Indeed, the huge growth potential of its far-flung regions was laid bare by its latest quarterly update in January. The credit scoring colossus advised that organic revenues in Latin America climbed 8% during October-December, while aggregated sales in Europe, the Middle East, Africa and Asia Pacific climbed 6%.

This helped total organic revenues at Experian to climb 4% in the quarter. And I fully expect turnover growth from emerging regions to really gather steam in the years ahead as spiralling wealth levels drive demand for financial products.

For one, the improving economic outlook in Brazil certainly lends huge weight to Experian’s growth outlook in the near term and beyond — central bank data overnight showed the country’s economy grew at the fastest rate for seven years in February.

And while growth in North America has been less impressive of late (organic revenues rose 3% in the third quarter versus 6% in the prior six months), the strength of the US economy should continue to keep activity on an upward curve.

Perky predictions

The City expects Experian to follow an anticipated 3% earnings rise in the year to March 2017 with an 8% advance in the current fiscal period. And this is not the end of the story, with growth expected to swell further, to 10%, in fiscal 2019.

A forward P/E ratio of 20.4 times may appear expensive on paper, sailing above the widely-regarded value benchmark of 15 times.

But I reckon Experian has plenty of levers to deliver resplendent long-term earnings growth, and for this the business merits such a premium. As well as its broad territorial presence, investors can also look to Experian’s presence across multiple sectors to deliver reliable earnings expansion in the years ahead.

And Experian also has plenty of financial clout to deliver bumper bottom-line growth through further acquisitions.

Data darling

Business information provider RELX (LSE: REL) is also expected to generate solid profits expansion during the medium term at least.

For 2017 and 2018, earnings advances of 1% and 8% are presently predicted by City brokers. And while dealing on a forward P/E ratio of 19.3 times, I reckon RELX remains a great pick at current prices, particularly as tomorrow’s trading update could lead to forecast upgrades.

RELX saw revenues shoot 15% higher during 2016, to £6.9bn, reflecting the positive impact of sterling weakness. But a 4% organic sales rise underlines the success of RELX’s ongoing transformation drive (the company was formerly known as Reed Elsevier) as it moves to digital data services and away from traditional print formats.

And like Experian, RELX’s earnings outlook is bolstered still further by its vast worldwide presence, and particularly its robust position in the US (the company sources around 54% of revenues from the world’s largest economy, versus just 8% from the UK). I reckon there is plenty here for growth investors to get excited about.

The post 2 stunning growth stocks that could make you rich 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.

Well-positioned

With an enviable portfolio of hotel brands, Intercontinental Hotels Group (LSE: IHG) has a lot of potential. Despite fears of a slowdown in the global economy, hotel revenues continue to grow at a robust pace, while vacancy rates carry on declining. Margins have improved too, as revenue per room rose 1.5% in the first quarter of 2016.

With 220,000 new rooms hitting the market over the next few years, IHG has one of the sector’s largest development pipelines and is well positioned for further growth. City analysts expect this will lead adjusted earnings to expand 10% this year, with a further 16% gain forecast for 2017.

This means that although IHG shares currently trade at a pricey 22.3 times earnings, its forward price-to-earnings ratio would fall to a more modest 20.2 multiple on this year’s earnings (before dropping to just 17.4 by 2017).

Track record

Meanwhile, publisher Relx (LSE: REL) is expected to post a 12% rise in adjusted earnings per share this financial year, with a further increase in earnings of 7% in 2017. This puts Relx on a forward P/E of 17.9 and a PEG ratio of just 1.5, which indicate its shares offer growth at a reasonable price.

As well as upbeat growth prospects, Relx has an impressive track record that may not be fully be appreciated by the market. Over the past five years, adjusted EPS and dividends per share have increased by a compound annual growth rate (CAGR) of 6.9% and 7.8%, respectively.

Dividend

One company that appears to be attractively priced given the value of its underlying assets and dividend potential is real estate investment trust, or REIT, Hammerson (LSE: HMSO). The retail and office-focused property company trades at an 18% discount to its net asset value (NAV) of 710p per share.

Fears over a potential downturn in the UK commercial property sector and uncertainty created by the EU referendum have led to a sector-wide sell off, but Hammerson is particularly attractive because it has one of most generous dividends. The REIT currently yields 3.8%, but with dividends set to soar 7% this year, and a further 6% in 2017, its forward dividend yields rise to 4.1% and 4.4% for 2016 and 2017, respectively.

New product

You’ve probably all seen Photo-Me’s (LSE: PHTM) self-service photo booths everywhere, but you may not know the company has a new product in town: professional self-service washing machines. These industrial-sized automated laundry machines can hold a wash of up to 18kg, and are most frequently located in supermarket car parks.

Doing your laundry in a car park may initially seem to be strange affair, but with over 1,200 units operated by the company and a further 500 units sold to third parties, the product seems to be catching on. By 2020, the company plans to have 6,000 of these units in operation across Europe.

The outlook for its core photography business is enticing too. A new ID card launched in Japan earlier this year and a new format driving license in France should see continued robust growth over the next few years. For Photo-Me as a whole, revenue for the quarter ended 31 January was 11% higher, with profits increasing by almost 90% compared to the same period last year.

Looking forward, analysts expect full year adjusted EPS to grow 14% this year, with 10% and 8% growth pencilled-in for the following two years.

The post 4 super growth stocks: Relx plc, InterContinental Hotels Group plc, Hammerson plc and Photo-Me International plc appeared first on The Twelfth Magpie.

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• Down 36%, is this FTSE 100 growth stock still a long-term compounder?
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Jack Tang 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.

I always try to learn from investors who have performed consistently over the years: Mr Train has an impressive track record, so he certainly fits the bill.

The burning question is: how does he do it?  In short, he holds a concentrated portfolio of excellent companies, trades rarely and aims to receive an above-average dividend yield from the companies in which he invests.  Sounds simple, doesn’t it?  Well, let’s see what we can learn from his top three holdings.

Unilever

At 8.9% of the trust, Unilever is the top holding.  It is a global fast-moving consumer goods company.  Indeed, it would be difficult not to find one of its products around your house — think Cif, PG Tips and Persil.  It operates under four segments: Personal Care, Foods, Refreshment and Home Care. In short, this company sells its goods in 180 countries.  Whilst it is easy to become fixated on the lofty forward P/E of nearly 22 times earnings, I would suggest that you look at the quality measures:

• Return on capital: 28.1% (Best in sector);
• Return on equity: 36.9% (Best in sector);
• Operating margin: 16.5% (3rd in sector).

I believe that these are the metrics focused on by Mr Train, together with the growing dividend yield, currently over 3%.

Diageo

Currently the second largest constituent of the trust at 7.9%, Diageo is engaged in drinks business, with brands in spirits, beer, wine and ready-to-drink products. It owns manufacturing production facilities across the globe, including maltings, distilleries, breweries, packaging plants, maturation warehouses, cooperages, vineyards, wineries and distribution warehouses. The company’s brands are also produced at plants owned and operated by third parties and joint ventures at a number of locations internationally: think Johnnie Walker, Smirnoff, Guinness and Bushmills.

Again, don’t be put off by the forward P/E of nearly 20 times earnings: it’s quality that we’re using to assess the company.  The metrics stack up well with return on capital of 11.1%, return on equity of 27.3% and an operating margin of 22.8%.  The interim dividend was also hiked by 9%

These are qualities that fit the bill perfectly for the manager of the trust.  He believes that, amongst other drivers of growth, the fall in the price of oil will see billions of consumers across the world with a few extra pounds, euros, dollars or yuan in their pockets.  He believes that this will bode well for these quality acts.

Reed Elsevier

Reed Elsevier is a Netherlands-based company holding shares in RELX Group. RELX Group is a global provider of information solutions for professional customers across industries. The company operates in four market segments: Scientific, Technical & Medical, providing information and tools to help customers improve scientific and healthcare outcomes; Risk and Business Information, providing data services and tools that combine proprietary, public and third-party information with technology and analytics to business and government customers; Legal, providing legal, regulatory, and news & business information to law firms and to corporate, government and academic customers; and Exhibitions, organising exhibitions and conferences.  At 7.3% of the trust’s portfolio, it is the third largest position.  Here, we have a global company with sector-leading quality metrics that show that it boasts a strong moat.  Combine that with a modest forward P/E of 13 times earnings, supported by a 3.5% yield and a £500 million share buyback planned for 2015 and it is easy to see the attractions here.

Is There Still An Investment Case?

Personally, I tend to agree with Mr Train that there are several factors that mean that equities in general could rise further from here:

• Inflation remains low, meaning that interest rates could stay lower for longer that people believe;
• The full impact of the oil price fall is yet to fully impact company results, meaning improved sales and operating profits;
• Quality companies will continue to profit whatever the weather and raise their dividends above the rate of inflation, and this will make them attractive to investors seeking an income in a low-interest rate environment.

The post 3 Stocks Comprising A Quarter Of Nick Train’s Top Investment Trust: Unilever Plc, Diageo Plc & Reed Elsevier plc appeared first on The Twelfth Magpie.

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

Train reckons such companies are “undervalued by most investors for most of the time”. He told holders of his CF Lindsell Train UK Equity Fund that “in early 2015, perhaps the most helpful thing I can say is that I continue to add to most existing holdings enthusiastically”.

The top three companies in Train’s portfolio are Unilever (LSE: ULVR) (NYSE: UL.US), Diageo (LSE: DGE) (NYSE: DEO.US) and Reed Elsevier (LSE: REL).

Unilever

Unilever is the largest holding in Train’s fund with a weighting of 9.3%. The consumer goods colossus owns over 400 brands, including such iconic names as Marmite, Vaseline and Domestos. Two billion people worldwide use Unilever brands on any given day. Rising populations and increasing wealth in developing economies should help drive the company’s growth for decades to come.

Unilever’s shares are currently trading on 21x forecast earnings, with a dividend yield of 3.2%. While many analysts and investors consider such an earnings rating pricey, Train points out that periodic corporate transactions in the sector at higher multiples “demonstrate how highly business people value such assets”.

Train said in January: “For us, companies of this rarity and excellence wouldn’t be truly over-valued until they traded at 30x earnings“.

Diageo

Diageo shares many qualities with Unilever, and is Train’s second-largest holding with a weighting of 8.3%. The global drinks giant owns an abundance of top brands, including world number ones Johnnie Walker, Smirnoff, Bailey’s and Guinness. Also like Unilever, rising incomes in developing markets are a driver for long-term growth.

Diageo’s shares are currently trading on 21x forecast earnings, with a dividend yield of 2.8% — again, similar to Unilever.

The Telegraph last year asked Train to name the one share he would buy for his children or grandchildren. Train named Diageo, commenting:

“Sometimes we complicate the investment challenge. If you can find a company whose products are likely still to be consumed in 25 years’ time, and if the company can succeed in at least maintaining or preferably increasing the price of its products above inflation, then you have the basis for a wonderful long-term holding”.

Reed Elsevier

Train has described information provider and publisher Reed Elsevier — his third-largest holding with a weighting of 7.9% — as “a ‘toll booth’ for professionals in the scientific, legal, healthcare and insurance industries” and “a collection of near monopolies”.

Reed Elsevier’s shares are currently trading on 18x forecast earnings, with a dividend yield of 2.5%.

While some analysts argue that Reed Elsevier’s valuation is too rich, Train believes the business merits a “very high” rating, saying: “we look to 25x much higher earnings (boosted by ongoing share buybacks, or smart acquisitions) in 3-5 years time”.

The post 3 Shares For Your ISA From Britain’s Warren Buffett: Unilever plc, Diageo plc And Reed Elsevier plc appeared first on The Twelfth Magpie.

More reading

• Newsflash: the Diageo share price just climbed!
• 3,566 shares in this FTSE 100 stalwart earns a £1,443 second income
• Which British dividend shares could supercharge a passive income portfolio in 2026?
• Has the turnaround finally started for Diageo shares?
• The top 3 FTSE shares for beginner investors to consider buying in 2026

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