The digital marketing expert advised that revenues surged 13% during January-June, to £141m, a result that pushed adjusted EBITDA 59% higher to £9.2m.

More specifically, Matomy Media said that it enjoyed exceptional sales growth across its two core divisions. At Mobfox, programmatic mobile in-app revenues surged 104% to $25m, while at its Team Internet domain monetisation unit, the top line bulged 69% to $51.7m.

Today’s results highlight the rationale behind the restructuring measures Matomy Media announced back in May. The Israeli business announced plans to double down on its core operations and to exit non-critical areas like legacy web display, social, search, and virtual currency media channels to cut costs, create a more flexible operating model and improve cash generation.

Spinning around

Matomy Media slumped into the red last year, the company clocking up losses of 13 US cents per share. But City analysts believe a sustained revival is just around the corner.

In 2017 the media play is expected to report earnings of 14.1 cents, and the bottom line is expected to improve by 41% next year to 19.9 cents. And current projections make it brilliant value — it sports a forward P/E rating of 9.1 times, below the well-regarded bargain watermark of 10 times.

In my opinion, this value leaves plenty of upside on the back of Matomy Media’s ambitious transformation programme and vast exposure to the US. The business sources two-thirds of revenues Stateside, and sales should continue to boom as ad spending steadily increases across the Pond.

Toast terrific returns

Majestic Wine (LSE: WINE) is another stock the number crunchers expect to move back into the black sooner rather than later.

The AIM-quoted business has seen its bottom line steadily contract in recent years as sales have struggled and heavy investment costs have weighed. And the City does not expect the bottom line to move back into the right direction just yet — a 4% earnings drop is forecast for the 12 months ending March 2018.

But the fruits of its transformation strategy are expected to drive earnings skywards from fiscal 2019 onwards. It is now past the most cost-intensive part of its cycle, and sales continue to grow at a terrific rate thanks to recent customer service improvements (at Majestic Retail these have expanded for eight consecutive quarters on a like-for-like basis). And strong demand at Naked Wines in the US and Australia in the period underlines the brilliant revenues opportunities here.

Brokers are predicting an 18% profits bounce next year, and it is not difficult to see Majestic Wine maintaining this momentum as recent heavy investment pays off. In my opinion the wine seller is a great selection right now even in spite of its slightly-toppy prospective P/E multiple of 21.1 times.

The post 2 turnaround stocks that could make you mega rich appeared first on The Twelfth Magpie.

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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.

Encouragingly, LSL’s estate agent division posted an increase in income of 5% in 2015, with exchange income up by 1%, lettings income rising by 12% and financial services income increasing by 16%. It continues to seek further acquisitions and its strategy of both expanding its number of branches and also maximising operating profit per branch seems to be paying off.

With LSL forecast to increase its bottom line by 16% in 2016, investor sentiment could remain strong over the medium term. And with the company having a price-to-earnings growth (PEG) ratio of just 0.5, it seems to offer growth at a reasonable price as well as a generous yield of 5.6%.

Digital delight

Also posting strong gains today is digital advertising company Matomy Media (LSE: MTMY), with its shares being up 8% following the release of a pleasing update. Encouragingly for its investors, the company will meet the guidance issued in August for the 2015 financial year, with earnings before interest, tax, depreciation and amortisation (EBITDA) expected to be between $25.3m and $25.7m, with strong growth in the second half of the year significantly outpacing that of the first half of the year.

Looking ahead, Matomy Media is confident in the outlook for the digital advertising sector. While the first half of 2015 was challenging, it believes that the rapid evolution of the industry and its diversified business model provide significant growth opportunities. And with earnings growth of 72% being pencilled-in by the market for 2016, investor sentiment in the stock could continue to improve following the 49% fall in Matomy Media’s share price in the last year. With a PEG ratio of 0.1, it appears to offer substantial capital gains, although it’s likely to be relatively volatile.

Easy does it

Meanwhile, shares in Easyhotel (LSE: EZH) are up by 10% today despite no significant news flow being released by the company. This follows a 45% rise in the last three months and shows that investor sentiment may be warming to the super-budget hotel chain.

Furthermore, with Easyhotel having released an encouraging trading update just last week that stated the company’s performance is on track, its long-term outlook remains relatively upbeat. For example, it has been granted planning permission for new developments in Manchester and Liverpool, with the company aiming to establish further hotels in gateway cities across the UK and Europe.

Although Easyhotel’s concept could work, its current valuation indicates that it may be a stock to watch rather than buy after its recent share price rise. For example, it trades on a price-to-earnings (P/E) ratio of 92 and even though its growth prospects may be bright, it may be prudent to await a keener valuation before buying.

The post Today’s Small-Cap Superstars? LSL Property Services plc, Matomy Media Group Ltd And Easyhotel PLC appeared first on The Twelfth Magpie.

More reading

• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• 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?

Peter Stephens 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.