3 Sexy Growth Stocks For 2015: ARM Holdings plc, Barclays PLC And easyJet plc

These 3 stocks could be top performers next year: ARM Holdings plc (LON: ARM), Barclays PLC (LON: BARC) and easyJet plc (LON: EZJ)

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

ARM

Although ARM’s (LSE: ARM) (NASDAQ: ARMH.US) forecast earnings growth rate is perhaps not quite as impressive as it once was, it remains a hugely appealing growth play nonetheless. That’s because the Cambridge-based technology company is expected to increase its bottom line by 13% in the current year, and by a further 23% next year.

That’s around four times the anticipated growth rate of the wider index next year and, as a result, ARM trades on a rather heady price to earnings (P/E) ratio of around 40. While high, ARM’s P/E ratio has been higher and, when combined with the company’s growth forecasts, it equates to a price to earnings growth (PEG) ratio of 1.4.

This indicates that growth is on offer at a reasonable price (especially when the FTSE 100 has a PEG ratio of around 2.5) and means that ARM could be a strong performer next year.

Should you invest £1,000 in Barclays right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays made the list?

See the 6 stocks

Barclays

Also forecast to post stunning earnings numbers next year is Barclays (LSE: BARC) (NYSE: BCS.US). While a number of its peers are struggling to deliver meaningful bottom line rises, Barclays is expected to have earnings that are 21% up on last year when it reports its 2014 annual results. Furthermore, it is set to follow this up with even better growth of 29% next year, which shows that Barclays is an enticing growth stock for the medium term.

In addition, with Barclays trading on a PEG ratio of around 0.5, it seems to offer such excellent growth prospects at a very reasonable price. As a result, it could prove to be a superb buy at the moment, with 2015 looking all set to be a great year for investors in the bank.

easyJet

Although the falling price of oil has hurt a vast number of companies, those in the travel sector have benefitted hugely. Partly as a result of this, shares in easyJet (LSE: EZJ) have outperformed the wider index in 2014 and, looking ahead, they could do the same next year.

Certainly, the oil price looks set to remain at relative lows for the foreseeable future and this should help to boost easyJet’s bottom line moving forward. For example, it is forecast to increase earnings per share by 11% next year and, with shares in the company trading at a discount to the wider index, they seem to offer excellent value for money as well as compelling growth prospects.

In addition, with easyJet yielding over 3% and having a payout ratio of just 40%, there seems to be significant scope for dividend increases over the medium term. This could raise the appeal of the company and offer an extra boost to its share price in 2015.

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of Barclays. The Motley Fool UK has recommended ARM Holdings. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Mature black couple enjoying shopping together in UK high street
Investing Articles

Here’s how a 50-year-old could aim for £1,400-a-month passive income from an ISA

Investing in a Stocks and Shares ISA is one way to target long-term passive income, even for those hitting their…

Read more »

Investing Articles

After hitting a new 52-week low can the Diageo share price ever recover? See what the experts say

Harvey Jones has taken a beating on the Diageo share price, and there's no end to his misery in sight.…

Read more »

Investing Articles

Should I cash in my Rolls-Royce shares?

This investor in Rolls-Royce shares is wondering whether now might be the best time to sell up and move on…

Read more »

Investing Articles

With gold above $3,000, is it time to consider buying this FTSE miner?

Here’s one FTSE 100 stock that should -- in theory -- benefit from the current global uncertainty and a rising…

Read more »

Investing Articles

3 possible ways to generate a £1k monthly second income in the stock market

Our writer outlines a trio of approaches someone could take to try and build a four-figure monthly second income from…

Read more »

Investing Articles

Is the booming BAE Systems share price a deadly trap?

The BAE system share price has been a huge beneficiary of today's geopolitical uncertainty but investors considering the stock should…

Read more »

Investing Articles

Thank you stock market: a rare chance to consider buying Nvidia stock?

Market forces have brought Nvidia stock and many of its peers down as the Nasdaq and S&P 500 reach correction…

Read more »

A couple celebrating moving in to a new home
Investing Articles

Time for a Berkeley Group share price recovery as FY guidance is confirmed?

After slumping in 2024, investors will want to see better from the Berkeley Group Holdings share price. Here's what the…

Read more »