An opportunity to make a million that won’t last forever

Bilaal Mohamed reckons this packaging specialist could deliver high returns in the long run.

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.

As investors we’re constantly being reminded of the need to keep our emotions in check, and in particular the psychological effects of fear and greed, as these can sometimes be the main drivers of irrational behaviour. But this is easier said than done, as it’s often these same feelings and emotions that prevent us from making rational and logical decisions, which can often lead to poor investment choices.

There are, of course, other emotions in play besides fear and greed, and one in particular I’d like to touch on today, regret. Looking back at missed opportunities and thinking ‘if only I had invested a few years back’ is a scenario that is played out over and over again. With that in mind, today I’ve picked out an unglamorous UK-listed company that I believe could turn out to be a very lucrative investment over the longer term.

All-time high

Plastic packaging specialist RPC Group (LSE: RPC) has performed reasonably well since I first recommended it at 747p back in 2016. Since then, the share price has soared 35% to all-time highs of 1,007p, before falling back to today’s levels around 800p. I view the recent share price weakness as a great buying opportunity to pick up shares in a company that has delivered shareholder returns in excess of 1,000% in less than 10 years.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

The Rushden-based group is a leader in plastic products design and engineering for both packaging and non-packaging markets, boasting 32 innovation centres and 194 operations in 34 countries. The company develops and manufactures a diverse range of products for a wide variety of customers, including many household names, and enjoys strong market positions in many of the end markets and geographical areas in which it operates.

Innovative packaging

The £3bn business is now one of the largest plastic converters in Europe, combining the development of innovative packaging and technical solutions for its customers, while using a wide range of polymer conversion technologies in both rigid and flexible plastics manufacture.

During the first six months of the current financial year the FTSE 250-listed business delivered a remarkable 53% increase in revenues to £1,876m, with strong growth in both packaging and non-packaging products. This was driven by the contribution from acquisitions announced or completed in the previous financial year, along with underlying organic growth, polymer price tailwinds and favourable foreign exchange movements.

Priced to buy

Margins and profitability levels have improved significantly due to the contribution of acquisitions, the realisation of synergies, organic growth, lower exceptional costs, and foreign exchange benefits from a weaker sterling. As a result, adjusted earnings (before interest, tax, depreciation and amortisation) grew 49% to £296.1m, with adjusted operating profits climbing 58% to £214.7m.

With no let-up in growth on the horizon, and trading on a very modest forward earnings multiple of 11 for FY2018, RPC is a quality growth stock that looks priced to buy.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

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.

Bilaal Mohamed has no position in any shares mentioned. The Motley Fool UK has recommended RPC 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.

More on Investing Articles

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

Here’s the worst thing to do in a stock market crash (it isn’t selling)

When the stock market falls sharply – as it does from time to time – selling is often a bad…

Read more »

New year resolutions 2025 on desk. 2025 resolutions list with notebook, coffee cup on table.
Investing Articles

My top 2 growth shares to consider buying in 2025

For investors looking for top growth shares to buy in the New Year, I reckon this pair are well worth…

Read more »

Investing Articles

3 massive UK shares that could relocate their listing in 2025

I've identified three UK companies that may consider moving their share listing abroad next year. What does this mean for…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

2 common mistakes investors make with dividend shares

Stephen Wright outlines two common mistakes to avoid when considering dividend shares. One is about building wealth, the other is…

Read more »

Investing Articles

Here’s how I’ll learn from Warren Buffett to try to boost my 2025 investment returns

Thinking about Warren Buffett helps reassure me about my long-term investing approach. But I definitely need to learn some more.

Read more »

Businessman use electronic pen writing rising colorful graph from 2023 to 2024 year of business planning and stock investment growth concept.
Investing Articles

Here are the best (and worst) S&P 500 sectors of 2024

While the S&P 500 has done well as a whole, some sectors have fared better than others. Stephen Wright is…

Read more »

Investing Articles

2 FTSE 100 stocks I think could be takeover targets in 2025

If the UK stock market gets moving in 2025, I wonder if the FTSE 100 might offer a few tasty…

Read more »

Young Asian woman with head in hands at her desk
Growth Shares

Are these areas of the stock market in a bubble as we approach 2025?

Certain areas of the stock market have felt a little frothy in recent weeks. And Edward Sheldon believes that investors…

Read more »