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2 cheap FTSE 100 growth stocks I’d buy right now

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There is no shortage of FTSE 100 greats that can be picked up for next-to-nothing right now. One such stock is DCC (LSE: DCC), a share that should warm the cockles of growth and income investors alike.

Acquisitions are a key part of the fuel distributor’s growth strategy and DCC shows little sign of slowing down on this front. In an exciting move, its Health & Beauty Solutions division shelled out £35m last month on Elite One Source Nutritional Services to enter the gigantic US healthcare and dietary supplements market.

Its LPG division has also made two meaningful acquisitions since the turn of the year, and its robust balance sheet should keep earnings-boosting M&A action rolling along nicely.

Of course DCC is not without risk — the business of converting its M&A pipeline is never a foregone conclusion, while integrating acquisitions into the broader business can also be riddled with problems. However, the Footsie share has a pretty splendid record on this front.

A top ‘all-rounder’

Indeed, DCC has proven its mettle as a pick for those seeking reliable earnings improvement year after year. And City analysts expect this record to keep rolling for some time yet.

The business has grown earnings at double digit percentages in four of the past five years, and although City analysts expect expansion to slow to 9% in the year to March 2018, it is expected to pick up the pace again from fiscal 2019.  A 19% rise is forecast for next year.

A forward P/E ratio of 18.3 times for the upcoming year may look slightly toppy from a conventional perspective. However, scratch a little deeper and DCC becomes an obvious value pick thanks to its corresponding PEG multiple which sits bang on the bargain watermark of 1.

And as I have said, there is plenty for dividend chasers to get excited about too. Payouts have risen at a stratospheric rate in recent times and for this year a 122.4p per share dividend is expected, up from 111.8p last year and yielding 1.8%. For fiscal 2019 this is expected to move to 137.2p, meaning a chunkier 2% yield.

What’s more, these estimates are covered 2.6 times to 2.7 times by projected earnings through to the close of next year, providing shareholders with that little extra peace of mind.

Stunning growth forecasts

Just Eat (LSE: JE) is another big-cap share whose excellent earnings prospects make it worthy of serious attention.

In 2018 the takeaway middleman is expected to report a 23% earnings improvement, and to follow this up with a splendid 33% increase next year. And it isn’t difficult to see why City brokers are so enthusiastic — while the company is in danger of losing share to competitors such as Deliveroo, the market is growing at such a rate that Just Eat should continue delivering brilliant revenues growth.

And on top of this, the vast amounts the business is investing in its operations should help it to maintain a large and loyal customer base.

It may look expensive at first, trading on a prospective earnings multiple of 35.8 times. However, a corresponding PEG ratio of 1.6 is not too demanding. And given the progress it is making across the globe (orders jumped 26% in 2017, to 172m), I reckon the takeaway titan is a terrific selection at current prices.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Just Eat. 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.