I believe auto and aero parts builder GKN (LSE: GKN) is in prime position to enjoy a share price spurt in the weeks ahead.
The Redditch company is due to release its full-year results on Tuesday, February 28. And if GKN can put in a sunny performance similar to its update of October, I reckon investor inflows could step significantly higher.
GKN advised in autumns update that, despite challenging conditions for its Land Systems and Aerospace divisions, that group organic sales still edged 2% higher during January-September. The companys position as a top-tier supplier to major OEMs is helping it to overcomewider troubles in its key markets, and a spree of acquisitions to bolster its product range promises to keep sales movingupwards.
While market demand for GKN has rumbled higher recently the engineers share price struck 19-month tops just last week I reckon the companys low valuations leave plenty of room for further gains.
A predicted 13% earnings rise in 2017 results in a P/E ratio of 10.7 times, well below the FTSE 100 forward average of 15 times. And the reading drops to a mere 10.2 times for 2018 thanks to a predicted 5% bottom-line advance.
Build it up
I also reckon housebuilding colossus Taylor Wimpey (LSE: TW) has what it takes to surge in the days ahead.
Trading statements from across the housing industry have remained pretty solid in the months following Junes EU referendum. And I reckon Taylor Wimpeys own full-year update, also slated for February 28, could prompt fresh buying activity.
While data more recently suggests that home price growth may slow in 2017 (Nationwide saidthis week average home values rose just 0.2% in January, the weakest since November 2015) I expect ultra-supportive lending conditions and an existing shortage of housing stock to keep prices moving higher, a point made by all of the countrys major construction plays.
Besides, I reckon Taylor Wimpeys P/E ratio of 9.2 times for 2017 created by an anticipated 4% earnings improvement more than bake-in the risks facing the business. Moreover, a gargantuan 8.2% dividend yield for the current period merits serious attention
To complete the set, I believe Smurfit Kappa Groups (LSE: SKG) share price could receive fresh fuel following its own full-year results, currently scheduled for Wednesday, February 8.
Smurfit Kappa rose to record peaks late last month after raising the price of its new and recycled container board, a move that follows those of its industry rivals in recent months.
And demand remains strong for Smurfit Kappas packaging solutions the Dublin business announced in November that volumes rose by 5% during January-September enabling the business to force through such price hikes.
Unsurprisingly the City expects earnings at the business to keep trekking higher, and haschalked-in earnings expansion of 4% in both 2017 and 2018, resulting in P/E ratios of just 11.3 times and 10.8 times. I reckon this is a steal given Smurfit Kappas robust position in a growing market.
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