Ignoring the housebuilders is a classic case of looking a gift horse in the mouth, in my opinion.
Sure, FTSE 100 index’s firms such as Persimmon (LSE: PSN) may have spiked since the turn of 2019 — this particular firm is up around 25% over the past five or so weeks — but they’ve much further to go, in my opinion.
The business still deals on a bargain-basement forward P/E ratio of 8.5 times despite the rock-solid trading environment that brokers expect to keep driving earnings northwards. Trading updates across the sector remain bullish and Persimmon itself remarked in mid-January that “robust employment levels, low interest rates and a competitive mortgage market… have supported confidence and customer demand across the regions.”
News that these helpful conditions are still alive and well when full-year financials are released on February 26 could propel its share price still higher, helped again by that dirt-cheap earnings multiple. It’s a great buy right now, in my opinion, and especially so because of its giant 9.7% dividend yield.
Ready for lift off?
Buying up some TUI Travel (LSE: TUI) stock could also be a wise decision before it releases first-quarter numbers on February 12. Demand for the travel giant’s breaks is ripping higher and I expect this to be reflected in the upcoming release.
The strength of sales over at TUI remains impressive despite signs of slowing economic growth in some parts of the continent. The Anglo-German company announced in mid-January that the new year bookings surge it has experienced at weekends in recent years has continued in 2019, and in response it has expanded the wide range of summer destinations it already offers for some of its continental customers.
It’s no shock to me at least, then, that City analysts are tipping more earnings rises in the near-term and for dividends to keep increasing as a consequence, too. This results in a jumbo 5.4% prospective yield and, allied with a low corresponding P/E ratio of 11.1 times, makes it a terrific share to snap up today.
FMCG star
Reckitt Benckiser Group (LSE: RB) is another brilliant share to think about buying before it unveils full-year numbers on February 18.
Why? Well, back in October, the household goods colossus in a resilient statement reiterated its revenues guidance for 2018, despite manufacturing troubles in the third quarter. News that it has hit these targets later this month could help the Durex and Dettol maker’s share price arrest a downtrend that kicked off in autumn and move higher, assisted by its forward P/E rating of 16.8 times that sits well below its historical average.
What’s more, signs of more ripping sales growth in lucrative emerging markets — territories which make Reckitt Benckiser such a compelling growth pick — could also prompt waves of fresh buying. It’s a top purchase right now, helped by its inflation-smashing 3.1% prospective dividend yield.