Solid housing

Housebuilder Bellway (LSE: BWY) was looking very good on a forward P/E of nine with a PEG ratio for this year of 0.3 (where growth investors typically see 0.7 or less as a good sign) — that was when the shares were changing hands at around £27 apiece, and since then they’ve lost 37% to just 1,700p, as fears of a housing collapse grip the City’s traders.

Now, there is a big risk to the UK’s housing market, for sure, at least partly from European investors who will be a lot less keen to risk their money here. But long-term profits for housebuilders do not depend on short-term property prices, and if demand falls, prices will fall and the houses will still be sold — to grateful occupants, I hope.

But that means land prices would fall too, and cash-rich builders like Bellway should be able to top up their land banks at low prices — just as they did during the last financial crisis. Long term, I reckon housebuilders, including Bellway still show great growth potential.

Support woes

Support services group Interserve (LSE: IRV) has had a horrible time, with its shares losing 56% over the past five years — they had been rallying slightly, but have fallen back 15% since Thursday, to 266p. But the firm’s earnings per share have actually been picking up over the past few years, and an expected standstill over the next few years puts the shares on a P/E of only a little over four — and that’s with a forecast dividend yield of 8.6%!

So, why so cheap? Well, after Interserve’s acquisition of Initial last year, its net debt rose to £309m, and that’s a lot for a company with a market cap of £385m and pre-tax profit of just £79.5m. Coupled with some big one-off costs this year, I think there’s a good chance the dividend will be cut,  even though it’s currently reasonably well covered by forecast earnings.

But the current super-low valuation means Interserve could still offer a decent yield, and with the City’s brokers putting out a strong buy rating on the shares, I see good long-term growth potential — even if we could still see another volatile year in the short term.

Banking carnage

You don’t need me to tell you that banking sector shares have collapsed since the referendum, and the short-term uncertainty means there’s no surprise there at all. Lloyds Banking Group shares are down 28% and Barclays are down 31%,  which I think is seriously excessive, but the one really takes the biscuit is Virgin Money (LSE: VM), whose shares are down a massive 42% since the referendum, plummeting to 212p.

Sir Richard Branson had said he expected Virgin shares to “take a pounding” in the event of a ‘leave’ result and that there could be job losses, and the challenger bank does face danger from its focus on mortgage lending should we really see a housing slump. But if the bank can pull through the short-term pressure (and I see no reason why it shouldn’t) then it could have some serious longer-term growth prospects.

The post Bellway plc, Interserve plc & Virgin Money Holdings (UK) plc still show huge growth potential despite dips appeared first on The Twelfth Magpie.

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Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Electronics revival

The story of the old Dixons was a remarkable one of turnaround from the brink of disaster, and since its rebirth as Dixons Carphone (LSE: DC) we’ve seen a decent performance. Dixons shares have gained 39% over the past two years to 443p, and the company’s dividend has been creeping up slowly.

For the year ended April 2016, the forecast dividend would only yield a modest 2.2% on today’s share price, but it would represent an inflation-smashing rise of 26% on the previous year and there are big boosts on the cards for the next two years. The firm’s fourth-quarter trading update told us to expect headline pre-tax profit of between £445m and £450m, after revenues grew by 5% in the final quarter and over the 12 months. Net debt should below £300, which is really nothing at all to be worried about.

What about the value of the shares? The latest P/E of 15.6 might seem a little high, but that would drop to 12.6 by April 2018 if forecasts prove accurate, and I see that as fair value for a company with decent growth expectations even if it’s perhaps not a screaming bargain. Full-year results are due on 29 June.

Cash in on housing

Before that, on 15 June, we’re due full-year results from housebuilder Berkeley Group Holdings (LSE: BKG). The City’s analysts are expecting a standstill in earnings for this year to put the 3,302p shares on a P/E of around 12.7, which might not sound too thrilling. But a 50% EPS forecast for the year to April 2017 would drop that to just 8.4, and there are dividend yields of 6% on the cards.

In its last update in March, Berkeley told us that the London market was stable and that it had “cash due on forward sales remaining in excess of £3 billion“, although reservations were down 4% on the previous year at that point. But the company did predict “£2 billion of pre-tax profit in aggregate over the three years culminating in 2017/18” and said that results should be at the top end of expectations.

Fears for a slowdown or even a reversal in London house prices have helped show share price growth, and we’re looking at a rise of just 6% in the past 12 months. But with expectations so strong, I’d say rumours of a demise in the housebuilding sector are very much exaggerated.

Oil & gas bargain?

On 30 June we should see a trading and operational update from Tullow Oil (LSE: TLW), ahead of first-half results due on 27 July. Tullow oil shares have picked up 84% since their low on 20 January, trading now at 232p, and that is in no small part due to the recovery in the oil price to above $50 per barrel.

Tullow is one of those mid-sized oil companies that carry a lot of debt, but which at least do have profits on the cards to service it. And while that makes the firm riskier than the likes of BP and Shell, it’s way ahead of the unprofitable tiddlers in the safety stakes. Despite that, Tullow shares are still down 85% since their peak in early 2012, and you’d have had very little in the way of dividends since then.

But the tide looks like turning, and now could be a great time to buy Tullow Oil shares.

The post 3 hot dates for June: Tullow Oil plc, Dixons Carphone plc, Berkeley Group Holdings plc appeared first on The Twelfth Magpie.

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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has recommended Berkeley Group Holdings, BP, and Royal Dutch Shell. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Doing the right thing

Barclays (LSE: BARC) surprised many by slashing its dividend by more than 50%, and it’s set to yield only around 2% this year and next with the shares priced at 174p. But after a bit more thought, it seems like just the right thing to do — with new boss Jes Staley having just taken over, he can sweep much cleaner with his new broom than an incumbent could.

Barclays has now reduced its liquidity risk to pretty much zero, I’d say, and with its aim of getting cash rewards back on track as soon as possible, I can see a glowing future for income investors with Barclays.

In the meantime, while the 9% EPS drop expected this year would put Barclays shares on a P/E of only a little over 11, the 49% recovery pencilled in for 2017 would drop that to just 7.5 — only around half the long-term FTSE 100 average. To me that says the shares are undervalued by around 50% right now, so what might it take for a doubling? I reckon any results that suggest those 2017 forecasts might be on the money could trigger an upwards re-rating.

Dirt cheap insurance

Old Mutual (LSE: OML) has been plodding along nicely, paying out almost half of its earnings per share in dividends, and provided shareholders with a 5% yield in 2015. Forecasts suggest the dividend will drop a little to 4.5% this year before perking back up to 5% next as EPS looks set to yo-yo slightly.

But despite the company’s decent performance, Old Mutual shares have gained only 13% over the past five years (albeit with a further 25% from dividends). That leaves the shares on a forward P/E for this year of only 9.5, dropping to 8.7 based on 2017 forecasts. Old Mutual’s home in South Africa and its exposure to emerging markets have no doubt exacerbated the share price fall, but I see the fear as greatly overdone.

I don’t think Old Mutual shares are on quite a 50% undervaluation right now, but we might only need a modest improvement in the world’s economic outlook for a price hike — and I can see a doubling within the next few years as a realistic hope.

More from housing?

Am I really suggesting a share that has gained 380% in the past four years is set for another doubling? The recovery in housebuilder shares boosted the sector magnificently, but since September last year it’s gone off the boil, and Barratt Developments (LSE: BDEV) is down 16% to 561p. That puts Barratt shares on a P/E of only around 9 based on forecasts for the year to June 2017 — and that’s with the company’s cash-return plans predicted to provide a total yield of 6.7% that year.

Fear of a slowdown, or even a downturn, in house prices has tempered investors’ appetite for Barratt, but it looks seriously overdone to me. Barratt spent a lot of its cash during the slump buying up land at knock-down prices and is set very nicely for profitable trading for a good few years no matter what happens to property prices.

If Barratt shares doubled again in another five years, I wouldn’t be at all surprised.

The post Which will double the quickest, Barclays plc, Old Mutual plc or Barratt Developments plc? appeared first on The Twelfth Magpie.

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

The Beginners’ Portfolio is a virtual portfolio, run as if based on real money with all costs, spreads and dividends accounted for. Transactions made for the portfolio are for educational purposes only and don’t constitute advice to buy or sell.

The past year has been tough for the Beginners’ Portfolio, with a few key shares losing out — BP shares are down 23% over 12 months thanks to falling oil prices, while Rio Tinto has dropped 22% as the commodities crunch has continued, and a surprise dividend cut has led to a 34% slump for Barclays (LSE: BARC) shares. But with oil and minerals starting to pick up, and the future for Barclays looking strong to me, I think we could be past the worst for all three.

In fact, a 17% recovery for Barclays, to 171p, has helped keep the portfolio to a 35.5% gain since our first purchase in May 2012, which really isn’t too bad. Here’s the current state of affairs, with prices at market close on 22 April:

Persimmon (LSE: PSN) has cemented its position not just as our biggest growth share so far, but also as a solid dividend provider. We added £53.90 in cash to the pot in May, which gives us an effective yield of 15% on our original purchase price in July 2012. And that, for me, illustrates one of the real lessons of investing for income — that today’s yields don’t count anywhere near as much as a progressive cash-handout policy, as the latter is what brings in the big money over the long term.

Persimmon is forecast to pay out the same again for this year and next, so two more years of effective 15% yields make Persimmon a very strong hold to me, especially as the shares are on forward P/E multiples of only around 10.

Engineering comeback

Shares in BAE Systems (LSE: BA) have had a flat 12 months, but they’ve been clawing their way upwards since late September 2015, and we’re now sitting on a very nice 41.5% gain since purchase in October 2012. But that is just the share price, and once we include dividends too, we’re looking at an overall 65% gain including all spread and costs.

Our dividends are, of course, being reinvested whenever there’s sufficient cash to make a purchase, and so far that’s been at times when a share has been sold to boost the cash pot. But with £335 in cash built up since the last purchase, it really won’t be too long before we have enough for dividends alone to make a new investment. I think it will most likely be a top-up, and with BAE shares on a forward P/E of only around 12 for 2017 and with growth likely to return, it’s in with a shout.

Too cheap

Another big top-up possibility is Barclays, whose share price fall over the past year has disappointed me — and I really didn’t see the dividend cut coming. But I’m greatly encouraged by the recent modest recovery, and with the shares now on a P/E that’s expected to drop as low as 7.6 based on 2017 forecasts (while the FTSE 100 long-term average stands at close to twice that), they could be one of the best bargains around.

Sure, the dividend will probably only yield around 2% by then, but at full-year results time the bank told us that it expects to get back to paying “a significant proportion of earnings in dividends to shareholders over time“, once the balance sheet is a bit tighter and legacy issues recede further.

I think there’s a very good chance of Barclays’ shares doubling in the next few years, and it would be madness for me not to keep hold of them now.

The post Beginners’ Portfolio: Persimmon plc, Barclays plc & BAE Systems plc help us to 35% gains appeared first on The Twelfth Magpie.

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Alan Oscroft owns shares of Aviva. The Motley Fool UK owns shares of Apple and GlaxoSmithKline. The Motley Fool UK has recommended ARM Holdings, Barclays, BP, and Rio Tinto. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Pessimism priced in

The thing is, in these tough times when the final extent of banking penalties for past misbehaviour is still an unknown, I’m really not so much interested in this year’s dividend as in future ones — and I’m encouraged by Barclays’ longer-term expectations to “pay out a significant proportion of earnings in dividends to shareholders over time“.

The 3p per share that Barclays intends to pay this year and next would be covered 5.6 times by forecast 2016 earnings and 7.6 times on 2017 predictions, which is massively over-covered in comparison to long-term requirements — even if Barclays aimed for longer-term cover of two times, which would be above the likely sector average, we’d be looking at yields getting up towards 8% or so.

That’s largely because the share price has taken a pummelling, losing 40% over the past 12 months to 145p. That puts Barclays on a forward P/E of only nine for this year, dropping as low as six on 2017 forecasts — and to me that means the current share valuation has far more pessimism built in than is warranted. And I see Barclays shares now as one of the best dividend bargains for 2020 and beyond.

Building profits

The housebuilding and construction sector has been the big success of the past few years, with Galliford Try (LSE: GFRD) a shining light. We’ve seen year on year of double-digit rises in EPS with two more forecast, and that’s helped boost the share price by 235% in five years — though a 24% fall back since September last year has left us with a forward P/E of under 11, dropping to nine on 2017 expectations.

That alone sounds like bargain territory, but the big attraction is Galliford Try’s dividends. They’ve been galloping ahead, and it was only the soaring share price that kept last year’s yield down to 3.9%. The year saw a 28% rise in the annual payment, with the board stressing its “progressive and sustainable dividend policy” and telling us it now aims to maintain dividend cover at 1.5 times rather than its previous more cautious 1.7 times.

That bodes well for the yield of 5.6% forecast for this year, and the 7% on the cards for 2017, which would be covered sightly more than 1.5 times by forecast earnings.

Calling customers

Who’s Netcall (LSE: NET), you may well ask. Netcall produces telephone and data services for call centres and customer engagement, and it’s used by healthcare and public-sector organizations as well as the private sector. After a few years of very strong earning growth, we saw EPS fall back by 4% last year and there’s a further drop forecast for this year. That’s taken the shine of the share price a little, and despite a five-year rise of 184% to 49p, there’s been a 7% drop in the past 12 months.

But what I really like about Netcall is that it is generating oodles of cash. At the interim stage in December, net cash had risen to £15.2m, boosted by £1.82m in operating cashflow in the period. Oh, and there’s no debt.

With more cash than it needs to invest in its latest cloud computing developments, the firm is embarking on “an enhanced three-year dividend programme“, leading to a forecast dividend yield of 6.1% this year followed by 7.8% next.

The post Are Barclays PLC, Galliford Try plc And Netcall plc Among The Best Dividend Payers Out There? appeared first on The Twelfth Magpie.

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

After Lloyds Banking Group pleased investors with its much-expected dividend, plus an extra unexpected special payment, will Barclays (LSE: BARC) do anything to perk up its shareholders? Barclays shares have actually ticked up a little in the past few days, presumably in anticipation, and in line with improving banking sentiment — but we’re still looking at a 40% fall since the end of July 2015, to today’s 171p.

Current expectations suggest a 22% rise in EPS for the year just ended December 2015, with forecast rises of 10-14% penciled in for the next two years. That puts the shares on a P/E of 8.2 for 2015, dropping as low as 6.3 by 2017. And, remarkably for a FTSE 100 bank, Barclays shares are on PEG ratios of between 0.4 and 0.7 — and values that low are usually seen at smaller-cap high-growth companies.

With dividends set to yield 3.8% and growing, I’ve considered Barclays as cheap for quite some time, and I’m expecting upbeat results.

Cheap insurance

Shares in Direct Line Insurance Group (LSE: DLG) have had a better time recently with an 8% gain in 12 months to 388p, but it’s been erratic. And though there’s a 20% EPS rise predicted, a P/E of close to 13 suggests there’s already a fair bit of that built in to the share price.

After the sale of its international division, Direct Line made a special cash payment to shareholders of 27.5p per share, and analysts are guessing at a total of around 41.5p for the whole year, which would yield 10.7%. The problem going forward is that the cost of winter storm damage, estimated at between £110m and £140m, will hit the bottom line, and the mooted 19p (4.9%) dividend for 2016 would only be around 1.5 times covered by forecast earnings — and that could be stretching it a bit fine.

I think Direct Line is still a solid investment, but I see better insurance bargains out there.

Soaring houses

Housebuilding has been a massive post-recession success, with Taylor Wimpey (LSE: TW) one of the bigger winners with a 355% share price rise over the past five years, to 188p. But even after such a climb, expectations for the year just ended put the shares on a relatively modest P/E of 12.5 — with forecasts dropping it to 11 this year and 10 next. On top of that, forecast dividends stand at 5.2% and they’re rising strongly.

Is that optimism well placed? Well, the firm’s year-end trading update suggests it is, with chief executive Pete Redfern speaking of “building more homes than at any point in the last six years and delivering a record operating profit margin of over 20%“. Completions rose 7% to 13,341 homes, with a 9% average selling price rise to £254,000.

With a record year-end order book up 27% on the previous year, I see plenty still to come from Taylor Wimpey.

The post What Should We Expect From Barclays PLC, Direct Line Insurance Group PLC And Taylor Wimpey plc Results Tomorrow? appeared first on The Twelfth Magpie.

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Alan Oscroft owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Barclays. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

The Beginners’ Portfolio is a virtual portfolio, run as if based on real money with all costs, spreads and dividends accounted for. Transactions made for the portfolio are for educational purposes only and do not constitute advice to buy or sell.

The past few weeks of market turmoil have knocked the Beginners’ Portfolio back a bit, and we’re now only up 24.6% since inception in May 2012 (including all costs and spreads), compared with 34.3% at the end of 2015. But ironically it’s the “safer” shares that have been hurt the most, with the higher-risk growth constituents holding up well.

High-tech wonders

ARM Holdings (LSE: ARM) has actually disappointed a little since it was added in December 2014. After a promising first few months and a nice price rise, it’s been up and down ever since, and with the price today at 939p we’re looking at no overall movement at all once costs, spreads and dividends are included — the share price itself is up 2.8%.

But there’s nothing at all wrong with ARM’s fundamental performance, after adjusted EPS for 2015 came in 25% ahead of the previous year (with reported EPS actually up 33%). That came from a 19% increase in revenue in sterling terms, after 4bn ARM-based chips were shipped in the final quarter with microcontrollers and mobile device chips growing strongly.

Analysts are predicting a 43% rise in EPS this year, which would take the P/E down to 27 — that’s about double the FTSE average, but it’s the lowest ARM shares have been on for years.

Our investment in Apple (NASDAQ: AAPL) has done better, with a 50% total gain since January 2013, up to $96, thanks in part to the firm’s move to paying dividends. The price has flattened a bit of late, because of the possibility that sales might actually fall back a little this year.

But that’s a very short-term view, and to put it into perspective the company has just posted its biggest quarterly profit ever at $18.4bn after selling 74m iPhones. A vast proportion of the world’s population don’t have smartphones, and as wealth increases they’ll be buying them — and phone junkies will keep upgrading. Looking at that longer-term picture, on a P/E of only around 10.4, Apple shares still look cheap to me.

Plain old bricks

And finally to the portfolio’s biggest winner so far, Persimmon (LSE: PSN), which I added in July 2012 when the whole housebuilding sector looked insanely undervalued. Persimmon was in a strong financial position and was snapping up building land while it was going cheap, and that’s helped it post four years of EPS rises averaging around 50% per year.

The share price has soared to 2,060p today, and after adding in the firm’s special dividends (and deducting all costs), we’re on a 243% total gain. Is it time to take some profit? I don’t think so.

There’s an EPS rise of 28% expected for the year just ended, with results due on 23 February — and a January update told us of a 13% rise in revenue, with 8% more homes completed at a 4.5% higher average selling price. With the shares on a prospective P/E of 13, dropping to under 12 on 2016 forecasts, and dividends set to yield around 5%, Persimmon looks like it’s turning from a growth share into a strong income share.

The post Beginners’ Portfolio: Will ARM Holdings plc, Apple Inc. And Persimmon plc Drive Our Growth Forwards? appeared first on The Twelfth Magpie.

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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended Apple. 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.

Look at JD Sports Fashion (LSE: JD), whose shares have fallen back a little from their recent 12-month high due to the latest FTSE 100 panic. They’re still up 107% over the period, mind, as the company looks set to bounce back to strength after a tough 2014/15. For the year just ended January 2016 the City’s analysts are expecting a 28% EPS rise — and those results should be with us on 14 April.

That would put JD Sport on a P/E of 21, however, dropping only to around 19.5 if the following year’s 8% EPS rise comes off. A strong Christmas trading period, with a 10.6% rise in like-for-like sales, did improve sentiment towards the company considerably, and I can easily see a couple of years of impressive trading coming up, as the economy continues to improve and consumer spending remains reasonably robust.

But right now, especially with recovering dividends still yielding less than 1%, I see JD shares are too expensive — especially when there are so many better bargains out there.

Risky fad?

Online fashion retail is a risky business, but that didn’t stop Boohoo.com (LSE: BOO) hitting a 52-week high of 44.75p on 5 February. In the past few days the price has dropped back to 40.8p, but that has still given shareholders a 71% rise in 12 months.

And there could be more to come, after a January trading update told us the firm expects the full year to beat previous expectations. The year ends in February 2016, and the pundits have a 43% rise in EPS penciled in, with a further 27% for the following year. But we’re looking at high P/E ratios of 37, dropping only as far as 29 based on 2017 forecasts.

An early growth start can command such high valuations successfully, and an investment in Boohoo right now might do well. But I’m minded of ASOS (LSE: ASC) and the spectacular roller-coaster of boom and bust that its shares have been riding for some years. I’m keeping away.

Cheap homes?

I’ve kept my best for last, and it’s housebuilder Bellway (LSE: BWY), which has just released a first-half trading update ahead of interim results due on 22 March. The firm reported an 11.6% rise in housing completions, with a 17% boost to its average selling price to £257,000. The company’s forward order book looks strong and it’s buying up plenty of land at favourable prices.

It’s no surprise, then, that the share price has been hovering around a 52-week high in 2016, although it’s dipped along with the rest of the market in the February sell-off. Still, the update gave the price a 3.5% boost to 2,570p on the day, and that brings in a 33% gain in 12 months.

With a forward P/E for the full year of only 9.4 and a 3.4% dividend yield on the cards, Bellway is looking cheap to me.

The post Are JD Sports Fashion PLC (+107%), Boohoo.Com PLC (+71%) And Bellway plc (+33%) Too Good To Miss? appeared first on The Twelfth Magpie.

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

Down but upbeat

Look at Redrow (LSE: RDW), whose shares have bizarrely dropped 5.6% to 398p on the day the homebuilder released upbeat first-half results. With revenue up 8% to £603m, a half-year record, earnings per share gained 15% and the interim dividend was doubled to 4p per share. This came after legal completions rose by 18%, and the firm’s gross margin perked up to 24.2%.

So what’s the growth picture? Well, before today analysts were forecasting a 13% EPS rise for the full year to June 2016, which would put the shares on a PEG ratio of 0.6 — lower is better, and growth investors typically look for 0.7 or less. But with chairman Steve Morgan telling us that “demand for new homes remains robust” and that he’s “confident this will be another strong year of growth for Redrow“, I could see that 15% first-half gain carrying on through.

That would drop the PEG a fraction and put the shares on a P/E of only 7.8 — and that’s just got to be cheap!

Top property site?

Casting a growth eye on property website operator Zoopla (LSE: ZPLA) throws up a PEG ratio of 0.7 for the year to September 2016. Although the share price was pushed up in the first half of 2015, the later loss of sentiment has brought us a 24% fall since the end of June, to today’s 205p. Although we’re looking at a prospective P/E of 19.5, which is ahead of the FTSE’s long-term average of around 14, EPS forecasts make that seem not too stretching at all.

Zoopla recorded a 29% rise in EPS in 2015, and there’s the same again currently being predicted for this year. UK interest rates will be remaining low for longer than many of us expected and we might not even see a rise until 2017 now, the UK economy is gathering strength, and the housing market remains buoyant — and I can see another couple of strong growth years for Zoopla.

Online payments

The online payments business is risky, as we’ve seen with the sad decline of Monitise in the past couple of years. But things are looking very different for Paysafe (LSE: PAYS), formerly known as Optimal Payments, whose shares are up 61% over the past 12 months, to 342p. The recent FTSE retreat has pushed the price down, mind, and we’ve seen a 14% fall since 4 February. So does that give us a cheaper growth opportunity?

A fourth quarter update told us that revenue and earnings will be ahead of market expectations — and the markets had a 29% EPS rise penciled in. There’s a further 40% lift to EPS forecast for 2016, and that would put the shares on a distinctively average P/E of 14.5 and a PEG of just 0.4.

And if that doesn’t look like a decent growth opportunity, then I don’t know what does.

The post 3 Great Growth Picks For 2016: Redrow plc, Zoopla Property Group PLC, Paysafe Group Plc? appeared first on The Twelfth Magpie.

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