While many investors are uncertain about the future at the moment, I’m feeling upbeat about the prospects for shares in Purplebricks Group PLC (LON:PURP) (PURP.L), IQE plc (LON:IQE) (IQE.L), Boohoo.Com PLC (LON:BOO) (BOO.L) and Legal & General Group Plc (LON:LGEN) (LGEN.L).
Purplebricks seems to have a sound business model to my mind. Its decision to expand into the USA and Australia could lead to improved financial performance, while also helping to diversify its business model.
The company also has a strong position within its main UK market. With a potential tailwind from consumers who are seeking lower cost estate agency services, I think Purplebricks could make further share price gains in the long run.
IQE is a company which has taken 2017 by storm. Its share price has risen over 350% since the start of the year as investors have become increasingly excited about its growth prospects. Those growth prospects were improved recently in my view by the company’s decision to pursue a capital raising. This could open up new opportunities as well as help strengthen the operational side of the business.
With a PEG of 1.4, I do not think IQE is expensive at the moment. Therefore, I believe more upside potential may be ahead.
Boohoo is another stock which I feel optimistic about. The company has been able to deliver on its strategy, with its acquisition programme helping it to deliver consistently high sales growth.
The company is expected to record a rise in its bottom line of around 27% per annum this year and in 2018. In my view, this could mean that investor sentiment has more scope to improve. This could push the Boohoo share price higher over the medium term.
Legal & General is one of my top picks in the financial services sector. The company has a good track record of growth, while its 6% dividend yield has appeal at a time when inflation is forecast to move higher than its 3% level.
With Legal & General having a P/E of around 10.5, the company seems to offer a large margin of safety in my opinion. Therefore, after a rise in its share price of 9% in the last year, I believe there could still be some capital growth potential ahead in the long run.