Today I am looking at three FTSE 100 beauties expected to deliver stunning earnings growth in 2015 and beyond.
City brokers expect chipbuilder ARM Holdings (LSE: ARM) (NASDAQ: ARMH.US) to keep on churning out explosive earnings growth on the back of its portfolio of market-leading technology, a quality which has sealed its top-tier status to the worlds biggest gadget manufacturers like Apple. Current forecasts point to a 22% expansion in the bottom line this year, and an extra 20% advance is estimated for 2016.
At face value ARM Holdings may not be considered the most attractive stock available owing to stratospheric P/E multiples of 33.7 times and 27.8 times for 2015 and 2016 respectively, figures which also leave it prone to huge share price swings should earnings projections come under pressure.
But with revenues from in the critical smartphone market having improved following Apples exceptional iPhone launch during the autumn, and ARM Holdings expanding aggressively in the next-gen growth sectors of networking and servers, I believe that the firm is in exceptional shape to make good on analyst assumptions.
Budget airliner easyJet (LSE: EZJ) continues to benefit from bubbly demand from holidaymakers and business customers alike for cheap air travel. As has been seen in the UK grocery sector, consumers are now demanding more bang for their buck in the post-recession landscape, exacerbated by lasting economic pressure on travellers wallets.
Indeed, the carrier announced last week that passenger numbers leapt 6.5% during 2014 to 65.3 million, and easyJets ongoing route and airport-adding programme promises to keep earnings growth soaring in future years. Meanwhile a nosediving oil price should also looks likely to boost the bottom line in coming years.
The number crunchers expect easyJet to see earnings soar 11% in the 12 months ending September 2015, and a further 13% improvement is pencilled in for fiscal 2016. As a result the business changes hands on highly-attractive P/E multiples of 12.6 times and 11.3 times for 2015 and 2016 correspondingly.
Global insurance giant Prudential (LSE: PRU) (NYSE: PUK.US) looks set to benefit from its sprawling exposure to emerging markets, particularly those of Asia where product penetration remains relatively low yet rising disposable income levels continue to climb. Indeed, the business saw new business profit from the region jump 15% during January-September, to 775m.
Like easyJet, Prudential has a terrific record of generating year-on-year earnings growth, a trend which analysts see no signs of abating the company is anticipated to see growth surge 14% in 2015, and a further 12% in 2016.
Consequently Prudential changes hands on a P/E of just 13.6 times for this year and 12.1 times for 2016. And the companys excellent value for money is really underlined by a price to earnings to growth (PEG) multiple of just 1 through to the end of next year, bang on the watermark which indicates stupendous bang for ones buck.
But whether or not you fancy stashing your cash in any of the firms mentioned above, I strongly recommend you check out this brand new and exclusive report that singles out even more FTSE 100 winners to really jump start your investment income.
Our “5 Dividend Winners To Retire On” wealth report highlights a selection of incredible stocks with an excellent record of providing juicy shareholder returns. Among our picks are top retail, pharmaceutical and utilities plays that we are convinced should continue to provide red-hot dividends. Click here to download the report — it’s 100% free and comes with no further obligation.
Get FREE Issues of The Motley Fool Collective
Get straightforward advice on whats really happening with the stock markets, direct to your inbox. Help yourself with our FREE email newsletter designed to help you protect and grow your portfolio wealth.