Could these be a couple of the best stocks to buy in April? Here’s why I think the answer could be ‘yes’.
In great health
I believe Spire Healthcare Group (LSE: SPI) is very much a stock for the moment as confidence in free UK health services sinks.
The number of private patients in Britain is ballooning as people try to skirt long NHS waiting lists. A recent survey shows public confidence in the NHS has slumped to 25-year lows. The trend is only likely to keep growing too as the number of patients awaiting NHS treatment increases in the years ahead.
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Spire enjoyed record growth in private patient revenues in 2021 (these jumped 61.8% year-on-year), it recently said. News that Spire witnessed “significantly higher level of private enquiries” between 1 January and 3 March “compared to recent years” illustrates how robustly business is likely to remain in 2022 too.
Expensive but exceptional
Activity at Spire could cool significantly if the NHS receives an influx of new cash to address public concerns. But as things stand the outlook for private care providers looks exceptionally robust.
City analysts think Spire will bounce strongly back into the black following the losses per share of 7.1p endured last year. Earnings per share of 6.1p are predicted for 2022. Earnings at the UK share are predicted to soar 44% in 2023, too, to 8.9p.
Current predictions mean that Spire shares don’t come cheap. Today, the business trades on a forward price-to-earnings (P/E) ratio of 40.7 times. Still, it’s my opinion that this UK share’s worthy of such a meaty premium.
Another stock I’d buy in April
I also believe Begbies Tranor Group (LSE: BEG) could be one of the best stocks to buy in April as the British economy deteriorates.
This particular UK share provides a range of services to distressed companies. And it has seen business activity rocket as furlough support for business has come to an end.
Latest financials showed that trading between November and January was “significantly ahead” of the same period a year earlier.
Insolvency numbers are back at pre-pandemic levels, Begbies Traynor has noted. More complex administrations remain below norms but I’m expecting conditions across the business to improve in the months ahead as economic conditions worsen.
Last week, the Office for Budget Responsibility slashed its UK growth forecasts for 2022 to 3.8%. This was down significantly from a previous estimate of 6% and illustrates the immense pressure inflation is exerting on UK business.
Too cheap to miss?
City analysts think Begbies Traynor’s earnings will rise 23% in the financial year ending April, keeping the company’s long record of annual earnings growth running. A 10% on-year increase is predicted for next year as well.
An unexpected pickup in the domestic economy could demolish these bullish profits forecasts. Yet, at current prices, I’d be prepared to take a risk. Today Begbies Traynor trades on a bargain-basement forward price-to-earnings (PEG) ratio of 0.6.
