Have £2,000 to invest? Here are 2 monster growth stocks to consider

Harvey Jones says these two stocks will have doubled your money and they could pull off the trick again.

| 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.

It’s a bumpy morning for budget airline Wizz Air Holdings (LSE: WIZZ), down 6.26% in early trading after it cut growth targets and complained about a cancellation-plagued first quarter due to – you guessed it – European air traffic control disputes.

It’s the Wizz!

Wizz posted profits of €50m in the three months to 30 June but this was €8.1m lower than a year ago, which reflected higher than expected disruption costs and the busy Easter period falling outside the quarter this year.

Total unit revenue dropped 1.4% to 3.67 euro cents per available seat kilometre (ASK), while total unit costs fell 2.2% to 3.3 euro cents per ASK. Wizz also suffered an “unprecedented number of disruptions” due to you-know-what, which increased the number of cancellations from 34 to 145 and cost it €9.1m in passenger delay and compensation costs, up 203%.

Climbing again

On the plus side, total revenue increased 17.9% to €553.4m, while ticket revenues increased 24.5% to €330.4m. Ancillary revenues grew 9.3% to €223m. CEO József Váradi hailed the group’s “double-digit growth in passenger numbers and revenues” and “ever higher load factors”. However, he warned that air traffic control disruptions are likely to continue into the autumn, and combined with fuel prices rising, the group is trimming its full-year growth target from 20% to 18%.

Investors should not feel too aggrieved, the stock is up more than 40% over the last year, and 112% over three years. Any dip could be an entry point, if you are fast, as it is already climbing again. Wizz trades at a forecast valuation of 16.4 times earnings although this year could be bumpy, with City analysts predicting a 37% drop in earnings, but this should rebound 21% in the year to 31 March 2020.

The £3.47bn budget carrier boasts free cash of €1,116.6m and my Foolish colleague Paul Summers notes that its capital and operating margins are markedly higher than its rivals. Wizz is still a flyer.

Crown Joules

Better news for investors in premium lifestyle fashion chain Joules Group (LSE: JOUL), which is up a slinky 2.31% after posting an 18.4% rise in group revenue to £185.9m and an even sharper 28.5% increase in underlying profit before tax to £13m.

Today’s annual results to 27 May also showed underlying basic earnings per share (EPS) jumped 28.5% to 11.8p, with statutory basic EPS up by 36% to 9.9p. Gross margins increased 25 basis points to 55.7%.

Joules continues to win converts to its branded lifestyle clothing, accessories and homewares, with active customers up 23.4% to 1.15m. It is successfully promoting its ‘authentic’ British wares in the US, Germany, France and other European markets, with international revenue up 35.7% to 13.1% of group revenue. 

Pint of Porter

CEO Colin Porter hailed another strong year of growth due to to the strength and appeal of the Joules brand, and its loyal customer base. He said momentum will continue into full-year 2019, and proposed a final dividend of 1.3p per share. The forecast dividend is 0.9%, covered 4.4 times.

Joules has risen 102% in two years and could still double your money, even if it is valued 26.8 times earnings, as its robust double-digit earnings growth forecasts make this a stylish portfolio accessory. 

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.

harveyj has no position in any of the shares mentioned. The Motley Fool UK has recommended Joules 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

Road trip. Father and son travelling together by car
Investing Articles

A 10% dividend yield? There could be significant potential here to earn a second income

Mark Hartley delves into the finances and performance of one of the top-earning dividend stocks in his second income portfolio.

Read more »

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

Charlie Munger recommended shares in this growth company back in 2022. Here’s what’s happened since

One of Charlie Munger’s key insights is that a high P/E ratio shouldn’t put investors off buying shares if the…

Read more »

Investing Articles

What might 2025 have in store for the Aviva share price? Let’s ask the experts

After a rocky five years, the Aviva share price has inched up in 2024. And City forecasters reckon we could…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Trading around an 11-year high, is Tesco’s share price still significantly undervalued?

Although Tesco’s share price has risen a lot in the past few years, it could still have significant value left…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

£11,000 in savings? Investors could consider targeting £5,979 a year of passive income with this FTSE 250 high-yield gem!

This FTSE 250 firm currently delivers a yield of more than double the index’s average, which could generate very sizeable…

Read more »

Young Caucasian woman with pink her studying from her laptop screen
Investing Articles

Does a 9.7% yield and a P/E under 10 make the Legal & General share price a no-brainer?

With a very high dividend yield and a falling P/E forecast, could the Legal & General share price really be…

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

This growth stock is up 2,564% over 6 months! Is this FOMO?

This growth stock has experienced an incredible appreciation in its share price. It’s not a meme stock, but investors might…

Read more »

Investing Articles

This bank’s dividend yield will grow to 6.9% in 2026! And analysts say its undervalued

Analysts say this FTSE 100 stock’s dividend yield will continue to rise over the medium term. With the stock also…

Read more »