Notwithstanding this, it does seem logical to suppose rivals to the 178-year-old firm will be benefit from reduced competition. One is On the Beach (LSE: OTB). 

According to today’s (brief) update, trading over the year to the end of September has “remained in line with management’s revised expectations for the full year.” While encouraging, it’s arguably more important the company went on to state the aforementioned liquidation of its rival had “created an unprecedented opportunity to take additional market share at an increased rate” and it would be increasing its marketing spend as a consequence. 

The post Thomas Cook is gone and this growth stock looks set to benefit appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of SSP Group. The Motley Fool UK has recommended On The Beach. 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.

Can this momentum continue? Based on today’s excellent set of final results and bullish words from management, it’s certainly possible.

Flying high

In the year to the end of March, the number of passengers carried by the airline rose by just under 25% year on year to a record 29.6m. Revenue flew 24% higher at €1.95bn and net profit came in at a record €275m — 22.1% more than in 2016/17. 

With numbers as good as these, it’s no surprise that the people running the firm “remain very optimistic” going forward. Indeed, CEO József Váradi predicts that the company’s low fares and expanding network will lead to an estimated 20% rise in passenger numbers over the next financial year to 36m. Net profit of between €310 million and €340 million has already been pencilled in. 

While there can be little doubt that the £2.3bn cap airline is a class act, the question remains as to whether the ‘easy money’ has already made by investors. With the shares up another 4% in early trading, it would seem that many believe even better times lie ahead.

I’m tempted to agree. While a forward price-to-earnings (P/E) ratio of 14 for the next financial year is on par with industry peers, it’s worth pointing out that the company’s returns on capital and operating margins are notably higher. Wizz’s finances are also in excellent shape with €980m of free cash on its books at the end of the reporting period. Aside from this, A PEG ratio of just 0.84 suggests that a lot of growth still isn’t factored into the price of the stock.

While income investors may be better suited to British Airways owner International Consolidated Airlines for their dividend fix, I certainly wouldn’t discourage growth enthusiasts from considering Wizz for their suitably diversified portfolios. 

All priced in?

FTSE 250 peer SSP Group (LSE: SSPG) is another stock that’s been performing far better than the index over the last year, rising 39% in value. 

Earlier this month, the food and beverage outlet operator — which occupies sites at many of the airports that Wizz flies to and from — announced a 32.6% rise in underlying operating profit (at constant currency). Revenue also rose almost 12% to £1.18bn over the six months to the end of March, with 2% of this coming from two recent acquisitions (Stockheim in Germany and TFS in India). While the forecast 1.5% dividend yield befits its growth credentials, it’s nevertheless worth noting management’s decision to hike the interim payout by a full 50% to 4.8p per share.

With new contracts in the pipeline, CEO Kate Swann reflected that H2 had begun in line with expectations, even if “a degree of uncertainty always exists around passenger numbers in the short term”. 

When I last looked at SSP in November, its shares were changing hands for 656p. Today, they’re at roughly the same value, suggesting that a lot of positive news already appears to be have been factored in by the market. A P/E ratio of 28 for the current year continues to look pretty high so I’m content to wait for a general market sell-off before I consider building a position. 

The post These growth stocks have been smashing the FTSE 250 appeared first on The Twelfth Magpie.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of SSP 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.

While this can mean that the margins of safety on offer are more limited than they once were, it doesn’t necessarily suggest that now’s the time to sell. With many stocks offering impressive earnings growth outlooks, buying opportunities may still be on offer. Here are two such opportunities that could be worth a closer look right now.

Impressive performance

Reporting on Wednesday was operator of food and beverage outlets in travel locations worldwide, SSP (LSE: SSPG). Its performance in the first half of the financial year was impressive, with underlying operating profit rising 32.6% at constant currency.

This was boosted by revenue growth of 11.9%, with like-for-like (LFL) sales increasing 2.8%. This was driven by air passenger travel, as well as retail initiatives. The company also benefitted from significant new contract openings and further operational improvements. It has continued to grow its international presence, with its new business in India performing well alongside its growing operations in North America and Asia.

With SSP having a price-to-earnings (P/E) ratio of 32, it may seem to be fully valued at the present time following share price growth of 173% in the last five years. However, with its bottom line expected to rise by 14% this year and by a further 10% next year, it seems to offer a relatively strong financial outlook. Given the bullish outlook for the world economy at present, its shares could continue to move higher over the medium term.

Improving performance

Also offering capital growth potential despite its high rating is Sports Direct (LSE: SPD). The company has experienced a challenging period, with its bottom line falling in each of the last two years after a period of high growth. However in the current year, it’s expected to return to positive growth, with its bottom line forecast to rise by 21%.

With the outlook for UK consumers improving, the company could enjoy a stronger period of operational and financial performance. Inflation has now fallen below wage growth for the first time in over a year and this could help to strengthen confidence among consumers.

With Sports Direct having a P/E ratio of around 21, it may seem to be overvalued at a time when many of its retail sector peers have significantly lower ratings. However, with the company having a strong position and an improving outlook, it would be unsurprising for its share price to rise after its 37% gain of the last year. As such, now could be the right time to buy it for the long term.

The post 2 ‘expensive’ FTSE 250 stocks I’d buy with £2,000 today appeared first on The Twelfth Magpie.

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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK owns shares of SSP 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.

This growth is at least partly due to higher passenger numbers in the air sector, with its UK performance being robust. However, in Europe SSP’s performance was mixed, with good performance in Spain offset by a weak France and Belgium resulting from industrial action and geopolitical events. Outside of Europe, North America continued to perform well, while China is still experiencing a slowdown in passenger growth.

Looking ahead, SSP is forecast to increase its earnings by 14% this year and by a further 12% next year. This has the potential to boost investor sentiment and with SSP trading on a price-to-earnings growth (PEG) ratio of just 1.5, its shares seem to offer good value for money given their geographic diversity and sound business model.

Rich valuation

Also reporting today was Dairy Crest (LSE: DCG). The company’s start to the financial year has been as expected, with it successfully relaunching Cathedral City cheese with new packaging and branding.

Dairy Crest’s butters, spreads and oils business is also progressing well. The benefits of its investment in infant formula ingredients are also starting to come through, with improved operational efficiencies at its demineralised whey and GOS production facilities.

Dairy Crest is expected to record a rise in earnings of 12% this year and a further 5% next year. Despite its 14% share price fall since the start of the year, it still trades on a rather rich valuation. For example, its PEG ratio is 2.8 and this indicates that there’s a lack of a safety margin. As such, and while Dairy Crest is performing well as a business, there may be better options elsewhere for investors.

Meanwhile, Evraz (LSE: EVR) has also released news today. The steel, mining and vanadium company recorded a fall in production across all of its units in the first half of the year. For example, steel production dropped by 7.6%, while production of steel products fell 8%. This was due to a planned maintenance shutdown at one of Evraz’s furnaces in Russia. Similarly, coking coal production also declined versus the prior year, falling by 21% although it was still higher in the second quarter than in the first quarter of the current year.

With Evraz trading on a price-to-earnings (P/E) ratio of just 8.4, its shares are relatively cheap. However, its earnings are due to fall by 13% next year so while Evraz may be a sound long-term buy, it would be unsurprising for its shares to come under a degree of pressure in the near term.

The post Should you buy these 3 shares after today’s updates? appeared first on The Twelfth Magpie.

More reading

• 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?
• Up 95%! This FTSE 100 stock’s outperformed Nvidia over the past year
• With a 9.3% yield, is this an amazing opportunity to consider buying dirt-cheap Taylor Wimpey shares?
• How much do you need in a Stocks and Shares ISA to aim for £375 a week in retirement?

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