Latest news with #growthStrategy
Yahoo
a day ago
- Business
- Yahoo
Value stocks in aerospace… yes, please!
Melrose Industries (LSE:MRO) and Airbus are both major players in the aerospace sector, albeit the former being much smaller than the latter. However, I also believe they're both rather exciting value stocks, providing exposure to a fast-growing sector with secular trends contributing to strong expected earnings growth. And by secular trends, I'm referring to rising global air traffic, a growing middle class, and surging demand for more efficient, sustainable aircraft. Advancements in digital technologies, artificial intelligence (AI) and automation are transforming manufacturing and maintenance, while defence spending and aftermarket services provide resilient long-term growth opportunities for the sector. What's more, both companies are executing ambitious growth strategies and, crucially, their forward-looking financial metrics suggest the market may be underestimating their long-term potential. Starting with Melrose, the company's transformation into a pureplay aerospace specialist is already showing results. In 2024, adjusted diluted earnings per share (EPS) surged 45% to 26.4p, with operating profit up 38% and margins expanding. Management has set a bold, but achievable, target of more than 20% annual EPS growth through to 2029. Noting the starting point, this could lead us to adjusted EPS between 65.7p and 80.6p by then, depending on the growth scenario. Even using 2023 as the starting point, EPS could reach 55.8p to 71.3p. With shares trading at 475p, this implies a forward 2029 price-to-earnings (P/E) ratio between just 5.9 times and 8.5 times. I'd suggest that's remarkably low for a business with a strong economic moat and one with claims 70% of its revenue comes from products where it's the sole producer. Moreover, the forward price-to-earnings-to-growth (PEG) ratio also points to severe undervaluation. Using the forward P/E ratio of 13.7 times for 2025, and a 20% earnings growth rate, the PEG ratio comes in a 0.69. Yes, the company's carrying a significant amount of debt. — £1.3bn. And if things don't go to plan, that's a bit of a concern. However, even factoring in the debt, the PEG ratio's significantly under one, and far below the global industrials sector average of around 1.8. The stock might not grow 1,000% like Rolls-Royce has from its nadir, but it absolutely could surge. I think we just need to see some solid earnings beats (beating expectations) in order to gain the market's attention. As for Airbus, which is listed in Europe, the financial story is one of steady improvement and growing shareholder returns. The stock currently trades at 24.6 times forward earnings for 2025. This falls to 20.2 in 2026, and just 17.6 by 2027 as earnings accelerate. Taking the forward P/E for 2025 and dividing it by earnings growth of 16%, we get a PEG ratio of 1.54. I don't think that's problematic considering its duopoly in aircraft manufacturing. I'm sure investors will be keen to point out concerns relating to tariffs and even quality assurance. However for me, it remains a quality company with a strong net cash position — €11.8bn. I believe both these stocks should be carefully considered by investors. I'm not the only bull either. Analysts currently see Airbus as undervalued by 13% and Melrose by 33%, suggesting meaningful appreciation in the near term. The post Value stocks in aerospace… yes, please! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Melrose Industries Plc and Rolls-Royce Plc. The Motley Fool UK has recommended Melrose Industries Plc and Rolls-Royce Plc. 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. Motley Fool UK 2025 Sign in to access your portfolio
Globe and Mail
09-06-2025
- Business
- Globe and Mail
Can TJX's Global Expansion Plan Unlock its Next Growth Phase?
As The TJX Companies, Inc. TJX maintains its stronghold in U.S. off-price retail, the spotlight is now turning to the global expansion strategy as a potential engine for long-term growth. On the first-quarter fiscal 2026 earnings call, TJX emphasized continued momentum in international markets, particularly in Europe, Canada and Australia, and a planned market entry into Spain in 2026 through its TK Maxx banner. Comparable sales in TJX International rose 5% during the quarter, with Australia singled out for 'outstanding' performance and TJX Canada also posting a solid 5% increase. The TJX Companies is also deepening footprint in emerging markets through the joint venture with Grupo Axo in Mexico and a strategic investment in Brands For Less, strengthening its presence in the Middle East. With a well-established global sourcing network spanning more than 100 countries and a highly flexible merchandising model, The TJX Companies appears well-positioned to replicate its U.S. success across geographies. Management reaffirmed that its off-price value proposition, branded goods at everyday low prices, resonates across customer demographics and international markets alike. These attributes, coupled with the brand's adaptability and treasure-hunt appeal, form the foundation for what could be The TJX Companies' next major growth chapter abroad. How Are BURL & COST Approaching Expansion Compared With TJX? While TJX is betting on international expansion for growth, both Burlington Stores, Inc. BURL and Costco Wholesale Corporation COST are scaling through different store expansion strategies. Burlington plans to open 100 net new stores in fiscal 2025, with additional momentum from acquiring 46 JOANN Fabrics leases for fiscal 2026. Burlington's strategy capitalizes on real estate availability and supports the Burlington 2.0 framework for long-term growth and store productivity. Costco is expanding its international footprint with nine warehouse openings during the third quarter of fiscal 2025, on track to reach 914 global locations. This expansion reflects Costco's broader strategy to enhance member experience, strengthen its global footprint and drive long-term value through continued investment in new locations and operational efficiency. TJX's Price Performance, Valuation and Estimates Shares of The TJX Companies have risen 9.6% in the past three months compared with the industry 's growth of 8.9%. From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 27.77X, below the industry's average of 33.53X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for The TJX Companies' current fiscal-year sales and earnings per share implies year-over-year growth of 4.4% and 4.7%, respectively. TJX stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Burlington Stores, Inc. (BURL): Free Stock Analysis Report
News.com.au
05-06-2025
- Business
- News.com.au
Kevin Casey: How Inorganic Activity Can Spur Organic Growth
'We leverage M&A as a way to propel organic growth,' says the managing director at Pathstone. 'If there's not an organic growth kind of thesis behind an acquisition, we're not going to pursue it.'
RNZ News
28-05-2025
- Business
- RNZ News
Infratil eyes sale of $1b in assets as it targets stronger growth
Infratil chief executive Jason Boyes Photo: Supplied Infratil is looking to sell about a billion dollars of assets over the next two to three years as part of a strategy to create more shareholder value. "We're much bigger now than we used to be and so we've taken a look at our strategy," Infratil chief executive Jason Boyes said, following the release of its full year result . He said all business units needed to fit with the growth strategy, which included CDC Data Centres, One NZ, Wellington Airport, RetireAustralia and healthcare assets. "Every business really has to contribute, and if they can't scale in our ownership . . . then we're better to find a better owner for them and move on, and move that capital into things that can meaningfully contribute in the long term." He said no decisions had been made about what was up for sale, though the retirement business was one asset it had considered selling in the past. "So that would definitely be one that we would not see being in the portfolio over the long term." He said Wellington Airport still had growth potential. "I think there are actually ways to scale our exposure to airports, which are interesting, but it has to, over time meet the same requirements as every other business which is it needs to be big enough to contribute meaningfully, as we hopefully continue to grow." Healthcare services were also showing growth potential, with advances in technology. "A niche sub-sector of radiology is growing really fast globally and could be a way for those businesses to scale in the portfolio and remain interesting and relevant for shareholders." Boyes said the proceeds of any sale would likely support growth in renewable energy. "Our investment in renewable energy in Southeast Asia and Singapore - that is a business that could take a good chunk of that billion dollars . . . particularly with a big project they're working on there with the help of the Singapore government. "So that's one place (further investment) could go, but we always look around for the next theme that we want to be exposed to as early as we can." One of the theme areas Infratil was looking at was advanced logistics, such as robots and warehouses dispensing pharmaceuticals or other items. "A very interesting infrastructure-like asset that doesn't currently exist today. I wouldn't be surprised to see that turn up at some point, or an idea like that," Boyes said. "I think that's the best way to think about the portfolio is how it's going to develop over time. "The individual assets change, themes come and go, but actually for something that's been going for 31 years, the recurring theme is how you manage that over a long period of time."
Zawya
14-05-2025
- Business
- Zawya
ADNOC Gas joins MSCI emerging markets index
Inclusion in the Index is expected to increase cash inflows by between $300-$500 million and attract more international institutional investors Announcement follows successful $2.84 billion marketed offering, raising free float by 80% and increasing average daily trading volume sixfold MSCI Index inclusion to take effect June 2, marking a significant step in ADNOC Gas' growth strategy and future value creation ADNOC Gas' growth strategy targets 40% EBITDA increase by 2029, underpinned by a robust pipeline of projects Abu Dhabi, UAE: ADNOC Gas plc and its subsidiaries (together referred to as 'ADNOC Gas' or the 'Company') (ADX symbol: ADNOCGAS / ISIN: AEE01195A234), a world-class integrated gas processing and sales company, today announced that its shares (ADX Symbol: ADNOCGAS / ISIN: AEE01195A234) have been selected for inclusion in the MSCI Emerging Markets Index after successfully meeting the MSCI's established eligibility criteria. The inclusion will take effect on June 2, 2025. The MSCI Emerging Markets Index serves as a benchmark for the performance of prominent large and mid-cap publicly listed companies in 24 emerging market countries. ADNOC Gas becomes the third ADNOC company to be admitted to the Index, and its inclusion marks a significant milestone in the Company's ongoing efforts to enhance its global investment profile. The development is set to increase the Company's visibility among international institutional investors, which could improve passive cash inflows by between $300 to $500 million and facilitate a more diversified investor base. Fatema Mohamed Al Nuaimi, Chief Executive Officer at ADNOC Gas, added: 'We are delighted that ADNOC Gas has been included in the MSCI Emerging Market Index. The inclusion supports our ambition to attract a broader and more diversified base of institutional investors and should drive greater liquidity in ADNOC Gas stock. The recent $2.84 billion marketed offering, which increased the Company's free float by 80%, has already led to a sixfold rise in average daily trading volume, and we are confident that our continued strategic focus on growth will deliver further value for shareholders through 2025 and beyond.' Strategic Growth and Investment Pipeline ADNOC Gas' exceptional performance since its 2023 listing is a result of disciplined execution of its growth strategy, which includes a commitment to invest $15 billion in attractive opportunities from 2025 to 2029. The Company has a robust pipeline of growth initiatives, including major projects aimed at enhancing its position as a leading global supplier of gas. The strategy aims to deliver a 40% increase in EBITDA between 2023 and 2029, supported by a diversified portfolio of projects designed to maximize value creation. Expected Market Impact With greater exposure to institutional investors, ADNOC Gas is well-positioned to benefit from increased liquidity, deeper market penetration, and enhanced stock visibility. The Company anticipates that the inclusion should result in higher trading volumes and improved investor engagement, further solidifying its position as a leading energy player in the global market. Additionally, ADNOC Gas' efforts to increase the free float, along with its growing strategic investments, should support its long-term goal of enhancing shareholder returns. About ADNOC Gas ADNOC Gas, listed on the ADX (ADX symbol: 'ADNOCGAS' / ISIN: 'AEE01195A234'), is a world-class, large-scale integrated gas processing and sales company operating across the gas value chain, from receipt of feedstock from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to domestic and international customers. ADNOC Gas supplies approximately 60% of the UAE's sales gas needs and supplies end-customers in over 20 countries. To find out more, visit: (X) @ADNOCGas For investor inquiries, please contact: Richard Griffith Manager, Investor Relations +971 (2) 603 7445 ir@ For media inquiries, please contact: Colin Joyce Vice President, Corporate Communications +971 (2) 603 7444
