4 Growth Stocks Set To Beat The FTSE 100: ARM Holdings plc, Unilever plc, Laird PLC And Galliford Try plc

These 4 stocks could be worth buying right now: ARM Holdings plc (LON: ARM), Unilever plc (LON: ULVR), Laird PLC (LON: LRD) and Galliford Try plc (LON: GFRD)

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ARM

The last year has been a strong one for investors in ARM (LSE: ARM), with the UK’s most prominent technology company seeing its share price rise by 19%, while the FTSE 100 is up far less at 5% in the last 12 months.

Certainly, ARM is not growing its bottom line at quite the same rate as it was a few years ago, with the company becoming more mature and, therefore, slower-growing. However, it still packs a punch when it comes to earnings growth, with it being forecast to increase profit by 23% in the current year, and by a further 19% next year.

And, with ARM trading on a price to earnings growth (PEG) ratio of 1.5, it still seems to offer good value for money and looks set to continue its outperformance of the FTSE 100.

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Unilever

Over the next two years, Unilever (LSE: ULVR) (NYSE: UL.US) is expected to increase its bottom line by around 18%. While not the highest rate of growth in the FTSE 100, it is nevertheless still impressive – especially when you consider that Unilever could realistically improve on this growth rate in the long run.

That’s because, in recent years, it has focused its capital on the emerging world and, in time, this could be of major benefit to the company. For example, the wealth of people in emerging markets continues to rise at a rapid rate and, while staple goods continue to become more popular, the next period of growth could be focused on consumer discretionaries, in which Unilever has considerable exposure. As such, it could outperform the wider index in the long run.

Laird

When it comes to a mix of growth, value and income, UK technology company Laird (LSE: LRD) has huge appeal. That’s because, as well as having a yield of 3.9%, it is expected to increase its bottom line by 16% in the current year, followed by 12% next year.

However, unlike many of its peers, Laird still offers great value for money despite its share price having risen by a whopping 159% in the last five years. For example, it has a PEG ratio of just 0.9, which indicates that it offers growth at as very reasonable price and, as a result, could outperform the wider index this year.

Galliford Try

With the housing market stalling, now may not seem like the right time to buy construction companies such as Galliford Try (LSE: GFRD). However, with a severe shortage of housing and a very accommodative monetary policy, the next couple of years could be something of a purple patch for the industry.

For example, Galliford Try is forecast to increase its bottom line by 15% in the current year and by a further 30% next year. This is a stunning rate of growth and shows that, alongside a yield of 4%, the company remains an excellent growth play. And, with its shares trading on a price to earnings (P/E) ratio of just 13.9, they seem to offer excellent value for money, too.

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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 Galliford Try, Laird, and Unilever. The Motley Fool UK has recommended ARM Holdings and Laird. 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.

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