According to City forecasts, Prudential’s earnings per share are set to expand by 28%, to 101p this year. Based on these figures, the company is trading at a forward P/E of 15.5 and a PEG ratio of 0.6. A PEG ratio lower than one indicates that the shares offer growth at a reasonable price. 

Prudential’s shares currently support a dividend yield of 2.7%, and the payout is covered two-and-a-half times by earnings per share.

Important acquisition

DCC (LSE: DCC) the international fuel sales, marketing, distribution and business support services group, recently completed a game-changing acquisition. 

The company purchased a network of unmanned petrol stations across France from Esso, a subsidiary of oil giant ExxonMobil. City analysts believe that this acquisition will boost DCC’s earnings per share by 43% this year — the kind of growth that’s worth paying a premium for. 

Based on current figures, DCC is set to report earnings per share of 244p for 2015, which puts the company on a forward P/E of 21.1. Factor in the earnings growth rate of 43%, and you get a PEG ratio of 0.5. 

Analysts estimate that DCC’s dividend yield will hit 2% this year. 

Rival merger 

CRH (LSE: CRH) is set to benefit from the £33bn merger of peers Holcim and Lafarge.

CRH will benefit as it is buying £4.6bn of factories and plants to allay competition fears. These assets include the Tarmac brand owned by Lafarge.

After buying these assets, City analysts estimate that CRH’s earnings per share will surge by 34% this year to €1.10. Translated back into sterling, this earnings growth means that CRH is currently trading at a forward P/E ratio of 19.9 and a PEG ratio of 0.6. 

CRH’s dividend yield is set to hit 2.5% next year, and the payout will be covered twice by earnings per share. 

Booming demand 

Signet Jewelers (LSE: SIG) owns the number one jewellery brands in the UK, US and Canadian markets. As the economic recovery gains traction, demand for luxury jewellery items is surging.

City forecasts estimate that Signet’s earnings per share will jump 24.3% this year, from 346p to 430p, which indicates that the company is trading at a forward P/E of 19.2. Further, these figures dictate that Signet is trading at a PEG ratio of 0.8. The company’s shares currently support a dividend yield of 0.7%.

Explosive growth

Investors have only been able to buy Fevertree Drinks’ (LSE: FEVR) shares for eight months, but over this period the market has quickly realised the company’s potential. 

Fevertree’s shares have jumped 70% since November last year, and there could be additional gains to come. 

Indeed, City analysts expect the company to report earnings per share of 7.7p this year, up from 2.2p as reported last year when the company was a private business. And with earnings growth of 170% expected, Fevertree currently trades at a PEG ratio of 0.2, making it the cheapest growth share in this article. 

The post 5 Top Growth Stocks You Can’t Afford To Miss: Prudential plc, DCC PLC, CRH PLC (UK), Signet Jewelers Limited & Fevertree Drinks PLC appeared first on The Twelfth Magpie.

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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. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

In fact, that’s the current situation facing discount stores such as Poundland (LSE: PLND). They have enjoyed stunning growth rates in recent years, as Britain has become a nation of bargain hunters, with consumers seeking out the cheapest, most heavily discounted items.

This, of course, is understandable, since inflation has outstripped wage growth for a number of years, thereby reducing consumer spending power in real terms. Furthermore, the so-called ‘age of austerity’ has also caused the nations psyche to shift towards an attitude of ‘less is more’ and a pullback from the free-spending, debt fuelled consumption of the early 2000s.

Looking ahead, though, this is changing. Household budgets are not under the same pressure as they have been in recent years, with inflation teetering around zero and wage growth being positive. And, with more people in jobs than ever before, consumer confidence is increasing. In time, this is likely to cause people to shop at discount stores such as Poundland a whole lot less and begin to return to the mid-price point stores that have endured such a challenging period in recent years.

One such company is Morrisons (LSE: MRW) (NASDAQOTH: MRWSY.US). Its sales have been under considerable pressure in recent years and, while the grocer has attempted to play catch-up in the online and convenience store spaces, the changing of its senior management team shows that its strategy has ultimately been unsuccessful.

Part of that, though, has been due to extremely unfavourable trading conditions, with that situation now likely to change. In fact, Morrisons is expected to return to bottom line growth as soon as next year which, alongside a new strategy from its recently appointed CEO, could provide a significant stimulus to the company’s share price. Moreover, with Morrisons having a price to book (P/B) ratio of just 1.2, it appears to offer excellent value for money at the present time, too.

Of course, other retailers such as Signet Jewelers (LSE: SIG) offer much more reliable earnings growth than Morrisons.  For example, Signet’s bottom line has grown in each of the last five years, thereby showing a level of consistency that Morrisons simply cannot match. And, with Signet’s earnings due to rise by 40% in the current year, followed by growth of 19% next year, it trades on a price to earnings growth (PEG) ratio of just 0.6. This indicates that its shares offer high growth at a low price and, as such, offer excellent long term growth potential. Furthermore, Signet is also more regionally diversified than Morrisons, with it operating in North America and the UK, versus Morrisons’ UK-centric business model. This should provide even greater consistency in the company’s earnings profile moving forward.

However, with Morrisons also having a very low PEG ratio of 0.7, it has the potential to benefit from an economic tailwind that, alongside a new strategy, could cause investor sentiment to shift from negative to positive. And, as highlighted, its shares are cheap based on their P/B ratio and, as a result, have, in my view, more upside potential than either Signet or Poundland.

The post Why I’d Buy WM Morrison Supermarkets PLC Before Poundland Group PLC And Signet Jewelers Limited appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of Morrisons. 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.