Ryanair Holdings plc isn’t the only two-bagger expected to deliver blockbuster growth

This stock could offer high investment potential alongside Ryanair Holdings plc (LON: RYA).

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The last couple of months have been incredibly challenging for Ryanair (LSE: RYA). It has been heavily criticised for cancelling flights, as well as the way it has treated affected customers. It is therefore unsurprising that its share price has fallen 6% in the last month. However, it is still up 274% over the last five years and is due to deliver high earnings growth over the next couple of years.

Of course, it is not the only stock with such a strong track record and bright growth outlook. One company reporting on Tuesday also appears to offer such characteristics. Could either company be worth buying right now? Or are their outlooks fully reflected in their valuations?

Growth potential

While the collapse of Monarch on Monday showed that trading conditions in the travel industry remain challenging, Ryanair has a positive growth outlook. The company is forecast to record a rise in its bottom line of 17% in the current year, followed by further growth of 13% next year. Despite such strong momentum, the stock has a price-to-earnings growth (PEG) ratio of just 0.9, which suggests that further upside could be ahead.

The reputation of the business is unlikely to have been enhanced by recent events. Customers may now think twice before booking with Ryanair due to the negative press coverage of recent weeks. However, the reality is that customers are unlikely to look elsewhere en masse over the long run due to the competitive prices which the company offers, as well as its strong position within the budget short-haul marketplace.

As such, while the near term may be uncertain for the company’s investors, the long term outlook for Ryanair appears to be positive.

Upbeat outlook

Also posting high share price returns has been Revolution Bars (LSE: RBG). The bar operator has gained 100% in the last three months due in part to a 203p cash offer being made for the business by Stonegate Pub Company. It has been recommended by the Board of Revolution Bars, and investors will vote on the potential deal on 17 October.

However, there is the potential for another bid from Deltic. It initially proposed a merger, which was rejected. It has until 10 October to make an offer and is performing due diligence at the present time. With the potential for a further bid in the short run, there could be further share price growth ahead.

As well as this, Revolution Bars released an upbeat set of results for the full year on Tuesday. They showed that revenue increased by 9.2% versus the prior year, with like-for-like sales up 1.5%. Gross margin was 82 basis points higher, while adjusted profit before tax increased to £9.3m from £7.4m last year. Therefore, even if there are no further bids and the current bid is rejected, the company’s improving performance suggests it could be worth buying for the long term.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens has no position in any company 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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