2 turnaround stocks that could make you mega rich

Investor appetite for Matomy Media Group(LSE: MTMY) improved modestly in Thursday trading following the release of ultra-encouraging financials, the stock last 2% higher on the day. I reckon those seeking shares with hot growth prospects need to give it serious attention today.

The digital marketing expert advised that revenues surged 13% during January-June, to £141m, a result that pushed adjusted EBITDA 59% higher to £9.2m.

More specifically, Matomy Media said that it enjoyed exceptional sales growth across its two core divisions. At Mobfox, programmatic mobile in-app revenues surged 104% to $25m, while at its Team Internet domain monetisation unit, the top line bulged 69% to $51.7m.

Today's results highlight the rationale behind the restructuring measures Matomy Media announced back in May. The Israeli business announced plans to double down on its core operations and to exit non-critical areas like legacy web display, social, search, and virtual currency media channels to cut costs, create a more flexible operating model and improve cash generation.

Spinning around

Matomy Media slumped into the red last year, the company clocking up losses of 13 US cents per share. But City analysts believe a sustained revival is just around the corner.

In 2017 the media play is expected to report earnings of 14.1 cents, and the bottom line is expected to improve by 41% next year to 19.9 cents. And current projections make it brilliant value -- it sports a forward P/E rating of 9.1 times, below the well-regarded bargain watermark of 10 times.

In my opinion, this value leaves plenty of upside on the back of Matomy Media's ambitious transformation programme and vast exposure to the US. The business sources two-thirds of revenues Stateside, and sales should continue to boom as ad spending steadily increases across the Pond.

Toast terrific returns

Majestic Wine (LSE: WINE) is another stock the number crunchers expect to move back into the black sooner rather than later.

The AIM-quoted business has seen its bottom line steadily contract in recent years as sales have struggled and heavy investment costs have weighed. And the City does not expect the bottom line to move back into the right direction just yet -- a 4% earnings drop is forecast for the 12 months ending March 2018.

But the fruits of its transformation strategy are expected to drive earnings skywards from fiscal 2019 onwards. It is now past the most cost-intensive part of its cycle, and sales continue to grow at a terrific rate thanks to recent customer service improvements (at Majestic Retail these have expanded for eight consecutive quarters on a like-for-like basis). And strong demand at Naked Wines in the US and Australia in the period underlines the brilliant revenues opportunities here.

Brokers are predicting an 18% profits bounce next year, and it is not difficult to see Majestic Wine maintaining this momentum as recent heavy investment pays off. In my opinion the wine seller is a great selection right now even in spite of its slightly-toppy prospective P/E multiple of 21.1 times.

This advice could make you a fortune

But whether or not you share my bullish take on Matomy Media and Majestic Wine, I strongly recommend you check out this special Fool report that could help you become a stock market genius.

Our 10 Steps To Making A Million In The Market report reveals a flurry of wise investment themes and strategies to help investors avoid heavy losses and make a fortune from their investments.

Click here to enjoy this exclusive wealth report. It's 100% free and comes with no obligation.

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.

///>