Snap up these 3 FTSE 100 turnaround titans before it's too late!
The clamour for stocks with huge international presence has driven Burberry's(LSE: BRBY) share price 20% higher since June's Brexit referendum. And I believe the FTSE 100 (INDEXFTSE: UKX) giant has much more left in the tank.
Economic cooling in Asia threatens to keep the handbag maker on its toes for a little longer. Indeed, weak shopper appetite in Hong Kong and Macau caused underlying revenues to flatline between April and June.
But the retailer remains convinced by the long-term potential of these far-flung marketplaces. Just last month it acquired the 15% holding in its Chinese operations for £54m, giving Burberry total control in the country.
And the fashion play is bolstering its store network and online presence across the globe to revive sales, not to mention chucking vast sums at its fashion lines and introducing hot new products such as its 'runway rucksack'.
These steps are expected to help Burberry bounce from a fractional earnings dip in the year to March 2017 -- the second successive fall if realised -- with an 8% ascent the following year.
I reckon the evergreen popularity of Burberry's brand makes it a robust growth pick for the years ahead, and more than worthy of slightly-heady P/E ratings of 18.7 times and 17.3 times for this year and next.
Like Burberry, GKN's(LSE: GKN) share price has also exploded in recent weeks, the engineer spiking to one-year highs just this week. But I reckon the firm still remains hugely undervalued by the market.
GKN is expected to follow 2014's 4% earnings dip with bottom-line stagnation in the current period, reflecting ongoing demand weakness for its agricultural and construction-related products.
Still, improving off-take across its automotive and aerospace divisions is expected to blast earnings 11% higher next year. And I expect income to keep on growing as car and civil aircraft build rates keep growing, and GKN's fresh cost-cutting initiatives click through the gears.
As such, I reckon P/E ratios of 11.7 times and 10.6 times for 2016 and 2017 respectively make GKN a stunning value stock for long-term investors.
China has been a major problem for Diageo(LSE: DGE) in recent times as anti-extravagance measures have dented alcohol demand in the country.
While sales may have recovered somewhat since 2012, latest data suggests that sales in the Asian powerhouse aren't about to flip higher any time soon. Indeed, UBS suggests that Chinese spending on whisky during the next six months is expected to stagnate from levels seen in the past half year.
But China isn't the only game in town for Diageo. Revived spirit sales in North America alone -- the company's largest single market -- provide reason for much optimism, where huge marketing and product investment is paying off handsomely.
And the City expects massive organic investment and acquisitions in other locations to get earnings moving again following last year's modest 1% improvement.
A 15% rise is predicted for the 12 months to June 2017, and I expect a renewed focus on blockbuster brands like Captain Morgan rum to underpin further hefty growth, more than justifying Diageo's premium P/E rating of 20.6 times.
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Royston Wild has no position in any shares mentioned. The Motley Fool UK owns shares of GKN. The Motley Fool UK has recommended Burberry and Diageo. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.