MENU

3 companies I think are set for huge growth in 2018 

There is nothing like increasing the bottom line to excite shareholders and potential investors. Here are three companies that are set to massively increase their earnings per share over the next 12 months. 

Kogan.com Ltd (ASX: KGN)

Kogan.com is an online retailer of a wide range of products including computers, phones, televisions, homewares, furniture, bed linen, and sports and leisure products such as camping gear. Kogan sells its own Kogan branded products as well as major brands. The company also sell insurance, travel packages, and phone plans on its website kogan.com. 

Kogan last reported earnings per share of 3.6 cents. Analysts have forecast earnings to more than triple to 14 cents per share in 2018 (up over 250%), and to increase 5 times to $0.20 per share in 2019 (up over 400%).  

Kogan shares currently trade at $6.93, which puts them at a price to earnings multiple of almost 200x trailing earnings, 50x 2018 earnings, and 35x forecasted earnings for 2019. 

Afterpay Touch Group Ltd (ASX: APT) 

Afterpay Touch Group is a technology driven payments company that provides a service and software infrastructure which facilitate the purchase of goods and services. The company is comprised of the Afterpay and Touch products.

Afterpay allows retailers to offer a ‘buy now, receive now, pay later’ service that does not require customers to enter into a traditional loan or pay any upfront fees or interest to Afterpay.  Touch is a digital payment business servicing major consumer facing organisations. 

Afterpay Touch last reported a loss per share of 1.2 cents in 2017. However, analysts have forecasted earnings to be 7 cents per share in 2018, 18 cents in 2019, and 26 cents in 2020.  

At the current share price of $7.69, Afterpay Touch is trading at a price to earnings multiple of 110x 2018 earnings, 43x forecasted 2019 earnings and 30x forecasted 2020 earnings.   

Big Un Ltd (ASX: BIG)

Big Un Limited provides video marketing services for small-to-medium businesses. Its products and services range from the production of video content that enable its customers to promote their business through to the delivery and marketing of the video content to consumers via the company’s review platform and integrated video review application. 

Big Un last reported a loss of 1.2 cents per share. Analysts have forecast earnings of 6 cents per share in 2018, 18 cents in 2019, and 26 cents in 2020. 

Big Un shares currently trade at $3.62. This puts the share price at a price to earnings multiple of 60x 2018 earnings, 20x 2019 earnings, and 14x forecasted earnings for 2020. 

Foolish takeaway

Earnings growth is a great driver of intrinsic value for shareholders. These three companies offer investors a lot of growth potential. However, beware as a lot of the growth has been factored into current prices, and any slowdown in growth or earnings miss may be detrimental for investors in the short to medium term.

If you take a long-term buy and hold approach, these 3 companies may be worth considering as they each represent leading companies in industries that are of emerging importance. 

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Stewart Vella has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!