ITVs(LSE: ITV) rapid growth over the past five years has been nothing short of impressive. Indeed, the companys earnings have grown at a compounded annual rate of 36% since 2009 and theres further growth to come.
City analysts believe that ITVs earningsper share will expand a further17.4%to 15.7p this year. Based on the fact that the company is currently trading at a forward P/E of 15.7, this indicates thatITVs shares trade at a PEG ratio of 0.9 a PEG ratio below one indicates growth at a reasonable price.
Whats more, analysts believe that ITV will announce a 57% hike in its dividend payout this year as earnings charge higher. Based on these expectations the company is set to support a dividend yield of 3.1% for full-year 2015.
Explosive growth
Office outsourcerRegus(LSE: RGU) has been on a growth tangent since the end of the financial crisis. For full-year 2015 analysts expect the company to report earnings per share of 10.7p, compared to the figure of 1.9p reported for full-year 2010, a gain of over 400%.
Regus growth is set to continuefor the next two years. Analysts expect the companys earnings per share to expand 44% this year and a further 36% during 2016.
Unfortunately, for this kind of growth you have to pay a premium and Regus currently trades at a premium forward P/E of 23.5. However, based on the fact that the companys earnings are set to expand 44% this year, the companys shares are trading at a PEG ratio of 0.5.
Regus currentlysupports a dividend yield of 1.7%.
Earnings upgrade
City analysts have become increasingly upbeat aboutLavendons(LSE: LVD) outlook during the past 12months.
Specifically, analysts have raised theirgrowth forecasts for the company four times since August last year. Now, analysts expect the companys earnings to expand 12% this year. As the company is currently trading at a forward P/E of 10.4, and PEG ratio of 0.9,Lavendonlooks to offer growth at a reasonable price.
Lavendon supports a dividend yield of 2.8%, and the payout is covered three-and-a-half times by earnings per share.
Growth and income
Telecom plus(LSE: TEP) offers the rare combination of both an attractive growth outlook and solid dividend yield.
Telecoms earnings are forecast to expand 31% this year, which when compared to the groups forward P/E of 16.5 gives a PEG ratio of 0.5. Also, at present levels the company supports a dividend yield of 4.9%.
Over the next two years, analysts have pencilled in dividend growth of 15% per annum. The payout is covered 1.2 times by earnings per share.
Dirt cheap
Gulf Marine Services(LSE: GMS) is without a doubt one of the cheapest stocks around. The company currently trades at a dismal forward P/E of 6 and analysts believe earnings per share will expand 22% this year. These numbers give a PEG ratio of 0.3.
At present, Gulf Marine only yields 1.6% although the payout is covered ten times by earnings per share which leaves plenty of room for growth. Group debt is low, so theres no need to retainprofitfor reinvesting later. Shareholders could be in line for a special payout in the near future.
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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.