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In your 40s? Two Footsie shares that might be worth buying

With the FTSE 100 having risen by over 6% in the last month, many investors may feel unsure as to whether now is a good time to invest. Certainly in the short run, a pullback cannot be ruled out. But over the long run, there appears to be significant growth opportunities within the index.

Therefore, for any investor who has a long-term time horizon, now could be an opportune moment to invest. With that in mind, here are two stocks that appear to offer a potent mix of growth and value potential for the coming years.

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Growth potential

After experiencing an uncertain period in recent years, travel company TUI (LSE: TUI) appears to have a bright future. The company is expected to report a rise in its bottom line of 12% in each of the next two financial years, as consumer demand for travel opportunities within Europe is due to increase.

The company seems to be making progress with its strategy. Its recent half-year results showed that it’s delivering on its potential in areas such as cruises and in its hotels division. It’s also enjoying strong sales growth, with 59% of its summer 2018 programme sold as at the half-year stage.

Despite its improving outlook, TUI trades on a price-to-earnings growth (PEG) ratio of just 1.4. This suggests that it offers a wide margin of safety. Furthermore, it has a dividend yield of 3.7% from a payout that is covered 1.8 times by profit. This indicates that dividend growth could be high in future years and may contribute to an impressive total return.

Changing outlook

Also offering long-term growth potential within the FTSE 100 is construction and materials specialist CRH (LSE: CRH). The company has experienced mixed fortunes in recent months, with poor weather conditions hurting its top-line performance. However, with it announcing a further divestment programme that is expected to result in up to €2bn of asset sales over the medium term, it could become a leaner and more efficient business in future years.

With CRH forecast to post a fall in its bottom line of 4% this year and a rise in its earnings of 13% in the next financial year, it seems to have an improving outlook. Despite this, it trades on a PEG ratio of around 1.1, which suggests investors have factored in its near-term uncertainty.

Furthermore, the company is forecast to increase its dividends per share by 5.5% in the next financial year. Although it may only yield 2.5% in 2019, its dividend payments are covered three times by profit. This suggests that it could deliver further growth in dividends over the medium term. And with a €1bn share repurchase programme having recently been announced, its total return potential appears to be relatively impressive over the long run.

There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it!

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Peter Stephens 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.