These Growth Stocks Could Gush Higher In June (Including This FTSE 100 Giant). Get Stuck In!
Today I’m looking at a handful of growth stocks which could experience a serious pick-up in demand in the coming weeks.
A Top Safety Play
The release of full-year results on Tuesday, June 11 could be enough to send Halma’s share price — which has already gained 34% since the dawn of 2019 — through the fresh record peaks struck last week.
The FTSE 100 business has been putting out a series of striking market updates over the past year, and the steady improvement in market sentiment since the turn of the year has finally helped it to sweep skywards. Last time it updated shareholders in March it declared that “there has been widespread revenue growth geographically,” led by strongest growth in its key US region, and was a performance which paid tribute to Halma’s acquisition-led growth strategy.
And there was plenty to celebrate on this front, too. The safety equipment manufacturer said that the integration of all acquisitions made in the year to date was “progressing well;” that the acquisition pipeline “remains healthy;” and that “cash generation remains strong,” putting it in great shape to pursue further acquisitions and keep organic investment rolling as well.
Now Halma has printed record profits for fifteen straight years on the bounce, and City brokers anticipate it to report peaks for a sixteenth once those full-year results are put out for the 12 months to March next month. And City analysts expect this heady run to continue with rises of 10% for this fiscal year and 9% for the following period.
The Footsie firm’s forward P/E ratio of 32.3 times means that it doesn’t come cheap, on paper at least. I reckon, though, that a stock with such an accomplished history of profits growth is worth such a tidy premium.
The Housing Hero
Expect some resilient-if-unspectacular set of numbers from Bellway when it also updates the market on Tuesday the eleventh.
Given the strong commentary it published last time out in March, a statement in which it advised of a 8.7% pre-tax profit improvement between August and September and celebrated the “strong demand for affordably priced homes,” the environment certainly appears robust enough for the FTSE 250 company, like Halma, to keep its long-running history of earnings growth on track too. No wonder Bellway is taking steps to supercharge production, then (completion numbers rose 5.6% in the six months to January to 5,007 homes).
It’s a recipe for Bellway and its peers to keep on growing profits year after year, even if Brexit-related uncertainty has put paid to the spectacular annual earnings rises pre-2016 as property price growth has slowed. And as a consequence City brokers expect the company to report bottom-line expansion of 4% in this fiscal year and 2% in the following period.
After a strong start to the year Bellway’s share price has come off the boil more recently as the Brexit storm has intensified in Westminster. I reckon, though, that next month’s update will remind investors of what a great growth stock it is and thus believe it will rise again, assisted by its rock-bottom valuation — at current prices it boasts a forward P/E ratio of just 6.6 times.