The Gym Group’s exceptional value.

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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.