However, Boohoo is not the only three-bagger which could be worth a closer look right now. One growth stock reporting on Wednesday could have investment potential for the long run.

Improving performance

The company in question is healthcare-focused strategic marketing company Cello Group (LSE: CLL). It has risen by 236% during the last five years. Its first-half results showed that it is making encouraging progress with its strategy, having posted a rise in gross profit of 12.9% and an increase in like-for-like gross profit of 5.4%. Its expansion in the US is progressing well, and this could create further growth opportunities for the business in the long run.

Furthermore, the company’s acquisition of Defined Health in February provides it with an additional growth avenue. The integration process is progressing well, and the acquisition is already making a positive contribution to the company’s financial performance. With the business on target to meet expectations for the full year, it could become increasingly popular among investors and see further share price gains in future.

Growth potential

Both Cello and Boohoo could be worth buying at the present time. Of course, neither stock is particularly cheap, with the former trading on a price-to-earnings (P/E) ratio of 16.3, and the latter’s rating being 82.9. At first glance, this may suggest that they could be due a fall in the near future – especially if investors decide to take profits after their stunning gains.

However, in both cases the companies offer bright futures. This could propel their share prices even higher. For example, Boohoo is forecast to increase its bottom line by 36% in the current year. While this is a high rate of growth, it could prove to be sustainable over a multi-year time period due to the company’s global reach and its increasingly strong customer loyalty. Therefore, this could make its current valuation much easier to justify.

Risks

Certainly, companies with high ratings could be viewed as risky by some investors. Disappointment may hit their share prices harder than it would for a company with a more modest rating, since a relatively high proportion of their future potential is already priced-in by the market. However, companies with high growth potential are rarely cheap, and a premium may be deserved in both instances.

Therefore, while further share price gains may not be as great as those over recent years for Boohoo and Cello, both stocks appear to be worth buying for the long run.

The post Boohoo.Com plc isn’t the only three-bagger expected to deliver blockbuster growth appeared first on The Twelfth Magpie.

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Peter Stephens does not own shares in any of the companies mentioned. The Motley Fool UK has recommended boohoo.com. 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 decision seems to be a sound move by Imagination Tech and it could provide it with a clearer path to profitability in the coming years. With its shares trading on a price-to-earnings-growth (PEG) ratio of just 0.8, it seems to be a relatively appealing buy for less risk-averse investors.

Good time to buy

Also reporting today within the technology, media and telecoms (TMT) space was Cello Group (LSE: CLL). Its shares have risen by 4% after its 2015 results showed a rise in pre-tax profit of 7.1% that has allowed the company to raise dividends by 10%. Furthermore, net debt was reduced from £7.2m in 2014 to £4.2m in 2015 and the company has apparently made a good start to 2016, with encouraging bookings momentum continuing from the final quarter of 2015.

Looking ahead, Cello is forecast to increase its bottom line by 3% this year and by a further 7% next year. This puts it on a PEG ratio of 1.4, which indicates that now could be a good time to buy it – especially since it yields 3.2% from a dividend which is covered nearly three times by profit.

Surprise price drop

Meanwhile, shares in media company Quarto (LSE: QRT) have fallen by 3% today despite it releasing an upbeat set of results for the 2015 financial year. For example, revenue increased by 6%, while pre-tax profit rose by 8%. This allowed the company to raise the final dividend by 15%, which means that it now yields 2.6% and that shareholder payouts are covered 3.4 times by profit. And with Quarto reducing net debt by 10% and delivering on its main strategic objectives, it appears to be moving in the right direction.

Today’s share price fall is most likely due to the announcement that its Chairman Tim Chadwick will step down. Despite this, Quarto’s forecasts are upbeat, with double-digit growth expected in each of the next two years. This puts the company on a PEG ratio of only 0.5, which indicates good value for money.

Shares set to rise?

Of course, one of the main players in the TMT space in the UK is ARM (LSE: ARM). It hasn’t reported today, but with its bottom line forecast to rise by 43% in the current year and by a further 13% next year, it appears to be on the cusp of improved share price performance.

Certainly, the slowdown in China has hurt investor sentiment in ARM, with its shares being down 2% since the turn of the year. However, with such a strong track record of growth and a highly appealing business model, it could easily reverse this period of poor performance and rise significantly over the medium-to-long term.

With ARM trading on a PEG ratio of 0.7, it continues to offer excellent value for money. That’s especially the case since it’s a relatively stable and mature business, thereby making its risk/reward ratio hugely enticing.

The post Are ARM Holdings plc, Imagination Technologies Group plc, Quarto Group Inc And Cello Group plc Set To Soar? appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of ARM Holdings. The Motley Fool UK owns shares of Imagination Technologies. The Motley Fool UK has recommended ARM Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.