Here are six shares I think may have a surprise in store for investors this February.
Flight Centre Travel Group Ltd (ASX: FLT)
Travel agent Flight Centre's share price has been on a steady decline since early 2014 and so today looks to be excellent value if you believe the company can return to steady earnings growth. The trouble is that underlying profits have been flat since 2013. Meanwhile, over the same time smaller online rival Webjet Limited (ASX: WEB) has delivered a 54% improvement in underlying profit after tax to $22.2 million. Flight Centre could be a buy if its half yearly shows a profit uplift.
Blackmores Limited (ASX: BKL)
Vitamin company Blackmores had a tough start to the year because of changes in the way Chinese consumers source its products leading to overstocking in Australian retail channels. Blackmores is not the only company to experience these problems with baby milk formula provider Bellamy's Australia Ltd (ASX: BAL) also suffering. Blackmores' half year report will reveal if the company has recovered from these issues as per management expectations or if they present a longer term challenge.
Platinum Asset Management Limited (ASX: PTM)
This fund manager has seen its share price decline by over 40% since early 2015 as several of its funds are going through a period of underperformance. However, since inception Platinum has substantially outperformed benchmarks across all its major funds and so the current blip is likely to be just that. Indeed, in November the company announced that performance has been strong for the first four months of the year. It will take time for this to translate into higher funds under management and hence profit growth, but now may be the time to buy this stock whilst it is out of favour.
REA Group Limited (ASX: REA)
I'll be reading online real estate portal business REA Group's interim report for two reasons. Firstly, to find out if the company can maintain its astonishing multi-year record of revenue and profit growth and secondly to see if I can learn anything about the state of Australia's property market. Many believe that Australia's property market is firmly in bubble territory and a significant fall in listings for REA could indicate a market top.
Vocus Group Ltd (ASX: VOC)
Like listed peer TPG Telecom Ltd (ASX: TPM), this telco is in the doghouse with market participants right now. Shares are trading hands for less than half of what they were just six months ago, even though management have guided that they expect earnings-per-share (EPS) growth in the low to mid-teens this year. However, profits are expected to be skewed towards the second half and so the upcoming report may do little to allay market jitters, but equally it could provide a fantastic buying opportunity.
Fortescue Metals Group Limited (ASX: FMG)
The share price performance of this iron ore upstart has been nothing short of spectacular over the past year. A killer combination of rising volumes and prices, and falling costs has seen its stock price rise by 273%. The company is rapidly paying off debt and net debt now stands at just US$4 billion down from US$6 billion last year. Fortescue should report a stellar set of results this time around.
