2 cheap growth and dividend stocks whose stock prices could explode in August



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Photo: Sergei SavostyanovTASS via Getty Images.

This article examines two great growth and income stocks whose prices could explode in the days to come.

Bellway

There is no doubt that earnings growth for homebuilders like Bellway is poised to slow significantly as the excessive growth in the number of homes recorded in recent decades stops.

But in my opinion, the massive sales that have flooded these shares – FTSE 250 Bellway shares, have themselves fallen by 18% since the beginning of 2018 – let many of them sell at extremely low prices.

Admittedly, the difficult economic situation, exacerbated by the likelihood of further interest rate hikes by the Bank of England, could hamper buyers' appetite over the coming months (or even years to come). & Nbsp; But it is likely that demand will continue to outstrip supply reasons, a scenario that should keep profits higher in most of the builders listed.

My view is shared by the City, which expects Bellway's net results to have increased by 13% in the 12 months to July 2018, and another increase of 5% is planned for the year In progress. This leaves the company to negotiate a forward price / earnings ratio of only 6.7 times, even if market conditions remain very favorable.

Bellway itself stated in June that "the underlying requirement for new housing remains robust and supported by favorable and stable market conditions and the continued availability of Help to Buy" (23). years) per week during the period of February. From June 1st to 3rd, compared to 221 during the same period in 2017.

In addition, he indicated that his forward sales remained robust, with the value of his backlog standing at 7.8% year-on-year at £ 1.7 billion. And I think the confirmation that the business environment remains strong when new stock figures are released tomorrow (Wednesday, August 8) could help its share price rise again.

Companies waiting for numbers clearly expect things to remain optimistic at Bellway, and further earnings growth should continue to boost dividends. A planned dividend of 139.7p per share for the past fiscal year should reach 145.8p for the current fiscal year. And that means that the manufacturer achieves a gigantic yield of 5%.

Macfarlane Group

The Macfarlane Group's returns may not be as impressive, but the 2.3% and 2.4% statements for 2018 and 2019 respectively – created by anticipated dividends of 2.3% and 2.4% per share for these respective years – should not be flouted.

Payments to the Scottish Packaging Center have been steadily increasing for many years now, allowing it to continue to grow the dividend at a steady pace. And according to the latest commercial details, this story has yet to run.

In mid-May, he said that "the group's profits for the current year are well above those of 2017" and that sales had jumped 11% over the period. The fast-growing e-commerce segment provides the Macfarlane Group with an environment to continue to drive a dramatic growth in revenue, and I look forward to a further series of compelling figures as interim results are released on Thursday. August.

Analysts expect earnings growth of 32% in 2018 and 6% next year, which means the Macfarlane group is changing hands with a P / E ratio of 14.4 times. This is far too cheap in my opinion given its exceptional momentum, and I think this low rating could be the basis for a new surge in share price once these new trading details are released.

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Photo: Sergei SavostyanovTASS via Getty Images.

This article examines two great growth and income stocks whose prices could explode in the days to come.

Bellway

There is no doubt that the growth in the profits of homebuilders, such as Bellway, is expected to slow considerably, as the excessive growth in the number of homes recorded in recent decades is stopping.

But in my opinion, the massive sales that have flooded these shares – FTSE 250 Bellway shares, have themselves fallen by 18% since the beginning of 2018 – let many of them sell at extremely low prices.

Admittedly, the difficult economic environment, exacerbated by the likelihood of further interest rate hikes by the Bank of England, could hamper homebuyers' appetite for months (and possibly years to come). However, demand should continue to outstrip supply for several reasons, a scenario that should keep profits up for most of the builders mentioned.

My view is shared by the City, which expects Bellway's net results to have increased by 13% in the 12 months to July 2018, and another increase of 5% is planned for the year In progress. This leaves the company to negotiate a forward price / earnings ratio of only 6.7 times, even if market conditions remain very favorable.

Bellway herself stated in June that "the underlying requirement for new housing remains robust and is supported by favorable and stable market conditions and the continued availability of Help to Buy". he declared. It recorded 233 bookings per week during the period of February 1st. June 3, compared with 221 for the same period in 2017.

In addition, he said his forward sales remained robust, with his backlog standing at £ 1.7 billion, up 7.8% year-on-year. And I think the confirmation that the business environment remains strong when new stock figures are released tomorrow (Wednesday, August 8) could help its share price rise again.

Companies waiting for numbers clearly expect things to remain optimistic at Bellway, and further earnings growth should continue to boost dividends. A planned dividend of 139.7p per share for the past fiscal year should reach 145.8p for the current fiscal year. And that means that the manufacturer achieves a gigantic yield of 5%.

Macfarlane Group

The Macfarlane Group's returns may not be as impressive, but the 2.3% and 2.4% statements for 2018 and 2019 respectively – created by anticipated dividends of 2.3% and 2.4% per share for these respective years – should not be flouted.

Payments to the Scottish Packaging Center have been steadily increasing for many years now, allowing it to continue to grow the dividend at a steady pace. And according to the latest commercial details, this story has yet to run.

In mid-May, he said that "the group's profits for the current year are well above those of 2017" and that sales had jumped 11% over the period. The fast-growing e-commerce segment provides the Macfarlane Group with an environment to continue to drive a dramatic growth in revenue, and I look forward to a further series of compelling figures as interim results are released on Thursday. August.

Analysts expect earnings growth of 32% in 2018 and 6% next year, which means the Macfarlane group is changing hands with a P / E ratio of 14.4 times. This is far too cheap in my opinion given its exceptional momentum, and I think this low rating could be the basis for a new surge in share price once these new trading details are released.