A FTSE 100 super growth stock to make you rich!

Royston Wild looks at a FTSE 100 (INDEXFTSE: UKX) share with exceptional earnings potential.

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There are plenty of shares across the FTSE 100 that have the potential to deliver phenomenal earnings growth in the near term and beyond.

Thanks to its exceptional geographic footprint I am convinced that InterContinental Hotels Group (LSE: IHG) is one such share. Indeed, City brokers are predicting that the accommodation star will keep the bottom line swelling by double-digit percentages for some time yet (rises of 17% and 10% are expected in 2017 and 2018 alone).

While I plan to look at the big-cap beauty a little more, I think it’s also worth having a look at roadside barriers and signage provider Hill & Smith Holdings (LSE: HILS) right now.

Revenues rising

The market has not exactly put out the bunting following the release of Hill & Smith’s latest update on Wednesday, however.

It was last 2% lower on the day despite the FTSE 250 firm putting out a reassuring update in which it was advised that trading came in “in line with its expectations” during the four months to October 31.

Revenues galloped to ÂŁ201.5m in the period from ÂŁ189.6m in the same 2016 period, with organic sales advancing 4% adjusting for currency effects and the impact of acquisitions and disposals.

The results led chief executive Derek Muir to comment: “Overall, conditions in many of our infrastructure end markets remain favourable and we continue to expect the group to report good progress for 2017.”

Read the signs

Now conditions are not exactly perfect for It right now, the Solihull-based business declared: “A small number of road schemes have been delayed into 2018 resulting in lower utilisation of our temporary safety barriers.”

But the vast amounts government is spending to upgrade Britain’s road network means that this demand hiccup is likely to prove a temporary problem. Indeed, Hill & Smith commented “We continue to expect a ramp up in activity towards the end of the first quarter in 2018 and for utilisation to improve on 2017.”

And it continues to enjoy solid customer interest overseas too — in Australia business has been “performing ahead of expectations,” while the firm described its performance in the US and Sweden as “good.”

So City brokers are expecting earnings at Hill & Smith to rise 9% and 5% in 2017 and 2018 respectively, forecasts that are anticipated to keep dividends rising at a fair lick too (last year’s 26.4p per share payout is anticipated to rise to 28.9p this year and 30.2p in 2018, meaning investors can also dial into handy yields of 2.2% and 2.4% for these years).

I am convinced its leading position in the road furniture market should deliver splendid shareholder returns in the coming years, and reckon the firm is worthy of a forward P/E ratio of 18 times.

No time to nap

Like Hill & Smith, InterContinental Hotels may also be looking a little expensive on paper. Based on current forecasts the hotel giant sports a prospective P/E rating of 24.1 times.

But in my opinion the possibility of breakneck profits growth still makes the Footsie star a compelling pick at current prices, and particularly when you also throw in handy little yields of 1.9% ad 2% for this year and next.

InterContinental Hotels saw revenue per available room rise 2.3% during July-September and, with the company expanding across the globe at a colossal rate (it opened 11,000 new rooms in the past quarter and boasts a pipeline of another 235,000), it can look forward to steady earnings growth long into the future.

RISK WARNING: should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice. The Motley Fool believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Where we promote an affiliate partner’s brokerage products, these are focused on the trading of readily releasable securities.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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