I haven’t got a lot of time to do it but Hays (LSE: HAS) is a share I’m thinking of buying ahead of the release of new financials slated for Tuesday, 16 July. There’s plenty of stocks out there that could plummet on fresh newsflow next month, but I reckon this recruitment giant is one that can thrive.
In my eyes it’s the perfect panacea for investors seeking to protect themselves against the short-term turbulence created by Brexit and the possible long-term economic implications should a no-deal European Union withdrawal come to fruition. Don’t underestimate the stunning progress this FTSE 250 firm is making on foreign shores is my message, in particular in Germany and in its so-called Rest Of World operations (which also exclude Australia and the UK).
A globe-trotting great
Collectively, these divisions account for 60% of group net fees, units in which like-for-like revenues rose 6% and 9% in the three months to March, respectively. In total, Hays saw fees rise in excess of 10% in more than half of the 33 countries in which it trades in that period too. It’s no wonder that City analysts are expecting another year of decent earnings growth for the 12 months to June (by 10% to be exact).
A recent share price spurt (+11% since the start of this month) leaves Hays trading at levels not seen since the autumn, and I reckon next month’s trading statement will embolden investor appetite still further. A forward P/E ratio of 12.9 times suggests the recruiter remains quite undervalued, however, and this gives additional space for fresh bouts of buying.
One other thing. At current prices, Hays also carries a prospective dividend yield of 6.1%, adding another feather to its cap.
Good for your ‘elf
I’m also considering loading up on some Games Workshop Group (LSE: GAW) shares before numbers for the fiscal year ended May are disclosed.
It really has been a quarter to remember for the FTSE 250 firm, a leading light in the field of miniature wargaming. Its share price is up by a staggering 55% in the second quarter thus far, helped by the release of another solid update in early June in which it declared that sales and profits kept on chugging higher — and across all channels, too — since it informed the market a couple of months earlier.
Was anyone expecting anything different, though? I’ve lauded Games Workshop’s dominant position in a specialised retail segment, and one which commands fiercely-loyal legions of fans the world over, giving it some excellent protection during tough economic conditions. The fantasy giant is expanding its global footprint at a rate of knots, unsurprisingly, setting it up for some serious profits growth in the years ahead too.
For the moment, Games Workshop’s expected to print a 6% earnings rise in fiscal 2020 and to raise dividends again, resulting in an inflation-stripping 3.2% yield. I don’t care about its high forward P/E ratio of 24.6 times. In my mind, it’s a brilliant long-term income play to snap up today.
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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.