2 double-digit growth stocks that could help you retire early

Finding shares which offer double-digit earnings growth prospects at a reasonable price is never easy. Such companies are relatively rare - even in bull markets. As such, their valuations usually increase due to a degree of rarity value, which means their upside potential may be somewhat limited.

Despite this, there are still a number of shares which could offer high growth potential at a reasonable price. Here are two such companies which appear to do just that.

Impressive performance

Reporting on Monday was supplier of connectivity solutions, power supplies and interface displays, Stadium Group(LSE: SDM). The company announced a solid first-half performance for the year to date. It has traded in line with expectations, and is ahead of H1 from the previous year. Its order book has continued to grow, and now stands at above £28m. This is up from £25.8m at the year end, with the company remaining confident about delivering further progress in the current year.

Looking ahead, Stadium Group is forecast to record a rise in its bottom line of 17% in the current year. It is due to follow this up with growth of 21% next year, which means its earnings could be as much as 42% higher in 2018 than they were in 2016. Even though this may be the case, the company continues to trade on a relatively low valuation. For example, it has a price-to-earnings growth (PEG) ratio of just 0.5.

This suggests that there could be substantial upside potential over the medium term, and that the company's 54% share price rise since the start of the year may not be the end of its current run. As such, now could be the perfect time to buy it for the long term.

Purple patch

Over the next two years, metrology specialist Renishaw(LSE: RSW) is forecast to report a vast improvement on its recent financial performance. Having delivered a 43% decline in earnings last year, its bottom line is forecast to rise by 27% in the current year. This is set to be followed by further growth of 13% next year, which has the potential to drastically improve investor sentiment even after a 45% rise in its share price since the turn of the year.

Despite double-digit growth being forecast, Renishaw trades on a PEG ratio of only 1.1. This suggests that the company has a sufficiently wide margin of safety to merit investment at the present time.

Certainly, the company has proven to be relatively cyclical in the past. And there is a chance its outlook will be downgraded. However, with a fundamentally sound business and excellent strategy, it looks set to deliver rising profitability and upside potential. As well as this, its dividends are covered 2.4 times by profit, which suggests its dividend yield of 1.4% could move higher over the medium term.

Top growth stock

Despite this, there's another stock that could be an even better buy. In fact it's been named as A Top Growth Share From The Motley Fool.

The company in question could make a real impact on your bottom line in 2017 and beyond. It could help you to beat the index and enjoy strong portfolio growth over the long run.

Click here to find out all about it - doing so is completely free and comes without any obligation.

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Renishaw. 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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