Are Purplebricks Group plc, Anglo American plc and Paysafe Group plc the three best stock picks EVER?

Updated
Purple Bricks estate agent sold sign
Purple Bricks estate agent sold sign

Despite today's announcement that it expects revenue for the full-year to have quadrupled on a year ago, shares in Purplebricks(LSE: PURP) have fallen as much as 7%. That could be due to profit taking, with the online estate agency having posted a share price rise of 78% during the last year. Certainly it seems to be moving in the right direction with Purplebricks' hybrid model proving popular, having also attracted 205 property experts by the end of April.

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Looking ahead, Purplebricks is expected to move from loss-making territory into profitability next year. This has the potential to continue to improve investor sentiment in the stock and with the company's flat fee, use of technology, and local property experts proving popular among house sellers, its profitability could rise significantly in future years. However, with its shares trading on a forward price to earnings (P/E) ratio of 51, it may be prudent to wait for a wider margin of safety before piling in.

Increased valuation

Anglo American(LSE: AAL) shares have also been rising rapidly in recent months. The diversified miner has recorded an increase in its valuation of 94% in the last three months and a key reason has been improved investor sentiment in the resources sector. Certainly there is scope for a fall in commodity prices over the short- to medium term, but it could be argued that the worst of the declines are now behind us and that resources stocks such as Anglo American offer considerable upside due to the potential for commodity prices to rise.

With Anglo American forecast to increase its bottom line by 36% next year, investor sentiment could continue to improve. With its shares having a price-to-earnings growth (PEG) ratio of just 0.5, they seem to offer significant upside and a wide margin of safety. Furthermore, with Anglo American making asset disposals and restructuring, it appears to be in a strong position to record further growth over the coming years.

Outperforming potential

Meanwhile, shares in Paysafe(LSE: PAYS) have soared by 35% in the last year, with the digital payments specialist having the potential to continue to outperform over a medium- to long-term period. That's largely because digital payments are increasing in popularity among consumers and the niche seems to be a strong growth play for the long term.

Evidence of the growth potential of the sector can be seen in Paysafe's growth forecasts. The company is expected to increase its bottom line by 16% in the next financial year and with its shares trading on a PEG ratio of just 0.8, they seem to offer a wide margin of safety as well as significant upward rerating potential. So while there is scope for a downgrade to Paysafe's outlook, its shares could continue to beat the index and prove to be a top stock pick for the coming years.

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

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Peter Stephens owns shares of Anglo American. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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