In poor health

It was briefly a constituent of the FTSE 100, but with its share price down 60% in the last three years, it now languishes in the FTSE 250 with a market-cap of £2.7bn.

The Mediclinic share price is up 2% today after markets smiled on its 2020 half-year trading update. Group CEO Dr Ronnie van der Merwe reported an encouraging performance with trading in line with expectations, as it expands across all three of its divisions.

He also highlighted good revenue growth, broadly stable margins in Switzerland, patient volumes in line with expectations at Mediclinic Southern Africa, and “continued gradual improvement” in the Abu Dhabi business.

Road to recovery

The group’s problems were down to impairment charges totalling £262m on its UK and Swiss businesses, which struggled with government regulation and increased competition, even as its South African and Middle East operations reported steady revenue growth. Yet private healthcare is a relatively defensive market and investors have been looking for an opportunity to buy back into the growth story.

Given its troubles, I would have expected the Mediclinic share price to be trading at a wider discount and just 13.5 times forecast earnings. The forecast yield is just 2.1%, although nicely covered 3.4 times, giving scope for growth. Earnings are predicted to fall 4% this year, but the future looks brighter as City analysts reckon they could climb 11% next year.

It is well worth keeping an eye on Mediclinic, but I wouldn’t rush to buy it today. Especially when there are so many exciting stocks on the FTSE 250 at the moment, including this little gem picked it by my fellow Fool writer Alan Oscroft, which also operates in the healthcare sector.

In rude health

Earlier this month, Alan wrote that Primary Health Properties (LSE: PHP) offers a tempting combination of strong share price growth and high dividends. The growth has been eye-popping, up 30% in the last year, and almost 70% over years.

The £1.67bn company invests in healthcare real estate in the UK and Ireland, which it lets out on long-term leases backed by a secure underlying covenant, with the majority of rental income funded either directly or indirectly by a government body.

The primary healthcare real estate sector is typically less cyclical than other parts of the property market, which makes Primary Health Properties surprisingly low risk, given recent soaraway growth. I can see why Alan admires it.

Low risk, high price

Last month, it launched a share placing to raise £75m to fund further expansion, as it sees attractive investment opportunities in building larger GP primary care centres. This is on top of the £60m it has already committed to fund the acquisition and development of eight medical centres, and £70m on other medical centres as it looks to boost the number of assets in its portfolio.

Today, it offers an attractive forward yield of 4%. Earnings growth looks steady at a forecast 10% this year, and 7% next. There is one downside, though. Alan isn’t the first to spot an opportunity here. The stock is a little pricey at 23.7 times earnings. Sometimes you have to pay for quality…

The post £1,000 to invest? I’d buy this FTSE 250 income stock, but approach another with caution appeared first on The Twelfth Magpie.

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Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Primary Health Properties. 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.

It is easy to see why. The bank is significantly exposed to the UK economy, and it has barely recovered from the financial crisis, but management is already getting ready for another downturn. In October, the company warned that it has put £100m aside for bad debts due to the “uncertain economic outlook,” and trebled the amount it has set aside to help SMEs navigate Brexit to £3bn.

Preparing for the worst? 

These preparations seem to indicate that RBS’s management team is preparing for the worst. But as of yet, we don’t know how Brexit will unfold, and if it will be as bad as some analysts are expecting. 

If it isn’t, and economic growth suddenly recovers, I think shares in RBS could quickly bounce back. After all, the stock is trading at a significant discount to the bank’s tangible asset value per share, which was 288p at the end of September. 

This discount would be understandable if RBS were still loss-making, but with the company on track to report a net profit of nearly £2bn for 2018, I don’t think the discount is warranted. That being said, there are other factors to consider here, such as the government’s substantial stake in the bank, which is acting as an overhang on the shares because sooner or later, it will have to be sold. 

Still, when compared to its peers both here in the UK, and across Europe, shares in RBS undeniably look cheap. However, this is not a bet for the faint-hearted. Only time will tell how the UK economy will react to Brexit and if RBS’s £100m provision for bad loans will be enough. 

So, while the stock could jump substantially from current levels, most investors might not be comfortable with this level of uncertainty. If you fall into this bracket, you might be more interested in FTSE 250 turnaround situation Mediclinic International (LSE: MDC). 

FTSE 250 turnaround 

Mediclinic is an internationally diversified healthcare facilities provider. Unfortunately, the group has fallen out of favour with investors recently after booking a series of impairment charges on its UK and Swiss businesses for a total of £262m. 

These two businesses are struggling amid government regulation and increased competition. Mediclinic’s other markets are performing well. The group’s South African and Middle East operations reported revenue growth of 5% for the first six months of the company’s financial year.

Because the company operates in a relatively defensive market, I think it should be able to overcome its problems over the medium term. Analysts are already expecting a recovery for fiscal 2020. They are forecasting earnings per share of 31p, up from a loss in fiscal 2018. This estimate puts the stock on a forward PE of 11.4, which in my opinion gives a healthy margin of safety for investors buying at this level. There’s also a dividend yield of 2.3% on offer.

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Rupert Hargreaves owns no share 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.

For existing holders, these declines are disappointing. But for buyers, the fall is fantastic news as the stock is now 20% cheaper than it was just a few weeks ago.

On sale?

It seems the main reason why the market has soured on the company over the past two months is because the City has downgraded its growth expectations. 

At the beginning of August, analysts were expecting the company to report earnings per share (EPS) of $1.47 for 2018. Two months on, and this target has been revised lower to $1.41.

Earnings downgrades are always disappointing, but in this case, it seems as if the market has overreacted. The full-year target might have been revised lower by approximately 5%, but year-on-year growth is still expected to come in at 47%, giving a P/E of 29.7.

Beyond 2018, the growth outlook for the company is equally impressive. Analysts are expecting EPS growth of just under 30% in 2019 and, in the years after, I’m confident that the group can continue to print double-digit growth rates.

Base for growth 

NMC has built itself a strong base in its UAE home market, and the company can use this to expand around the globe. As demand for healthcare services is only set to grow, NMC shouldn’t have any trouble expanding its presence, in my view.

With this being the case, NMC’s rapid near-term expansion, the potential for long-term growth, and resilience through the economic cycle all lead me to rate the stock a ‘buy.’

I’m not so positive on the outlook for NMC’s peer Mediclinic International (LSE: MDC). As NMC has prospered, Mediclinic has struggled to produce positive returns for investors. After peaking at 1,100 towards the end of 2016, the stock has since lost more than 60% of its value.

A profit warning from the firm today has wiped another 15% off the value of the company. In sharp contrast to NMC’s rapid expansion, FTSE 250-listed Mediclinic’s revenue dipped 1% in the first half of the financial year. Adjusted earnings before interest, taxes, depreciation and amortisation, on a reported basis, were down by 8%.

This performance doesn’t inspire confidence. It’s just the latest in a string of disappointing growth updates from the group, which has seen EPS slide from 40p in 2013, to an expected 30p for 2019.

With no improvement in the company’s fortunes in sight, I’m in no rush to buy the shares. A valuation of 15.7 times forward earnings seems too rich, especially for a business that has consistently disappointed investors. NMC is the stock for me.

The post Why I think it’s time to buy this FTSE 100 stock, down 25% in two months appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended NMC Health. 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.

Today I’m looking at whether or not this medical giant deserves a place in your portfolio. 

Struggling for growth 

As the demand for healthcare services around the world is only expanding, Mediclinic should be one of the FTSE 100’s most predictable growth stocks. Unfortunately, that is not the case. It has been struggling to grow within its home market of South Africa due to a weak economy, while regulatory headwinds in Switzerland have also weighed on growth. 

To try and grow itself out of these issues, two years ago the company spent $2bn acquiring Al Noor Hospital, the Middle East-focused group. And it’s this business that helped the firm chalk up a 3% rise in core annual profit for the year to the end of March. Revenue for the period grew 3% in constant currency terms. Commenting on the performance, CEO Danie Meintjes said: “A key achievement was the strong second half performance in Abu Dhabi which, combined with the continued strong delivery in Dubai and the exciting expansion opportunities ahead, is laying the foundations for further growth across the Middle East division.“

The company reported an overall loss of £492m thanks to non-cash impairment charges on its holding in UK private hospital provider Spire, as well as Hirslanden, Mediclinic’s Swiss hospital business. 

Growing headwinds 

As my Foolish colleague, Edward Sheldon highlighted a few weeks ago, Mediclinic’s long-term story is appealing, and after several years of floundering it finally appears as if the firm is moving in the right direction. That said, the business does have a lot to prove to the market. Earnings per share have hardly budged over the past six years, even though revenue has increased tenfold.

Management is trying to reduce costs to improve margins, but there’s lots of work to be done. The group’s operating margin fell from nearly 20% in 2012 to 13% for 2017 and it’s negative for the year ending 31 March 2018. What’s more, today’s release contains a warning that despite the opportunities for growth in the healthcare industry around the world, rising demand is “juxtaposed by lower economic growth in some regions and greater competition” as well as “an increased focus on the affordability of delivering health care which is resulting in changing care delivery models and greater regulatory oversight.” In other words, is seems Mediclinic’s outlook is cloudy, and with this being the case, I’m not convinced that the shares offer value today. 

At the time of writing, the stock trades at a forward P/E of 21.4, based on City estimates for 2019 and the shares yield 1.2%. For a business that has a patchy record of growth, and an uncertain outlook, this multiple looks too rich to me. 

The post Is the Mediclinic International share price a FTSE 100 bargain or a value trap? appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns no share 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.

One such stock is Mediclinic International (LSE: MDC). The £4.6bn market cap healthcare provider has released a full-year trading update today and its shares have jumped 5%. Let’s take a closer look at the company to see if the shares are worth buying.

Business description

Mediclinic is an international private healthcare group with operations in South Africa, Namibia, Switzerland and the United Arab Emirates. It also holds a 30% interest in UK specialist Spire Healthcare Group. The group is focused on providing acute care, specialist-oriented, multidisciplinary healthcare services.

It has experienced a challenging couple of years as lower patient volumes and expansion costs have weighed on profits. Investors have also been concerned with the group’s large debt pile. As a result, the shares have declined from over 1,100p back in August 2016 to just 655p today.

Yet today’s trading update sounded positive. The company appears to be moving in the right direction. Could a turnaround be on the cards?

Today’s update

Mediclinic advised this morning that the group expects to deliver adjusted financial results for the year that are “marginally ahead” of expectations, with a “significant second-half improvement” from the Middle East division. FY2018 revenue is expected to rise 2% in constant currency terms, while adjusted earnings are anticipated to be broadly flat on the prior year.

The group stated that its Middle East division is now entering an “expansionary phase” that is expected to drive a strong increase in revenue and improvements in margins over time. Furthermore, the Southern Africa division delivered second-half revenue growth ahead of expectations while in Switzerland, the Hirslanden division performed in line with expectations. Both of these divisions benefitted from cost-saving programmes and productivity initiatives implemented during the year.

CEO Danie Meintjes was upbeat in his outlook for the company, stating that the demand for healthcare continues to increase and that Mediclinic is well positioned to benefit and create long-term shareholder value.

Worth buying?

The long-term story here does sound appealing. And it appears that the company is now heading in the right direction after a challenging few years.

However, I’m not 100% convinced that the shares offer much value right now. The group expects earnings for the year to be approximately 30p per share. At the current share price, that places the stock on a relatively high trailing P/E of 21.8. For FY2019, analysts expect EPS of 32.4, which results in a forward-looking P/E of 20.2. The trailing dividend yield on the stock is low, at around 1.3%. Comparing these figures to those of other healthcare stocks in the FTSE 100, I think there are better stocks to buy at present. I’d pick up Glaxo or Smith & Nephew before Mediclinic International.

The post Mediclinic International: a top FTSE 100 healthcare stock? appeared first on The Twelfth Magpie.

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Edward Sheldon owns shares in GlaxoSmithKline. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended AstraZeneca. 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.

There has been a slow share price recovery in the past two years, as the firm is engaged in a “3-Year Transformation & Growth (TAG) Programme” — but looking at Tuesday’s full-year results, I’m not feeling any great attraction right now.

The company, which organises trade exhibitions and conferences in Russia and the surrounding central Asian region, reported a 13.5% rise in revenue, but that led to a 13.4% drop in headline pre-tax profit and a fall in headline earnings per share from 10.7p to 8.1p. The full-year dividend was cut from 4.5p per share to 4p, to yield just 2.3% on the current 177p share price.

Tardy refocus

Mark Shashoua, in his first full-year as chief executive, was upbeat about “the successful rollout of the first phase of our TAG initiatives and our decision to focus on Core events that have the greatest capacity for growth“. But one thing that does disturb me is that it’s taken this long for the new strategy to come into effect, and that it needed new management first — the company also has a new chief financial officer in Andrew Beach. I reckon ITE should have been reporting the first phase of its turnaround strategy at least a year ago.

Analysts expect earnings per share to remain flat in the current year, so at least the fall would be arrested, but that still leaves the shares on a forward P/E multiple of more than 21.

I think that’s too expensive right now, and that there are far better investment opportunities out there.

FTSE 100 growth

You might not usually expect to unearth many hot growth prospects in the FTSE 100, as even the smallest company in London’s top index already has a market cap of nearly £3.5bn. 

But I reckon otherwise, and I see private hospitals group Mediclinic International (LSE: MDC) as a serious growth candidate that I can’t help feeling a lot of investors have overlooked — possibly because it’s only had its London listing since February 2016 after a merger with Al Noor Hospitals.

Since joining the FTSE, Mediclinic’s share price has fallen by 40%, and that won’t have helped. But I see decent long-term growth, coupled with a progressive dividend policy that could easily turn this company into a cash cow over the next decade.

Big debt

On the downside, there are concerns about the company’s debt pile, which stood at £1,687m at the interim stage announced on 16 November, while underlying earnings fell. But first-half revenue actually rose by 10%, and the weak profit figure was largely down to tough conditions in Switzerland and Southern Africa.

Life on the LSE got off to a lacklustre start — EPS dropped by 19% for the year to March 2017, and there’s a further fall of 3% forecast for the current year.

But there’s earnings growth pencilled in for March 2019, with a 21% rise that would drop the P/E to 16, and that’s not a bad valuation for a growth prospect.

And on the debt front, the company is very much in the net investment stage right now, and once it gets closer to maturity I can see its strong cash flow being used to pay that down and then help get the dividend growing strongly.

The post Why I’d sell this turnaround stock to buy a ‘secret’ FTSE 100 growth stock appeared first on The Twelfth Magpie.

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Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended ITE Group. 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.

It seems that investors are struggling to regain trust in Barclays following years of disappointment from the bank. Third quarter numbers did little to reassure stockholders. While overall pre-tax profit rose 32% to £1.1bn, it missed City targets of £1.4bn. Net operating income fell about 4% to £4.5bn as the lender’s key common equity Tier 1 capital ratio remained unchanged at 13.1%. More troubling was the performance at its investment bank unit. 

Equity and credit trading revenue each dropped more than 20%, while rates and foreign-exchange trading, known as macro, fell 40% resulting in an overall decline in profitability of 31%. 

These figures are hardly reassuring and show that the bank is still far from returning to its former glory — bad news for income-focused investors. 

Income seekers should look elsewhere 

After cutting its payout at the beginning of this year, investors have been waiting for Barclays’ recovery to take hold, underpinning potential for  dividend increases. 

However, the third quarter figures offered no insight into when the bank would increase its dividend, leading to speculation that it might take longer than expected to return to previous levels. The shares currently only yield 1.7%. 

Defensive growth 

Mediclinic International (LSE: MDC) offers shareholders a similar level of income, but unlike Barclays, its dividend has plenty of room for growth. 

As one of the world’s leading healthcare companies, it is a highly defensive business. Unfortunately, the company is currently facing some headwinds to its business model in Switzerland and the Middle East due to lower patient volumes, insurance mix change, and expansion costs. These headwinds cut operating profit for the six months ended September 30 by 21%, and underlying earnings fell 11% to £84m from £94m. Exceptional costs pushed the group to an overall loss for the period. 

Nonetheless, Mediclinic’s top-line revenue growth of 10% shows that the company is heading in the right direction. 

Shares in the global healthcare business have taken a beating this year as concerns about its high debt levels and rising costs have put investors off. Over the long term however, I believe that the company has an enormous opportunity ahead of it. 

Building the business

Mediclinic is a recovery play. The company operates in a defensive industry, so there’s little risk that customers will suddenly start to avoid the business (it provides an essential service), which means management has time to turn the ship around. 

When its investment phase is over, the company can switch to cash generation and pay down debt, as well increasing its dividend to investors. 

The shares currently yield 1.4%, but the payout is covered just under four times by earnings per share, which gives plenty of room for dividend growth when management decides to tone down investment. On the other hand, if investment continues, shareholders should benefit from increased EPS growth. Pre-tax profit has risen nearly 10-fold during the past five years. 

The post Why I’d buy this dividend stock over Barclays plc appeared first on The Twelfth Magpie.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Barclays. 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.

Overall, in constant currency terms, group revenue was flat and underlying EBITDA was down 5% year-on-year (y/y). While both revenue and profits were up in real terms due to the weak pound, investors should mainly concern themselves with how the business is actually performing since management can’t control currency movements.

Aside from South Africa, there was some good news on this front in the six months to September as management disclosed it was confident that struggling Middle Eastern operations would post positive sales and profit growth in H2. This is good to hear as some of the group’s hospitals in the Emirates have struggled with high staff turnover and weak demand following their acquisition. The company says doctor vacancies have now stabilised, but unfortunately the local market remains highly competitive, which is likely to keep margins well below group average for some time.

Overall, the company is not one I’d like to invest in today. Net debt following the reverse takeover of Al Noor Hospitals in 2015 is still relatively high at £1.6bn or 3.3 times full-year EBITDA, and problems in the UAE business have proven stubbornly difficult to put right. Add in a lofty valuation of 21 times trailing earnings and I see better places to invest my cash.

Utilising all the tools it has 

One company that’s caught my eye is water utility Severn Trent (LSE: SVT). It offers a solid 3.9% dividend yield and trades at 14 times earnings, despite its share price rising a respectable 27% over the past five years.

While regulated utilities are far from growth stars, Severn Trent’s management team has proven very capable of squeezing extra profits out of the business by cutting costs and exceeding regulatory efficiency targets that come with multi-million pound incentives.

For the year to March 2018, it is targeting outperforming outcome delivery incentives to the tune of £23m. On top of these bonus payments, management has found some £770m in cost efficiencies over the five-year review period from 2015-20. Together these have supported steady dividend increases while keeping customers’ average water bills the lowest in the UK.

Looking forward, the firm is prepared to see its regulated rates fall for the 2020-25 review period as regulators want to lower utility bills for consumers. This will, of course, be bad news for Severn Trent, which is why its share price has dropped 16% since May. But unlike competitors, it has proven very capable of cutting fat and hitting targets to maintain and grow profits.

With a bumper dividend, great recent operational history and increasingly attractive valuation, Severn Trent is one stock well worth a closer look.

The post Why I’d sell this FTSE 100 growth stock for its rival’s big dividend appeared first on The Twelfth Magpie.

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Ian Pierce 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.

Long term growth 

Healthcare facilities operator Mediclinic International (LSE: MDC) has approximately 70 hospitals and over 40 clinics under its umbrella, and the company is well-positioned to profit from both the world’s ageing population and rising incomes in developing nations. 

The company’s hospitals are located in South Africa, Namibia, Switzerland, and the Middle East. Earnings growth has been explosive in recent years with revenue and pre-tax profit rising from $365m and $61.5m respectively in 2013 to an estimated $2.75bn and $296m for the fiscal year ending 31 March 2017. City analysts are expecting earnings per share to rise by nearly a third over the next three fiscal years. From a projected 29.8p for the fiscal year ending this March, earnings per share are expected to hit 41p for the year ending 31 March 2019.

Considering this growth as well as the company’s defensive nature, shares in Mediclinic look relatively attractively priced at current levels. 

Indeed, at the time of writing shares in the company trade at a forward (fiscal year ending 31 March 2018) P/E of 20.9, falling to 18.3 for the following year. For comparison, shares in peer NMC Health currently trade at a forward P/E of 28.2 and shares in Georgia Healthcare trade at a forward P/E of 25.4. On this basis, compared to its peer group, Mediclinic’s shares look undervalued and could be an attractive investment for both value and growth investors.

Explosive growth 

As the world’s population grows and ages, ConvaTec Group’s (LSE: CTEC) sales should only grow as the medical technology company expands to meet demand. 

It produces therapies for the management of chronic conditions, wound care and critical care. Even though shares in the company only began trading at the end of October, they have since risen by 42% as investors have brought into the company’s growth story. 

City analysts are expecting explosive growth in the years ahead. The company is projected to report a pre-tax profit of £316m for 2017, up from a pre-tax loss last year, and earnings per share are expected to grow by 54%. Next year earnings growth of 10% has been projected. If the company meets these forecasts, the shares are trading at a forward P/E of 21.6, which is slightly above that of peers such as Smith & Nephew plc. But if ConvaTec’s earnings continue to grow at a double-digit annual rate, the firm will soon grow into its valuation. 

What’s more, City analysts have forecast the dividend payout of 5.5p this year, giving a dividend yield of 1.7%. The payout is covered nearly three times by earnings per share, giving plenty of room for further payout growth or special dividends as expansion continues.

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Rupert Hargreaves 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.

The business — which operates the Zoopla and uSwitch websites among others — announced that revenues revved 22% higher during the six months to March 2017, to £117.9m, a result that propelled adjusted EBITDA 11% higher to £45m.

It clocked up a record 314m visitors to its websites over the year, with technological innovations (like the ‘Move Planner’ instrument on Zoopla) and the huge investment in branding both boosting the hit counter.

Exciting outlook

ZPG has already carved itself a reputation for delivering exceptional double-digit earnings growth in recent years. And the number crunchers believe the London business still has plenty to offer, with City consensus suggesting earnings growth of 10% and 18% in the years to September 2017 and 2018 respectively.

And in my opinion, investors should not be deterred by ZPG’s forward P/E ratio of 26.3 times (a figure that shoots above the widely-regarded value benchmark of 15 times).

The company’s price comparison services still offer plenty of upside as the UK’s switching culture continues to grow, a phenomenon that could  gain further steam in the months ahead as rising inflationary pressures put household budgets under increasing strain. ZPG saw revenues from its price comparison operations rise 8% in the first half to £62.1m.

On top of this, recent acquisitions like that of Hometrack also provide ZPG with a multitude of cross-selling opportunities.

With its property listings portal also showing its resilience despite signs of a cooling housing market (the company saw the number of agents on its books rise 6% in the period to March), I reckon ZPG is a splendid pick for those seeking robust earnings growth.

Healthcare hero

Mediclinic International (LSE: MDC) has not commanded the same sort of enthusiasm as ZPG in mid-week trade however, the company falling 6% from Tuesday’s close and away from recent six-month highs after reporting a whopping bottom-line fall.

The private healthcare play advised that underlying earnings slumped 19% in the year to March 2017 as troubles in Abu Dhabi weighed. Mediclinic has been whacked by regulatory changes to health insurance policies, as well as problems with new facility openings and a shortage in doctor numbers. And the business advised today that it only expects a “gradual improvement” in this embattled market.

Clearly it has a lot of work in front of it to turn around its troubled operations in the Middle East. But I believe the company remains a hot long-term pick as global healthcare demand continues to grow, and particularly in its emerging regions like the UAE and South Africa.

Indeed, the City expects Mediclinic to bounce from sustained earnings pressure from this year onwards, with current forecasts suggesting rampant growth of 36% in the period to March 2018. And an extra 13% rise is chalked in for fiscal 2019.

I believe Mediclinic remains a brilliant long-term stock selection, and worthy of a premium forward P/E ratio of 20.2 times despite its current troubles.

The post 2 super growth stocks you need to check out today appeared first on The Twelfth Magpie.

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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. 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.