Unfortunately not all investors in the UK and abroad are as clued up as they could be, so we’ve been at pains more recently to identify a number of investment strategies that could help you stave off retirement poverty.

In a recent article I selected some of the best dividend shares from the FTSE 250 that should more than offset any shortfall caused by the State Pension. Given the positive response to these picks from our audience, I’m at it again today, looking at two great pharmaceutical stocks that could help you to retire on a fortune: Hutchison China MediTech (LSE:HCM) and Animalcare (LSE: ANCR).

Tech This Out

Hutchison isn’t turning a profit right now. It isn’t expected to turn a profit by the end of the decade at least. But share investors who are in it for the long haul should give the Asia-focused medicines giant close consideration on the back of its bulging product pipeline.

On the immediate horizon, the market waits with baited breath for news on the company’s oncology treatment fruquintinib for the remainder of the year. It is expecting approval and launch of the product in China for colorectal cancer in the months ahead, and is also seeking Phase III testing results for lung cancer application soon.

Things are likely to remain exciting in 2019 and beyond. Following positive Phase II data on its savolitinib cancer battler, Hutchison has begun exploring the possibility of accelerated approval from Chinese regulators to bring the treatment to market sooner. In addition, another major drug, tumour treatment sulfatinib, is due to begin Phase III studies in China next year.

Hutchison’s global expansion strategy also offers plenty of reason to expect earnings to detonate in the years ahead. During Q2, its Hutchison MediPharma (US) division started operating in New Jersey, a move designed to bolster its R&D and regulatory activities outside of Asia and also prepare the ground for new product launches.

Animal magic

The ballooning market for veterinary medicines also makes fellow AIM stock Animalcare a hot growth prospect.

Investor appetite soured in the spring after it warned that the impact of a changing sales mix on gross margins, allied with a recent rise in competitive pressures, would see earnings fall short of expectations in 2018. This subsequent re-rating now leaves Animalcare dealing on a forward P/E ratio of 12.6 times, and this represents a brilliant time for patient investors to jump in, I believe.

Revenues at the business rose 6.4% in the six months to June, it advised in August, and its bubbly pipeline promises more impressive top-line progress. It has several product launches slated for the remainder of 2018 and for the start of next year,  including Cortacare which received approval from the Committee for Medicinal Products for Veterinary European Medicines in June.

An added reason to investing in Animalcare is that the business, unlike the vast majority of pharma players, offers quite fatty dividend yields — for 2018 and 2019 these sit at 4.2% and 4.3% respectively. There’s still a lot to cheer over at the business, and especially at current prices. It’s a great buy in my book.

The post Don’t worry about the State Pension! These 2 pharma stocks could make you VERY wealthy appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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.

Even as the pharma giant has suffered years of patent expiration problems (blockbuster asthma and COPD battler Advair, for instance), which have hammered revenues, I have remained optimistic that its world- class research and development teams would create the next generation of industry-leading drugs that would deliver titanic earnings growth many years into the future.

While exclusivity issues are set to remain a problem — GlaxoSmithKline estimates that turnover generated the US by Advair will slump 30% at constant currencies in 2018 — sales data surrounding newly-launched labels remains highly encouraging.

Sales of its shingles battler Shingrix, for example, generated sales of £110m in the US and Canada between January-March alone, and the drug has recently received the green light from regulators for GlaxoSmithKline to try and replicate this success in Europe and Japan. Meanwhile, sales of its stable of HIV drugs rose 14% at constant exchange rates in the first quarter, with new label Juluca added to GlaxoSmithKline’s formidable portfolio in just the past few months.

Clearly, GlaxoSmithKline still has a long way to go to replace the lost earnings created by massive patent losses. However, the firm’s bulging product pipeline and its illustrious development record suggests to me that the future is very bright.

Check out that yield!

While the aforementioned legacy issues may have smashed the FTSE 100 firm’s appeal as a sage pick for growth hunters, the huge amounts of cash being generated by its operations has provided some relief to income investors.

You see, thanks to its strong balance sheet GlaxoSmithKline has been able to keep the dividend locked at 80p per share for the past several years. And City analysts are forecasting that the pharma ace will keep payments within this ballpark through to the close of 2019, despite predictions of more bottom-line turbulence (a 5% profits fall in 2018 and a 5% rise next year).

As a consequence, GlaxoSmithKline rocks out with a massive 5.2% yield. This, combined with the company’s undemanding forward P/E ratio of 14.6 times, makes it a very attractive investment destination today.

A different dividend star

Another hot income prospect from the pharmaceuticals sector is Animalcare (LSE: ANCR).

This AIM-listed selection, thanks to the execution of a game-changing M&A during the past year, now boasts a massive continental footprint in the fast-growing area of medical care for companion and farm animals. Animalcare saw revenues boom 22.4% in 2017 to £83.7m and I’m confident that sales should continue growing at a stratospheric rate.

My view is shared by City brokers who subsequently expect earnings to grow 5% and 10% in 2018 and 2019, respectively, projections that also lead to predictions of further dividend growth. Thus last year’s 6.7p per share reward is anticipated to rise to 7.1p this year and to 7.2p in 2019, resulting in a jumbo 4.3% yield through to the end of next year.

A forward P/E multiple of 12.6 times also suggests Animalcare is undervalued relative to its estimated growth trajectory. I reckon the business, like GlaxoSmithKline, is a great stock to pick up today.

The post GlaxoSmithKline isn’t the only high yield pharma stock I’d buy today appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. 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.

The AIM-quoted business, as one could probably guess, is an expert in the field of medical treatment for our furry friends. Its self-stated mission “is to renew and strengthen our product range throughout the UK and through distribution partners into other key European territories” and latest trading details revealed the terrific progress it is making in pursuing this objective.

Animalcare saw revenues leap 9.4% during 2017, to £91.9m, or 3.4% at stable exchange rates, beating its earlier expectations. And following the £134m acquisition of Ecuphar last year it now has the scale to really make a splash in the animal health market across the whole of Europe.

City analysts are expecting the company to keep its long record of earnings growth rolling with bottom line rises of 3% and 11% in 2018 and 2019 respectively, next year’s predicted result reflecting the expected revenues and margin opportunities created by 2017’s monster acquisition.

The petcare segment is becoming big business and the Ecuphar buy makes Animalcare a significant player both here in the UK and internationally. I therefore think a forward P/E ratio of 18.9 times is fair value given the pharma star’s bright growth outlook.

Yields leaping to 5%+

An added bonus is that Animalcare’s progressive dividend policy produces a chunky 2.5% yield through to the close of next year. Those on the lookout for yields that blow the competition out of the water, however, may want to give RSA Insurance Group (LSE: RSA) a closer look too.

The FTSE 100 insurer’s restructuring measures of some years back have transformed it into a profit-making machine with brilliant balance sheet strength, qualities that have seen it light a fire under dividends in recent times.

And City analysts expect shareholder payouts to keep on sprinting higher for some time yet. Supported by a predicted 16% earnings improvement in 2018 RSA is expected to raise the dividend to 29.9p per share from 19.6p last year, meaning share pickers can bathe in a gigantic 4.7% yield.

This isn’t the end of the matter, either. In 2019, dividends are expected to rise to 33.8p, helped by an anticipated 6% profits rise and a figure that yields a terrific 5.3%.

A bargain-basement forward P/E rating of 12.6 times seals RSA’s investment case, in my opinion. Indeed, this ultra low reading fails to take into account the Footsie favourite’s exceptional revenues outlook in the UK, Scandinavia and Canada, territories in which it is a major player.

And it also fails to reflect the company’s successful attempts to drive down costs (it now expects to make gross savings of £450m by 2019). I believe RSA is a brilliant bet for growth and income chasers alike.

The post I’d buy this pharma stock and this FTSE 100 dividend hero appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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.

Hidden gems

That’s all well and good if you’re a risk-averse investor unwilling to fish outside the FTSE 100 or even FTSE 250. But what about the rest of us? How are we to supposed to unearth the hidden gems that could go on to become tomorrow’s big winners without adequate coverage and commentary?

Don’t worry, that’s what we’re here for at The Motley Fool. Here, you’ll find analysis, opinion, and commentary on a wider range of UK-listed companies, no matter how big or small. Concerning the latter, it’s often these smaller companies than can generate the biggest returns, with rich pickings to be had from little-known firms flying under the radar of most retail investors.

Identification microchips

For instance, I doubt that many of you will have read much about Animalcare Group (LSE: ANCR). And yet this AIM-listed veterinary medicine provider has been supplying a wide range of animal health products for more than a quarter of a century, from identification microchips and pharmaceuticals, to pet welfare products and practice equipment.

For the 2017 financial year, the York-based group delivered a 7.9% increase in revenues to £15.87m, with underlying operating profits rising 11.8% to £3.57m, compared to £3.19m for FY2016. The Licenced Veterinary Medicines arm of the business had a particularly strong year, with a 17.2% leap in revenues to £10.8m, mainly due to export sales which soared 60.1% to £1.67m.

Reverse takeover

But by far the highlight of the year was the acquisition of European animal health business Ecuphar. The £134m reverse takeover is likely to be hugely transformational for the group, providing it with enhanced scale and capabilities to create a pan-European animal health platform from which to accelerate growth.

The deal has expanded the group’s direct sales platform to cover seven countries (compared to just one country previously), with its international reach now covering 50 export markets, as well as greatly increasing the depth and diversity of its licensed veterinary medicines product range.

AIM Transaction of the Year

It seems I’m not the only one that thinks the acquisition was a shrewd one, with Animalcare winning the ‘Transaction of the Year Award’ at the 22nd Annual AIM Awards 2017 for its deal to merge with Ecuphar. The award is given to companies that have been “transformed by a single financial or commercial transaction during the period under review and thereby creating significant shareholder value.“

As an enlarged group Animalcare has certainly transformed itself into a growing, highly cash generative, dividend-paying company with a solid pipeline of new products and multiple cross-selling opportunities, and as such a P/E rating of 18.5 doesn’t seem too demanding to me at all.

The post This promising small-cap stock could be a millionaire-maker appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Bilaal Mohamed has no position in any 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.

Goals Soccer Centres fell 5% today after announcing that while total sales increased 0.5% during 2017, to £33.7m, on a like-for-like basis revenues actually dropped 0.5% year-on-year. The AIM-listed business advised: “The decline was exacerbated by the disruption of closure due to investment in upgrades.”

As a result profits for the full year will be roughly in line with the lower end of estimates, the company advised.

Goals noted that the trading conditions it had experienced in the summer had carried through into the the second half. On the one hand it advised: “Major Arena investment is delivering good sales growth in a large group of sites, whilst minor refurbishment has reduced the rate of sales decline.” But it added: “Sites that have yet to receive investment have continued to perform poorly.”

On the defensive

The sluggish rate at which the turnaround programme is progressing continues to infuriate the market, as illustrated by the company’s steady share price slide. Back in August it confessed that its return to profit is taking “slightly longer than anticipated,” and the resignation of chief executive Mark Jones the following month was hardly a ringing endorsement that its recovery strategy is running to plan.

Today’s update will pour further scrutiny on hopes that profits are finally about to flip higher.

Prior to the release, the business was expected to have endured a 21% fall in 2017, the fourth bottom-line reverse if realised. Meaty increases of 13% and 10% were forecast for 2018 and 2019, however brokers are likely to be busy scribbling out these estimates in the wake of Monday’s profit warning and further downgrades, of course, cannot be ruled out further down the line.

A forward P/E ratio of 9 times may be cheap, but not cheap enough to encourage me to invest. The business may have its fans, but I think risk-averse investors should give Goals Soccer Centres a wide berth.

Animal magic

Instead, I believe those seeking little-known growth stocks would be better served by checking out Animalcare Group (LSE: ANCR) today.

The medicines giant advised today that total revenues rose 9.5% during the 12 months ending December, to £91.9m, or 3.4% on a constant currencies basis. As a consequence, profits should meet management expectations, the business added.

Animalcare has proven over many years its mettle as a reliable earnings generator. And while profits expansion is expected to slow to 1% in the year to June 2018, this should speed up again before long (an 11% rise is forecast for fiscal 2019).

This comes as no surprise given the strength of the veterinary care specialist’s product pipeline, not to mention the long-term benefits afforded by its reverse-takeover of rival Ecuphar last June. In my opinion, Animalcare is a growth great worthy of a premium prospective P/E multiple of 19.5 times.

The post A secret growth stock to watch in 2018 appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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.

The York-based business announced that revenues increased 7.9% in the 12 months to June 2017, to £15.9m, a result that pushed underlying EBITDA 13% higher to just under £4m.

Whilst Animalcare saw sales at its Animal Welfare Products arm rise 5.5% in the first half, to £2.9m, it was left to its Licensed Veterinary Medicines division to really steal the show.

Revenues here jumped 17.2% year-on-year, to £10.8m, reflecting strong demand for its key ranges like intravenous fluids, anaesthetics and analgesics and the impact of eight treatment launches — like sedative Acecare which generated an impressive £300,000 worth of sales — in the period. And Animalcare saw sales from outside the UK really take off in the period, these rising 60.1% to £1.7m.

Big and beautiful

And there is plenty of reason to expect sales at the drugs leviathan to continue marching northwards. It pumped £2m into developing its product pipeline in the last fiscal year, up from £1.6m in 2016, and Animalcare is expecting to launch two of the four products registered last year in the current period.

Meanwhile, the £134m reverse takeover of Ecuphar back in July gives the company’s revenues picture an extra shot in the arm, a move that significantly expands its product portfolio, gives it formidable scale, and makes it a major player in Europe’s animal health market.

Earnings growth is predicted to be pretty muted in the near-term, however, with City analysts forecasting a 1% bottom-line improvement in the 12 months to next June. However, I reckon those seeking a stock to retire on could do worse than splash the cash on Animalcare given its souped-up presence in a rapidly-expanding market.

Indeed, I am convinced the medicines mammoth is more than worthy of its high forward multiple of 24.8 times.

Looking good

I also reckon that Ted Baker (LSE: TED) could provide you with the financial independence we all crave in the years ahead.

The fashion star has long proved a dependable earnings generator, and City brokers are predicting further healthy growth in the years ahead — rises of 13% are expected in both the years to January 2018 and 2019 alone.

These projections leave Ted Baker dealing on a forward P/E ratio of 20.3 times, making it a costly paper pick just like Animalcare. But in my opinion the London firm’s explosive sales potential makes it worthy of such a rating.

In its latest trading release it advised that sales detonated 14.3% between January 29 and June 10, with revenues at stable exchange rates rising by a very healthy 8.4%. Ted Baker’s expansion scheme to meet the demand of shoppers across the globe is clearly delivering the goods, as is its online proposition which delivered a 35.9% improvement in takings in the period.

And those seeking abundant returns should also be encouraged by the stock’s ultra-generous dividend policy. Dividends are expected to shoot to 60.4p and 69.5p per share this year and next, up from 53.6p in fiscal 2017 and yielding 2.3% and 2.7% respectively. And Ted Baker’s electrifying earnings prospects are likely to keep payouts growing at a stratospheric rate.

The post 2 stocks I reckon could help you achieve financial independence appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Ted Baker plc. 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.

Small cap, big growth

Veterinary medicine supplier Animalcare Group (LSE: ANCR) may not be a company that’s on your radar. But the group’s shares have risen by 56% over the last 12 months and recent results suggest that the shares may be worth a closer look.

Animalcare’s sales rose by 12% to £7.97m during the six months to 31 December. Operating profit rose by 23% to £3m, while the group’s operating margin rose from 21% to 23.2%. Retailers’ profit margins often rise as they sell more stuff, because their fixed costs per unit sold fall. This is known as operational gearing.

The shares now trade on a 2016/17 forecast P/E of 21, with a prospective yield of 2.1%. That’s not cheap, but the group’s £7m net cash balance and high profit margins should help to limit downside risk. I’d continue to hold.

Shareholder returns could rise

Trading is expected to improve over the coming year at fashion giant Burberry (LSE: BRBY). The impending arrival of the firm’s highly-rated new chief executive, Marco Gobbetti, could provide a further catalyst for the stock.

After a period of poor performance, there are already signs of improvement. Underlying sales rose by 4% to £735m during the third quarter, with comparable sales growth of 3%. The firm’s Asia Pacific division returned to growth and Burberry notched up comparable sales growth of 40% in the UK, thanks partly to tourists cashing in on the weaker pound.

Burberry shares aren’t cheap, on 22 times forecast earnings and with a 2.3% dividend yield. The weak pound has also boosted profits.

However, the group’s profit margins are attractive, and a high percentage of earnings are converted into free cash flow each year. Net cash of £529m means that there is scope for further share buybacks, dividends or even acquisitions. I’d hold, and would be a buyer below 1,500p.

Juicy performance could reward shareholders

BrainJuicer Group (LSE: BJU) may have a crazy name, but the group’s business is highly relevant and growing fast.

BrainJuicer is a hi-tech marketing consultancy. It uses in-house systems to help companies strengthen their brand appeal and make their advertising more effective.

For investors, the attraction is that earnings per share have risen by an average of more than 15% each year since 2011.

This stock has risen by 29% so far this year. An upbeat trading statement in January was followed by strong results in February. BrainJuicer reported a 24% rise in revenue and a 38% increase in pre-tax profit for 2016. Net cash was £7.75m at the end of the year, despite the firm returning £5.25m to shareholders in 2016.

In my view, BrainJuicer’s biggest weakness is that forward earnings visibility is limited. The group’s track record suggests this is an acceptable risk, but the stock’s forecast P/E of 17 doesn’t leave much room for error. I’d hold at current levels.

The post 3 growth stocks that could make you rich appeared first on The Twelfth Magpie.

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• This FTSE 100 share pays no dividends. Could that change?

Roland Head has no position in any shares mentioned. The Motley Fool UK has recommended Burberry. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Unsurprisingly, this is a booming market as credit offerings proliferate across the world and identity theft also becomes a larger issue. This is borne out in the company’s Q1 results that showed a 5% rise in organic revenue on a constant currency basis. Much of this growth was down to strong performances in Latin America and Asia, two regions with massive long-term potential for credit services.

Of course, a high moat to entry, strong operating margins of 26.5% at year-end, and considerable growth prospects mean the shares aren’t cheap at 21 times forward earnings. Despite this pricey valuation, Experian’s high cash generation and impressive market share make it a good bet for future growth in my book.

Investors would be forgiven for not being as familiar with discount retailer B&M (LSE: BME) as the company purposely spends next to nothing on advertising and relies instead on word of mouth. Cutting out this major expense alongside no-frills stores led to operating margins of 8.5% last year. While this may not seem impressive next to Experian, it’s great for value retailers and well ahead of competitors such as Poundland.

Good, but not good enough?

Q1 results laid out the growth potential of B&M, as total sales in the UK rocketed by 21.3% after the company opened 12 new stores. With 500 locations now operating in the UK, the company’s target of 850 leaves considerable room to grow in the near term.

Despite the high headline growth, I’m not ready to take the plunge with B&M just yet. The main reason is Q1 saw like-for-like sales growth in the UK shudder to a dead halt at 0%. Admittedly, shoppers become less price-conscious the further from the Financial Crisis we move, but this lack of growth suggests to me a B&M-specific issue: that new stores are cannibalising sales from existing locations. That’s why I’ll be staying on the sidelines for the time being, despite good margins.  

Animal magic

Full-year results for aptly named veterinary supplies provider Animalcare (LSE: ANCR) were also rosy as revenue rose 8.6% on the back of increased medicine sales. This continues several years of solid growth for the firm as investing in its pipeline of medicines pays off handsomely.

The company hasn’t squandered the proceeds from extra sales and has built up a war chest of £7.1m with no debt whatsoever. For a small-cap whose sales were only £14.7m for the year, this is a very good sign. Cash isn’t simply being squirrelled away though as dividends are expected to yield 2.4% this year while still being covered 1.9 times by earnings.

The most intriguing bit of news may be that Animalcare finally hired a dedicated export manager during the year and duly saw a 22.8% jump in overseas sales. If the company can maintain 20% operating margins and fully exploit opportunities abroad, the shares may be worth a closer look, despite trading at 21 times forward earnings.

The post Do positive trading updates mean it’s time to buy Experian plc, B&M European Value Retail SA & Animalcare Group plc? appeared first on The Twelfth Magpie.

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• Here’s how £10 a day invested in the stock market can cut down retirement age by 5 years
• If Experian is such a great FTSE 100 stock, why are its shares down a third?
• Prediction: 2 FTSE shares that could outperform the S&P 500 between now and 2030
• The ISA strategy that could quietly turn small sums into life-changing wealth
• Not sure what a SIPP is? 3 reasons it could pay to know!

Ian Pierce has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Box up a beauty

Packaging specialists Smurfit Kappa (LSE: SKG) furnished the market with consensus-beating numbers in Wednesday’s session, news which sent the firm’s shares spiralling 15% higher from Tuesday’s close.

The Dublin-based business — which also advised today that it is seeking a premium listing on the London Stock Exchange — saw pre-tax profit leap 58%, to €599m, during 2015, even though revenues only moved marginally higher to €8.11bn.

And Smurfit Kappa believes it has built a robust base upon which to “deliver good earnings growth in 2016,” the firm having splashed out €380m in acquisitions last year alone and an additional €450m to improve its existing asset and project quality.

The City certainly believes Smurfit Kappa has plenty left in the tank, and a predicted 17% earnings increase this year leaves the stock dealing on an ultra-low P/E rating of 9.2 times. And when you factor in a projected dividend of 73 euro cents per share — yielding a handy 2.9% — I believe the Irish packagers are a great long-term selection for value seekers.

Animal magic

Veterinary care provider Animalcare (LSE: ANCR) has not fared as well on Wednesday after releasing choppy half-year numbers, and was last dealing 2% lower on the day.

Animalcare saw total revenues advanced 2.7% between July and December, to £7.11m, with strong growth at its Licensed Veterinary Medicines unit shrugging off the problem of tough comparatives. This solid top-line performance was not enough to stop pre-tax profit sinking 12.9% during the period to £1.53m, however.

Still, I believe investors in Animalcare still have plenty to be excited about. The York-based business has invested huge sums to improve its sales teams and marketing strategy to facilitate future revenues growth, while its bubbly product pipeline is anticipated to enhance earnings from 2017.

In the meantime Animalcare is expected to chalk up a 7% earnings dip in the year to June 2016, resulting in an slightly-elevated P/E rating of 20 times. But I believe the firm’s growing position in a rapidly-expanding market should deliver solid earnings expansion in the longer term.

Bank heading lower

Market appetite for the banking sector has imploded in recent weeks, as fears concerning firms’ exposure to worsening commodity markets — combined with concerns over the financial health of emerging markets — have intensified.

Global banking giant Santander (LSE: BNC) has seen its share price fall to fresh multi-year troughs in February, and the firm has shed 40% of its value since during the past 12 months alone. And further pain could well be on the cards as the Brazilian economy continues to flail and the real sinks in value — Santander sources a fifth of total profits from the country.

And Santander’s precarious growth outlook, combined with a flimsy balance sheet, is casting doubt on the firm’s ability to generate market-beating dividends.

The outlook is far from catastrophic at the present time, however, and the City expects Santander to enjoy a 5% earnings uptick in 2016, resulting in an ultra-low P/E rating of 6.8 times. And predictions of another 20-euro-cent-per-share dividend creates a very-decent yield of 5.7%.

But I believe downgrades to these forecasts could be on the horizon as conditions in the bank’s key marketplaces keep deteriorating.

The post Are Banco Santander SA, Smurfit Kappa Group Public Ltd Co-Ord Sh & Animalcare Group Plc Brilliant Buys? appeared first on The Twelfth Magpie.

More reading

• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?
• Will SpaceX, Nvidia, or Alphabet be the first $10trn stock?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.