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Unilever plc isn’t the only stock with a promising future

With wages and wealth levels in the emerging world continuing to rise, consumer goods companies such as Unilever (LSE: ULVR) could deliver high earnings growth in the long run. Increasing consumerism and a greater focus on such areas by companies operating in the consumer sphere could lead to higher overall growth rates for their top and bottom lines over the medium term. As such, investing in this space could be a shrewd move.

However, there are other companies within the FTSE 350 that could also post high share price growth. Here is one prime example of a stock that could be worth buying right now.

Upbeat performance

Reporting on Monday was engineering specialist Morgan Advanced Materials (LSE: MGAM). Its sales in the first 10 months of the year were 1% higher than in the same period of the previous year at constant currency. This is in line with expectations, with the company making particularly strong progress between July and October.

During this period its organic constant currency sales growth was 2.3%, which reflects an acceleration in the growth rate in the Carbon and Technical Ceramics division since the half year. And while its Thermal Products division saw sales fall by 2.1%, its Carbon and Technical Ceramics division helped to offset this with growth in sales of 5.6%.

Strong outlook

Looking ahead, Morgan Advanced Materials is expected to post a rise in its bottom line of 12% next year. This could help to boost investor sentiment in the company, and also suggests that its current strategy is going well. Despite this, it trades on a price-to-earnings growth (PEG) ratio of just 1.1. This indicates there is a relatively wide margin of safety on offer, which may equate to strong share price growth in the long run.

With the FTSE 100 trading at a record high, Unilever’s valuation may also offer high share price growth potential. The company is expected to raise its earnings by 20% in the current year, which puts it on a PEG ratio of only 1.1. With the company having a range of products and operating across the globe, it seems to have a favourable risk/reward ratio for the long run. That’s because it may offer strong defensive characteristics should one region of the globe experience difficult economic performance, such as Europe following Brexit.

Long-term growth

Certainly, there is scope for some volatility in the short run for both companies. Investor sentiment may change as Brexit moves closer, while monetary policy changes on both sides of the Atlantic may lead to more uncertainty in the minds of investors.

However, with Morgan Advanced Materials and Unilever both performing well, and forecast to continue to do so in future, they appear to be sound businesses. Trading on low valuations, now could be the perfect time to buy them – even at a time when many shares in the FTSE 350 may be viewed as overvalued following recent gains.

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Peter Stephens owns shares in Unilever. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended Morgan Advanced Materials. 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.