The Motley Fool

FTSE 250 stock Plus 500 is soaring today. I think there could be more to come

Shares in online trading platform and FTSE 250 member Plus 500 (LSE: PLUS) were well into positive territory this morning as the firm hailed an “outstanding performance” over the first half of 2020. 

I suspect there could be more gains on the cards over the rest of the year.

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...

Plus 500: market crash winner

Thanks to March’s market crash and the volatility seen since, total revenue at Plus 500 rocketed 281% to $564.2m compared to the same six-month period in 2019. Earnings before interest, tax, depreciation and amortization (EBITDA) came in at $361.8m — a stonking 452% higher. 

Unsurprisingly, the company welcomed a huge number of new customers (over 198,000) over the half-year. Client deposits jumped from just over $467m in 2019 to $1.65bn over the period and 47 million trades were placed — a dramatic increase on the 17.5 million seen last year.

For those already holding the stock, the good news didn’t stop there.

Dividend delight!

In addition to announcing a new share buyback programme, Plus 500 also confirmed an interim dividend of $0.95 per share. That’s a rise of almost 250% on 2019’s cash payout! It also said that it was considering paying a special dividend to holders at the end of the full year. Based on trading over the last couple of months, I think the latter is very likely to happen.

It said today that customer income in the second half of its financial year so far was still “more than double that of the prior year“. Moreover, Plus 500 is absolutely rolling in money. With no debt to its name, the FTSE 250 stock had almost $588m in cash at the end of June.            

The nature of its business means the firm won’t be to every investor’s taste. Nevertheless, it’s hard to be bearish on the company as things stand. 

Indeed, with the shares trading on just six times earnings before today’s results and the possibility that markets could remain skittish for some time to come, I certainly wouldn’t blame anyone for taking a stake now. 

Not quite as tasty

Also reporting today was FTSE 250 peer Domino’s Pizza (LSE: DOM). Unfortunately for its owners, the numbers weren’t quite as tasty as those offered by Plus 500 (although that’s a big ask). That said, they still looked pretty reasonable under the circumstances.

Thanks to a 5.5% rise in system sales over the 26 weeks to 28 June, statutory pre-tax profit from continuing operations came in 13.6% higher at £45.8m. This was despite the company needing to remove collections during the lockdown and “some inevitable and, in certain areas considerable, incremental costs”. 

Looking ahead, Domino’s reported that recent trading had been “encouraging“. Another positive for shareholders was the announcement that it would be reinstating its dividend. The deferred FY19 payout of 5.56p per share will now be paid out on 18 September. 

But let’s not get ahead of ourselves. In line with other businesses that rely on discretionary spending, Domino’s went on to say that it was “too early to conclude how customer behaviour will evolve“. The company’s fractious relationship with its franchisees still needs to be resolved as well.

Having initially bounced back to form in the aftermath of March’s market crash, Domino’s share price has now settled at roughly where it was at the start of the year. Unlike Plus 500, I can’t see a catalyst for the shares to continue rising at the current time.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Domino's Pizza. 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

The renowned 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 enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.