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2 stunning value stocks I’d buy right now

With the FTSE 100 trading close to a record high, finding shares which offer good value for money could be a shrewd move for long-term investors. After all, they may be less susceptible to any downward movement in the price level of the index, while also offering above average upside potential. Certainly, finding cheaper stocks is not particularly easy at the present time. However, here are two companies which could be worth buying right now.

High-growth potential

Reporting on Friday was international business-to-business media company, Ascential (LSE: ASCL). Its update was exceptionally brief, and stated that the company is performing in line with expectations ahead of the end of the first half of its financial year. While short, the update helped to push the company’s share price 0.5% higher on the day, which takes its capital growth to 65% since the start of the year.

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Part of the reason for the company’s strong share price returns in 2017 has been its improving outlook. Ascential is expected to record a rise in its bottom line of 11% in the current year, followed by further growth of 13% next year. This is almost twice the forecast growth rate of the wider index, and could lead to even further capital gains. That’s especially the case since the stock trades on a price-to-earnings growth (PEG) ratio of only 1.4, which suggests it offers a relatively wide margin of safety.

In addition, the company is forecast to increase its dividend payments by 50% over the next two financial years. This may put it on a yield of only 2%, but signals that it could become a more popular income share in future. With shareholder payouts due to be covered 2.8 times by profit even after its forecast rise in dividends, it could become a strong income option.

Uncertain outlook

The future for cinema chain Everyman (LSE: EMAN) is highly uncertain at the present time. The UK’s economic outlook is now less stable than prior to the general election, which could mean the company’s sales suffer in the short run. A weaker pound has helped to push inflation higher, which means it now beats wage growth. This will almost inevitably put pressure on consumer spending, with the result likely to be less spending on discretionary items such as trips to the cinema.

Despite this, Everyman could be worth buying right now. Its uncertain outlook appears to have been factored-into its valuation, with the company’s shares trading on a price-to-earnings growth (PEG) ratio of just 0.5 at the present time. This suggests that it offers a wide margin of safety, which could mean downside is limited and upside potential is relatively high.

Although Everyman may prove to be a relatively volatile stock in the short run, for long-term investors it seems to offer high growth potential at a reasonable price. As such, it could be worth buying.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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