The Motley Fool

2 bargain stocks offering double-digit earnings growth

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Investor appetite for Findel (LSE: FDL) has gone crazy in Wednesday trading, a development that comes as little surprise given the strength of today’s latest trading statement.

The retail and education group was last 30% higher from Tuesday’s closing price, breaking out of the recent downtrend that had seen it sink to 17-month lows just last week. And I believe today’s uptick could mark a new beginning for the share price.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Findel declared today that, with revenues jumping 6.1% in the six months to September to £226m, that adjusted pre-tax profit blasted to £11.9m from £1.9m a year earlier.

The positive result again underlined the bright outlook for its core Express Gifts arm. Like-for-like sales here exploded 15.8% in the first half, reflecting in part Findel’s decision to start marketing for the Christmas period in September rather than October.

The small-cap noted that improved marketing activity at its Studio.co.uk brand, combined with its improved customer retention rates, prompted customer numbers to climb by 230,000 from the corresponding 2016 period. It now boasts an active base of 1.7m active users.

Don’t look this gift horse in the mouth

With sales taking off again, City analysts are expecting Findel to recover from recent earnings reverses and deliver stonking profits growth during the medium term — bottom-line expansion of 11% and 14% is currently expected for the years to March 2018 and 2019 respectively.

While pressures on the retail sector are likely to rise in the months and years ahead as British economic growth cools, exacerbating fragile consumer confidence as well as the strain on shoppers’ finances, I am confident that Findel’s focus on the value end of the market should help earnings to continue thriving.

And of course the country’s successful transformation of its Education division should also set it up to enjoy solid sales growth here. Findel said that, following initiatives such as improved customer websites and better prices during quarter two, that online orders had jumped to 25% this month from 10% back in March.

Despite Findel’s share price jump today the share can still be snapped up very cheaply. As well as boasting a forward P/E ratio of just 8.9 times, the company sports a corresponding PEG readout of 0.8. All things considered, I reckon the Cheshire business is an irresistible pick right now.

Jobs giant

Recruitment specialist Hays (LSE: HAS) is another stock predicted to enjoy a bulging bottom line.

The stock, which has a long history of delivering double-digit profits growth, is expected by City analysts to keep the run going with a 14% advance in the year ending June 2018.

These estimates make Hays pretty decent value too. A prospective P/E ratio of 16.9 times may not be much to shout about, although a corresponding PEG readout of 1.2 certainly is.

And there is plenty of reason to expect earnings to keep steaming higher. While pressures in its home market is cause for concern (like-for-like net fees in the UK rose just 1% during July-September), Hays enjoyed quarterly net fee performance in the period thanks to the strength of its overseas operations. In Asia Pacific and its aggregated Continental Europe & Rest of World division, like-for-like net fees shot 14% and 13% higher respectively in the quarter.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild has no position in any of the 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.