Looking ahead, the uncertain economic outlook for Nigeria seems set to continue and when this is combined with currency weakness in Africa and across Asia, the future for PZ Cussons remains unpredictable. Although performances in Europe and Australia continue to be robust, PZ Cussons’ revenue slipped back slightly in the first half of the year and its focus on Nigeria is set to mean that earnings rise by just 3% in the current year.

With the company’s share price having fallen by 21% in the last year, it’s clear that investor sentiment is weak. However, with growth in earnings of 8% being pencilled-in for next year and a price-to-earnings (P/E) ratio of 13.3, PZ Cussons is now beginning to appear attractive for long-term investors. Certainly, more pain could be on the cards in the short run, but PZ Cussons may prove to be a sound long-term buy for less risk-averse investors.

Spirited valuation

Also reporting today was Stock Spirits (LSE: STCK) with the Central and Eastern European-focused alcoholic beverages company seeing a share price rise of almost 10% at the time of writing. Encouragingly, the company’s fourth quarter trading was in line with previous expectations and Stock Spirits now expects earnings before interest, tax, depreciation and amortisation (EBITDA) to be in the upper half of the range €50m to €54m.

Looking ahead, Stock Spirits is conducting a review of its business in Poland, as well as its wider corporate strategy. Clearly, this brings a degree of uncertainty to the mix since Poland is Stock Spirits’ largest market. But with Poland having been a challenging place to do business in recent years, mainly as a result of changes to excise tax, a new strategy could help to boost profitability over the medium term. And with the company’s shares trading on a price-to-earnings growth (PEG) ratio of just 0.9, there appears to be further capital gain potential, too.

Gains ahead

Meanwhile, Sigma Capital (LSE: SGM) has also been a strong performer of late, with its shares having soared by 73% in the last year. As its most recent update showed, Sigma Capital is making encouraging progress with its strategy and its increase to full-year guidance has caused investor sentiment to improve.

Looking ahead, Sigma Capital remains well-positioned for 2016 with work in progress being ahead of plan. Its second phase of private rented sector delivery with Gatehouse Bank for 900 new rental homes is now underway in Manchester and Liverpool, with Sigma Capital aiming to launch two similar sized projects in the Midlands and the South. With its shares trading on a PEG ratio of 0.1, more capital gains are very much on the cards over the medium-to-long term.

The post Should You Buy Sigma Capital Group Plc, PZ Cussons plc And Stock Spirits Group PLC Following Recent Updates? appeared first on The Twelfth Magpie.

More reading

• After upgraded guidance, is PZ Cussons primed for a FTSE 250 comeback?

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

One company which is cheap and is enduring a tough time at the moment is Santander (LSE: BNC). Its share price has plummeted from 632p to 322p in the last eighteen months as its financial outlook has worsened owing to a poor performance by the Brazilian economy. This is a key market for Santander and further negative or slow growth could cause a downgrade to the bank’s forecasts.

Despite this risk, Santander appears to be a strong buy at the present time. It trades on a price to earnings (P/E) ratio of just 8.5 which, for a major bank which is geographically well-diversified, appears to be a very appealing price to pay. Furthermore, with Santander having bolstered its financial standing in recent years, it appears to be a less risky proposition than previously, with its dividend yield of 4.8% providing additional evidence that its total return could be sizeable over the medium to long term.

Also trading on a low valuation is Centamin (LSE: CEY), with the Egypt-focused gold miner having a P/E ratio of just 12.6. Certainly, the price of gold could come under pressure this year due to pending US interest rate rises which have historically caused demand for gold to fall. However, with Centamin forecast to increase production to 500,000 ounces of gold per annum in the next couple of years, even a disappointing period for the gold price may fail to stop improved profitability for the company over the medium term.

With Centamin’s dividend being covered 2.8 times by profit, it appears to be relatively secure and also offers strong dividend growth prospects. Therefore, while Centamin yields just 2.9%, it remains a relatively enticing long-term income play.

Meanwhile, today’s update from private rented housing sector specialist Sigma Capital (LSE: SGM) was warmly received by the market, with its shares being up by over 10% on the day. The key reason for this is an increase in guidance for the full-year, with pre-tax profit of £2m now due to be delivered.

Looking ahead, Sigma remains well-positioned for 2016 and its work in progress is ahead of schedule. It also plans to begin construction with its second house building partner, Keepmoat. This will increase capacity as well as provide Sigma with access to further land opportunities alongside its current pipeline.

With the company’s shares trading on a price to earnings growth (PEG) ratio of just 0.1, there seems to be further upside potential on offer, thereby making Sigma a strong buy even after today’s double-digit gains.

The post Are Banco Santander SA, Centamin PLC & Sigma Capital Group Plc Value Plays Or Value Traps? 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 owns shares of Centamin. 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.