Ted Baker
Shares in lifestyle brand, Ted Baker (LSE: TED), are up 8.5% today despite there being a lack of significant news flow. Certainly, the recent past has been somewhat disappointing for the company, since it lost its case regarding employee theft that is estimated to have cost around £5 million. However, recent results have been strong and the company appears to be well-positioned for further growth.
Indeed, Ted Baker is expected to increase its bottom line by 19% in the current year, and by a further 18% next year. With shares in the company trading on a price to earnings (P/E) ratio of 25.7, this equates to a price to earnings growth (PEG) ratio of 1.4. As such, and despite such impressive gains today, Ted Baker still seems to be well-worth buying ahead of its interim management statement on 13 November.
Supergroup
After releasing a profit warning in its second quarter trading update last week, shares in Supergroup (LSE: SGP) nosedived by as much as 13%. However, they have now recovered all of that fall and are up 9% today.
Indeed, Supergroup’s profit warning was mostly down to warm weather that has hit the wider retail sector, rather than company-specific issues. And, with a new CEO in Euan Sutherland at the helm, who built up a strong reputation at Kingfisher, now could be a good time to buy shares in the company.
With a very reasonable P/E ratio of 14.4 and earnings growth of 16% expected next year, Supergroup’s PEG ratio of 0.9 indicates growth is on offer at a reasonable price.
John Menzies
Having released a profit warning this week, shares in John Menzies (LSE: MNZS) have been hugely volatile. On Wednesday, they fell by almost 35% after the airport services and distribution company announced that its aviation division head, Craig Smyth, would leave immediately due to challenges in the division. As a result, profit for the full year will be materially below previous expectations.
Today, though, shares in the company have risen by over 7% despite no further significant news being released. Such strong gains could be a result of the closing of short positions, reaction to positive price targets from brokers such as Liberum (which has a price target that is 76% higher than the current share price), or simply a ‘dead cat bounce’.
Either way, shares in the company now trade on a P/E ratio of just 6 and could prove to be good value for brave investors.
