The Motley Fool

Why the Webjet Limited share price has hit turbulence

A few days ago Webjet Limited (ASX: WEB) announced that Bloomberg incorrectly reported a softening of the FY18 guidance that the company provided on 22 February 2018.

Webjet was up 3.6% to $11.1o on Tuesday. The company is not a dividend play paying a trailing yield of 1.7% per annum (pa), trading on a forward PE ratio of 28.8 based on JB Were’s EPS forecast of $0.40 cents.

Webjet Limited’s 1H18 has gone according to plan with net profit after tax up 25%.

Flight bookings and WebBeds are driving growth. A range of higher revenue margin anxillary products offered by the company including hotels, car hire, travel insurance, cruise, motorhomes and packages are growing in aggregate faster than flights.

Bapcor Ltd (ASX: BAP) is in the same sector as Webjet, but is focused on the distribution of automotive aftermarket parts. Recently, Morgan Stanley its overweight rating and $7.00 price target on Bapcor’s shares. Earnings per share is expected to be 31 cents a share in FY18, rising to 36 cents per share in FY19. One year performance is up 9% to $5.80 trading on a forward PE ratio of 16x FY19 earnings.

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 Rosemary Steinfort has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd and owns shares in Bapcor 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 Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!